(14) _ Fingerprints consistent with procedures adopted by the Gaming
Commission according to 25 C.F.R, § 522.2(h),

ii. The Tribe shall conduct or cause to be conducted an investigation, through
the Gaming Commission, sufficient to make a determination of eligibility as required
under this Ordinance for, at minimum, all Key Employees and Primary Management
Officials. In conducting the background investigation, the Gaming Commission and its
agents shall keep confidential the identity of each person interviewed in the course of the
investigation.

m. Eligibility Determination. The Gaming Commission shall review a person’s prior
activities, criminal record, if any, and reputation, habits and associations to make a finding
concerning the eligibility of, at minimum, all Key Employees and Primary Management Officials
for employment in a gaming operation. If the Gaming Commission determines that employment
of the person poses a threat to the public interest or to the effective regulation of Gaming, or
creates or enhances dangers of unsuitable, unfair, or illegal practices and methods and activities
in the conduct of Gaming, the Gaming Entity shall not employ that person in a Key Employee or
Primary Management Official position or in any other position for which a Class A license is
required, except as specifically established by the Gaming Commission.

n. Forwarding Licensing Applications and Reports to NIGC.

i. When any Key Employee or Primary Management Official is employed
by a Gaming Entity authorized under this Ordinance, the Gaming Commission, acting on
behalf of the Tribe, shall forward to the NIGC the person’s completed application for
employment containing the information required above under subsection 11.1.(1) of this
Ordinance.

ii. Prior to issuing a license to a Primary Management Official or Key
Employee, the Gaming Commission, acting on behalf of the Tribe, shall forward to the
NIGC, together with a copy of the eligibility determination made under subsection 11.m.
above, an investigative report on each background investigation. The investigative report
on each background investigation shall be forwarded to the NIGC within sixty (60) days
after the employee begins work, or within sixty (60) days of the approval of this
Ordinance by the NIGC. The Gaming Entity shall not employ or continue to employ any
person as a Key Employee or Primary Management Official who does not have a license
within ninety (90) days. The investigative report shall include the following information:

(1) Steps taken in conducting a background investigation;
(2) Results obtained;
(3) Conclusions reached; and
(4) The bases for those conclusions,
iii. The Gaming Commission, acting on behalf of the Tribe, shall provide to

the NIGC or other agency, any other reports and information required by IGRA and
regulations promulgated thereunder. Further, with respect to Key Employees and Primary

13


b. Membership and Appointment. The Gaming Commission shall be composed of
three (3) members, each of whom shall serve initially for three (3) year terms. After the initial
term, the Gaming Commissioners reappointed shall serve staggered terms so that all Commission
appointments do not expire at the same time, with the Chairman’s next term being a four (4) year
term, and the Secretary/Treasurer and the Vice-Chairman terms being for three (3) years. The
members of the Gaming Commission shall be appointed by the Tribal Council and at least two
(2) Commissioners shall be members of the Tribe.

c. Qualifications for Office. The following minimum requirements must be met to
qualify for membership on the Commission:

i. At least two (2) shall be members of the Pit River Tribe;

ii. Qualified by experience or education to serve as a full time working
member of the Tribe’s gaming regulatory body;

iii. Twenty-one (21) years of age; and

iv. Successfully pass a comprehensive background investigation and sign the
Conflict of Interest Code.

d. Disqualifications for Office. The following persons shall not serve as
Commissioners:

i. Employees of any Gaming Entity on the Reservation;

ii. Persons related to any Gaming Contractor (including any principal thereof
or Closely Associated Independent Contractor); or

iii. Persons who have been convicted of a felony.

e. Removal from Office. Once qualified and having passed a background
investigation and signed the Conflict of Interest Code adopted by the Tribe, Commissioners may
only be removed from office before the expiration of their terms by the Tribal Council for
neglect of duty, malfeasance or other good cause shown. Good cause shall include violation of
the Gaming Commission Conflict of Interest Code. The procedure for removing a
Commissioner shall be the same as for removing a member of the Tribal Council.

f. Quorum. Two (2) members of the Gaming Commission shall constitute a
quorum.
g. Officers and Duties. The Tribal Council shall appoint the Gaming Commission

Chairman, who shall appoint and assign responsibilities for the Vice-Chairman and the
Secretary/Treasurer. The Chairman shall preside over meetings of the Gaming Commission and
the Vice-Chairman shall preside in absence of the Chairman. The Secretary/Treasurer shall
record in writing the minutes of all Gaming Commission meetings and all official actions taken
by the Gaming Commission, and shall annually prepare a draft budget for review by the
members of the Gaming Commission.


Section 19. Construction and Severability.

