Resolution No. 94-32

RESOLUTION

OF THE

COUNCIL OF THE SOUTHERN UTE INDIAN TRIBE

February ~ 1994

WHEREAS, authority is vested in the Southern Ute Indian Tribal Council by the

Constitution adopted by the Southern Ute Indian Tribe and approved November 4, 1936,

and amended October 1, 1975, to act for the Southern Ute Indian Tribe (the Tribe); and

WHEREAS, pursuant to said constitutional authority and the Indian Gaming

Regulatory Act, Pub. L. 100-497, codified at 25 U.S.C. 2701, et seq., the Southern Ute

Indian Tribal Council is empowered to govern the conduct of certain gaming activities on

land within the Southern Ute Indian Reservation; and

WHEREAS, the Tribe desires to amend its Class Ill Gaming Code, which governs

and regulates Class III gaming activities; and

WHEREAS, pursuant to the Indian Gaming Regulatory Act, said Code is subject

to approval by the National Indian Gaming Commission, which has reviewed the previous

Class III Gaming Code and identified certain deficiencies; and

WHEREAS, the Southern Ute Indian Tribal Council, acting as the Southern Ute

Indian Gaming Committee, has reviewed the attached amended Code.

NOW, THEREFORE, BE IT RESOLVED that the Southern Ute Indian Tribal

Council hereby approves and adopts the Class Ill Gaming Code, a copy of which is

attached hereto and incorporated herein by reference, and repeals all prior Class Ill

Gaming codes.

BE IT FURTHER RESOLVED, that the Chairman of the Southern Ute Indian Tribal

Council is authorized to execute any additional documents that may be needed to carry

out the purpose of this Resolution.

BE IT FURTHER RESOLVED, that a copy of this Resolution and attachments be

submitted expeditiously to the Bureau of Indian Affairs and the National Indian Gaming

Commission for prompt review and approval.

This Resolution was duly adopted on the 28th day of February, 1994.

1
CERTIFICATION

This is to certify that there were (5) of the regularly elected Southern Ute

Indian Tribal Council members present at the above meeting at which (5) voted

for, and (0) against, it being a quorum and the above Resolution was passed.

The Chairman not being permitted to vote in this instance due to a Constitutional

provision.

I

Andrea B. Howell, Recording Secretary

Southern Ute Indian Tribal Council

~irman

Southern Ute Indian Tribal Council
SOUTHERN UTE iNDIAN TRIBE

GAMING CODE

TITLE 16

TABLE OF CONTENTS

ARTICLE 1. GENERAL PROVISIONS

16-1-101. Short Title 1

16-1-102. Legislative Declaration 1

16-1-103. Definitions 2

16-1-104. Construction 7

16-1-105. Authorized Games 7

16-1-106. Unauthorized Games 8

16-1-107. Gaming Authorization -

Regulation 8

16-1-108. Enforcement 8

16-1-109. Severability 8

16-1-110. Effective Date 8

16-1-111. Repeal 8

ARTICLE 2. DIVISION OF GAMING

16-2-101. Division of Gaming - Creation 9

16-2- 102. Function of Division 9

16-2-103. Director -

Qualifications - Power and Duties 9

16-2-104. Investigator - Peace Officers 10

16-2-105. Division of Gaming -

Access to Records 11

ARTICLE 3. SOUTHERN UTE INDIAN TRIBAL GAMING COMMI1TEE

16-3-101. Southern Ute Indian Tribal Gaming Committee - Creation 12

16-3- 102. Committee - Powers and Duties 12

16-3-103. Recessed Meetings 13

16-3-104. Appointment of Task Force 13

16-3- 105. Delegation 13

16-3-106. Request for Hearing 13

16-3-107. Conduct of Hearing 13

16-3-108. Summoning of Licensee 13

16-3-109. Service and Filing 14

16-3-110. Judicial Review 14
ARTICLE 4. CONFLICT OF INTEREST

16-4-101. Conflict of Interest 15

16-4-102. Prohibitions on Giving Items of Value 15

16-4-103. Financial Interest Restrictions 15

16-4-104. Personal Pecuniary Gain or Conflict of Interest 16

ARTICLE 5. LICENSING

16-5- 101. Licenses -

Types 17

16-5-102. License Term 17

16-5-103. Key Employee -

Determination of Status 17

16-5-104. Licenses -

Revocable -

Nontransferable 18

16-5-105. Operator, Slot Machine Manufacturer, Key Licensee,

or Support Licensee -

Qualifications for Licensure 18

16-5-106. Considerations for Licensure 18

16-5-107. Temporary Licenses 18

15-5-108. Conditional Licenses 18

16-5-109. Licensed Premises -

Floor Plan 18

16-5-110. License -

Disqualifications - Criteria 18

16-5-111. Applicants and Licensees -

Providing Information 19

16-5-112. Application - Fee -

Waiver of Confidentiality 20

16-5-113. Application -

Authorization for Background Investigation 20

16-5-114. License - Grounds for Approval or Denial 20

16-5-115. Licensed Premises -

Safety Conditions 20

16-5-116. Construction and Maintenance of Gaming Facilities 21

16-5-117. Buildings -

Accessible to Handicapped 21

16-5-118. Waiver From Liability - Disclosures or Publications 21

16-5-119. Renewal of Licenses 21

16-5-120. Denial of Application 22

16-5-12 1. Appeal of Final Action of Committee 22

16-5-122. Executive and Closed Meetings 22

16-5-123. Communications -

Privileged and Confidential 22

16-5-124. Summary Suspension 22

16-5-125. Suspension or Revocation of License - Grounds -

Penalties 22

16-5-126. Records -

Confidentiality -

Exceptions 23

16-5-127. Committee Access to Files and Records 24

ARTICLE 6. APPLICATIONS, INVESTIGATIONS AND LICENSURE

16-6-101. Qualifications for Licensure 25

16-6- 102. Applications 25

16-6-103. Background Investigations -

Procedures 26

2
16-6-104. License Term 27

16-6-105. License Fees 27

16-6-106. Application Fees 27

16-6-107. Investigation Fees 27

16-6-108. Waiver of Privilege 28

16-6-109. Regulation of Ownership Interests 28

16-6-110. Untrue Statements 28

16-6-111. Licensed Premises 28

16-6-112. Withdrawal of Application 28

16-6-113. Recommendation and Order 29

16-6-114. Temporary Licensing 29

16-6-115. Conditional Licensing 29

16-6- 116. Notice of Hearing 29

16-6-117. Approval 29

16-6-118. Non-transferability of License 29

16-6-119. Duplicate Licenses 29

ARTICLE 7. RIGHTS AND DUTIES OF LICENSEES

16-7-101. Responsibility of Operator Licensee 30

16-7-102. Discovery of Violations 30

16-7-103. Unauthorized Games 30

16-7-104. Job Descriptions - List of Personnel 30

16-7-105. Information to be Furnished by Licensee 30

16-7-106. Inspections 31

16-7-107. Duty to Maintain Records 31

16-7-108. Access to Premises and Production of Records 31

16-7-109. Employee on Premises 31

16-7-110. Licensee Identification 31

16-7-111. Display of License 31

16-7-112. Payment of Winners -

Reserves 31

16-7-113. Publication of Payoffs 32

16-7-114. Responsibilities of Operator 32

16-7-115. Player Rules 32

16-7-116. Visibly Intoxicated Persons 32

16-7-117. Advertising 32

16-7-118. Patron Disputes 32

16-7-119. Special Rules of Conduct 33

16-7-120. Procedure Upon Dissolution 33

16-7-12 1. Transfers of Interest 33

16-7-122. Termination of Employment of Key and Support Licensees 33

16-7-123. Post-Termination Matters 33

16-7-124. Restrictions on Time, Place and Structure 33

16-7-125. Revocation or Expiration of License -

Requirement

3
16-7- 126.

16-7- 127.

16-8-101.

16-8- 102.

16-8-103.

16-8-104.

16-8-105.

16-8- 106.

16-8-107.

16-8-108.

16-8- 109.

16-8-110.

16-8-1 11.

16-8- 112.

16-9-101.

16-9- 102.

16-10-101.

16-10-102.

16-10-103.

16- 10-104.

16- 10-105.

16-10-106.

16-10-107.

16-10-108.

16- 10-109.

16-10-110.

16-10-111.

16-10-112.

16-10-113.

16-10-114.

33

33

34

35

35

35

36

36

36

36

36

37

37

37

37

38

38

40

41

41

41

42

42

42

42

42

42

43

43

43

43

of Modification

Activities Which Constitute Fraud

Foreign Gaming

ARTICLE 8. GROUNDS AND PROCEDURES FOR DISCIPLINARY ACTIONS

ARTICLE 9. GAMING FUND

ARTICLE 10. UNLAWFUL ACTS

Grounds for Disciplinary Action

Initiation of Disciplinary Proceedings

Citizen Complaints Authorized - Procedure Following Filing

Informal Consultation

Assurance of Voluntary Compliance

Decision to Initiate Disciplinary Action

Criminal Convictions as Grounds for Revocation or

Suspension

Facts of Criminal Charge

Final Action by Committee

Grounds for Summary Suspension

Notice

Disciplinary Proceeding Notice Required

Gaming Fund

Audits and Annual Reports

Slot Machine Manufacturers, Operator Licensees,

Key Licensees, Support Licensees, Persons

Contracting with the Tribe

False Statement on Application - Violations of Rules or

Provisions of Code

Slot Machines -

Shipping Notices

Persons Prohibited from Interest in Gaming

Slot Machine -

Security and Audit Specifications

Gaming Equipment - Not Subject to Exclusive Agreements

Age of Participants - Violation

Persons Conducting Gaming

Employee Licensed Person -

Good Moral Character

Minimum Payback - Limit to a Slot Machine

Key and Support Licensees

Extension of Credit Prohibited

Maximum Amount of Bets

Failure to Pay Winners

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16-13-112. 60

16-13-113. 60

16-13-114. 60

16-13-115. 60

16-13-116. 61

16-13-117. 61

ARTICLE 14. GAMING DEVICES AND EQUTPMENT

16-14-101. 63

16-14-102. 63

16-14-103. 63

16-14-104. 63

16-14-105. 63

16-14-106. 64

16-14-107. 64

16-14-108. 64

16-14-109. 65

16-14-110. 65

16-14-111.

65

16-14-112. 65

16-14-113. 66

16-14-114. 66

16-14-1 15. 66

16-14-116. 67

16-14-117. 67

16-14-118. 67

16-14-119. 67

16-14-120. 68

16-14-121. 68

16-14-122. 69

16-14-123. 69

16-14-124. 70

16-14-125. 70

16-14-126. 70

16-14-127. 70

16-14-128. 70

16-14-129. 70

16-14-130. 71

16-14-131. 71

16-14-132. 71

16-14-133. 71

Handling of Cash

Minimum Bankroll Requirements

Promotional Items

Match Play Items

Procedure for Reporting and Paying Gaming Taxes and Fees

Standard Financial Statements

Audited Financial Statements

Possession of Slot Machines

Device and Equipment Approval

Testing

Blackjack Table -

Physical Characteristics

Cards -

Receipt and Storage

Cards -

Inspection and Removal From Use

Cards, Envelopes and Containers to Committee

Duties of a Licensee

Destruction of Cards

Dealing Shoes

Approval of Chips and Tokens -

Applications and

Procedures

Specifications for Chips and Tokens

Specifications for the Shape and Size of Chips

Colors of Chips

Specifications for Tokens

Other Devices

Ownership Identification on Gaming Devices

Drop Box Requirements

Definitions for Slot Machines

Control Program Requirements

Meters

Random Events

Basic Slot Machine Specifications

Safety Requirements

Backup Devices

ON and OFF Switch

Coin and Bill Acceptors

Automatic Light

Access to Interior

Hardware Switches

Display of Rules of Play

Power Supply Filter

Error Condition -

Automatic Reset

6
16-14-134. Error Condition 71

16-14-135. Hopper Mechanism 72

16-14-136. Communication Protocol 72

16-14-137. Number and Value of Credits Wagered 72

16-14-138. Software Requirements for Randomness Testing 72

16-14-139. Software Requirements for Percentage Payout 73

16-14-140. Software Requirements for Continuation of Game

After Malfunction 73

16-14-141. Progressive Slot Machines 73

16-14-142. Surveillance Requirements 75

ARTIClE 14. PURCHASE AND REDEMPTION OF COINS, CHIPS AND TOKENS

16-15-101. Use of Chips and Tokens 77

16-15-102. Redemption 77

16- 15-103. Use of Other Facilitys Chips and Tokens 77

16-15-104. Redemption and Disposal of Discontinued Chips

and Tokens 78

16-15-105. Destruction of Counterfeit Chips and Tokens 78

16-15-106. Forms of Wagers 79

16-15-107. Sale of Chips and Tokens 79

16-15-108. Procedure for Accepting Checks 79

7
SOUTHERN UTE INDIAN TRIBE

CLASS III GAMING CODE

TITLE 16

ARTICLE 1. GENERAL PROVISIONS

16-1-101. Short Title This title shall be known and may be cited as the Southern

Ute Indian Tribe Class HI Gaming Code.

16-1-102. Legislative Declaration

(1) This Code is adopted by the Southern Ute Indian Tribal Council of the Southern

Ute Indian Tribe governing the establishment and operation of Class III Gaming on the Southern

Ute Indian Reservation pursuant to the authority provided by the Indian Gaming Regulatory Act,

P.L. 100-497, 25 U.S.C. § 2701 et ~ the Southern Ute Indian Tribe - State of Colorado

Gaming Compact, and the Constitution of the Southern Ute Indian Tribe.

(2) The Southern Ute Indian Tribal Council hereby finds, determines and declares it

to be the public policy of the Tribe that:

(a) The success of gaming is dependent upon public confidence and trust that

licensed gaming is conducted honestly and competitively and that gaming is free from criminal

and corruptive elements;

(b) Public confidence and trust can be maintained only by strict regulation of

all persons, locations, practices, associations, and activities related to the operation of licensed

gaming facilities and the manufacture of gaming devices and equipment;

(c) All gaming facilities and all manufacturers and sellers of certain gaming

devices and equipment must be licensed, controlled, and assisted to protect the public health,

safety, good order, and general welfare, to foster the stability and success of gaming and to

preserve and promote the economy of the region;

(d) No applicant for a license or other Southern Ute Indian Tribal Gaming

Committee approval has any right to a license or to the granting of the approval sought. Any

license issued or other Southern Ute Indian Tribal Gaming Committee approval granted pursuant

to the provisions of this Code is a revocable privilege, and no holder acquires any vested right

therein.

(3) It is the intent of the Southern Ute Indian Tribal Council that, to achieve the goals

set forth in subsection (2) of this section, the Southern Ute Indian Tribal Gaming Committee

1
should place great weight upon the policies expressed in subsection (2) in construing the

provisions of this Code.

16-1-103. Definitions As used in this Code, unless the context otherwise requires:

(1) Act means the Indian Gaming Regulatory Act, P.L. 100-497, 25

USC §2701 ~

(2) Adjusted Gross Proceeds or AGP means the total amount of all wagers or buyins made by players on Gaming, plus the rake on non-banking card games, less all payments to

players. Payment to players shall include all payments of (a) cash, (b) chips, (c) tokens, or

(d) merchandise.

(3) Applicant means any person who has applied for a license under this Code or

who has applied for permission to engage in any act or activity which is regulated by this Code.

(4) Association means two or more persons united and acting together without a

corporate charter.

(5) Background investigation means the security, criminal history, financial checks

of an applicant for a license, plus any other information deemed relevant by the Committee or

Division, to establish the suitability of the applicant to become a licensee.

(6) Bet means an amount placed as a wager in a game of chance.

(7) Blackjack means a banking card game, also known as 21, played by a

maximum of seven players in which each player bets against the dealer. The object is to draw

cards whose value will equal or approach twenty-one without exceeding that amount and to win

amounts bet, payable by the dealer, if the player holds cards more valuable than the dealers

cards.

(8) Career offender means any person whose behavior is pursued in an occupational

manner or context for the purpose of economic gain, utilizing such methods as are deemed

criminal violations of the public policy of the Tribe.

(9) Career offender cartel means any group of persons who operate together as

career offenders.

(10) Chip means a nonmetal or partly metal representative of value, redeemable for

cash, issued and sold for use in gaming.

(11) Class III Gaming means all forms of gaming that are not Class I or Class II

Gaming, as defined by the Act.

2
(12) Code means the Southern Ute Indian Class ifi Gaming Code.

(13) Committee means the Southern Ute Indian Tribal Gaming Committee.

(14) Compact means the Southern Ute Indian Tribe -

State of Colorado Gaming

Compact.

(15) Division means the Southern Ute Indian Tribal Division of Gaming.

(16) Drop means the total face value of money, chips, coupons and tokens removed

from the drop boxes.

(17) Drop box means a locked container permanently marked with the game, shift

and a number corresponding to a permanent number on the blackjack table. For slot machines,

a container in a locked portion of the machine or its stand used to collect the money and tokens

retained that is not used to make automatic payouts from the machine.

(18) Financial institution means a bank, savings and loan association, credit union,

trust company, or other similar entity chartered by the United States, an Indian tribe, a state, or

a territory or commonwealth of the United States.

(19) Gaming means those gaming activities, which are authorized by this Code and

the Class II Gaming Code and regulated by the Committee.

(20) Gaming contract means an agreement in which a person does business with a

gaming operation on premises licensed under this Code.

(21) Gaming device or gaming equipment means any equipment or mechanical,

electromechanical, or electronic contrivance, component, or machine used remotely or directly

in connection with gaming. The term includes a system for processing information which can

alter the normal criteria of random selection which affects the operation of any game, or which

determines the outcome of a game. The term includes a slot machine, blackjack table, and the

cards used to play blackjack.

(22) Gaming employee means any person employed by the Tribe or management

company of a Gaming Operation or Gaming Facility on the Reservation to work with gaming,

which person shall be twenty-one years of age or older. Gaming employees shall include, but

shall not be limited to, the following: dealers; change and counting room personnel; cashiers;

floormen; cage personnel; slot machine repairmen or mechanics; persons who accept or transport

revenue from a slot or blackjack table drop or drop box; security personnel; shift or pit bosses;

floor managers; supervisors; slot machine and slot booth personnel; any person involved in the

handling, counting, collecting, or exchanging of money, property, checks, credit or any

representative of value, including any coin, token, chip, cash premium, merchandise, redeemable

3
game credits, or any other thing of value or payoff from any game, any gaming, or any gaming

device; and such other persons as the Committee shall by rule or regulation determine.