This Ordinance is exempted from the rule of strict construction, and shall be liberally
construed to give full effect to the objectives and purposes for which it was enacted, if any
section of this Ordinance, or its application to any person or entity or circumstance, is held
invalid, the remainder of the Ordinance, or the application of the provision to other persons or
entities or circumstances, shall not be affected and shall remain in full force and effect.

# 1769522 _v1

17


Section 8. Audits.

Annual outside auditing by the recognized independent accounting firm selected by the
Tribal Council shall be conducted of the Gaming Activities and the results thereof reported to the
Tribal Council, the NIGC, and otherwise as required by law. All audits must meet any audit
requirements of the Tribe.

Section 9. Contracts / Audits.

a. Gaming Contracts. Unless otherwise exempted by the Gaming Commission,
contracts relating to Gaming Activities, the Gaming Entity or any gaming facility (except
contracts for professional legal or accounting services) shall be subject to the Tribe’s
requirements for purchasing such goods and services.

b. Audit Requirements. All contracts for supplies, services, or concessions for a
contract amount in excess of $25,000 annually (except contracts for professional legal or
accounting services) relating to Class II or Class III gaming on the Reservation shall be subject
to independent audits, and such contracts shall so specify.

Section 10. Licenses.

a. Licensing Requirements. It is the declared policy of the Tribe that all Gaming
Activities be licensed and controlled so as to protect the peace, dignity, and welfare of Members
and other persons on the Reservation and to preserve the honesty, fairness and integrity of such
Gaming Activities. Accordingly, no person or entity shall provide goods or services to, or be
employed to conduct, be associated with, supervise, or manage any Class II or Class III Gaming
Activities on the Reservation without an appropriate and valid independent Class II or Class III
gaming license issued by the Gaming Commission. Any gaming license which is issued, or
finding of suitability or approval by the Gaming Commission, shall be deemed a privilege
subject to suspension or revocation. No license shall be issued that would place the Tribe in
violation of a compact to which the Tribe is a party, or of any applicable law.

b. Burden on Applicant. The burden of proving an applicant’s qualification to
receive any license hereunder is at all times on the applicant. Applicants must accept any risk of
adverse public notice, embarrassment or other action which may result from the application
process and expressly waive any claim for damages as a result thereof.

c. Applicant Claim of Privilege. An applicant may claim any privilege afforded by
law in connection with a gaming license application or investigation, but a claim of privilege
with respect to any testimony or evidence pertaining thereto may constitute sufficient grounds
for denial, suspension or revocation.

d. Release of Information. All persons applying for a license shall agree to release
all information necessary in order for the Gaming Commission to achieve its goals under this
Ordinance, and to furnish such information to the NIGC, and to such other governmental agency
as may be required by law.

e. Types of Licenses. Three classes of licenses (Class A, Class B, and Class C) shall
be issued to persons and entities associated with Gaming Activities or the gaming facility.


iii. Investigate or cause to be investigated, in conjunction with the tribal or
other recognized enforcement agency or agencies, any suspicion of wrongdoing in
connection with any Gaming Activities or Gaming Entity;

iv. Conduct or cause to be conducted such investigations as may be necessary
to determine compliance with all applicable laws, including this Ordinance, the Gaming
Compact, and other applicable laws in respect to any contracts, agreements, goods,
services, events, incidents, or other matters related to the Gaming Activities or Gaming
Entity;

v. Issue licenses to persons and entities connected with the Gaming
Activities or the Gaming Entity and, at minimum, to all Key Employees and Primary
Management Officials according to requirements at least as stringent as those in 25
C.F.R. parts 556 and 558;

vi. Conduct or cause to be conducted background investigations regarding
persons and entities connected with the Gaming Activities or the Gaming Entity and, at
minimum, for all Key Employees and Primary Management Officials according to
requirements at least as stringent as those in 25 C.F.R. parts 556 and 558;

vii. Hold such hearings, sit and act at such times and places, summon persons
to attend and testify at such hearings, take such testimony, and receive such evidence as
the Gaming Commission deems relevant in fulfilling its duties;

viii. | Administer oaths or affirmations to witnesses appearing before the
Gaming Commission;

ix. Implement and administer a system for investigating, regulating, licensing
and monitoring employees and others connected with the Gaming Activities or Gaming
Entity, as described herein, including the issuance of licenses to gaming facilities,
individuals and entities as required under this Ordinance and the IGRA;

x. Hear disputes against the Gaming Entity, in accordance with the
procedures established in this Ordinance and in the Tribe’s Tort Liability Ordinance;

xi. Hire such staff and support services for the Commission as deemed
necessary subject to the budget approved by the Tribal Council;

xii. _ To the extent required, comply with any reporting requirements, including
annual reports to the Tribal Council and Members, and those requirements established
under the Tribe’s Gaming Compact and other applicable law, including the IGRA and
regulations promulgated;