(23) Gaming facility means the buildings, rooms or areas in which gaming is

conducted.

(24) Gaming license means any license issued by the Committee pursuant to this

Code which authorizes any person to engage in gaming within the Southern Ute Indian

Reservation.

(25) Gaming operation means any enterprise operated on the Reservation for the

conduct of any form of Tribal gaming.

(26) Gaming services means the providing of any goods or services to be used

directly in connection with the operation of gaming, including equipment, maintenance or security

services.

(27) Gaming station means an individual gaming table.

(28) Immediate family means a persons spouse and any children actually living with

the person.

(29) Imprest bank means an area in which a predetermined dollar amount of chips,

tokens, or cash are kept by the licensee.

(30) Jackpot verification mode means the period of time between the progressive

jackpot activation of a progressive slot machine and the resetting of the device which caused its

activation.

(31) Key employee means:

(a) An employee of a gaming operation who performs one or more of the

following functions: (1) counting room supervisor~ (2) chief of security; (3) custodian of gaming

supplies or cash; (4) floor manager; (5) pit boss; (6) dealer, (7) croupier, (8) approver of credit;

(9) custodian of gambling devices including persons with access to cash and accounting records

within such devices;

(b) Any other person whose total cash compensation is in excess of $50,000

per year;

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

gaming operation; and

(d) Any other person so designated by the Division.

4
(32) Key licensee means an employee of the gaming operation who has the power

to exercise significant influence over decisions concerning the gaming operation.

(33) Licensed gaming facility means any facility licensed pursuant to this Code for

the conduct of gaming.

(34) Licensed premises means that portion of any facility licensed for the conduct of

gaming.

(35) Licensee means any person licensed under this Code by the Committee.

(36) Licensing authority means the Committee.

(37) Link means one or more progressive slot machines that are connected to a

progressive controller and that may be played in order to achieve the stated progressive amount.

(38) Local law enforcement agency means any federal, tribal or state law enforcement

agencies in the immediate vicinity of the Gaming Operation and which have jurisdiction to

enforce federal, tribal or state laws within the Reservation, or are subject to the terms of a cross

deputization agreement.

(39) Management company means any person that has entered into, or proposes to

enter into, a management contract with the Tribe for the operation and management of some or

all gaming.

(40) Matched play, in relation to promotional items, means the use of a coupon that

is issued to a patron by a gaming operation for play that must be accompanied by a bet.

(41) Moral turpitude means an act done contrary to honesty and good morals.

(42) Net revenues means the gross gaming revenues of a gaming operation less

amounts paid out as, or paid for, prizes and total gaming-related operating expenses, excluding

management fees.

(43) Normal mode means the mode of a progressive slot machine at all times other

than when it is in the jackpot verification mode.

(44) Operator licensee means the management company, which manages a tribal

gaming operation pursuant to a management contract approved by the Tribe and the National

Indian Gaming Commission (NTGC), and which holds an operator license issued by the

Committee.

(45) Past-Posting means the act of making a wager on an event after the outcome has

already been determined. This is most commonly used to refer to the act of making a wager on

5
a sporting event or other such event after the event has already occurred, or of making a wager

on an event after it has already started (such as to make a wager on a football game or horse race

after it has already begun).

(46) Person means an individual, partnership, business trust, government or

governmental subdivision or agency, estate, association, trust, for profit corporation, nonprofit

corporation, organization, or any other legal entity or a manager, agent, servant, officer or

employee thereof.

(47) Pinching a Bet means the act of decreasing a bet after the outcome of the event

or the probable outcome of an event can be determined. This is the opposite of pressing a bet

and usually refers to the act of removing part of a bet on a game such as blackjack, so as to

decrease a players loss, when it appears likely that the players wager will probably lose.

(48) Pressing a Bet means the act of increasing a bet after the outcome of the event

has been determined, or after the event has already begun. This is most commonly used to refer

to the act of increasing a bet on a game such as blackjack after the cards have already been dealt,

and the probable outcome, such as the strength of the hand, can be judged.

(49) Primary management official means: (a) the person having management

responsibility for any management contract, subcontract, or collateral agreement between the

Tribe and a contractor, or between a contractor and a subcontractor, if such contract or agreement

provides for the management of all or part of a gaming operation; (b) each of its officers and

directors if a corporation; (c) each of its owners or partners, if an unincorporated business; (d)

each of its shareholders who owns more than five percent of the shares of the corporation, if a

corporation; (e) each of its principal management employees, including any chief executive

officer, chief fmancial officer, chief operating officer, or general manager; and (f) any person

who has authority to hire and fire employees or to set up working policy for a gaming operation.

(50) Progressive controller means the hardware and software that controls all

communications among the machines within a progressive slot machine link and its associated

progressive meter.

(51) Reservation means the Southern Ute Indian Reservation as defmed in Pub. Law

98-290.

(52) Slot machine means any mechanical, electrical, video, electronic, or other device,

contrivance or machine which, after insertion of a coin, token, or similar object, or upon payment

of any required consideration by a player, is available to be played or operated, and which,

whether by reason of the skill of the player or application of the element of chance, or both, may

deliver or entitle the player operating the machine to receive cash premiums, merchandise, tokens

or redeemable free games, whether the payoff is made automatically from the machine or in any

other manner.

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(53) Slot machine manufacturer means any person who designs, assembles, fabricates,

produces, constructs or otherwise prepares a complete or component part of a slot machine, other

than tables or cabinetry; slot machine manufacturer does not include licensees performing

incidental repairs on machines owned by the Tribe.

(54) Substantial interest means the lesser of: as large an interest in a corporation,

partnership, or association as that of any other shareholder, partner, or principal; or any financial

or equity interest equal to or greater than five percent (5%).

(55) Suitability or suitable means, in relation to a person, the ability to be licensed

by the Committee and, in relation to acts or practices, lawful acts or practices.

(56) Support licensee means a gaming employee licensed by the Committee other

than operator licensees and key licensees.

(57) Token means a metal representative of value, redeemable for cash, issued and

sold for use in gaming.

(58) Tribal Council means the Tribal Council of the Southern Ute Indian Tribe of the

Southern Ute Indian Reservation.

(59) Tribe means the Southern Ute Indian Tribe.

(60) Tribes building official means the person designated by the Tribe to enforce

building codes.

(61) Tribes fire official means the person designated by the Tribe to enforce fire

safety codes.

(62) Wager means a sum of money or thing of value risked on an uncertain

occurrence.

16-1-104. Construction Nothing contained in this Code shall be so construed as to

conflict with any provision of the Compact or any applicable federal law.

16-1-105. Authorized Games Gaming permitted pursuant to this Code shall include

all games that are authorized by federal law to be conducted on the Reservation including, but

not limited to: blackjack, horse racing, dog racing, off-track betting, keno, lottery, poker (as a

banking card game), sports book, craps, roulette and slot machines. All such games shall be

conducted by licensees only in accordance with this Code. Pending the outcome of the litigation

concerning the types of games, which is contemplated in the Compact, the types of authorized

games pursuant to this Code shall be limited to those provided for in the Compact.

7
16-1-106. Unauthorized Games No licensee shall conduct or permit on its licensed

premises any wagering or gambling, except gaming which is conducted according to this Code

or the Class H Gaming Code.

16-1-107. Gaming Authorization -

Regulation Gaming is hereby authorized and may

be operated and maintained subject to the provisions of this Code. All gaming authorized by this

Code shall be regulated by the Committee.

16-1-108. Enforcement It shall be the duty of the Division to enforce the provisions

of this Code, which may be accomplished with the cooperation of other law enforcement

agencies.

16-1-109. Severability If any provision of this Code may be found unlawful, it shall

not be considered to invalidate any of the other provisions of this Code.

16-1-110. Effective Date The effective date of this Code shall be the first day

following its approval by the Tribal Council and the NTGC.

16-1-111. Repeal Upon the effective date of this Code, any previously enacted Class

III Gaming Codes shall be deemed repealed and re-enacted as contained or modified in this Code.

8
ARTICLE 2.

DIVISION OF GAMING

16-2-101. Division of Gaming - Creation There is hereby created the Division of

Gaming, the head of which shall be the director of the Division. The director shall be appointed

by, and shall be subject to removal by, the Tribal Council. The Division, the Committee created

in section 16-3-101, and the director of the Division shall exercise their respective powers and

perform their respective duties and functions as specified in this Code.

16-2-102. Function of Division The function of the Division is to implement,

regulate and supervise the conduct of gaming on the Reservation as authorized by this Code, the

Class II Gaming Code, and the Compact.

16-2-103. Director -

Qualifications - Powers and Duties The director shall be

qualified by training and experience to direct the work of the Division. The director shall be of

good character and shall not have been convicted of any felony or gambling-related offense. The

director shall devote his entire time and attention to the duties of his office and shall not be

engaged in any other profession or occupation. The director, as administrative head of the

Division, shall direct and supervise its administrative and technical activities. In addition to the

duties imposed upon the director elsewhere in this Code, it shall be the duty of the director:

(I) To supervise and administer the operation of the Division and gaming in

accordance with the provisions of this Code and the orders of the Committee.

(2) To attend meetings of the Committee or to appoint a designee to attend in the

directors place;

(3) Subject to the approval of the Tribal Council and in accordance with Tribal

personnel policies and procedures, to employ and direct such personnel as may be necessary to

carry out the purposes of this Code, but no person shall be employed who would be denied a

license under the disqualification criteria of § 16-5-110. The director, with the approval of the

Tribal Council, may enter into agreements with any department, agency, or unit of tribal

government to secure services which the director deems necessary and to provide for the payment

for such services and may employ and compensate such consultants and technical assistants as

may be required and as otherwise permitted by law.

(4) To confer with the Committee as necessary or desirable, but not less than once

each month, with regard to the operation of the Division.

(5) To make available for inspection by the Committee or any member of the

Committee, upon request, all books, records, files and other information and documents kept by

the Division.

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(6) To advise the Comimttee and recommend to the Committee rules, regulations,

amendments to this Code, and such other procedures as the director deems necessary to improve

the operation of the Division and the conduct of gaming.

(7) To establish internal control minimum procedures for licensees, including

accounting procedures and reporting procedures.

(8) To prepare and submit to the Tribal Council on an annual basis, for its approval,

a proposed budget for the succeeding fiscal year, which budget shall set forth a complete

financial plan for all proposed expenditures and anticipated revenues of the Division.

(9) To take such action as may be determined by the Committee to be necessary to

protect the security and integrity of gaming.

(10) To perform any other lawful acts which the Committee may direct in order to

carry out the purposes and provisions of this Code.

16-2-104. Investigator - Peace Officers

(1) All investigators of the Division, and their supervisors, including the director,

shall have all the powers of any peace officer, as defined in the Southern Ute Indian Criminal

Procedure Code, to:

(a) Make arrests, with or without warrants, for any violation of the provisions

of this Code, or the orders of the Committee made pursuant to this Code, any other laws or

regulations pertaining to the conduct of gaming, or any criminal law of the Tribe, if, during an

officers exercise of powers or performance of duties under this section, probable cause is

established that a violation of any said law or order has occurred.

(b) Inspect, examine, investigate, hold or impound any premises where gaming

is conducted, any devices or equipment designed for or used in gaming, and any books and

records in any way connected with any gaming activity.

(c) Require any person licensed pursuant to this Code, upon demand, to permit

an inspection of the licensed premises, gaming equipment and devices, or books or records; and

to permit the testing and the seizure for testing for examination purposes of all such devices,

equipment, books and records.

(d) Serve all warrants, notices, summonses or other processes relating to the

regulation of gaming.

(e) To inspect and examine without notice all premises where gaming is

conducted or devices or equipment used in gaming are located, manufactured, sold or distributed,

10
and to summarily seize, remove and impound, without notice or hearing, from such premises any

equipment, devices, supplies, books or records for the purpose of examination or inspection.

(f) Conduct investigations into the character, record and reputation of all

applicants for gaming licenses, all licensees and such other persons as the Committee may

determine pertaining to gaming.

(g) Investigate violations of all laws and regulations pertaining to gaming.

(h) Assist or aid any other peace officer in the performance of his duties upon

request.

(2) Criminal violations of this Code discovered during an authorized investigation or

discovered by the Division shall be referred to the appropriate law enforcement and prosecution

authorities.

(3) Nothing in this section shall be construed to prohibit other law enforcement

agencies having jurisdiction from performing their duties to the full extent permitted by law.

16-2-105. Division of Gaming - Access to Records The Division, for purposes of

this Code, shall have full authority to procure, at the expense of the Division, any records

furnished to or maintained by any entity for the purposes of carrying out its responsibilities

pursuant to this Code.

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ARTICLE 3

SOUTHERN UTE iNDIAN TRIBAL GAMING COMIVUTrEE

16-3-10 1. Southern Ute Indian Tribal Gaming Committee - Creation The Committee

shall consist of the Tribal Council or such other entity of the Tribe as the Tribal Council may

designate.

16-3-102. Committee - Powers and Duties In addition to any other powers and

duties set forth in this Code, the Committee shall have the following powers and duties, subject

to the approval of the Tribal Council:

(1) To adopt rules and regulations governing the licensing, conducting and operating

of gaming as it deems necessary to carry out the purposes of this Code.

(2) To conduct hearings upon complaints charging violations of this Code.

(3) To conduct a continuous study and investigation of gaming for the purpose of

ascertaining any defects in this Code, any abuses in the administration and operation of this Code

or any violation of this Code.

(4) To formulate and recommend changes to this Code for the purpose of preventing

abuses and violations; to guard against the use of this Code as a cloak for the conducting of

illegal activities; and to ensure that this Code shall be in such form and be so administered as

to serve its true purpose and intent.

(5) To issue temporary, permanent or conditional licenses to those involved in the

conduct of gaming.

(6) Upon complaint, or upon its own motion, to levy fines and to suspend or revoke

licenses which the Committee has issued.

(7) To establish and collect gaming fees and collect any gaming taxes.

(8) To obtain all information from licensees and other persons which the Committee

deems necessary in the conduct of its business.

(9) To issue subpoenas for the appearance of persons, or the production of records and

other evidence in connection with applications before the Committee or in connection with

disciplinary or contested cases considered by the Committee.

(10) To apply for injunctive or declaratory relief to enforce the provisions of this Code.

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(11) To exercise such other incidental powers as may be necessary to ensure the safe

and orderly regulation of gaming and the secure collection of all revenues, taxes and license fees.

(12) To demand access to and inspection, examination, photocopying and auditing of

all papers, books and records of applicants and licensees, on the licensed premises or elsewhere,

as practicable and in the presence of the applicant or licensee pertaining to financial activity of

the gaming operation and to require verification of income, expenses and all other matters

affecting the enforcement of the policies of the Committee or any provision of this Code; and

to impound or remove all papers, books and records of applicants and licensees for inspection

or examination.

(13) To oversee the management activities of primary management officials and key

licensees on an ongoing basis.

16-3-103. Recessed Meetings Any meeting of the Committee may be recessed to

consider matters which were duly noticed as items on the agenda of that meeting, to such time

and place as the Committee may designate. Notice of a recessed meeting to consider matters

which were duly noticed as items on the agenda may be given by announcement at the meeting,

but where any other matters are to be considered at a recessed meeting, such matters must be

duly noticed as required by this Code.

16-3-104. Ar~pointment of Task Forces The Committee may appoint task forces to

study and report to the Committee any matter appropriate to the administration of this Code.

16-3-105. Delegation The Committee may delegate any act required to be performed

by the Committee to the director of the Division.

16-3-106. Request for Hearing A person aggrieved by an action of the Committee

that was taken without a hearing may, within thirty (30) days following the date of the action,

request a hearing. The Committee may direct the aggrieved person to provide certain information

to the Committee prior to the hearing or it may grant the hearing conditioned upon the fulfillment

of other reasonable terms and conditions.

16-3-107. Conduct of Hearing The hearing must be held at a time and place

convenient to the Committee and the aggrieved person. The Committee shall issue all decisions

in writing within ten (10) days. Committee actions shall be deemed final in such cases upon the

mailing of the decision by first class mail to the address listed in the request for hearing.

16-3-108. Summoning of Licensee The Committee may summon any licensee to

appear to testify before it with regard to the conduct of the licensee. The testimony may be

under oath and may embrace any matters which the Committee or its agents consider relevant

to the discharge of its official duties. Testimony so taken may be used by the Committee as

evidence in any proceeding or matter then before it or which may later come before it. Failure

13
to appear and testify fully at the time and place designated, unless excused, may constitute

grounds for disciplinary action against a licensee.

16-3-109. Service and Filing If a filing or a service of notice on the Committee is

permitted or required by this Code, the filing or notice may be delivered in person or mailed to

the Committee. A filing or notice is complete on the date it is received by the Committee.

I 6-3-110. Judicial Review Any person aggrieved by a final action of the Committee

may appeal the decision to the Southern Ute Indian Tribal Court.

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ARTICLE 4.

CONFLICT OF INTEREST

16-4-101. Conflict of Interest

(1) Members of the Tribal Council, members of the Committee and employees of the

Division are declared to be in positions of public trust. In order to ensure confidence in the

integrity of gaming, the following restrictions shall apply:

(a) No member of the Tribal Council, member of the Committee or employee

of the Division, and no member of the immediate family of such persons, as defined in § 16-1-

103, shall have a direct or indirect interest in, or be employed by, any person who has entered

into a gaming-related contract with the Tribe or who is an operator licensee.

(b) No member of the Tribal Council, member of the Committee or employee

of the Division, and no member of the immediate family of such persons, as defined in § 16-1 -

103, shall receive any gift, gratuity, employment or other thing of value from any person that

contracts with or that offers services, supplies, materials or equipment used by the Tribe in the

normal course of its gaming operations, or which is licensed by the Committee; except that such

persons may accept on an infrequent basis in the normal course of business such nonpecuniary

items of insignificant value as shall be allowed by the Committee.

(c) No member of the Tribal Council, member of the Committee or employee

of the Division shall participate in gaming.

(d) No person shall be a member of the Committee or employee of the

Division who would be denied a license under the disqualification criteria of § 16-5-110.

(2) For purposes of investigating violations of this Code, the provisions of paragraphs

(b) and (c) of subsection (1) of this section shall not apply to an employee of the Division acting

in his official capacity while on duty.

16-4-102. Prohibitions on Giving Items of Value No licensee or applicant for a

license shall give anything of value to any member of the Tribal Council, member of the

Committee, or employee of the Division, except for items of insignificant value distributed

without charge to the general public by a licensee or applicant for a license.

16-4-103. Financial Interest Restrictions

(1) No manufacturer of slot machines or associated equipment shall:

(a) Have any interest, directly or indirectly, in an operator licensee;

15
(b) Allow any of its officers, or any other person with a substantial interest in

such business, to have any interest in an operator licensee;

(c) Employ any person in any capacity or allow any person to represent the

business in any way, if such person is also employed by an operator licensee;

(d) Allow any operator licensee or any primary management official to have

an interest, directly or indirectly, in the business;

(2) The word interest as used in this section does not preclude transactions in the

ordinary course of business.

16-4-104. Personal Pecuniary Gain or Conflict of Interest

(1) It is unlawful for any person to issue, suspend, revoke or renew any license

pursuant to this Code for any personal pecuniary gain or any thing of value, or for any person

to violate any of the provisions of sections 16-4-101 or 16-4-102.

(2) Any licensee violating any provision of this section shall be subject to prosecution

and punishment under applicable law and disciplinary action concerning his or her license. Any

other person violating this section shall be subject to prosecution and punishment under

applicable law.

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ARTICLE 5

LICENSING

16-5-101. Licenses -

Tyj,es The Committee may issue five types of licenses as

follows:

(1) Slot Machine Manufacturer. A slot machine manufacturer license is required for

all persons who import, manufacture or distribute slot machines.

(2) Operator License. An operator license is required for all persons who engage in

the business of managing a tribal gaming operation and who are primary management officials

as defined by 25 C.F.R. Sec. 502.19.

(3) Support License. A support license is required for all gaming employees. Key

licensees need not obtain support licenses. The Committee may deny a support license to any

person discharged for cause from employment by any licensed gaming operation.

(4) Key Employee License. Every gaming operation shall have a person in charge of

all gaming activities on the licensed premises available at all times when gaming is being

conducted. Such person in charge shall be a key licensee.

(5) Facility License. A facility license is required for each separate gaming facility

located on the Reservation.

16-5-102. License Term Each license issued pursuant to this Code shall expire one

year from the date of its issuance, but may be renewed upon the filing and approval of an

application for renewal.

16-5-103. Key Licensee - Determination of Status If, in the determination of the

Committee, an employee is performing key licensee functions and as such is subject to key

licensing requirements, the Committee shall serve notice of such determination upon the

employee. In determining whether or not an employee is subject to key licensee requirements,

the Committee is not restricted by the title of the job performed by such employee but may

consider the functions and responsibilities of such employee in making its decision. The

employee shall, within thirty (30) days following receipt of the notice of the Committees

determination, present the application for a key license. Failure of the employee to respond as

required by this section is grounds for disciplinary action. A person subject to application for

key licensing may make written request to the Committee to review its determination of such

persons status within the gaming operation. if the Committee determines that the person does

not require a key license, such person shall be allowed to withdraw his application and continue

in his employment.

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16-5-104. Licenses - Revocable - Nontransferable Every license issued pursuant to

this Code is revocable and nontransferable. No licensee acquires any vested interest or property

right in a license. The revocable privilege for any license issued or other approval granted is

conditioned upon the proper and continuing qualification of the licensee and upon the discharge

of the affirmative responsibility of each licensee to provide to the regulatory, investigatory and

law enforcement authorities any assistance and information necessary to assure that the policies

and requirements of this Code are achieved.

16-5-105. Operator, Slot Machine Manufacturer, Key Licensee, or Support Licensee -

Qualifications for Licensure Prior to a persons licensure as an operator, slot machine

manufacturer, key licensee, or support licensee, such person shall, in addition to meeting any

other requirements imposed by this Code or the Committee, show that he is of good moral

character. Such person has the burden of proving his qualifications to the satisfaction of the

Committee.

16-5-106. Considerations for Licensure In considering whether a person is of good

moral character for purposes of issuing any license, or for any other purposes, the Committee

may, in addition to all other information, consider whether that person has been denied a gaming

license by any Indian tribe, city, state or country, or whether the person has ever had a gaming

license suspended or revoked in this or any other jurisdiction. The Committee may also consider

whether a person has ever withdrawn an application for any type of gaming license anywhere and

the reasons for such withdrawal.

16-5-107. Temporary Licenses The Committee may issue temporary licenses, for

up to a maximum of six months, with respect to all types of licenses authorized under this Code.

16-5-108. Conditional Licenses The Committee may issue conditional licenses with

respect to all types of licenses authorized under this Code.

16-5-109. Licensed Premises - Floor Plan For purposes of this section, floor plan

means a physical layout of the inside of the building in which gaming will take place, which

shall show the location of the licensed premises within the facility and the closed circuit tele

vision system for surveillance of the gaming. Approval of the floor plan is subject to Committee

rules and those rules pertaining to the public health, safety, good order, and general welfare of

the Tribe. All gaming devices shall be located within the licensed premises.

16-5-110. License -

Disciualification - Criteria

(1) The Committee shall deny a license to any applicant who is disqualified for

licensure on the basis of any of the following criteria:

(a) Failure of the applicant to prove by clear and convincing evidence that the

applicant is qualified in accordance with the provisions of this Code;

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(b) Failure of the applicant to provide information, documentation and

assurances required by this Code or requested by the Committee.

(c) Failure of the applicant to reveal any fact material to qualification, or the

supplying of information which is untrue or misleading as to a material fact pertaining to the

qualification criteria;

(d) In the case of an applicant for an operators license, conviction of the

applicant, or any of its primary management officials, including its officers, its directors, its

general partners, any stockholders, limited partners, or other persons having a financial or equity

interest of five percent or greater in the applicant, of any of the following:

(i) Service of a sentence upon conviction of a felony in a correctional

facility, tribal, city or county jail, or community correctional facility or under the

supervision of the state board of parole or any probation department within ten years prior

to the date of the application;

(ii) Any gambling-related offense or theft by deception;

(iii) Any crime involving fraud or misrepresentation.

(e) Current prosecution or pending charges in any jurisdiction against the

applicant, or against any person listed in paragraph (d) of this subsection (1), for any of the

offenses enumerated; except that, at the request of the applicant or the person charged, the

Committee shall defer decision upon such application during the pendency of any prosecution.

(f) The identification of the applicant or any person listed in paragraph (d) of

this subsection (1) as a career offender or a member of a career offender cartel or an associate

of a career offender or a career offender cartel in such a manner which creates a reasonable belief

that the association is of such a nature as to be inimical to the policy of this Code and to gaming

operations.

(g) Refusal to cooperate by the applicant or any person who is required to be

qualified under this Code with any legislative investigatory body or other official investigatory

body of any Indian tribe, state or of the United States, when such body in engaged in the

investigation of crimes relating to gaming, official corruption or organized crime activity.

16-5-111. Applicants and Licensees -

Providing Information

(1) All applicants for licenses issued by the Committee, and all licensees, including

all persons interested, directly or indirectly, in the gaming operation or license held by an

applicant or licensee, shall upon request by the Committee provide fingerprints and handwriting

exemplars, and each such person shall allow himself or herself to be photographed in accordance

with procedures established by the Committee.

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(2) Upon issuance of a formal request or subpoena by the Committee to answer or

produce information, evidence or testimony, each applicant and licensee shall comply with the

request or subpoena. Where an applicant or licensee, or any person interested, directly or

indirectly in either, refuses or fails to comply with a Committee request or subpoena, then that

persons license or application may be suspended, revoked or denied, based solely upon such

failure or refusal.

16-5-112. Application - Fee - Waiver of Confidentiality

(1) The Committee may establish investigation and application fees for the purpose

of paying for the administrative costs of the Committee and for paying for any background

investigations of applicants and others. These fees may vary depending on the type of

application, the complexity of the investigation, or the costs of the Committee in reviewing the

matters involved.

(2) The application form approved by the Committee shall include a waiver of any

right of confidentiality and a provision which allows the information contained in the application

to be accessible to the Tribe, the State of Colorado, the government of the United States, and the

NTGC. The waiver of confidentiality shall extend to any financial or personnel record, wherever

maintained.

16-5-113. Application - Authorization for Background Investigation By signing and

filing an application for a license, which is subject to applicable perjury laws, the applicant

authorizes the Committee to obtain information from any source, public or private, in this or any

other jurisdiction, regarding the background or conduct of the applicant and, if the applicant is

a partnership or corporation, any of its shareholders, officers, directors, partners, agents or

employees.

16-5-114. License -

Grounds for Approval or Denial The Committee may approve

or deny any application for a license, in addition to all other conditions and requirements set forth

in this Code and the orders of the Committee, on the basis of whether it deems the applicant a

suitable person to hold the license applied for and whether it considers the proposed floor plan

suitable. Refusal of an applicant to provide all information requested by the Committee or to

allow investigation into the applicants background is grounds for denial of a license.

16-5-115. Licensed Premises -

Safety Conditions

(1) The building in which gaming will be conducted and the areas where gaming will

occur shall meet safety standards and conditions for the protection of life and property as

determined by the Tribes fire official and the Tribes building official. In making such

determinations, the following codes are hereby adopted by the Tribe as minimum safety standards

for gaming structures:

(a) The Uniform Building Code, 1988 edition; and

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(b) The Uniform Fire Code, 1988 edition.

(2) A report evidencing compliance shall be issued to an applicant for a facility license

by the Tribes fire and building officials.

(3) In advance of any structural or significant change to the building or facilities

where gaming is conducted, the plans for such change shall be submitted to the Tribes fire

official and the Tribes building official for their review. No changes may be made to the

building or facilities where gaming is conducted until the plans are approved by the Tribes fire

official, the Tribes building official and the Committee.

16-5-116. Construction and Maintenance of Gaming Facilities The construction,

maintenance and operation of all gaming facilities shall be in a manner which adequately protects

the environment and the public health and safety.

16-5-117. Buildings - Accessible to Handicapped All premises where gaming is

conducted shall be accessible to and functional for the physically handicapped.

16-5-118. Waiver From Liability - Disclosures or Publications All applicants and

licensees shall waive liability as to the Tribe, its instrumentalities and agents for any damages

resulting from any disclosure or publication in any manner, other than a willfully unlawful

disclosure or publication, of any material or information acquired during inquiries, investigations

or hearings.

16-5-119. Renewal of Licenses

(1) Subject to the power of the Committee to deny, revoke or suspend licenses, any

license in force shall be renewed by the Committee for the next succeeding license period upon

proper application for renewal and payment of license fees as required. The license period for

a renewed license shall be one year. In addition, the Committee shall reopen licensing hearings

at any time upon request of the Division. The Committee shall act upon any such application

prior to the date of expiration of the current license.

(2) An application for renewal of a license shall be filed with the Committee no later

than one hundred twenty days prior to the expiration of the current license, and all license fees

and taxes as required by law shall be paid to the Committee on or before the date of expiration

of the current license.

(3) Upon renewal of any license, the Committee shall issue a new license.

(4) Renewal of a license may be denied by the Committee for any violation of this

Code, for any reason which would or could have prevented its original issuance, or for any good

cause shown.

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16-5-120. Denial of Application Any applicant, including a person who has an

ownership interest of five percent or more in any management contract:

(1) Whose application has been denied by the Committee may not reapply for

licensure until at least one year has elapsed from the date of denial;

(2) Who has been denied a license for a second rime may not reapply until at least

three years have passed since the date of the second denial.

16-5-121. Appeal of Final Action of Committee Any person aggrieved by a final

action of the Committee may appeal the final action to the Southern Ute Indian Tribal Court.

16-5-122. Executive and Closed Meetings The Committee may hold executive or

closed meetings for any of the following purposes:

(1) Considering applications for licensing when discussing background investigations

or personal information;

(2) Meeting with gaming officials of other jurisdictions or law enforcement officials

in connection with possible criminal violations;

(3) Consulting with employees or agents of the Tribe concerning possible criminal

violations or any security issues;

(4) Deliberations after hearing evidence in an informal consultation or in a contested

case;

(5) Considering information deemed confidential or proprietary.

16-5-123. Communications -

Privileged and Confidential Communications among

the Committee and within the Division relating to licensing, disciplining of licensees, or

violations by licensees are privileged and confidential, if made lawfully and in the course of or

in furtherance of the business of the Committee. The Committee or the Division may claim this

privilege.

16-5-124. Summary Suspension Every license granted pursuant to this Code may

be summarily suspended by the Committee, pending a hearing before the Committee, for good

cause.

16-5-125. Suspension or Revocation of License - Grounds - Penalties

(1) Any license granted pursuant to this Code may be suspended for up to six months

or revoked for any cause which would have prevented its issuance; or if reliable information is

received from the NIGC or the State of Colorado that a licensee does not meet eligibility

22
standards for issuance of a gaming license; or for any violation by the operator licensee or any

primary management official of this Code or any order of the Committee; or for conviction of

a crime involving moral turpitude or a felony. Such suspension or revocation shall occur after

notice to the licensee and a hearing upon proof by a preponderance of the evidence as determined

by the Committee except in those instances covered by 16-5-123. In addition to revocation or

suspension, or in lieu of revocation or suspension, the Committee may impose a reprimand or

a monetary penalty not to exceed the following amounts:

(a) If the licensee is a slot machine manufacturer, the amount of one hundred

thousand dollars;

(b) If the licensee is an operator, the amount of twenty-five thousand dollars;

(c) If a key licensee, the amount of five thousand dollars;

(d) If a support licensee, the sum of two thousand five hundred dollars.

(2) Any monetary penalty received by the Committee pursuant to this section shall be

deposited in the gaming fund established in section 16-9-101.

(3) The civil penalties set forth in this section shall not be a bar to any criminal

prosecution or to the imposition of any other civil or administrative remedy.

16-5-126. Records -

Confidentiality -

Exceptions

(1) Information and records of the Committee enumerated by this section are

confidential and may not be disclosed except pursuant to an order of a court of competent

jurisdiction, an order from the Committee, or an order from the NTCIC. No person may by

subpoena, discovery or statutory authority obtain such information or records. Information and

records considered confidential include:

(a) Tax returns of licensees;

(b) Credit reports and security reports;

(c) Audit work papers, worksheets and auditing procedures used by the Tribe,

its agents or employees; and

(d) Investigative reports concerning violations of law or concerning the

backgrounds of licensees, applicants or other persons, prepared by tribal investigators or

investigators from other agencies working with the Committee, and any work papers related to

such reports; except that the Committee may in its sole discretion disclose so much of said

reports or work papers, as it deems necessary and prudent, to authorized persons showing a

legitimate need for the information.

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(2) This section does not apply to requests for such information or records from any

tribal, federal or state law enforcement agency, or for the use of such information or records by

the Committee for official purposes, or by employees of the Committee in the performance of

their authorized and official duties.

16-5-127. Committee Access to Files and Records The Committee shall have access,

both physically and electronically, to all files and records kept, or required to be maintained and

may contribute to those records.

24
ARTICLE 6

APPLICATIONS, INVESTIGATIONS AND LICENSURE

16-6-101. Qualifications for Licensure To qualify for licensure an applicant must:

(1) Be at least 21 years of age;

(2) Possess a suitable character as determined by the Committee; and

(3) If for a facility, the premises to be used for gaming must be deemed suitable by

the Committee and must satisfy all health and safety requirements; and

(4) Comply with all specific laws, rules and regulations pertaining to gaming on the

Reservation.

16-6-102. Applications

(1) An applicant for any type of license must apply on forms provided by the

Division.

(2) The Division shall require, at a minimum, the following information from an

applicant:

(a) Full name, other names used (oral or written), social security number(s),

birth date, place of birth, citizenship, gender, all languages (spoken or written);

(b) Currently and for the previous 5 years: business and employment positions

held, ownership interests in those businesses, business and residence addresses, and drivers

license numbers;

(c) The names and addresses of at least three personal references, including

one personal reference who was acquainted with the applicant during each period of residence

listed under the above subsection (b);

(d) Current business and residence telephone numbers;

(e) A description of any existing and previous business relationships with

Indian thbes, including ownership interests in those businesses;

(0 A description of any existing and previous business relationships with the

gaming industry generally, including ownership interests in those businesses;

25
(g) 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;

(h) 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;

(i) For each misdemeanor conviction or ongoing misdemeanor prosecution

(excluding minor traffic violations), within 10 years of the date of the application and is not

otherwise listed above, the criminal charge, the name and address of the court involved and the

date and disposition;

(j) For each criminal charge (excluding minor traffic charges), whether or not

there is a conviction, if such criminal charge is within 10 years of the date of the application and

is not otherwise listed above, the criminal charge, the name and address of the court involved and

the date and disposition;

(k) 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;

(1) A current photograph;

(m) Any other information the Tribe deems relevant; and

(n) Fingerprints consistent with procedures adopted by the Tribe according to

25 C.F.R. Sec. 522.2(h).

(3) The application, in addition to those items in section (2) above, will contain:

(a) A privacy notice as required by 25 C.F.R. Sec. 537.1 (b) (4); and

(b) A notice regarding false statements as required by 25 C.F.R. Sec.

537.1 (b)(5).