xiii. Promulgate rules for each Class I, Class II or Class III game allowed under
this Ordinance, to govern the conduct of such games;

xiv. _ Issue a certificate of occupancy and license to any gaming facility as
required under applicable tribal, state, or federal requirements; and


h. Meetings. Meetings shall be held at least once per month in conjunction with a
regular meeting (“Gaming Meeting”) of the Tribal Council at the Tribe’s primary meeting
facility (“Scheduled Meetings”). At this Scheduled Meeting, the Gaming Commission shall
provide a written report to the Tribal Council, present information and respond to questions, as
applicable. Any Tribal member may attend Scheduled Meetings. Scheduled Meetings may be
changed at any time by the Gaming Commission, with notice of such change posted prominently
at least two (2) business days in advance at the Tribe’s primary meeting facility. Notice of other
Gaming Commission meetings shall be given in writing to each Commissioner, served by first
class mail or personal delivery at least three (3) business days prior to such meeting. Additional
meetings shall be held as called by the Chairman or by at least two (2) other Commissioners.
Meetings may be called at any time, by any means, with unanimous consent of the
Commissioners. All Commission discussions, deliberations, and votes taken regarding specific
license applications and related background investigations, or any other investigations, and any
other matter the Commission deems must be kept confidential in order to preserve the integrity
of the Gaming Entity or the Tribe or to protect the privacy of the applicant or licensee, shall be
held in Executive Session.

i. Voting. All actions of the Gaming Commission shall be taken by majority vote.
The Commission Chairman may vote on any issue.

j. Compensation for Serving; Fringe Benefits: Reimbursement of Expenses.

Commissioners may be compensated for serving on the Commission at rates to be set by the
Tribal Council in the annual budget for the Gaming Commission. Commissioners shall be
eligible for fringe benefits which are available to other employees of the Tribe to the extent the
provider of such benefits qualifies the Gaming Commission positions for such benefits. Subject
to approval by the Tribal Council and in accordance with procedures to be adopted by that body,
Commissioners shall be reimbursed for expenses incurred in connection with the performance of
their Gaming Commission duties.

k. Commission Budget. At least annually, the Gaming Commission shall develop a
budget for the upcoming twelve (12) months operation of the Gaming Commission and shall
submit the proposed budget to the Tribal Council for review and approval. The proposed budget
shall include all anticipated expenses for offices, staff, travel, meeting expense, estimated
regulatory and travel costs, and compensation to Commissioners and staff. The tribal
government shall establish a separate account for the Gaming Commission budget and shall pay
all expenses and reimbursements upon request, consistent with the adopted budget.

1. Powers and Duties.
The Gaming Commission, acting as a regulatory body, shall have the power and duty to:
i. Adopt such regulations as appropriate in order to implement the provisions
of this Ordinance and comply with federal law and Gaming Compact requirements. Such
regulations shall be reviewed by the Tribal Council prior to final adoption;
ii. Inspect, examine and monitor Gaming Activities and the Gaming Entity,

including the power to demand access to and inspect, examine, photocopy and audit all
papers, books and records respecting such Gaming Activities and Gaming Entity;


No individual Member shall be deemed to have any interest in such profits or net revenues.
Payments from tribal accounts under other tribal programs, including those related to health,
welfare, education, elderly care, and housing, shall not be deemed to be per capita payments.
The Tribe acknowledges the requirements of IGRA, 25 U.S.C. § 2710 (b) (3) regarding gaming
revenues.

b. Use of Net Revenues. Net revenues from Gaming Activities shall only be used
for the following purposes:

i. To fund tribal government operations or programs;

ii. To provide for the general welfare of the Tribe and its members;
iii. To promote economic development for the Tribe;

iv. To donate to charitable organizations; or

v. To help fund operations of local government agencies.

Section 7. Operation of Gaming Establishments.

a. Gaming Permitted as Licensed. Except to the extent autorized by an agreement
pursuant to the provisions of IGRA or as otherwise permitted by law, Gaming Activities shall
only be conducted in tribal owned, operated and licensed facilities pursuant to the provisions of
this Ordinance. Such activities shall be conducted in accordance with the terms and conditions
of the certificate of occupancy and license issued by the Gaming Commission for such purposes
as to each facility before any Gaming Activities may occur therein. Such licenses may specify
the hours of operation, type and scope of Gaming Activities allowed therein, permitted uses of
the facility for other activities, rules of conduct for employees and patrons, food handling and
entertainment, and such other matters as the Gaming Commission may deem necessary to the
conduct of Gaming Activities therein.

b. Protection of Environment and Public. Any construction or maintenance of any
gaming facility, and the operation of gaming therein, shall be conducted in a manner which
adequately protects the environment and the public health and safety, consistent with this
Ordinance and applicable Gaming Compact terms.

c Dispute Resolution. Patrons who have complaints against the gaming
establishment shall have as their sole remedy the rights set forth in the Tribe’s Tort Liability
Ordinance. Disputes with any management contractor or its employees shall be made to the
Gaming Commission, and such shall be the exclusive remedy for such complaints. All
complaints shall be submitted in writing. At the discretion of the Gaming Commission, the
petitioner may be allowed to present evidence. The Gaming Commission will render a decision
in a timely fashion and all such decisions will be final when issued, unless further review is set
forth in the Ordinance. Any patron having a claim against the Gaming Entity or its management
or employees must submit such claim to the Gaming Commission within thirty (30) days of its
occurrence. All claims by patrons shall be reviewed under the Tort Liability Ordinance and shall
be limited to the maximum recovery as provided therein.


NAL J
4° No,

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mG co wan”

JUN 10 2064

Mary L. Prevost
Holland & Knight LLP
2600 Pike Tower

520 Pike Street
Seattle, WA 98101

Dear Ms. Prevost:

This letter responds to your request to the National Indian Gaming Commission (NIGC)
for the review and approval of the Pit River Indian Tribe’s Pit River Tribal Gaming
Ordinance amendments adopted March 17, 2004. This letter constitutes such approval
under the Indian Gaming Regulatory Act (IGRA). It is important to note that the gaming
ordinance, as amended, is approved for gaming only on Indian lands, as defined in the
IGRA, over which ibe has jurisdiction.

Philip N. Hogen
Chairman

NATIONAL HEADQUARTERS 1441 L St. NW, Suite 9100, Washington, DC 20005 Tel: 202.632.7003 Fax: 202.632.7066 + Www.NiGc.cov

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


will the Gaming Commission issue more than two (2) temporary licenses to an individual or
entity in any two (2) year period. Such licenses shall permit the licensee to engage in such
activities pursuant to such terms and conditions as may be specified by the Gaming Commission.
Such temporary licenses shall expire ninety (90) days from date of issuance, upon issuance of a
regular license, or until an earlier specified expiration date, whichever occurs first.

h. License Investigations. The Gaming Commission may employ all reasonable
means, including the engagement of outside services and investigators and the holding of
hearings, to acquire the information necessary to determine whether or not a license should be
issued. Applicants shall also agree to release all information necessary in order for the Gaming
Commission to achieve its goals under this section and to furnish such information to the NIGC,
the state gaming agency, and to such other agency as may be required by law.

i. License Fees. Unless specifically waived by the Gaming Commission, all persons
applying for a Class A, B or C license shall be required to pay all applicable license fees and
costs when due, including the reasonable cost for regulation and monitoring of licensees in
connection with the license application. Estimates of licensing costs shall be provided to
applicants upon request. Unless specifically waived by the Gaming Commission, payment for
all fees and costs must be received by the Gaming Commission prior to issuance of the license.

j. Standards. All persons engaged by or associated with any Gaming Activity on the
Reservation shall conduct themselves with honesty, integrity, and with such decorum and
manners as may be necessary to reflect positively on the Tribe, its members and the Gaming
Activities involved. Any failure to abide by such standards, or a violation of any rule, ordinance,
custom or tradition of the Tribe, the Reservation or the Gaming Activities, or the terms or
conditions of the license, may be grounds for immediate suspension or revocation of any license
issued hereunder.

k. Appeals. All decisions of the Gaming Commission regarding the issuance,
suspension, or revocation of licenses shall be final and effective when issued; provided, within
fifteen (15) days of the receipt of the written decision regarding denial, suspension, or revocation
of the license, the applicant may file a petition for reconsideration with the Gaming Commission.
Any Member who is denied a license by the Gaming Commission may, within thirty (30) days of
the receipt of the written notice of such denial, appeal the denial to the Gaming Commission,
which shall have the power to reverse its prior decision and order that such license be issued. No
decision of the Gaming Commission that a license be issued shall be valid if such issuance would
place the Tribe in violation of the Gaming Compact, or of any applicable law.

1 Background Investigations.

i. The Gaming Commission shall request from each Primary Management
Official and each Key Employee all of the information specified in subsections qd)
through (14) below. Each other applicant for a Class A, Class B or Class C license shall
submit such information as the Gaming Commission, in its sole discretion, deems
appropriate for the position sought by applicant. The Gaming Commission reserves the
right, at any time, to request additional information either prior to, during, or subsequent
to any background investigation.


i. Class A Licenses. Before permitting any person to become permanently
associated with the Gaming Activities as an investor, management entity, or other person
owning or controlling ten percent (10%) or more of any interest in any management
entity; or any Primary Management Official; Key Employee; Closely Associated
Independent Contractor; or other individual or entity with influence over the management
or operation of the gaming; and, unless otherwise exempted, all other gaming employees
and Gaming Contractors, such person shall obtain a Class A license. Those who do not
meet the qualifications established shall be denied a Class A license. The Gaming
Commission shall conduct or cause to be conducted a background investigation to
determine if such person has:

qd) Any criminal record or any reputation, prior activities, habits or
associations which might pose a threat to the public interest or to the effective
regulation of gaming.