16-6-103. Background Investigations -

Procedures

(1) Applicants for licensing will be subject to a background investigation check. The

completed application will be forwarded to the NTGC at the time of employment. Background

investigations for non-Indians and non-member Indians will be processed through the Division

and forwarded to the Colorado Division of Gaming. For support license applications, the

Colorado Division of Gaming will perform a criminal history and warrants check through

Colorado Crime Information Center/National Crime Information Center (CCIC/NCIC), a

fingerprint check through the Colorado Bureau of Investigation (CBI) and the Federal Bureau of

26
Investigation (FBI), and a credit history check. The Division will conduct personal reference

checks and past employment verification and checks. For key and operator license applications,

including primary management officials, the Colorado Division of Gaming will perform a

criminal history and warrants check through CCICINCIC, a fingerprint check through the CBI

and FBI, a credit history check, personal reference checks of listed and developed references, and

past employment verifications and interviews. An investigative report containing the results of

the investigation will be prepared by the Division and presented to the Committee for licensing

approval. Upon approval for licensing and within 60 days of the application, the investigative

report will be forwarded to the NIGC for review and objection, if any.

(2) Southern Ute tribal member applicants will be investigated by the Division

following the same guidelines as described in Section (1).

(3) The application forms shall be accompanied and supplemented by such documents

and information as may be specified or required. Failure to supply the information requested

within five days after the request has been made by the Committee constitutes grounds for

delaying consideration of the application.

16-6-104. License Term Each license issued pursuant to this Code shall expire one

year from the date of its issuance but may be renewed upon the filing and approval of an

application for renewal.

16-6-105. License Fees A yearly license fee must accompany an application for

licensure; provided, however, that this section shall not apply to members of the Tribe.

16-6-106. Application Fees In addition to a yearly license fee, applicants for a slot

machine manufacturer license or an operator license shall pay non-refundable application fees at

the time their applications are first submitted to the Committee.

16-6-107. Investigation Fees

(1) All applicants for licenses shall pay the costs of investigations into their

backgrounds, suitability and qualifications for licensure. The cost of such investigations shall be

at the rate established by the Committee. All such applicants shall also pay the Committee for

the following actual costs incurred in conducting the background investigations: transportation,

lodging, meals and document reproduction costs. Before any such investigations are conducted,

each applicant shall pay the required deposit to the gaming fund. Deposits shall be by check

made out to the Tribe.

At the end of each month, the Division shall calculate the expenses for each investigation,

and draw upon the respective deposits in the gaming fund. A monthly statement of costs, draws

upon deposit, and deposit balance shall be sent by the fifteenth of the following month to each

applicant. Where a deposit approaches zero dollars, the Committee may request a further deposit

27
of an amount equal to or less than the initial deposit. Until receipt of such further deposit,

investigation of the application may cease.

(2) Upon the Committees approval or denial, or upon withdrawal, of an application,

any deposit balance shall be promptly returned to the applicant.

(3) Where an applicant disputes any investigative charges, or the necessity for further

deposits, the applicant may request a hearing before the Committee regarding the matters in

dispute.

(4) No license shall be issued until payment for the full amount of any negative

deposit balance has been received from the applicant.

16-6-108. Waiver of Privilege An applicant may claim any privilege afforded by the

Indian Civil Rights Act, 25 U.S.C. § 1301, the Constitution of the United States, or of the Tribe

in refusing to answer questions by the Committee. However, a claim of privilege with respect

to any testimony or evidence pertaining to an application may constitute sufficient grounds for

denial.

16-6-109. Regulation of Ownership Interests The Committee may require any

interested person or an applicant to complete an application requiring background information,

source of funding, and a sworn statement that the interested person or applicant is not holding

such interest for another party. The Committee may, in its discretion, require any person having

any financial interest in a management contract to undergo a full background investigation. The

Committee may further require the operator licensee to pay for that background investigation.

16-6-110. Untrue Statements The Committee may refuse to grant or renew a license

to an applicant or licensee who makes deliberate misstatements, deliberate omissions,

misrepresentations or untruths in the application or in connection with the applicants or

licensees background investigation. Such conduct may also form the basis for criminal charges

against the applicant or licensee.

16-6-111. Licensed Premises Within the licensed premises, an operator licensee may

arrange gaming equipment or devices in the discretion of the operator licensee without notice to

the Committee. Nothing in this section, however, shall be construed to permit violation of any

fire safety, health or building codes.

16-6-112. Withdrawal of Application

(1) A request for withdrawal of an application may be made at any time prior to final

action upon the application by the Committee by filing a written request to withdraw with the

Committee.

(2) The Committee may, in its discretion, deny the request, or grant the request.

28
(3) If a request for withdrawal is granted, the applicant is not eligible to apply again

for licensing until after expiration of one (1) year from the date of such withdrawal.

16-6-113. Recommendation and Order After completion of its investigation, the

Division will issue a recommendation to the Committee for the approval or denial of the

application. If the Division recommends that an application be denied, the recommendation will

include written reasons upon which the recommendation is based.

16-6-114. Temporary Licensing The Committee may in its sole discretion issue a

temporary license, for up to six months, to any applicant. A temporary license may only be

issued where the Committee is satisfied that the investigation of the applicant conducted thus far,

and the application in its entirety, indicate that the applicant: meets all the requirements of this

Code; meets all the requirements contained in the Compact; does not present any danger to the

public or to the reputation of gaming; further investigation most likely will not uncover any

derogatory information about the applicant; and issuance of a temporary license is of economic

necessity to the gaming operation and is just under the circumstances. The temporary gaming

license shall become void and be of no effect upon either the issuance of a permanent gaming

license or upon notice of application denial.

16-6-115. Conditional Licensing The Committee may grant a license with special

conditions.

16-6-116. Notice of Hearing Written notice will be given by the Committee to all

applicants, in which the Division has recommended a conditional license, suspension of a license,

or denial of a license. The notice will contain the time and place when the application for

licensing will come before the Committee for consideration, and such applicants are expected to

attend the meetings of the Committee. The Committee will notify each applicant in writing of

the disposition of the application.

16-6-117. Approval The Committee shall approve an application for any license that

meets all requirements imposed by this Code, including payment of all fees and costs.

16-6-118. Non-transferability of License A license issued pursuant to this Code shall

not be assignable or transferable. The Committee reserves the right to terminate any license and

revoke the privileges of such license whenever appropriate.

16-6-119. Duplicate Licenses Upon the loss, mutilation or destruction of any license

issued by the Committee, application for a duplicate must be made on a form approved by the

Committee. A statement signed by the licensee which details the circumstances under which the

license was lost, mutilated or destroyed and certifies that such license was, in fact, lost, mutilated

or destroyed, shall accompany such application. A mutilated license shall be surrendered to the

Division upon issuance or denial of a duplicate license. A lost license, when found, must be

immediately surrendered to the Division.

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ARTICLE 7

RIGHTS AND DUTIES OF OPERATOR LICENSEES

16-7-101. Responsibility of Operator Licensee Responsibility for the employment

and maintenance of lawful methods of operation rests with the operator licensee, and willful or

persistent use or toleration of methods of operation considered unlawful by the Committee is

prohibited. Each licensee shall fully and promptly perform each and every term, condition and

duty required by the Division or Committee.

16-7-102. Discovery of Violations Each licensee must immediately notify the

Committee of the discovery of a violation or of a suspected violation of this Code.

16-7-103. Unauthorized Games No licensee may permit the operation of any game

other than authorized games as defined in this Code and the Act.

16-7-104. Job Descriptions - List of Personnel Prior to opening for business, an

operator licensee must furnish to the Division a written list of all persons, including birth dates

and social security numbers, employed by the gaming operation. The operator licensee must

furnish job descriptions of licensees. Additionally, the operator licensee must by the first day

of each month submit changes to its lists of employees and changes to the job descriptions of

employees who hold support licenses, unless the Division, in writing, demands more frequent

notification or allows less frequent notification.

16-7- 105. Information to be Furnished by Licensee

(1) Each operator licensee must report to the Committee at least quarterly the full

name and address of every person, including lending agencies, who has a right to share in the

revenues of gaming, or to whom any interest or share in the profits of gaming has been pledged

as security for a debt or deposited as a security for the performance of an act or to secure the

performance of a contract of sale.

(2) Each operator licensee must immediately report to the Conimittee the name, date

of birth, and social security number of all persons who obtain an ownership, financial or equity

interest in the management company of five (5) percent or greater, or have the ability to control

the management company, or who have the ability to exercise significant influence over the

management company, or who loan any money or other thing of value to the management

company.

(3) Any person licensed by the Committee must notify, in writing, the director of the

Division of any criminal charge pending against each person or criminal conviction within ten

days of such personss arrest, summons, or conviction. This notification requirement shall not

apply to non-felony traffic violations unless they result in suspension or revocation of a drivers

30
license or unless they are based on allegations of driving under the influence of intoxicating

liquor or drugs.

16-7-106. Inspections A licensed manufacturer and operator licensee must

immediately make available for inspection by the Committee, or its agents or investigators, upon

demand, all papers, books and records produced, used or kept in connection with gaming, and

all portions of the premises where gaming is conducted or where gaming devices or equipment

are manufactured, sold, used, or kept. Upon demand, employees and agents of the Committee

must be given immediate access to any portion of the premises of a manufacturer, or operator

for the purpose of inspecting or examining records or documents, gaming devices or equipment,

or the conduct of gaming activity.

16-7-107. Duty to Maintain Records Each operator licensee shall keep a complete

set of books of account, correspondence and all other records necessary to show fully the gaming

transactions of the gaming operation, all of which shall be open at all times during business hours

for the inspection and examination of the Committee or its duly authorized representatives. The

Committee may require any operator licensee to furnish such information as the Committee

considers necessary for the proper administration of this Code and may require an audit to be

made of such books of account and records on such occasions as the Committee considers

necessary by an auditor, selected by the Committee, who shall likewise have access to all such

books and records of the operator licensee, and the operator licensee may be required to pay the

expense thereof.

16-7-108. Access to Premises and Production of Records No applicant or licensee

or applicant or licensees employee or agent may neglect or refuse to produce records or evidence

or to give information on lawful demand by the Committee, or any investigator or agent of the

Committee. No applicant or licensee shall interfere or attempt to interfere with lawful efforts by

the Committee or any of its agents to obtain or produce such information.

16-7-109. Employee on Premises When a licensed game or a slot machine is

available for play by the public, each operator licensee must have a key licensee present on the

premises to supervise the operation of the game or machine.

16-7-110. Licensee Identification Every licensee and support licensee must wear in

plain view identification issued by the Committee. This section shall not apply to employees

engaged in undercover security operations.

16-7-111. Display of License All operator licensees and licensed premises must

display their licenses, in a manner plainly visible to the public.

16-7-112. Payment of Winners -

Reserves All operator licensees shall at all times

have available sufficient financial reserves to pay winners of, or participants in, gaming activities

conducted or offered. Payment must be made to winners and participants by cash or by check

drawn upon a bank, or other financial institution, within 24 hours. Any check issued to any

31
winner of gaming must, at the time of issuance and until cashed or three months has expired

(whichever is earlier), be backed by and drawn upon sufficient funds to cover the full amount

of the check.

16-7-113. Publication of Payoffs Payoff schedules applicable to every licensed game

or slot machine must be displayed at all times either on the table or machine or in a conspicuous

place immediately adjacent to it. Payoff schedules must accurately state actual payoffs applicable

to the particular game and may not be worded in a manner which misleads or deceives the

public. Maintenance of misleading or deceptive matter on a payoff schedule or failure on the

part of an operator licensee to make payment in strict accordance with posted payoff schedules

is prohibited.

16-7-114. Responsibilities of Operator Every operator licensee shall provide audit

and security measures as prescribed by this Code and federal regulations. Every operator licensee

shall ensure that all slot machines on the licensed premises comply with the specifications set

forth in this Code.

16-7-115. Player Rules An operator licensee must post the following rules for

players:

(1) A player must be at least 21 years of age;

(2) No side bets are permitted; and

(3) No credit is extended.

16-7-116. Visibly Intoxicated Persons No licensee shall permit:

(1) Persons who are visibly intoxicated to participate in gaming activity; or

(2) Service of alcoholic beverages in the licensed premises to persons who are visibly

intoxicated.

16-7-117. Advertising No operator licensee shall allow, conduct or participate in any

false or misleading advertising concerning gaming operations.

16-7-118. Patron Disputes In a patron dispute, a licensee must notify the disputing

patron that the patron has a right to contact the Division or the Committee regarding the dispute.

If a licensee refuses payment of alleged winnings to a patron, the licensee and the patron

are unable to resolve the dispute to the patrons satisfaction, or the dispute involves at least $250,

the licensee must immediately notify the Division. An agent of the Division shall investigate the

dispute and make a report to the Committee for a decision.

32
The Committee must notify the licensee and the patron in writing of the Committees

decision regarding the dispute, within thirty (30) days after the date that the Committee first

received notice of the dispute.

Failure to immediately notify the Division of a dispute, or to notify a patron of the

patrons rights or failure to pay after an adverse decision is a violation by the licensee.

16-7-119. Special Rules of Conduct An operator licensee may establish rules of

conduct for players and spectators on the licensed premises. Any such rules must be posted.

The Committee shall have the authority to immediately terminate any or all of such rules.

16-7-120. Procedure Upon Dissolution Upon dissolution of a corporation, partnership

or association, the operator licensee must return the license to the Committee or Division within

ten (10) days following the date of the dissolution.

16-7-121. Transfers of Interest No person may sell, lease, purchase, convey or

acquire an interest in an operator licensee without the prior approval of the Committee.

However, this requirement shall not apply to stock transfers of less than five percent in a publicly

traded corporation.

16-7-122. Termination of Employment of Key and Support Licensees When key or

support licensees change employment, are terminated, or resign, the operator licensee or affected

employee must notify the Division in writing within seven days.

16-7-123. Post-Termination Matters Upon termination of a license issued to an

operator licensee for any reason, no further gaming activity shall be conducted by said licensee.

After such termination, at a date designated by the Committee, said operator licensee shall appear

before the Committee for the purpose of rendering a fmal accounting and to surrender the license.

16-7-124. Restrictions on Time, Place and Structure Gaming conducted pursuant to

this Code shall be permitted three hundred and sixty-five days a year. Gaming may take place

twenty-four hours a day in a licensed facility.

16-7-125. Revocation or Expiration of License -

Requirement of Modification An

operator licensee shall, within twenty-four hours of receipt of written notice thereof, terminate

the employment of any person whose license has been revoked, suspended, or has expired. A

key or support licensee whose license has been revoked, suspended or expired shall notify the

operator licensee for the gaming operation within twenty-four hours after such revocation,

suspension or expiration.

16-7-126. Activities Which Constitute Fraud Fraudulent acts shall not be permitted

by licensees or patrons of gaming. In addition to those acts listed elsewhere in this Code,

fraudulent acts shall include but shall not be limited to:

33
(a) Misrepresentation of the probabilities of pay out or pay out awards of any

gaming device or game;

(b) Wording pay off schedules or pay out awards in a misleading or deceptive

manner, and

(c) The failure of the licensee to make payment in strict accordance with

posted payoff schedules.

16-7-127. Foreign Gaming Any key or operator licensee who has applied to another

jurisdiction for licensure or other permission to conduct gaming in such jurisdiction, shall notify

the Division and Committee of such application. Upon request, the licensee shall make available

to the Committee all executed copies of all application forms and related documents filed with

the foreign jurisdiction by or on behalf of the applicant or by any entity affiliated with the

applicant.

34
ARTICLE 8

GROUNDS AND PROCEDURES FOR DISCIPLINARY ACTIONS

16-8-101. Grounds for Disciplinary Action The Committee may levy a monetary

penalty, may suspend for up to six months, or revoke any license issued by it for any violations

by the person holding the license, or such licensees employees or agents, of any of the

provisions of this Code. Acceptance of a gaming license or renewal thereof by a licensee

constitutes an agreement on the part of the licensee to be bound by this Code and all the orders

of the Committee. It is the responsibility of the licensee to keep informed of the content of this

Code, and ignorance of Code requirements will not excuse violations.

16-8-102. Initiation of Disciplinary Proceedings

(1) Upon its own motion, or upon written complaint signed and sworn to by the

complainant, the Committee may determine to initiate disciplinary proceedings against any

licensee. Disciplinary proceedings, as used herein, shall mean those procedures undertaken by

the Committee to suspend or revoke any license issued, to levy a monetary penalty against any

licensee, or to otherwise sanction violations of gaming laws, regulations and rules.

(2) The Committee may initiate disciplinary proceedings against a licensee where it

determines that there is probable cause to believe:

(a) That the licensee, the licensees employees, or agents have violated any of

the provisions of this Code;

(b) That the licensee or persons associated with the licensee are of unsuitable

moral character, or

(c) That violations by the licensee, the licensees employees or agents of laws

other than the gaming laws make the licensee no longer suitable for licensing.

(3) Disciplinary proceedings shall be initiated by the Committee by sending to the

licensee by first class mail, at the last known mailing address of the licensee, or by personal

service, a list of the grounds for the proposed disciplinary action and a notice containing the

time and place for any hearing before the Committee. Said list and notice shall be provided to

the licensee at least ten (10) days prior to the hearing.

16-8-103. Citizen Complaints Authorized - Procedure Following Filing Any person

claiming that a licensee has engaged in, or is engaging in, conduct constituting grounds for

disciplinary action may file with the Committee or the Division a written complaint stating the

name of the licensee complained against. The complaint must fully detail the conduct upon

which the complaint is made.

35
The Division shall investigate the complaint and make a recommendation to the

Committee regarding the merits of the complaint. The Committee may reject a complaint if it

does not meet the requirements of this section. If the Committee determines the complaint has

merit, the Committee must serve a copy of the complaint, by first class mail or personal service,

on the licensee complained against and any other affected parties. The licensee complained

against has twenty (20) days to answer after service of the complaint, if the licensee answers the

complaint, the licensee must serve the answer on the Committee by first class mail or personal

service.

16-8-104. Informal Consultation If the Committee considers the complaint to be

grounds for disciplinary action, the Committee may consult with the licensee and the parties

affected in an effort to resolve the matter satisfactorily without a formal hearing. The Committee

must notify in writing the complainant, the licensee complained against, and affected parties of

the results of the informal consultation. The informal consultation does not prevent the

Committee from conducting a formal hearing.

16-8-105. Assurance of Voluntary Compliance The Division may accept an

assurance of voluntary compliance regarding any act or practice alleged to violate this Code, from

a person who has engaged in, is engaging in, or is about to engage in such acts or practices. The

assurance must be in writing and may include a stipulation for the voluntary payment of the costs

of the investigation and any amount necessary to restore to a person money or property, which

may have been acquired by the alleged violator because of the acts or practices. An assurance

of voluntary compliance may not be considered an admission of a violation for any purpose;

however, proof of failure to comply with the assurance of voluntary compliance is prima facie

evidence of a violation of this Code. The Committee may review an assurance of voluntary

compliance and approve or reject the disposition proposed by the Division.

16-8-106. Decision to Initiate Disciplinary Action At any time during the review and

investigation of a citizen complaint, the Committee may decide to initiate formal disciplinary

proceedings where grounds exist.

16-8-107. Criminal Convictions as Grounds for Revocation or Suspension The

Committee may revoke or suspend the gaming license of any person who is convicted of a crime,

even though the convicted persons post conviction rights and remedies have not been exhausted,

if the crime or conviction involves a felony, gambling or gaming, or if it discredits or tends to

discredit the Tribe.

16-8-108. Facts of Criminal Charge The charge of a licensee with a felony or with

a misdemeanor involving moral turpitude in any jurisdiction is grounds for disciplinary action.

The Committee may find the licensee guilty of a violation of this Code based on the facts of the

criminal charge even though the licensee may be acquitted on the criminal charge.

36
16-8-109. Final Action by Committee

(1) After hearing the evidence and reaching a decision in connection with any

disciplinary proceeding, the Committee may find the grounds alleged for disciplinary action

substantiated or unsubstantiated. In the event the complaint is found unsubstantiated, the

disciplinary proceedings shall be terminated. The Committee may, substantiate the complaint by

a preponderance of the evidence on some or all of the grounds alleged for disciplinary action.

(2) In the event the complaint is deemed substantiated, the Committee may revoke the

license, may suspend the license for a particular period of time, may impose a monetary penalty,

may impose conditions upon the license, may issue a public or private letter of reprimand to be

placed in the file of the licensee, or may take any combination of these actions.

(3) The Committee may allow or require briefs of law before makitig its decision.

(4) Written findings of fact, conclusions of law, and an order must be entered before

any decision of the Committee to suspend, revoke or impose conditions upon a license shall be

considered final.

16-8-110. Grounds for Summary Suspension

(1) Where the Committee has reasonable grounds to believe and finds that any person

licensed under this Code has been guilty of a deliberate or willful violation of any of the

provisions of this Code, or that the licensee has been charged with a felony, or that due to other

violations of law by the licensee, the public health, safety or welfare imperatively requires

emergency action, and where the Committee incorporates such findings in its order, the

Committee may summarily suspend a license pending disciplinary proceedings for suspension or

revocation. Any such disciplinary proceedings shall be promptly instituted and determined.

(2) The summary suspension of a license without notice pending a public hearing shall

be for a period not to exceed thirty (30) days.

16-8-111. Notice The Comnuttee must have delivered a notice of summary

suspension personally or by certified mail, return receipt requested, to the licensee summarily

suspended. The notice must state when the suspension will begin and must state the reasons for

the suspension.

16-8-112. Disciplinary Proceeding Notice Reiuired The Committee must serve upon

the summarily suspended licensee a formal notice initiating disciplinary proceedings and a notice

of hearing within five (5) days after receipt by the licensee of the notice of summary suspension.

The Committee shall hear the matter on an expedited basis, but in no event later than thirty (30)

days after the imposition of the summary suspension.

37
ARTICLE 9

GAMING FUND

16-9- 101. Gaming Fund There is hereby created a gaming fund, which shall be

maintained and operated as follows:

(1) The following funds shall be deposited into the gaming fund: The Tribes share

of net revenues from gaming; the guaranteed minimum payment to the Tribe, a portion of which

shall be reserved for tribal management development; capital expenditure reserve; rent; and any

other fees the Tribe may collect from the gaming operation.

(2) All expenses of the Division and the Committee, including expenses of background

and other investigations, prosecution, and legal expenses relating to gaming, shall be paid from

the gaming fund.

(3) In addition to the direct gaming expenses stated in subsection (2), upon adoption

of a resolution by the Tribal Council, the gaming fund may be used 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;

(e) To help fund operations of local agencies.

(4) Net revenues from gaming shall not be used for any purpose other than those listed

above; and no per capita distribution shall be paid from the gaming fund, except pursuant to a

plan approved by the Secretary of the Interior.

16-9-102. Audits and Annual Reports

(1) The gaming fund shall be audited at least annually by an independent certified

public accountant, who shall submit a report of the audit to the Committee. The expenses of the

audit shall be paid from the gaming fund.

(2) The Committee and the Division shall make an annual report within 120 days of

the end of the fiscal year to the Tribal Council, which shall include a summary of the Divisions

activities for the previous year, a statement of gaming revenues, expenses of the Division,

38
allocation of remaining revenues, and any recommendations for changes in this Code which the

Committee or the Division deems necessary or desirable.

39
ARTICLE 10

UNLAWFUL ACTS

16-10-101. Slot Machine Manufacturers, Operator Licensees, Key Licensees, Support

Licensees, Persons Contracting with the Tribe

(1) This section applies to the following persons:

(a) All licensees;

(b) With respect to privately held corporations licensed pursuant to this Code,

the officers, directors and stockholders of such corporations;

(c) With respect to publicly traded corporations licensed pursuant to this Code,

all officers, directors and stockholders holding either five percent or greater interest or a

controlling interest;

(d) With respect to partnerships licensed pursuant to this Code, all partners;

(e) With respect to any other organization licensed pursuant to this Code, all

those persons connected with the organization having a relationship to it similar to that of an

officer, director or stockholder of a corporation;

(f) All persons contracting with or supplying any gaming-related goods or

services to the Tribe;

(g) All persons supplying fmancing or loaning money to an operator licensee,

when such financing or loan is connected with the operation of gaming;

(h) All persons having a contract or other ongoing financial or business

arrangement with any operator licensee, where such contract or arrangement relates to gaming

operations, equipment, devices or licensed premises.

(2) Each of the persons described in subsection (1) of this section shall be:

(a) A person of good moral character, honesty and integrity;

(b) A person whose prior activities, criminal record, reputation, habits and

associations do not pose a threat to the public interests of the Tribe or to the regulation of

gaming and do not create or enhance the dangers of unsuitable, unfair or illegal practices,

methods and activities in the conduct of gaming;

40
(c) A person who has not been convicted of a felony within ten years prior to

the date of applying for a license pursuant to this Code.

(d) A person who has not been found to have seriously or repeatedly violated

the provisions of this Code; and has not knowingly made a false statement of material facts to

the Committee or the Division.

16-10-102. False Statement on Application - Violations of Rules or Provisions of Code

Any person who knowingly makes a false statement in any application for a license or in any

statement attached to the application, or who provides any false or misleading information to the

Committee or the Division, or who fails to keep books and records to substantiate the receipts,

expenses or uses resulting from gaming conducted under this Code, or who falsifies any books

or records which relate to any transaction connected with the holding, operating and conducting

of any gaming, or who knowingly violates any of the provisions of this Code may be prosecuted

under applicable law.

16-10-103. Slot Machines -

Shipping Notices

Any slot machine manufacturer shipping or importing a slot machine into the Reservation

shall provide to the Division at the time of shipment a copy of the shipping invoice, which shall

include, at a minimum, the destination, the serial number of each machine, and a description of

each machine. Any person within the Reservation receiving a slot machine shall, upon receipt

of the machine, provide to the Division upon a form available from the Division information

showing, at a minimum, the location of each machine, its serial number and description. Such

a report shall be provided regardless of whether the machine is received from a manufacturer

or any other person. Any machine licensed pursuant to this Code shall be licensed for a specific

licensed facility, and movement of the machine from that location shall be reported to the

Division within twenty-four hours after such movement.

16-10-104. Persons Prohibited from Interest in Gaming

None of the following persons shall have any direct interest in any management contract

or management company:

(a) Officers, agents or employees of any law enforcement agency of the Tribe;

(b) Employees of the Division;

(c) Tribal judges;

(d) Elected officials of the Tribe;

(e) Gaming Committee members.

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16-10-105. Slot Machine -

Security and Audit Specifications All slot machines and

all other gaming equipment and devices shall have the features, security provisions and audit

specifications listed in this Code and the regulations implementing this Code.

16-10-106. Gaming Eciuipment - Not Subject to Exclusive Agreements It is the public

policy of the Tribe that gaining equipment authorized and licensed by the Committee may not

be subject to any exclusive agreement.

16-10-107. Age of Participants - Violation

(1) It is unlawful for any person under twenty-one years of age to participate, play,

be allowed to play, place wagers, or collect winnings, whether personally or through an agent,

in or from any gaming activity.

(2) It is unlawful for any person to engage in gaming with, or to share proceeds from

gaming with, any person under twenty-one years of age.

(3) It is unlawful for any licensee to permit any person who is less than twenty-one

years of age to participate, play, place wagers or collect winnings in or from any gaming activity.

(4) Any person violating any of the provisions of this section may be prosecuted under

applicable law.

(5) Any person violating any of the provisions of this section with a person under

eighteen years of age may also be prosecuted under applicable law for contributing to the

delinquency of a minor.

16-10-108. Persons Conducting Gaming No person under the age of twenty-one years

shall be employed as a gaming employee, conduct, or assist in conducting, any gaming activity,

and no such person shall manage or handle any of the proceeds from gaming.

16-10-109. Employee of Licensed Person -

Good Moral Character No person licensed

under this Code shall employ or be assisted by any person who is not of good moral character.

16-10-110. Minimum Payback - Limit to a Slot Machine The minimum theoretical

payback value on a slot machine shall be at least eighty but not more than one hundred percent

of the value of any coins or tokens played or accumulated credits played back. However, this

section shall not be construed to prohibit tournament slot machines with theoretical payback

values greater than one hundred percent where such machines do not accept nor pay out coins

or tokens.

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16-10-111. Key and Support Licensees

(1) An operator licensee shall not employ any person to work in the field of gaming,

or to handle any of the proceeds of gaming, unless such person holds a valid key or support

license issued by the Committee.

(2) It is unlawful for any key licensee to participate in gaming in the gaming facility

where such key licensee is employed; except that such key licensee may participate in gaming

if such participation is performed as part of the key licensees employment responsibilities.

16-10-112. Extension of Credit Prohibited No licensee may extend credit to another

person for participation in gaming.

16-10-113. Maximum Amount of Bets The amount of bet ma~ie pursuant to this Code

shall be unlimited on the initial bet or subsequent bet or such amount as may be established from

time to time by the Committee; provided, however, that pending the outcome of the litigation

concerning the bet limit contemplated in the Compact, the amount of bet pursuant to this Code

shall not be more than that required pursuant to the Compact.

16-10-114. Failure to Pay Winners

(1) It is unlawful for any licensee to willfully refuse to pay the winner of any game.

(2) Any person violating any provision of this section shall, upon conviction, be

subject to prosecution under applicable law.

16- 10-115. Approval of Rules for Certain Games Specific rules for blackjack shall

be approved by the Committee and shall be available upon request to the public.

16- 10-116. Exchange -

Redemption of Chips - Unlawful Acts It is unlawful for any

person to exchange or redeem chips for anything whatsoever, except currency, negotiable

personal checks, negotiable counter checks, or other chips.

16-10-117. Persons in Supervisory Positions - Unlawful Acts It is unlawful for any

employee who serves in a supervisory position, to solicit or accept any tip or gratuity from any

player or patron at the premises where he is employed. A dealer may, however, accept tips or

gratuities from a patron at the table at which such dealer is conducting play, subject to the

provisions of this section. All such tips or gratuities shall be immediately deposited in a lockbox

reserved for that purpose, accounted for, and placed in a pooi for distribution based upon criteria

established in advance by the operator licensee.

16-10-118. Cheating

(1) It is unlawful for any person to cheat at any gaming activity.

43
(2) For purposes of this Code, cheating means to alter the selection of criteria which

determine:

(a) The result of a game; or

(b) The amount of frequency of payment in a game.

(3) Any licensee violating any provision of this section shall be subject to prosecution

under applicable law and shall also be subject to disciplinary proceedings regarding his or her

license.

16-10-119. Fraudulent Acts

(1) It is unlawful for any person:

(a) To alter or misrepresent the outcome of a game or other event on which

wagers have been made alter the outcome is made sure but before it is revealed to the players;

(b) To place, increase or decrease a bet, or to determine the course of play alter

acquiring knowledge, not available to all players, of the outcome of the game or any event that

affects the outcome of the game or which is the subject of the bet or to aid anyone in acquiring

such knowledge for the purpose of placing, increasing or decreasing a bet, or determining the

course of play contingent upon that event or outcome;

(c) To claim, collect, or take, or attempt to claim, collect, or take, money or

anything of value in or from a gaming activity with intent to defraud and without having made

a wager contingent thereon, or to claim, collect, or take an amount greater than the amount won;

(d) Knowingly to entice or induce another to go to any place where gaming

is being conducted or operated in violation of the provisions of this Code, with the intent that

the other person participate in that gaming activity;

(e) To place or increase a bet alter acquiring knowledge of the outcome of the

game or other event which is the subject of the bet, including past-posting and pressing bets;

(f) To reduce the amount wagered or to cancel a bet alter acquiring knowledge

of the outcome of the game or other event which is the subject of the bet, including pinching

bets;

(g) To manipulate, with the intent to cheat, any component of a gaming device

in a manner contrary to the designed and normal operational purpose for the component,

including, but not limited to, varying the pull of the handle of a slot machine, with knowledge

that the manipulation may affect the outcome of the game or with knowledge of any event that

affects the outcome of the game;

44
(h) To win or attempt to win money or property, or a representative of either,

by any trick or sleight of hand performance, or by fraud or fraudulent scheme;

(i) To conduct a gaming operation without a valid operator license;

(j) To conduct a gaming operation on unlicensed premises;

(k) To permit any gaming activity to be conducted, operated or dealt in any

licensed premises by an unlicensed person;

(1) To place any games or slot machines into play or display such games or

slot machines without the authorization of the Committee;

(m) To employ or continue to employ any person in a gaming operation who

is not duly licensed in a position whose duties require a license pursuant to this Code; or

(n) To be employed, work or otherwise act in a position whose duties would

require licensing pursuant to this Code without first obtaining the requisite license.

(2) Any licensee who violates any provision of this section shall be subject to

prosecution under applicable law and shall also be subject to disciplinary proceedings regarding

his or her license.

16-10-120. Use of Device for Calculating Probabilities

(1) It is unlawful for any person at a licensed gaming facility to use, or possess with

the intent to use, any device to assist:

(a) In projecting the outcome of the game;

(b) In keeping track of the cards played;

(c) In analyzing the probability of the occurrence of an event relating to the

game; or

(d) In analyzing the strategy for playing or betting to be used in the game,

except as permitted by the Committee.

(2) Any person violating any provision of this section shall be subject to prosecution

under applicable law and, if a licensee, subject to disciplinary action.

45
16-10-121. Use of Counterfeit or Unapproved Chips or Tokens or Unlawful Coins or

Devices -

Possession of Certain Unlawful Devices, Equipment, Products, or Materials

(1) It is unlawful for any person to use counterfeit chips in any gaming activity.

(2) It is unlawful for any person engaged in any gaming activity designed to be played

with, to receive, or to be operated by chips or tokens approved by the Committee or by lawful

coin of the United States of America:

(a) Knowingly to use anything other than chips or tokens approved by the

Committee or lawful coin, or to use coin not of the same denomination as the coin intended to

be used in that gaming activity; or

(b) To use any device or means to violate the provisions of this Code.

(3) It is unlawful for any person to possess any device, equipment or material which

he knows has been manufactured, distributed, sold, tampered with, or serviced in violation of the

provisions of this Code.

(4) It is unlawful for any person, not a duly authorized employee of a licensee acting

in furtherance of his or her employment within a facility, to have on his or her person or in his

or her possession any device intended to be used to violate the provisions of this title.

(5) It is unlawful for any person, not an authorized licensee acting in furtherance of

his or her employment within a facility, to have in his or her possession while on the premises

of any licensed gaming facility any key or device known to have been designed for the purpose

of and suitable for opening, entering or affecting the operation of any gaming activity, drop box

or electronic or mechanical device connected thereto, or for removing money or other contents

therefrom.

(6) Possession of more than one of the devices, equipment, products or materials

described in this section shall give rise to a rebuttable presumption that the possessor intended

to use them for cheating.

(7) It is unlawful for any person to use or possess while on the premises any cheating

or thieving device, including but not limited to, tools, drills, wires, coins or tokens attached to

strings or wires or electronic or magnetic devices, to facilitate the alignment of any winning

combination or to facilitate removing from any slot machine any money or contents thereof,

unless the person is a licensee acting in the furtherance of his or her employment.

(8) Any person violating the provisions of this section shall be subject to prosecution

and punishment under applicable law.

46
16-10-122. Persons Not to Bring Their Own Cards or Chips No person may bring into

the gaming operation, or introduce into a game, playing cards or chips other than those obtained

from that gaming facility.

16-10-123. Cheating Games and Devices

(1) It is unlawful for any person engaged in gaming in a licensed facility knowingly

to:

(a) Conduct, carry on, operate, or deal or allow to be conducted, carried on,

operated, or dealt any cheating or thieving game or device; or

(b) Deal, conduct, carry on, operate, or expose for play any game or games

played with cards or any mechanical device, or any combination of games or devices, which have

in any manner been marked or tampered with or placed in a condition or operated in a manner

the result of which tends to deceive the public or tends to alter the normal random selection of

characteristics or the normal chance of the game which could determine or alter the result of the

game.

(2) Any licensee who violates any provision of this section shall be subject to

prosecution and punishment under applicable law and shall be subject to disciplinary proceedings

concerning his or her license. Any other person violating this section shall be subject to

prosecution and punishment under applicable law.

16-10-124. Unlawful Manufacture, Sale, Marking, Altering, or Modification of

Equipment and Devices Associated With Gaming - Unlawful Instruction

(1) It is unlawful to manufacture, sell or distribute any cards, chips, dice, game or

device which is intended to be used to violate any provision of this Code.