(2) Anything else in their background which might create or enhance
the dangers of unsuitable, unfair, or illegal practices and methods and activities in
the conduct of gaming.

ii. Class B Licenses. Persons who are not among those identified in
subsection (1) above, but are employed at a gaming facility on the Reservation in a non-
gaming related activity, shall be required to obtain a Class B license from the Gaming
Commission. Such persons must establish that they have not been convicted of a crime,
or engaged in any activity, which the Gaming Commission in its sole discretion deems
would render such person a danger to the safety or integrity of the Gaming Activities or
the safety or property of the Tribe, any Member, any gaming employee or patron, or the
public.

iii. Class C Licenses. Minors (persons under 18 years of age) employed at a
gaming facility on the Reservation may be issued a Class C license, which will entitle
them to work in positions for which a Class B license would otherwise be required and in
which minors are not otherwise prohibited by law from working. The Gaming
Commission will first determine that the minor receiving a Class C license does not pose
any threat to the safety or integrity of the Gaming Activities or the safety or property of
the Tribe, any Member, any gaming employee or patron, or the public. Such licenses
shall be valid for no more than six (6) months before renewal, and shall be revoked upon
the minor’s reaching the age of eighteen (18), at which time a Class A or B license, as
may be appropriate, will be required. Minors shall not be employed as dealers or
otherwise to operate or supervise the operations of games.

f. Class A and Class B License Renewal Revocation and Suspension. Class A and

Class B licenses shall be subject to renewal at least every two (2) years. Licenses may be
revoked or suspended upon the occurrence of any act which, if known during the application
process, or becomes known thereafter, would have tended to disqualify such person for such a
license.

g. Temporary Licenses. Pending completion of an investigation for a license,

temporary licenses of no more than ninety (90) days duration may be issued by the Gaming
Commission if, in its sole discretion, it deems it appropriate to do so. Under no circumstances

10


xv. Carry out such other duties with respect to the Gaming Activities and
Gaming Entity as the Tribal Council shall direct.

m. Quarterly and Annual Reports. On or before the last day of the month
immediately following the close of each quarter in each year (for example, by April 30 for the
quarter ending March 31; by July 31 for the quarter ending June 30, and so forth), the Gaming
Commission shall provide in writing to the Tribal Council a.Quarterly Report summarizing its
activities during the prior quarterly period, and once a year, no later than November 15, an
annual report for the 12-month period ending on September 30. The Quarterly and Annual
Reports shall account for receipts and disbursements during such period. The Tribal Council
shall cause an executive summary of the Annual Report to be made available to Members within
thirty (30) days alter its receipt. At the request of the Tribal Council, the Gaming Commission
shall provide an oral report of its activities to the Tribal Council at least quarterly. Gaming
Commission reports to the Tribal Council are available to any tribal member upon request.

n. Other Reporting Requirements. As required, the Gaming Commission shall
comply with any reporting requirements established under the Tribal-State Gaming Compact to
which the Tribe is a party, and other applicable law, including the IGRA and regulations
promulgated thereunder.

Section 5. Permitted Gaming Activities.

a. Unauthorized Gaming Prohibited. All Gaming Activities on the Reservation
(whether Class I, II or III) are prohibited except as expressly authorized under this Ordinance.

i. Class I Gaming. Class I Gaming Activities are hereby permitted to the
extent consistent with tribal custom and practice. The Gaming Commission may prohibit
and prevent any conduct which is claimed to be Class I gaming pursuant to a finding that
such conduct is not in accordance with tribal customs or practices.

ii. Class II and Class II] Gaming: Sole Proprietary Interest. Class II and
Class III gaming on the Reservation is hereby authorized, provided the Tribe has the sole
proprietary interest in and responsibility for the conduct of any Gaming Entity, or to the
extent the Tribe may contract with or license a person or entity to own, operate or
manage Gaming Activities or the Gaming Entity, pursuant to the provisions of IGRA or
as otherwise permitted by law. Nothing herein shall prohibit the Tribe from engaging the
services of non-tribal persons as employees thereof or engaging any person or entity to
provide consulting or other technical assistance or to assist the Tribe in the management
of Gaming Activities pursuant to a management agreement entered into under the
provisions of IGRA.

Section 6. Gaming Revenues.

a. Tribal Property. Except as provided for under the terms of an agreement pursuant
to the provisions of IGRA or as otherwise permitted by law, all revenues generated from any
Class II or Class III Gaming Activities are the property of the Tribe. Any profits or net revenues
from Gaming Activities shall be deposited into the tribal accounts ars determined by the Tribe.
Once becoming part of such tribal account, such funds shall lose any identity as gaming revenues
except to the extent necessary to identify them as such in order to comply with applicable law.


excluding management fees, unless otherwise defined under applicable federal law, or an
agreement between the state and the Tribe or their gaming regulatory agencies.

m. “Person” shall mean any natural person or entity, including but not limited to
corporations, partnerships and trusts.

n. “Primary Management Official” shall mean the person who has management
responsibility for a management contract; any person who has authority to hire and fire
employees or to set up working policy for the Gaming Entity; or the chief financial officer or
other person who has financial management responsibility. At the discretion of the Gaming
Commission, other positions or persons, and including Gaming Contractors, may be included
under and subject to the requirements for primary management officials.

0. “Related to” shall refer to persons who are related as a father, mother, spouse,
sister, brother, child, grandparent, or grandchild.

p. “State” shall mean the State of California.

q. “Tribal Council” shall mean the committee of elected Tribal representatives
established as the governing body of the Tribe by authority delegated pursuant to the Tribe’s
Constitution and By-laws, and responsible for overseeing the operation and management of
gaming.

I “Tribal Court” shall mean any court established by the Tribe or, if no tribal court
is established, the Tribal Council.

Ss. “Tribal Lands” shall mean those lands which, under IGRA, qualify as “Indian
Lands” with respect to the Tribe and on which gaming may be conducted.

Section 3. Ownership of Gaming.

a. The Tribe shall have the sole proprietary interest in and responsibility for the
conduct of any gaming operation authorized by this Ordinance, except to the extent the Tribe
may contract with and license a person or entity to own, operate or manage the Gaming Entity
pursuant to the provisions of IGRA or as otherwise permitted by law.

b. Gaming activities conducted on the Reservation, owned by a person or entity
other than the Tribe, shall be licensed and regulated by the Tribe under this Ordinance, and
conducted in compliance with the requirements of IGRA and 25 C.P.R. §§ 522.10 and 522.11.

Section 4. Gaming Commission.

a. Establishment of Gaming Commission. There is established hereby a
Commission acting under the authority of the Tribe to be known as the Pit River Tribe Gaming
Commission. The Gaming Commission is responsible for monitoring, licensing and regulation
of the Gaming Entity and Gaming Activities consistent with requirements of applicable tribal,
federal, and state law.


Management Officials, the Gaming Commission shall retain applications for employment
and reports (if any) of background investigations for inspection by the NIGC for no less
than three (3) years from the date of termination of employment.

iv. If a license is not issued to an applicant, the Gaming Commission shall
notify the NIGC and may forward copies of its eligibility determination and investigative
report (if any) to the NIGC for inclusion in the Indian Gaming Individuals Records
System.

0. Granting a Gaming License.

i. If, within a thirty (30) day period after the NIGC receives a report as
required under subsection 11.n. above, the NIGC notifies the Tribe that it has no
objection to the issuance of a license pursuant to the license application filed for a Key
Employee or Primary Management Official for whom the Gaming Commission has
provided an application and Investigative report, the Gaming Commission may issue the
license.

ii. The Gaming Commission shall provide any additional information
requested by the NIGC concerning a Key Employee or Primary Management Official
who is the subject of a report as required under this subsection. An NIGC request for
additional information shall suspend the thirty (30) day period established under this
subsection until the NIGC receives the additional information.

iii. If, within the thirty (30) day period established under this subsection, the
NIGC provides a statement itemizing objections to issuance of a license to a Key
Employee or Primary Management Official, the Gaming Commission shall reconsider
the application, taking into account such objections. The Gaming Commission retains
the right to make the final determination whether to issue the license to such applicant.

p. Gaming License Suspension and Revocation.

i. If, after issuance of a gaming license, the Tribe receives reliable
information from the NIGC or other reliable source indicating that a Key Employee or a
Primary Management Official is not eligible for employment under the eligibility criteria
established in section 11 above, the Gaming Commission shall suspend the license and
shall notify the licensee in writing of the license suspension and proposed revocation.

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

(1) After the revocation hearing, the Gaming Commission shall
determine whether to revoke or to reinstate the gaming license. For actions taken
in response to information provided by the NIGC, the Gaming Commission shall
notify the NIGC of its decision.