(2) It is unlawful to mark, alter, or otherwise modify any associated equipment or

gaming device in a manner that:

(a) Affects the results of a wager by determining win or loss; or

(b) Alters the normal criteria of random selection, which affects the operation

of a game or which determines the outcome of a game.

(3) It is unlawful for any person to instruct another in cheating, or in the use of any

device for that purpose, with the knowledge or intent that the information or use so conveyed

may be employed to violate any provision of this Code.

(4) Any licensee who violates any provision of this section shall be subject to

prosecution and punishment under applicable law and shall also be subject to disciplinary action

47
concerning his or her license. Any other person violating this section shall be subject to

prosecution and punishment under applicable law.

16-10-125. Excluded and Ejected Persons

(1) It is unlawful for any person whose name is on the list promulgated by the

Committee pursuant to section 16-12-101 to enter the licensed premises of a gaming facility.

(2) It is unlawful for any person whose name is on the list promulgated by the

Committee pursuant to section 16-12-101 to have any personal pecuniary interest, direct or

indirect, in any management contract, management company or business involved in or with

gaming or in the shares in any entity licensed pursuant to this Code.

(3) Any person violating the provisions of this section shall be subject to prosecution

and punishment under applicable law.

16-10-126. Detention and Questioning of Person Suspected of Violating Code -

Limitations on Liability -

Posting of Notice

(1) Any licensee may question any person in the gaming facility suspected of violating

any of the provisions of this Code. A licensee is not criminally or civilly liable:

(a) On account of any such questioning; or

(b) For reporting to the Committee, the Division or law enforcement authorities

the person suspected of the violation.

(2) Any licensee who has probable cause to believe that there has been a violation of

this Code in the gaming facility by any person may detain him or her in the facility in a

reasonable manner and for a reasonable length of time. Such a detention does not render the

licensee criminally or civilly liable.

(3) A licensee is not entitled to the immunity from liability provided for in subsection

(2) of this section unless .there is displayed, in a conspicuous place in the gaming facility, a

notice in boldface type clearly legible and in substantially this form:

ANY GAMING LICENSEE WHO HAS PROBABLE CAUSE TO

BELIEVE THAT ANY PERSON HAS VIOLATED ANY PROVI

SION PROHIBITING CHEATING IN GAMING MAY DETAIN

THAT PERSON.

16- 10-127. Failure to Display Licenses and Required Notices

(1) It is unlawful to fail to display in a conspicuous manner:

48
(a) Operator and facility licenses granted by the Committee;

(b) A notice in bold face type, which is clearly legible and in substantially the

following form:

IT IS UNLAWFUL FOR ANY PERSON UNDER THE AGE OF

TWENTY-ONE TO ENGAGE IN GAMiNG.

(2) Any operator licensee who violates any provision of this section shall be subject

to prosecution and punishment under applicable law and shall be subject to disciplinary

proceedings concerning his or her license. Any other person violating this section shall be

subject to prosecution and punishment under applicable law.

16-10-128. Gaming Committee -

Authority, Duties and Powers

(1) The Committee shall regulate gaming and enforce the gaming laws with the

assistance of the Division.

(2) The Committee shall rely on the Division, who shall have authority for the

following:

(a) Conduct criminal investigations and law enforcement oversight relating to

violations of this Code.

(b) Develop and collect information with regard to organized crime, in an effort

to identify criminal elements or enterprises which might infiltrate and influence gaming, in

cooperation with other law enforcement organizations, and report such information to appropriate

law enforcement organizations and the Committee.

(c) Prepare reports concerning any activities in, or movements into, the

Reservation of organized crime for use by the Committee in their efforts to prevent and thwart

criminal elements or enterprises from infiltrating or influencing tribal gaming.

(d) Inspect or examine, during normal business hours, the licensed premises,

equipment, books, records or other written material maintained in accordance this Code.

(3) The Committee shall, in cooperation with the Division, conduct background

investigations of applicants and licensees.

(4) The Committee shall refer violations of this Code discovered during an authorized

investigation to the appropriate law enforcement or prosecution authority.

16-10-129. Violations of Code Any person violating any of the provisions of this

Code shall be subject to prosecution and punishment under applicable law.

49
ARTICLE 11

PROPRIETARY INTEREST

16-11-101. Proprietary Interest The Tribe shall have the sole proprietary interest and

responsibility for the conduct of gaming on the Reservation or on Indian lands, as defined by the

Act.

50
ARTICLE 12

EXCLUDED PERSONS

16-12-101. Persons Excluded or Ejected -

Legislative Declaration -

Factors Considered

(1) The Committee hereby declares that the exclusion or ejection of certain persons

from licensed gaming facilities is necessary to carry out the policies of this Code and to maintain

the strict regulation of gaming.

(2) The Committee shall establish a list of persons who are to be excluded or ejected

from any licensed gaming premises, including any person whose presence in the facility is

determined to pose a threat to the interest of the Tribe or to gaming. In making the determina

tion for exclusion, the Committee shall consider the following:

(a) Prior conviction of a felony, a misdemeanor involving moral turpitude, or

a violation of the gaming laws of any Indian tribe, any state, the United States, or any of its

possessions or territories.

(b) A violation, attempt to violate, or conspiracy to violate the provisions of

this Code relating to the failure to disclose an interest in gaming for which the person must

obtain a license or make disclosures to the Committee.

(c) A reputation that would adversely affect public confidence and trust that

tribal gaming is free from criminal or corruptive influences.

(d) Prior exclusion or ejection under the gaming regulations of any other Indian

tribe, state, the United States, any of its possessions or territories.

(e) Career or professional offenders or associates of career or professional

offenders, and such others as defined by the Committee.

(3) If the name and description of any person is placed on the exclusion list, the

Committee shall serve notice of that action upon the person by one of the following means:

(a) By personal service;

(b) By certified mail to the last known address of the person; or

(c) By publication in a newspaper of general circulation within the Reservation.

51
(4) A person placed upon the exclusion list may contest that action by filing a written

protest with the Committee, and the protest shall be heard by the Committee as a contested

matter.

(4) The Committee may impose sanctions upon any operator or key licensee, in accor

dance with the provisions of this Code, if such licensee fails to exclude or eject from the licensed

premises any person placed by the Committee on the list of persons to be excluded or ejected,

which sanctions may include, but not be limited to, suspension, revocation, denial or restriction

of any license.

52
ARTICLE 13

ACCOUNTING REGULATIONS

16-13-101. Definitions for Accounting Regulations In addition to definitions

previously set forth in this Code, the following definitions apply to accounting regulations as

established in this Code:

(1) Examination or Examine means an audit, review or other examination

procedures.

(2) Fiscal Year or business year means a period beginning on October 1st and

ending September 30th of the following year.

(3) Statements on Auditing Standards means the auditing standards and procedures

published by the American Institute of Certified Public Accountants.

(4) Statements on Standards for Accounting and Review Services means the

standards and procedures published by the American Institute of Certified Public Accountants.

16-13- 102. Accounting and Financial Records

(1) Each operator licensee must keep accurate, complete, legible and permanent

records of all transactions pertaining to revenue that is taxable or subject to fees under this Code.

An operator licensee who keeps permanent records in a computerized form or on microfiche must

provide the Division or the Conmiittee, on its request, with a detailed index to the microfiche or

computer record. All such records must be made available upon demand to the Committee and

employees of the Division.

(2) Each operator licensee must keep general accounting records on a double entry

system of accounting, maintaining necessary detailed, supporting, subsidiary records, including:

(a) Detailed records identifying revenues, expenses, assets, liabilities and equity

for each facility;

(b) Detailed records of all returned checks;

(c) Individual and game records to reflect drop, adjusted gross proceeds (AGP),

and the percentage of AGP to drop by table for each table game and to reflect drop, AGP, and

the percentage of AGP to drop for each type of table game, by each shift;

(d) Slot analysis reports which, by each machine, compare actual hold

percentages to theoretical hold percentages;

53
(e) The records required by the internal control minimum procedures, as

approved by the Committee, applicable to the operator licensee;

(f) Journal entries prepared by the operator licensee and adjustments proposed

by the independent accountant;

(g) Any other records that the Committee specifically requires to be

maintained; and

(h) All tax returns relating to the licensed facility.

(3) Each operator licensee must create and maintain records sufficient to accurately

reflect AGP, net revenues, and expenses relating to the gaming operation on a monthly and yearto-date basis, as well as financial statements.

(4) If an operator licensee fails to keep the required records used to calculate AGP and

net revenues, the Committee may compute and determine the amount of taxable proceeds upon

the basis of an audit conducted by the Committee, upon any information within the Committees

possession, or upon statistical analysis or projections.

16-13-103. AGP Computations

(1) For each blackjack game, AGP equals the closers plus credit slips for cash, chips

or tokens returned to the casino cashier cage, plus drop, less openers and fills to the table.

(2) For each slot machine, AGP equals drop less fills to the machine, and jackpot

payouts and additional payouts. The initial hopper load is not a fill and does not affect AGP.

The difference between the initial hopper load and the total amount that is in the hopper at the

end of each quarter must be adjusted accordingly as an addition to or subtraction from the drop

for that quarter. If an operator licensee does not make or makes inaccurate quarterly additions

to or subtractions from the drop, the Division may compute an estimated total amount in the slot

machine hoppers and may make reasonable adjustments to AGP during the course of an audit.

(3) An operator licensee shall not exclude from AGP money paid out on wagers that

are knowingly accepted by the operator licensee in violation of this Code.

16-13-104. Records of Ownership -

Corporation Each corporate operator licensee

must provide to the Committee, upon its request, the following documents pertaining to the

corporation:

(1) A certified copy of the articles of incorporation and any amendments;

(2) A copy of the bylaws and any amendments;

54
(3) A copy of the certificate issued by the Colorado secretary of state authorizing the

corporation to transact business in Colorado;

(4) A list of all current and former officers and directors;

(5) Minutes of all meetings of the stockholders;

(6) Minutes of all meetings of the directors;

(7) A list of all stockholders, listing each stockholders name, address, the number of

shares held, and the date the shares were acquired;

(8) The stock certificate ledger;

(9) A record of all transfers of the corporations stock; and

(10) A record of amounts paid to the corporation for issuance of stock and other capital

contributions.

16-13-105. Partnership, Limited Liability Company, or Association Records Each

partnership, limited liability company, or association operator licensee must provide to the

Committee, upon its request, the following documents:

(1) A copy of the partnership, limited liability company, or association agreement and,

if applicable, the certificate of limited partnership;

(2) A list of the general and limited partners, or associates, including their names and

addresses, the percentage of interest held by each, the amount and dale of each capital

contribution of each partner or associate, the date the interest was acquired, and the salary paid

by the partnership or association; and

(3) A record of all withdrawals of partnership or association funds or assets.

16-13-106. Sole Proprietor Records Each sole proprietor operator licensee must

provide to the Committee, upon its request, a schedule showing the name and address of the

proprietor and the amount and date of the proprietors original investment and of any additions

and withdrawals.

16-13-107. Records Retention -

Noncompliance Each operator licensee must provide

to the Committee, upon its request, the records required to be maintained by this Code. Unless

the Committee approves or requires otherwise in writing, each operator licensee must retain all

such records on the Reservation for at least five (5) years. Failure to keep and provide such

records is an unsuitable method of operation and subjects the operator licensee to a fine, penalty

or revocation of license.

55
16-13-108. Examination Procedures

(1) The Division shall:

(a) Conduct periodic examinations of the accounting and financial records of

operator licensees, including but not limited to revenue, expenditure and compliance audits;

(b) Review the accounting principles and procedures used by operator

licensees;

(c) Review and observe methods and procedures used by operator licensees to

count and handle cash, chips, tokens and negotiable instruments;

(d) Examine operator licensees internal control procedures;

(e) Examine accounting and financial records of the operator licensee;

(f) Examine the accounting and fmancial records of any operator licensee when

conditions indicate the need for such action or upon the request of the Committee; and

(g) Review tax returns, tax records and tax adjustments.

(2) The Division may conduct an audit, a review or other examination procedures in

conformity with generally accepted accounting principles, the applicable sections of the

Statements on Auditing Standards, Statements on Standards for Accounting and Review Services,

or other Division examination procedures.

(3) At the conclusion of each examination, the Division shall review the results of the

examination with the operator licensee. The Division shall prepare a report, as appropriate for

the examination conducted, at the conclusion of each examination for submission to the

Committee, incorporating any responses of the operator licensee. The operator licensee shall,

within ten (10) days of the examination, submit written comments to the Committee as to why

the results of the examination should not be accepted. If the Division and the operator licensee

cannot reach an agreement on the report, the Committee shall consider the report and the

submission of the operator licensees responses prior to its determination of its acceptance of the

report.

16-13-109. Mandatory Drop and Count Procedure

(1) Each operator licensee must report annually to the Division, on or before

October 1, and at other times as the Division requires, the time or times when drop boxes will

be removed and the contents counted for table games and slot machines. All drop boxes must

be removed and counted at the time or times submitted to the Division. Removal and counting

of drop box contents at other than the designated times is prohibited unless the operator licensee

56
provides advance notice and receives approval from the Committee of a change in times or the

Division requires a change of authorized times.

(2) Each operator licensee must submit a list to the Division, at least annually, on or

before October 1, of employees authorized to participate in the drop and count (personnel list).

Each operator licensee must submit a revised list to the Division within 15 days of any change

to the personnel list. The personnel list must indicate those persons, if any, who hold an interest

in the operator license and shall indicate what relationship by blood or marriage, if any, exists

between any person on the personnel list and any other person on such list or any interest holder

or employee of the operator licensee. The personnel list shall also indicate the social security

number of each employee and the job position title held by each employee.

16-13-110. Internal Control Procedures

(1) The Division shall establish internal control minimum procedures for operator

licensees.

(2) Each operator licensee shall establish its own internal control procedures, including

accounting procedures, reporting procedures and personnel policies for the purpose of determining

the operator licensees liability for taxes, fees and exercising effective control over internal fiscal

affairs. The operator licensees procedures must incorporate the minimum requirements as

established by the Division, or alternative requirements approved by the Division, and must be

designed to ensure that:

(a) Assets are safeguarded and accountability over assets is maintained;

(b) Liabilities are properly recorded and contingent liabilities are properly

disclosed;

(c) Financial records, including revenue, expenses, assets, liabilities and equity

are accurate and reliable;

(d) Transactions are performed only in accordance with generally accepted

accounting principles, and the operator licensees stated policies, which cannot be inconsistent

with such principles and this Code;

(e) Transactions are recorded adequately to permit proper reporting of gaming

revenue and of fees and taxes;

(f) Access to assets is permitted only in accordance with specific authorizations

in accordance with internal control minimum procedures;

(g) Recorded accountability for assets is compared with actual assets at

reasonable intervals and appropriate action is taken with respect to any discrepancies; and

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(h) Functions. duties and responsibilities are appropriately segregated and

performed in accordance with sound practices by competent, qualified personnel.

(3) Each operator licensee must describe its administrative, accounting, reporting and

personnel procedures in detail in a written system of internal control. Each operator licensee

must at all times follow and comply with its written system of internal control and must submit

a copy of its written system to the Conm~ittee at least 15 days prior to conducting or offering

gaming to the public. Each written system must include:

(a) An organizational chart depicting appropriate segregation of functions and

responsibilities;

(b) A description of the duties and responsibilities of each position shown on

the organizational charts;

(c) A detailed, narrative description of the administrative and accounting

procedures designed to satisfy the requirements of subsection (2);

(d) A written statement signed by the gaming operations controller and the

operator licensees chief executive officer, attesting that the system satisfies the requirements of

this section;

(e) Such other items as the Committee or Division may require.

(4) At least 45 days prior to revising the internal control minimum procedures, the

Division shall mail a copy of the proposed revision to every operator licensee.

(5) Prior to revising the internal control minimum procedures, the Division shall

consider all written statements, arguments or contentions submitted by interested parties.

(6) The Division shall send written notice that it has adopted revised procedures

pursuant to subsection (4) to all operator licensees.

(7) Not later than thirty (30) days after service of written notice that the minimum

procedures revised pursuant to this section are effective, each operator licensee whose procedures

are affected by the revised minimum procedures shall amend its written system, submit a copy

of the written system as amended to the Division, and comply with the procedures and system

as amended.

(8) The operator licensee may not implement a system of internal control that does

not satisfy the minimum procedures established by the Division unless the Division determines

that the operator licensees proposed system satisfies subsection (2), and approves the system in

writing. Within thirty (30) days after an operator licensee receives notice of the Divisions

approval of procedures that satisfy the requirements of subsection (2), but that do not satisfy the

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minimum procedures, the operator licensee shall comply with the approved procedures, amend

its written system accordingly, and submit to the Division a copy of the written system as

amended and a written description of the variations signed by the gaming operations controller

and the operator licensees chief executive officer.

(9) Operator licensees shall require the independent accountant engaged by the Tribe

to audit or review the financial statements of the gaming operation, as required by the

Committee, and to prepare a report on the operator licensees compliance with the written

procedures on the system of internal control. Using the criteria established by the Division, the

independent accountant shall report each material event and procedure discovered by, or brought

to the accountants attention during the course of the examination, that the accountant believes

does not satisfy the minimum procedures or variations from the procedures that have been

approved by the Division. In addition to the above, the operator licensee shall prepare a letter

addressing each item of noncompliance noted by the accountant and describing the corrective

measures taken. The operator licensee shall provide to the Committee within 150 days after the

end of the business year, a copy of the accountants written report on internal controls and any

other information provided to the operator licensee relating to accounting or internal controls,

such as a management letter, along with the operator licensees response letter.

(10) Before eliminating all table games; adding a table game at a gaming facility not

previously offering table games; adding any computerized system that affects the proper reporting

of revenues; or adding any computerized system for monitoring slot machines or other games,

or any other computerized associated equipment, the operator licensee must:

(a) Amend its written system of internal control to comply with the minimum

procedures, or with alternatives approved by the Division;

(b) Submit to the Division a copy of the written system as amended, and a

written description of the amendments signed by the gaming operations controller and the

operator licensees chief executive officer;

(c) Comply with any written requirements imposed by the Committee or the

Division regarding administrative approval of computerized associated equipment; and

(d) After paragraphs (a) through (c) have been complied with, implement the

procedures and written system as amended.