Facilities Licenses. Before Gaming Activities can be conducted therein, the

Gaming Commission shall inspect and license each such facility in accordance with this
Ordinance and any requirements under IGRA.

14


shall be finalized only upon the majority vote of the Tribal Council after consideration of the
terms of such compact. In the event the Tribe approves a compact, the provisions of such
compact, once approved under IGRA, shall govern over the provisions herein, to the extent the
compact is inconsistent herewith.

Section 13. Interest in Management Contracts by Tribal Officials.

No elected official of the Tribe, including the Gaming Commission or any other
committee or agency of the Tribe, shall have a financial interest in or management responsibility
for, any management agreement entered into pursuant to IGRA, nor shall such elected official
serve on the board of directors or hold (directly or indirectly) ten percent (10%) or more of the
issued and outstanding stock of any corporation, or ten percent (10%) or more of the beneficial
interest in any partnership, trust, or other entity, in any such corporation, partnership, trust or
other entity, having a financial interest in, or management responsibility for, such contract.

Section 14. Service of Process.

The Tribe designates as its agent for the service of any official determination, order, or
notice of violation in any gaming related matter, the Tribal Secretary. The designee may be
changed from time to time as the Tribal Council shall determine and notify the National Indian
Gaming Commission.

Section 15. Tribal Gaming Corporation.

Nothing in this Ordinance shall prevent the Tribal Council from delegating the authority
to conduct gaming to one or more tribal corporations, so long as the tribal corporation to which

such authority is delegated agrees to meet all criteria and requirements established under this
Ordinance.

Section 16. Entire Gaming Requlations; Prior Ordinances Repealed; Effective Date.

This Ordinance and the regulations promulgated thereunder shall constitute the entire
gaming regulations of the Tribe. All prior gaming ordinances and resolutions of the Tribe are
hereby repealed, and this Ordinance shall become effective upon its adoption by the Tribal
Council.

Section 17, Amendments.

All provisions of this Ordinance are subject to revision, repeal, or amendment by the
Tribal Council. Regulations promulgated by the Gaming Commission under this Ordinance are
subject to revision, repeal or amendment by the Gaming Commission.

Section 18. Sovereign Immunity Preserved.

Nothing in this Ordinance is intended or shall be construed as a waiver of the sovereign
immunity of the Tribe; and no manager, officer or employee of the Gaming Commission or the
Tribe shall be authorized, nor shall they attempt, to waive the immunity of the Tribe.


b. “Gaming” shall mean an activity in which a person stakes or risks something of
value on the outcome of a contest of chance or a future contingent event, not under his or her
control or influence, upon an agreement or understanding that the person, or someone else, will
receive something of value in the event of a certain outcome, but shall not include bona fide
business transactions.

c. “Gaming Activities” shall mean any Class I, Class II, or Class III gaming activity
conducted by or within the jurisdiction of the Tribe.

d. “Gaming Commission” or “Commission” shall mean the Pit River Tribe Gaming
Commission, as established herein to monitor and regulate the Gaming Activities, investigate
wrongdoing, conduct background investigations, issue licenses, and perform other duties as
established in federal, state, or tribal law and as necessary for the licensing, monitoring, and
regulation of gaming on Tribal Lands.

e. “Gaming Compact” shall mean any agreement between the State and the Tribe for
the conduct and regulation of gaming activities.

f. “Gaming Contractor” shall mean any person or business that manufactures,
distributes, or supplies gaming devices, other gaming equipment, other equipment or services, or
personnel (including gaming management or consulting services) to any Gaming Activities or
Gaming Entity.

g. “Gaming Entity” shall mean the gaming business, event, or activity (however
organized) conducted by or within the jurisdiction of the Tribe.

h. “Key Employee” shall mean a person who performs one or more of the following
functions: bingo caller, counting room supervisor, chief of security, custodian of gaming supplies
or cash, floor manager, pit boss, dealer, croupier, approver of credit, or custodian of gaming
devices including those persons with access to cash and accounting records within such devices.
If not otherwise included, any other person whose total cash compensation is in excess of
$50,000 per year, the four most highly compensated persons in the Gaming Entity and those
considered key employees under any agreement between the state and the Tribe or their gaming
regulatory agencies are included in the definition of Key Employees. At the discretion of the
Gaming Commission, other positions or persons, and including Gaming Contractors not
otherwise included, may be included under and subject to the licensing and regulatory
requirements for Key Employees.

i. “Management Contract” shall mean any 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.

j. “Member” shall mean any duly enrolled member of the Tribe.

k, “National Indian Gaming Commission” (“NIGC”) shall mean the commission
established under IGRA.