(11) Not later than October 1 of each year, the operator licensee must report any

amendments to its procedures and written system, not affecting compliance with the minimum

procedures, that have been made since the previous report. The report must include either a copy

of the written system as amended or a copy of each amended page of the written system, and a

written description of the amendments signed by the gaming operations controller and the

operator licensees chief executive officer. If no such amendments have been made, the operator

licensee shall submit a statement to that effect.

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(12) If the Committee or the Division determines at any time that an operator licensees

procedures or its written system does not comply with the requirements of this section, the

Division shall so notify the licensee in writing. Within ten (10) days after receiving the

notification, the operator licensee shall amend its procedures and written system accordingly, and

shall submit a copy of the written system as amended and a description of any other remedial

measures taken.

(13) Failure to comply with the minimum procedures, or the variations from the

minimum procedures approved pursuant to this section, is an unsuitable method of operation and

may result in a fine, penalty or license revocation.

16-13-1 11. Handling of Cash Each licensee who receives currency of the United

States (other than tips or gratuities) from a patron in the gaming area of a gaming facility must

promptly place the currency in the locked box in the table, in the cash register, in an appropriate

place in the cashiers cage, or in another repository approved by the Division.

16-13-112. Minimum Bankroll Reiuirements Each operator licensee must maintain,

in such manner and amount as the Division may approve or require, cash or cash equivalents in

an amount sufficient to protect patrons against defaults in gaming debts owed by the gaming

operation. The Division shall distribute to operator licensees a formula by which licensees

determine the minimum bankroll requirements of this section. If at any time the operator

licensees available cash or cash equivalents should be less than the amount required by this

section, the operator licensee must immediately notify the Division of this deficiency. Failure

to maintain the minimum bankroll required by this section, or a higher bankroll as required by

the Division pursuant to this section, or failure to notify the Division of any deficiencies is an

unsuitable method of operation and may result in a fine, penalty or license revocation.

16-13-113. Promotional Items

(1) An operator licensee who engages in promotions to increase business and gaming

may not deduct payouts made pursuant to the promotion from AGP except for money or tokens

paid at face value directly to a patron as the result of a specific wager.

(2) No deduction is allowed in the computation of AGP for any prizes, premiums,

drawings, benefits or tickets that are redeemable for money, merchandise or other promotional

allowances.

16-13-114. Match Play Items When match play promotional items are used in a game,

there will be no effect on calculation of AGP. A match play coupon must have printed on it the

name of the gaming facility, its value, and an explanation of its use.

16-13-115. Procedure for Reporting and Paying Gaming Taxes and Fees Required

taxes and fees and all reports relating thereto must be paid and submitted not later than the due

date specified by law.

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16-13-116. Standard Financial Statements

(1) Each operator licensee, in such manner and using such forms as required by the

Division, must prepare a financial statement covering all financial activities of the gaming

operation for each fiscal year. if the operator licensee operates room, food or beverage facilities

at the gaming facility, the financial statement must cover those operations as well as gaming

operations, in which case the gaming operations must be presented separately. Operator licensees

must submit the financial statements to the Committee not later than 90 days following the end

of the fiscal year covered by the statement. Each financial statement must be signed by the

controller for the gaming operation and chief executive officer of the operator licensee, who

thereby attest to the completeness and accuracy of the statement. In the event of a license

termination, change in the business entity, or a change in control of ownership, the operator

licensee or former licensee must, not later than 75 days after the event, submit to the Conmiittee

a financial statement covering the period from the last statement to the date of termination or

change.

(2) The Division shall prescribe a uniform chart of accounts and accounting

classifications as part of the internal control minimum procedures developed by the Division.

Operator licensees must prepare their financial statements in accordance with the chart and on

forms required by the Division.

16-13-117. Audited Financial Statements

(1) Annual financial statements covering all financial activities of every gaming

operation shall be prepared and audited in accordance with Generally Accepted Auditing

Standards by a licensed independent accountant. In addition, all contracts for supplies, services

or concessions for a contract amount in excess of $25,000 annually (except contracts for

professional legal or accounting services) relating to gaming shall be audited in accordance with

Generally Accepted Auditing Standards by a licensed independent accountant. Said audits may

be encompassed within existing independent tribal audit systems and shall be provided by the

Committee to the NIGC.

(2) The Committee may require any operator licensee to prepare financial statements

covering all fmancial activities of the gaming and non-gaming operations for a business year and

to engage a licensed independent accountant to audit the statements in accordance with Generally

Accepted Auditing Standards or to review the statements in accordance with Statements on

Standards for Accounting and Review Services.

(3) Statements required must be presented on a comparative basis after the first period

of operation. Consolidated financial statements may be filed by commonly operated facilities,

but the consolidated statements must include consolidating financial information or consolidating

schedules presenting separate financial statements for each facility. The independent accountant

must issue a report on the financial statements that expresses an opinion, whether it is

unqualified, qualified, adverse or a disclaimer of opinion. The independent accountant must also

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include any necessary explanatory or emphasis paragraph to the standard report as defined in the

Statement of Auditing Standards (SAS) No. 58. The independent accountant must include in the

report on the consolidated financial statements an appropriate opinion on the consolidating

financial information, if any.

(4) Each operator licensee required to submit audited or reviewed financial statements,

must submit to the Committee a copy of its audited or reviewed statements not later than 120

days after the last day of the gaming operations business year. In the event of a license

termination, change in business entity, or a change in control of ownership, the operator licensee

or former licensee must, not later than 120 days after the event, submit to the Committee copies

of audited or reviewed statements covering the period since the previous statement. If a license

termination, change in business entity, or a change in control of ownership occurs within 120

days after the end of the business year for which a statement has not been submitted, the operator

licensee may submit statements covering both the business year and the final period of business.

(5) The Committee or the Division may request additional information and documents

from either the operator licensee or the licensed independent accountant, through the licensee,

regarding the financial statements or the services performed by the independent accountant.

Failure to submit the requested information or documents is an unsuitable method of operation

and may result in a fine, penalty or revocation of license.

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ARTICLE 14

GAMING DEVICES AND EQUIPMENT

16-14-101. Possession of Slot Machines The possession of slot machines on the

Reservation by licensed manufacturers and gaming operations is legal if all the requirements,

conditions and provisions of this Code are met. However, nothing in this section shall be

deemed to authorize or permit any use of slot machines for any purpose, except as specifically

authorized and provided for by this Code.

16-14-102. Device and Equipment Approval No slot machine, card table, cards, chips

or tokens may be used for gaming by any operator licensee without prior written approval of the

Committee. The approval must describe with particularity the equipment or device approved.

16-14-103. Testing All slot machines, and such other devices and equipment as the

Committee may determine, shall be tested prior to approval for use in gaming by the Division.

16-14-104. Blackjack Table -

Physical Characteristics Blackjack must be played at

a table having on one side places for the players and on the opposite side a place for the dealer.

The cloth covering the blackjack table may have imprinted on it the name of the establishment

and must have rectangular, circular or oval areas to indicate boxes for wagers.

The following inscriptions shall appear on the cloth covering the blackjack table:

(1) Blackjack pays at least 3 to 2;

(2) Dealer must draw to 16 and stand on all 17s; and

(3) Insurance pays 2 to 1.

A blackjack table must have a drop box.

16-14-105. Cards -

Receipt and Storage

(1) When decks of cards are received for use in a gaming facility, they must be stored

in a locked cabinet. The cabinet must be located in a secure location approved by the

Committee. Before the beginning of gaming for a shift or day and as necessary, a licensee or

the licensee in charge must open the cabinet and remove the appropriate number of decks of

cards for that shift or day, distribute the decks to the dealer at each table, and place the extra

decks in a card reserve. The card reserve must be a locked compartment approved by the

Committee.

(2) Cards removed from play will be stored in a secure area prior to destruction.

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16-14-106. Cards -

Inspection and Removal From Use Prior to their use at a table,

decks must be inspected by the dealer. The dealer must check the back of each card to ensure

that it is not flawed, scratched or marked in any way. If, after checking the cards, the dealer

finds that certain cards are damaged or improper, the licensee must bring a substitute deck from

the card reserve. The damaged or improper cards must be placed in a sealed envelope or

container, identified by table number, date and time, and signed or initialed by the dealer and

supervisor.

Cards damaged during the course of play must be replaced. The damaged card must be

placed in a sealed envelope or container, identified by table number, date and time, and must be

signed or initialed by the dealer and supervisor.

The licensee must remove cards at any time if there is any indication of tampering, flaws,

scratches, marks or other defects that might affect the integrity or fairness of the game or at the

request of an authorized representative of the Committee. The damaged cards must be placed

in a sealed envelope or container, identified by table number, date and time, and must be signed

or initialed by the dealer and supervisor.

Where a licensee has no reason to believe that damaged or flawed cards in a sealed

envelope or container were so damaged or flawed as a result of an unlawful act, motive or

scheme, the licensee may dispose of such cards after thirty (30) days in any manner designed to

prevent their future use in gaming.

16-14-107. Cards, Envelopes and Containers to Committee All envelopes and

containers containing cards which indicate purposeful tampering must be turned over to the

Division who may inspect them for tampering, marks, alterations, missing or additional cards,

or anything that might indicate unfair play.

16-14-108. Duties of a Licensee The Committee or the Division may request that a

licensee remove all or designated cards from play or storage for the purpose of inspection. The

Division may conduct the inspection or may request a licensed employee of the gaming facility

to conduct the inspection. If a licensed employee of the gaming facility conducts the inspection,

the employee must follow procedures, which include at a minimum:

(1) Completion of a work order setting forth the procedures performed and listing the

tables from and time at which the cards were removed;

(2) Sorting of the cards sequentially by suit and inspecting the sides of the cards for

crimps, bends, cuts and shaving; and

(3) Immediately contacting the Division by telephone, or in person, to report any

evidence of tampering, alteration, missing or additional cards, or anything that might indicate

unfair play.

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The licensed employee must thereafter complete a written report and deliver the report,

copies of the completed work order, and any cards discovered to be damaged, altered or

otherwise reported pursuant to this Code.

16-14-109. Destruction of Cards Destruction of cards removed from play must be by

shredding or by other means approved by the Committee. Cancellation of cards must be by

cutting a corner, drilling or by other means.

16-14-110. Dealing Shoes A dealing shoe must be designed and constructed to

maintain the integrity of the game. Dealing shoes and shuffling devices in the gaming facility

must be inspected on a regular basis to ensure that there is no contrivance within the shoe or

shuffling device.

16-14-111. Approval of Chips and Tokens -

Applications and Procedures An operator

licensee may not issue chips or tokens or sell or redeem chips or tokens unless the specifications

of the chips or tokens have been approved in writing by the Committee.

An application for approval must include the following in addition to other items of

information that the Committee may require:

(1) An exact drawing of each side and the edge of the proposed chip or token, drawn

to actual size or drawn in scale to larger than actual size, showing the measurements of the

proposed chip or token in each dimension;

(2) Written specifications for the proposed chips or tokens;

(3) The name and address of the manufacturer, and

(4) The intended use for the proposed chips or tokens.

If the Committee is satisfied that the proposed chips or tokens conform with the

requirements of this section, the Committee will notify the operator licensee. The operator

licensee must submit a sample of the proposed chips or tokens in final, manufactured form to the

Committee. If the Committee is satisfied that the sample conforms with the requirements of this

section and with the information submitted with the application, the Committee must approve the

proposed chips or tokens.

16-14-112. Specifications for Chips and Tokens Chips and tokens must be designed,

manufactured and constructed in compliance with all applicable statutes, rules and policies of the

United States and the Southern Ute Indian Tribe to prevent counterfeiting of the chips or tokens.

Chips and tokens must not resemble any current or past coinage of the United States or any other

nation.

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In addition to other specifications that the Committee may approve, the following must

appear on the chip or token:

(1) The name of the gaming facility must be inscribed on each side of a chip or token;

(2) The value of the chip or token must be inscribed on each side of a chip or token;

and

(3) A chip must be designed so that when stacked with chips and tokens of other

denominations and viewed on closed-circuit, black-and-white television, the denomination of the

chip may be distinguished from that of the other chips and tokens in the stack.

16-14-113. Specifications for the Shape and Size of Chips Chips must be disk-shaped,

must be .130 inch thick, and must have a diameter of 1.55 inches.

16-14-114. Colors of Chips Denominations of chips must be denoted by the following

colors:

(1) The 25-cent chip must be predominantly yellow;

(2) The 50-cent chip must be predominantly blue;

(3) The one-dollar chip must be predominantly white;

(4) The five-dollar chip must be predominantly red; and

(5) The twenty-five dollar chip must be predominantly green.

An operator licensee must have sufficient numbers of chips to conduct gaming.

16-14-115. Specifications for Tokens One-dollar tokens must be disk-shaped and must

measure from 1.459 through 1.474 inches in diameter, from .095 through .115 inches thick, and,

if the token has reeds or serrations on its edges, the number of reeds or serrations must not

exceed 150. Five-dollar tokens must be disk-shaped and must measure from 1.740 inches

through 1.760 inches in diameter, from .115 inches through .135 inches thick, and, if the token

has reeds or serrations on its edges, the number of reeds or serrations must not exceed 175.

Tokens must not be manufactured from material possessing sufficient magnetic properties

to allow it to be accepted by a coin mechanism other than that of a slot machine. Tokens may

not be manufactured from a three-layered material consisting of a copper-nickel alloy clad on

both sides of a pure copper core nor from a copper-based material unless the total of zinc, nickel,

aluminum, magnesium and other alloying materials is at least twenty (20) percent of the tokens

weight.

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16-14-116. Other Devices Other devices with which gaming is conducted must be

designed, manufactured, approved, used, discontinued, destroyed or otherwise disposed of in

accordance with the provisions of this Code. Other devices must be of a shape, size, design or

other specifications approved by the Committee.

16-14-117. Ownership Identification on Gaming Devices An operator licensee must

post in a prominent place in the gaming facility a sign that identifies the person or persons

responsible for repairs or malfunctions of the machines, payments of winnings, and disputes

regarding payments.

16-14-118. Drop Box Requirements Drop box markings must be visible from a

distance of at least 20 feet. The container must be locked to the table with a lock separately

keyed from the container itself. Currency exchanged for chips at the table and all other items

or documents relating to transactions at the table must be put into the drop box.

16-14-119. Defmitions for Slot Machines The following definitions apply to all slot

machine hardware and software requirements:

(1) Leakage current means an electrical current which flows when a conductive path

is provided between exposed portions of a slot machine and the environmental electrical ground

when the slot machine is isolated from the normal AC power ground.

(2) Inappropriate coin-in means a coin or token which has been accepted by a slot

machine after the slot machine has already accepted the maximum number of coins or when the

slot machine is in a state which normally rejects additional coins, sometimes caused by

mechanical timing limits in coin handling equipment.

(3) Par sheet means a document which depicts the possible outcomes from the play

of a slot machine, the probability of occurrence of each, and the contribution of each winning

outcome to the payback percentage of a slot machine.

(4) Random access memory or RAM means the electronic component used for

computer work space and storage of volatile information in a slot machine.

(5) Randomness means the unpredictability and absence of pattern in the outcome

of an event or sequence of events.

(6) Random number generator means a hardware, software or combination hardware

and software device for generating number values that exhibit characteristics of randomness.

(7) Read only memory or ROM means the electronic component used for storage

of nonvolatile information in a slot machine, including programmable ROM and erasable

programmable ROM.

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(8) Tilt condition means a programmed error state for a slot machine, which occurs

when the slot machine detects an internal error, malfunction or attempted cheating. The machine

ceases processing further input, output or display information other than that indicating the tilt

condition itself.

16-14-120. Control Program Requirements Slot machine control programs must test

themselves for possible corruption caused by failure of the program storage media. Test

methodology must detect 99.99 percent of all possible failures. The ROM must be tested not

more than once during a game cycle.

The program residing in the slot machine must be contained in a storage medium which

is not alterable through any use of the circuitry or programming of the slot machine itself.

The control program must check for corruption of random access memory locations used

for crucial slot machine functions, including information relating to the play and final outcome

of the two prior games, random number generator outcome, and any error states. These memory

areas must be checked for corruption following game initiation but prior to the display of the

game outcome to the player. Detection of corruption is a game malfunction and must result in

a tilt condition, which identifies the error and causes the slot machine to cease further functions.

Slot machines must have the capacity to display a complete play history for the last two

games played. The display must indicate the game outcome or a representative equivalent, bets

placed, credits or coins paid, credits cashed out, and any error conditions.

16-14-121. Meters A slot machine must have both electronic and electromechanical

meters. Slot machine meters must have at least six digits. The slot machine must accumulate

the same values in electronic digital storage and provide the means for on-demand display of the

stored information.

The coins-in meter must accumulate all coin and token transactions. The coins-out meter

must accumulate all coin and credit transactions paid for winning combinations. The coinsdropped meter must accumulate the number of coins that have been diverted into a drop bucket.

The jackpots-paid meter must reflect the cumulative amounts paid out by the machine.

A slot machine must be equipped with electronic meters that record the number of times

the cabinet door was opened. No slot machine may have a mechanism that causes the electronic

accounting meters to clear automatically when an error occurs. Clearing of the electronic

accounting meters may be done only by approval of the Division. A slot machines meters must

be maintained at all times, regardless of whether the machine is being supplied with power.

Meter readings must be recorded before and after the electronic accounting meter is cleared.

Electro-mechanical meters must have an accuracy rate of 99 percent or better. Electronic

meters must have an accuracy rate of 99.99 percent or better.

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A slot machine must be designed so that replacement of parts or modules required for

normal maintenance does not require replacement of the electro-mechanical meters.

A slot machine must have an electronically stored digital meter of at least three digits for

the number of plays since power on and the number of plays since door closure. The slot

machine must provide the means for on-demand display of the stored information.

Slot machines must have electronic meters capable of displaying the following information

relating to the current play or monetary transaction:

(1) The number of coins or credits wagered;

(2) The number of coins or credits won;

(3) The number of coins paid by the hopper for a credit cash out or a direct pay from

a winning outcome;

(4) Coins to the drop area and currency accepted (in credits); and

(5) The number of credits available for wagering (credit meter), if applicable.