1 “Net Revenues” shall mean gross gaming revenues of a tribal gaming operation

less (a) amounts paid out as, or paid for, prizes; and (b) total gaming-related operating expenses,


PIT RIVER TRIBE
Ordinance No 4
PIT RIVER TRIBAL GAMING ORDINANCE OF 1995
as Amended March 17, 2004

The Pit River Tribe (“Tribe”), a federally recognized Indian Tribe, hereby amends and
adopts the following ordinance, to be known as the “PIT RIVER TRIBAL GAMING
ORDINANCE OF 1995”, as amended by the Tribe on March 17, 2004 (“Ordinance”). This
Ordinance and any regulations promulgated thereunder shall constitute the entire gaming
regulations for the Tribe.

Section 1. Findings and Policy.

This Ordinance is adopted by the Pit River Tribal Council, the governing body of the Pit
River Tribe of the Pit River Reservation, pursuant to its authority under the Tribe’s Constitution
and By-laws, for the purpose of establishing the terms for gaming on the Reservation for tribal
governmental and charitable purposes, and to develop and operate such gaming consistent with
the findings herein and in conformity with the federal Indian Gaming Regulatory Act (25 U..S.C.
§ 2701 et seq. (“IGRA”)) and regulations promulgated thereunder.

The Tribe finds that:

a. Gaming under IGRA is a valuable means of reducing unemployment, diversifying
Tevenue generating programs, generating revenues that are needed for economic development, to
promote tribal self-sufficiency, economic development, employment, job training, and a strong
tribal government, and to fund and ensure essential social programs and services and thereby
improve the quality of life among all Members of the Tribe;

db. The Tribe desires to conduct gaming to provide needed revenues to the Tribe and
provide employment opportunities and to regulate and control such gaming in a manner that will
protect Tribal Lands, the environment, the health, security and general welfare of the Tribe, the
players, and the community; and

c. The Tribe desires to manage and regulate such gaming in a manner that will
adequately address such interests and needs of the Tribe.

Section 2. Definitions.

Unless specified otherwise, terms used herein shall have the same meaning as in IGRA,
including but not limited to references to “Net Revenues,” “Class I,” “Class II,” and “Class II”
gaming, except for references to “Commissioners,” “Commission,” or “Gaming Commission”
which shall mean the Pit River Tribe Gaming Commission or its Commissioners, established and
described herein.

a. “Closely Associated Independent Contractor” shall mean any contractor that
shares common ownership, common officers, or common directors with any management
principal, or a person related thereto.


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

(2) Current and for at least the previous fire (5) years: business and
employment positions held, ownership interests in those businesses, business and
residence addresses and drivers license number(s);

(3) | Names and current addresses of at least three (3) personal
references, including one personal reference who was acquainted with the
applicant during each period of residence as listed under subsection (b) above;

(4) Current business and residence telephone numbers;

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

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

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

(8) _ For each felony for which there is an on-going prosecution or a
conviction: the charge, the name and address of the court involved, and the date
and disposition, if any, of the case;

(9) For each misdemeanor conviction or on-going misdemeanor
prosecution (excluding minor traffic violations) within ten (10) years of the date
of the application: the name and address of the court involved, and the date and
disposition, if any, of the case;

(10) For each criminal charge (excluding minor traffic charges),
whether or not there is or was a conviction, if such criminal charge is within ten
(10) years of the date of the application and is not otherwise listed above pursuant
to subsections (h) or (1) above: the criminal charge, the name and address of the
court involved and the date and disposition, if any, of the case;

(11) Name and address of any licensing or regulatory agency (federal,
tribal, state, local or foreign) with which the person has filed an application for an
occupational license or permit, whether or not such license or permit was granted;

(12) Photographs (current at time of application);

(13) Any other information the Tribe or the Gaming Commission
deems relevant; and


Section 11. Application Forms.

a Each application form for a Key Employee or a Primary Management Official, as
well as for all other license applicants, unless otherwise specifically exempted by the Gaming
Commission, shall contain the notices set forth in subsections (1) and (2) below:

(1) Privacy Act Notice.

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

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

(2) Notice Regarding False Statements.

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

b. Any existing Key Employee or Primary Management Official or other licensee
subject to such requirements, unless otherwise specifically exempted by the Gaming
Commission, that has not completed an application form containing the language set forth in
Section 11.a.(1) and (2) above, shall be notified that they must either:

i. Complete a new application form that contains the Privacy Act Notice and
the Notice Regarding False Statements; or

ii. Sign a statement that contains the Privacy Act Notice and consent to the

routine uses described in that notice, and sign a statement that contains the Notice
Regarding False Statements.

Section 12. Class Ill Gaming: Compact.
Class III gaming on the Reservation shall be under the provisions of a compact, as

applicable, or other alternative as provided under the IGRA and applicable regulations. All
negotiations for such compacts shall be conducted through the Chair of the Tribal Council, and

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