16-14-122. Random Events Events in slot machines are occurrences of elements, or

particular combinations of elements, that are available on the particular slot machine. A random

event has a given set of possible outcomes, each with a given probability or occurrence. The set

of these probabilities is called the distribution. Two events are independent if the outcome of

one has no influence over the outcome of the other. The outcome of one event cannot affect the

distribution of another event if the two events are independent.

16-14-123. Basic Slot Machine Specifications Slot machines must meet the following

security and audit specifications:

(1) Be controlled by one or more microprocessors;

(2) Be compatible to on-line data monitoring and accounting meter acquisitions;

(3) Be able to continue a game with no data loss after a power failure;

(4) Have a previous and current game data recall;

(5) Have a random selection process that satisfies the 99 percent confidence level

using standard chi-squared, runs and serial correlation tests;

(6) Clearly display applicable rules of play and the payout schedule;

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(7) Display an accurate representation of each game outcome; and

(8) Have mechanical meters which monitor coins in, coins out, coins and currency to

drop and jackpots.

16- 14-124. Safety Requirements Electrical and mechanical parts and design principles

must not subject a player to physical hazards. Spilling a conductive liquid on the slot machine

must not create a safety hazard or alter the slot machines performance. The power supply used

in a slot machine must be designed to make minimum leakage of current in the event of an

intentional or inadvertent disconnection of the AC power ground. The power supply must be

appropriately fused or protected by circuit breakers.

16- 14-125. Backup Devices A battery backup device must be installed that is capable

of maintaining the accuracy of required information for 180 days after power is discontinued for

the slot machine.

16-14-126. ON and OFF Switch An ON and OFF switch that controls the electrical

current used to operate the slot machine and its associated equipment must be located in an

accessible place within the interior of the slot machine.

16-14-127. Coin and Bill Acceptors At least one electronic coin or token acceptor

must be installed in a slot machine. In addition, bill acceptors may be installed. Coin and bill

acceptors must be designed to accept designated coin, token or bills and reject others. The coin

acceptor must be designed to prevent the use of cheating methods such as slugging, stringing and

spooning. Bill acceptors must be free from mechanical cheating techniques.

Coins or tokens which are accepted but are inappropriate coins-in must be returned to

the player or credited toward the next play of the slot machine. The slot machine hardware must

be capable of handling rapidly fed coins or piggy backed coins so that occurrences of cheating

are eliminated.

16-14-128. Automatic Light A light must be installed on the top of the slot machine

that automatically illuminates when the door to the slot machine is opened or when associated

equipment that may affect the operation of the slot machine or which houses its coins, bills or

tokens is accessed. A bell which rings may be substituted for the light required. This provision,

in whole or in part, may be waived by the Committee.

16-14-129. Access to Interior Logic boards, read only memory and random access

memory, and any other discrete logic that determines the outcome of the device (either directly

or indirectly) must be in a locked or sealed area within the machine. Unauthorized tampering

or entrance into the logic area without prior notification to the Division is grounds for

disciplinary action.

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16-14-130. Hardware Switches No hardware switches may be installed which alter

the pay tables or payout percentage in the operation of a slot machine. Hardware switches may

be installed to control graphic routines, speed of play, sound or any other feature approved by

the Committee.

16-14-131. Display of Rules of Play The rules of play for a slot machine must be

displayed on the slot machine face or screen. Rules of play must have approval of the

Committee. The Committee may reject the rules if they are incomplete, confusing or misleading.

16-14-132. Power Supply Filter Slot machine power supply filtering must be

sufficient to prevent disruption of the slot machine by repeated switching on and off of the AC

power.

16-14-133. Error Condition -

Automatic Reset Slot machines must be capable of

detecting and displaying the following conditions, which must be automatically cleared by the

slot machine upon initiation of a new play sequence:

(1) Power reset;

(2) Door open; and

(3) Inappropriate coin-in.

16-14-134. Error Conditions Slot machines must be capable of detecting and

displaying the following error conditions, which an attendant may clear:

(1) Coin-in jam;

(2) Coin out jam;

(3) Hopper empty or timed out;

(4) RAM corruption error;

(5) Program error,

(6) Hopper runaway or extra coin paid out;

(7) Reverse coin-in (coin traveling wrong way through acceptor);

(8) Reel spin error of any type, including mis-index condition for mechanical reels (the

specific reel number must be identified in the error code); and

(9) Low RAM battery for batteries external to the RAM itself.

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A description of the slot machine error codes in section 16-14-132 and this section and

their meanings must be affixed inside the slot machine. Mechanical and electronic meter

readings must be recorded if the RAM is cleared.

16- 14-135. HoDper Mechanism Slot machines must be equipped with a hopper which

is designed to detect jammed coins, extra coins paid out, hopper runaways and hopper empty

conditions. The slot machine control program must monitor the hopper mechanism for these

error conditions on all game states. All coins or tokens paid from the hopper mechanism must

be accounted for by the slot machine, including those paid as extra coins during hopper

malfunction. Hopper pay limits must be designed to permit compliance by operator licensees

with tax laws and regulations.

16-14-136. Communication Protocol A slot machine which is capable of bi-directional

communication with internal or external associated equipment must use a communication protocol

which ensures that erroneous data or signals will not adversely affect the operation of the

machine.

16-14-137. Number and Value of Credits Wagered Collectible credits may be

accumulated from wins or from coin or token acceptance, if the slot machine uses a coin or token

acceptor that accepts or rejects on the basis of metallic composition of the coins being used.

16-14-138. Software Requirements for Randomness Testing A slot machine must have

a random number generator. A selection process is considered random if the following

specifications are met:

(1) A reel, card or ball or other event that determines the outcome of the play satisfies

at least 99 percent confidence level using the standard chi-squared analysis. Chi-squared analysis

is the sum of the squares of the difference between the expected result and the observed result.

(2) A reel, card or ball or other event that determines the outcome of the play satisfies

at least 99 percent confidence level using the Median Runs Test or any similar pattern checking

statistic. The runs test is a mathematical statistic that determines the existence of recurring

patterns within a set of data.

(3) A reel, card or ball is independently chosen without reference to any other event

produced during that play. This test is the correlation test. Each pair of events is considered

random if they meet at least the 99 percent confidence level using standard correlation analysis.

(4) A reel, card or ball or other event is independently chosen without reference to the

same event in the previous game or games. This test is the serial correlation test. The event is

considered random if it meets at least 99 percent confidence level using standard serial corre

lation analysis.

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(5) The random number generator and random selection process must be impervious

to influences from outside the slot machine, including electromagnetic interference, electrostatic

interference and radio frequency interference. A slot machine must use appropriate communica

tion protocols to protect the random number generator and random selection process from

influence by associated equipment which is conducting data communications with the slot

machine.

16-14-139. Software Requirements for Percentage Payout The slot machine must meet

the following maximum and minimum theoretical pay out during the expected lifetime of the slot

machine:

(1) The slot machine must theoretically pay out at least 80.0 percent and no more than

100.0 percent of the amount wagered. The theoretical payout percentage is determined using

standard methods of probability theoiy, and when applied to games whose outcome is determined

in whole or in part by skill, the theoretical pay Out shall be computed using the optimum play

strategy for the given game tested.

(2) The slot machine must have a probability of obtaining the maximum payout

greater than 1 in 17 million.

(3) Whenever a gaming operation offers a progressive jackpot as a part of the slot

machine payout, the amount of the payout may not be included in the theoretical payout

percentage for purposes of satisfying the minimum and maximum pay Out requirements specified

in this section.

16-14-140. Software Requirements for Continuation of Game After Malfunction A

slot machine must be capable of continuing the current play with all current play features after

a slot machine malfunction is cleared.

16-14-141. Progressive Slot Machines A progressive slot machine is a slot machine

with a payoff that increases as the slot machine is played. A progressive slot machine may be

transferred to another progressive slot machine at the same location in the event of the slot

machine malfunction, replacement or for some other good reason. When the maximum jackpot

limit is reached, it must be permitted to remain until it is won by a player or transferred to

another progressive link.

Records must be maintained that record the amount shown on a progressive jackpot

display. Supporting documents must be maintained to explain any reduction in the pay off

amount from a previous entry. The records and documents must be retained for a period of five

years unless permission to destroy them earlier is given by the Committee in writing.

The slot machine must be linked to an electronic display showing the payoff, which is

visible to all players who are playing a machine which may potentially win the progressive

amount.

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(1) Linked Machines. Each machine on the link must have the same probability of

hitting the combination that will award the progressive jackpot.

(2) Normal Mode of Progressive Slot Machines. During the normal mode of

progressive slot machines, the progressive controller must continuously monitor each machine

on the link for inserted coins and must multiply the accepted coins by the rate progression in

order to determine the correct amounts to apply to the progressive jackpot. The progressive

display must be constantly updated as play on the link is continued.

(3) Requirements for Progressive Controller. Each progressive controller linking one

or more progressive slot machines must be housed in a double keyed compartment. The Division

must be in possession of one of the keys. There must be a progressive entry authorization log

within each controller, and the log must be completed by any person gaining entrance to the

controller.

(4) Progressive Jackpot. If a progressive jackpot is recorded on a progressive slot

machine which is linked to the progressive controller and more than one machine is linked to the

controller, the progressive controller must identify the machine that caused the progressive

jackpot display to activate and it must display the winning progressive amount.

(5) Multiple Linkage of Progressive Slot Machines. If more than one progressive slot

machine is linked to the progressive controller, the progressive controller may automatically reset

to the minimum amount and continue normal play only if the progressive meter displays the

following information:

(a) The identity of the machine that caused the progressive jackpot display to

activate;

(b) The winning progressive amount; and

(c) The new normal mode amount that is used by the other players on the link.

(6) Alternating Displays. If this Code prescribes multiple items of information to be

displayed on a slot machine, it is sufficient to have the information displayed in an alternating

fashion.

(7) Progressive Controller Information. A progressive meter or progressive controller

must keep the following information in nonvolatile memory, which shall be displayed upon

demand:

(a) The number of progressive jackpots won, if the progressive display has

more than one winning amount;

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(b) The cumulative amounts paid, if the progressive display has more than one

winning amount;

(c) The maximum amount of the progressive payout for each progressive

displayed;

(d) The minimum amount or reset amount of the progressive payout for each

progressive displayed; and

(e) The rate of progression for each meter.

(8) Key Switch for Resetting Slot Machine After a Jackpot. Each machine must have

a key switch to reset the progressive meter.

(9) Limits on Jackpot of Progressive Slot Machines. An operator licensee may impose

a limit on the jackpot of a progressive slot machine, if the limit imposed is greater than the

possible maximum jackpot payout on the slot machine at the time the limit is imposed. The

operator licensee must inform the public with a prominently posted notice of progressive slot

machines with the limits.

(10) Discontinuance of Progressive Slot Machines. No operator licensee may

discontinue a progressive slot machine until all of the advertised progressive amounts or prizes

or both have been awarded or moved to another progressive link within the licensed facility.

(11) Cash Requirements. Unless the Committee has approved the payment of prizes

by annuity, a gaming operation that has a progressive slot machine must maintain a minimum

cash reserve equal to the total of all progressive slot machine jackpots that may be won at the

facility. The Committee must approve all such cash reserves.

(12) Applicability of Requirements. The requirements of this section are intended to

apply equally to one progressive slot machine linked to a progressive controller, as well as

several progressive slot machines linked to one progressive controller. The Committee may grant

waivers in order that both single slot machines and multiple slot machines linked to a progressive

controller may meet the requirements of this section.

16-14-142. Surveillance Requirements

At all times during the conduct of gaming the following surveillance shall be required:

(1) Video cameras capable of providing fixed, pan, tilt and zoom surveillance of all

gaming activities being played, including:

(a) A full unobstructed view of all slot machine areas, pit and card game areas

and all table games;

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(b) A clear view of the dealing action of all games, including sufficient specific

coverage to identify dealers, patrons, spectators and game number; and

(c) A clear unobstructed view of all areas in the count rooms, cage areas, cage

windows or areas where business with the public is transacted and fill windows where chip fill

transactions are being handled.

(2) The viewing capability of all cameras required under this subsection shall be of

sufficient quality to ensure that card values in specific hands, as well as denominations of chips

being wagered, can be determined.

(3) All fixed, pan, tilt and zoom cameras shall be concealed in a manner to prohibit

viewing the camera and determining the direction under surveillance.

(4) All fixed, pan, tilt and zoom cameras shall be connected to video monitors and

linked to recording devices that will provide instant video tape playback of any area.

(5) No time lapse recording systems are allowed.

(6) The recording devices shall be capable of providing a hard photo of any video

picture upon request.

(7) Video recordings gathered under this section shall be preserved and stored for a

period of at least thirty (30) days and shall not be erased, recorded over, nor otherwise altered

during that time.

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ARTICLE 15

PURCHASE AND REDEMPTION OF COINS, CifiPS AND TOKENS

16-15-101. Use of Chips and Tokens

(1) A gaming operation using chips or tokens must do the following:

(a) Comply with all applicable statutes, rules and policies of the Tribe and of

the United States relating to chips or tokens;

(b) Sell chips and tokens only to patrons of the gaming facility and only at

their request;

(c) Promptly redeem the facilitys own chips and tokens from its patrons;

(d) Post conspicuous signs notifying patrons that federal law prohibits the use

of the gaming operations tokens and chips outside the gaming facility for any monetary purpose

whatever~ and

(e) Take reasonable steps, including examining chips and tokens and

segregating those issued by other gaming facilities, to prevent sales to its patrons of chips and

tokens issued by another gaming operation.

(2) Chips or tokens may not be accepted as payment for goods or services other than

gaming or as change in any other transaction.

16-15-102. Redemption A licensee may not redeem chips or tokens if presented by

a person who the licensee knows, or reasonably should know, is not a patron of the gaming

facility, unless they are presented as follows:

(1) By another gaming facility which represents that it redeemed the chips and tokens

from its patrons or received them unknowingly, inadvertently or unavoidably;

(2) By an employee of the gaming facility who presents the chips and tokens in the

normal course of employment; or

(3) By a person engaged in the business of collecting chips and tokens issued by other

gaming facilities and presenting them to the issuing gaming facility for redemption.

16-15- 103. Use of Other Facilitys Chips and Tokens A licensee may not knowingly

sell, use, permit the use of, accept or redeem chips or tokens issued by another gaming facility

except as follows:

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(1) The chips or tokens are presented by a patron for redemption to a cashier and the

patron states that the patron received the tokens from the payout chutes of slot machines or from

a licensee at that gaming facility;

(2) The chips or tokens are presented by a patron at a game, and the licensee redeems

the chips or tokens with chips of that gaming facility, places the redeemed chips in the imprest

bank or the tables drop box, and separates and accounts for the redeemed chips during the count

performed pursuant to the operator licensees system of internal control.

16-15-104. Redemption and Disposal of Discontinued Chips and Tokens An operator

licensee who permanently removes from use or replaces chips or tokens at the gaming facility

or ceases gaming activity for any reason must prepare a plan for redeeming discontinued chips

and tokens that remain outstanding at the time of discontinuance. The operator licensee must

submit the plan in writing to the Committee no later than thirty (30) days before the discontinu

ance. II the cause for discontinuance of the chips or tokens cannot reasonably be anticipated, the

operator licensee must submit the plan as soon as practicable. The Committee may approve the

plan or require modification as a condition of approval. Upon approval of the plan, the operator

licensee must implement the plan as approved. In addition to other provisions the Committee

may approve or require, the plan must provide for the following:

(1) Redemption of outstanding, discontinued chips and tokens for 120 days after the

discontinuance or for a longer or shorter period required by the Committee;

(2) Redemption of the chips and tokens at the gaming facility or at another location

approved by the Committee;

(3) Publication of notice of the discontinuance of the chips and tokens and their

redemption and the pertinent times and locations. The notice must be published in at least two

newspapers of general circulation on the Reservation at least twice during each week of the

redemption period. Publication is subject to the Committees approval of the form of the notice,

the newspapers selected for publication, and the specific days of publication;

(4) Conspicuous posting of the notice at the gaming facility or other redemption

location; and

(5) Destruction or other disposition of the discontinued chips and tokens as required

by the Committee.

16-15-105. Destruction of Counterfeit Chips and Tokens As used in this section,

counterfeit chips or tokens means any chips or token-like objects that have not been approved

pursuant to this Code, including objects commonly referred to as slugs, but not including coins

of the United States or any other nation. Unless the Division, the Committee or a court of

competent jurisdiction orders otherwise in a particular case, operator licensees must destroy or

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otherwise dispose of counterfeit chips and tokens in a manner approved or required by the

Committee.

Unless the Division, the Committee or a court of competent jurisdiction orders otherwise,

an operator licensee may dispose of coins of the United States or any other nation discovered to

have been unlawfully used in the gaming facility by including them in their coin inventories; in

the case of foreign coins, by exchanging them for United States currency or coins and including

the exchanged currency or coins in their currency or coin inventories; or by disposing of them

in any other lawful manner.

In addition to other information the Committee may require, the operator licensee must

report the following information to the Division in writing on a monthly basis:

(1) The number and denominations, actual and purported, of the coins and counterfeit

chips and tokens destroyed or otherwise disposed of pursuant to this section;

(2) The month during which they were discovered;

(3) The date, place and method of destruction or other disposition, including, in the

case of foreign coin exchanges, the exchange rate and the identity of the bank, exchange

company or other business at which the coins were exchanged; and

(4) The names of the persons carrying out the destruction or other disposition on

behalf of the operator licensee.

Each operator licensee must maintain a record required by this section for at least five

years, unless the Committee approves otherwise.

16-15-106. Forms of Wagers All wagers must be made with United States currency

or coins, or with chips or tokens furnished by the gaming operation.

16-15-107. Sale of Chips and Tokens Chips and tokens used for gaming must be sold

for cash only. No credit may be extended.

Where a gaming operation redeems chips and tokens, it must redeem all chips and tokens

at the value for which they were sold.

16-15-108. Procedure for Accepting Checks Checks may not be accepted for purchase

of chips or tokens at gaming tables; however, checks may be accepted at the cashiers cage. All

checks accepted at the cashiers cage must be deposited by the next banking day.

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