regulations shall describe and establish the rules for each specific Class II and Class III gaming
activity to be authorized to be conducted on the Pala Indian Reservation, and no form of such
gaming may be conducted on the Pala Indian Reservation without prior approval by the PalaGaming
Commission. Pending approval of the Pala Band of Mission Indians Gaming Commission=s
regulations by the Pala Band Executive Committee, any interim regulations that the Pala Band
Executive Committee may adopt shall govern gaming on the Pala Indian Reservation.

E. The PalaGaming Commission, independent of the Executive Committee, shall have
full authority to_license_all_key employees and primary management officials and monitor
compliance with this Ordinance and its Regulations, and to investigate and act to prevent any
violation(s) thereof.

F. Subject to the approval of the Executive Committee and the appropriation of funds
therefor, the PalaGaming Commission shall be authorized to employ such staff as reasonably may
be required to fulfill its responsibilities under this Ordinance. Compensation of Commission
employees shall be limited to that which is comparable to compensation paid to persons performing
similar duties in other governmental gaming regulatory agencies.

| G. Subject to the approval of the Executive Committee, the Pala Gaming Commission
hereby is authorized to establish and impose upon gaming facilities, permittees, applicants and
licensees such application, permit and license fees as may be necessary to fully reimburse the Pala
Band for its actual costs of operating the Pala Gaming Commission, enforcing this Ordinance and
Pala Gaming Commission regulations, processing of licensing and permit applications, and
otherwise fulfilling its regulatory responsibilities under IGRA. All such fees shall be collected by
the Pala Gaming Commission and hereby are continuously appropriated solely for the purposes
enumerated in this Subsection.

H. Failure to timely pay any gaming-related fee imposed by the Pala Gaming
Commission, or to comply with any Pala Gaming Commission regulation or order, or any other
violation of this Ordinance or the terms of any Class III gaming compact authorizing and regulating

| gaming on the Pala Indian Reservation, shall be grounds for suspension or revocation of any license
or permit issued pursuant to this Ordinance, exclusion of any non-member of the Pala Band of

| Mission Indians from the Pala Indian Reservation, and imposition of such other sanctions as the Pala,
Gaming Commission may deem appropriate.

1 Except for any matter pertaining to licensing of key employees or primary

Deleted: Band of Mission Indians

Deleted: Band of Mission Indians

Deleted: Band of Mission Indians

Deleted: Executive Committee
Deleted: Band of Mission Indians

Deleted: Band of Mission Indians

1: Band of Mission Indians
Deleted: Band of Mission Indians

Deleted: Executive Committee or the
Deleted: Band of Mission Indians

Deleted: Band of Mission Indians.

management officials, any person or entity subject to any sanction or penalty by the Pala Gaming
Commission may, have the right to appeal such sanction or penalty to the Executive Committee in
accordance with such rules and regulations as may be promulgated by the Executive Committee for
that purpose. The decision of the Executive Committee on any appeal shall be final and not
otherwise reviewable.

| XI. | Amendments,

The Pala Band Executive Committee is hereby delegated the authority to amend this
Ordinance in any manner deemed appropriate to protect what the Pala Band Executive Committee
determines to be the best interests of the Pala Band of Mission Indians; provided, that the Pala Band
Executive Committee shall have no authority to enact any amendment to this Ordinance that is less

10

Deleted: Band of Mission Indians

Deleted: shall

Formatted: Font: Bold


REDLINE,
PALA BAND OF MISSION INDIANS OF THE PALA INDIAN RESERVATION

AMENDED - GAMING ORDINANCE

i. Purpose

The Pala Band of Mission Indians of the Pala Indian Reservation (“Tribe”), as the beneficial
owner of the Pala Indian Reservation, and acting pursuant to its Constitution in the exercise of its
inherent sovereign power to enact ordinances and otherwise safeguard and provide for the health,
safety and welfare of the Pala Indian Reservation and the members of the Pala Band of Mission
Indians, hereby amends this Ordinance_established for the purpose of authorizing and
comprehensively and preemptively regulating the terms and conditions under which Class II and
Class III gaming may be conducted within the boundaries of the Pala Indian Reservation,including
setting minimum standards for the Tribe’s wholly owned enterprise the Pala Casino Resort & Spa

(“Pala Casino”).

di. Gaming Authorized

A. Class II gaming as defined in the Indian Gaming Regulatory Act, P.L. 100-447, 25
USS.C. Section 2703(7)(A) (AIGRA@) and by regulations lawfully promulgated by the National
Indian Gaming Commission (’Commission”) that now or hereafter may be in effect is hereby
authorized.

B. Class III gaming as defined in IGRA, 25 U.S.C. Section 2703(8) and by regulations
promulgated by the NIGC that now or hereafter may be in effect is hereby authorized, provided such
gaming is also authorized by and consistent with a Tribal-State Compact that has been approved by
the Secretary of the Interior and is in effect, or otherwise has been authorized by the Secretary of the
Interior or federal law.

dil. Ownership of Gaming Facilities and/or Enterprises

The Pala Band of Mission Indians of the Pala Indian Reservation shall have the sole
proprietary interest in and responsibility for the conduct of any gaming facilities and/or enterprise(s)
authorized by this ordinance.

dV. Use of Gaming Revenue

A. Except as specifically authorized pursuant to Subsection B of this Section, net
revenues from Class II and Class III gaming on the Pala Indian Reservation shall be used only for the
following purposes:

1) to fund Pala Indian Reservation Tribal government operations and programs;
2) provide for the general welfare of the Pala Band of Mission Indians of the Pala Indian
Reservation and its members;
3) promote Pala Indian Reservation economic development;
4) donate to charitable organizations; or
5) help fund operations of local government agencies.
1

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i

J} ordains and establishes

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Deleted: “NIGC”

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Formatted: Font: Bold


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 ten years of
the date of the application, the name and address of the court involved
and the date and disposition;

For each criminal charge (excluding minor traffic charges), whether
or not there is a conviction, if such criminal charge is within ten years
of the date of the application and is not otherwise listed pursuant to
paragraph (1)(h) or (1)(i) of this Subsection, the criminal charge, the
name and address of the court involved and the date and disposition;

k. The name and address of each 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;

L A current photograph;

m. Any other information the Pala Gaming Commission may deem
relevant under the circumstances; and

n. Fingerprints consistent with procedures adopted by the Pala Band of
Mission Indians Executive Committee or its designated gaming
regulatory agency in accordance with 25 C.F.R. '522.2(h).

2. The Pala Gaming Commission shall conduct an investigation sufficient to
make a determination under Subsection D. below. In conducting a background investigation, the
Pala Gaming Commission shall promise to keep confidential the identity of each person interviewed
in the course of the investigation.

Dz. Eligibility Determination

The Pala Gaming Commission shall review a applicant’s prior activities,
criminal record, if any, and reputation, habits and associations to make a finding concerning the
eligibility of a key employee or primary management official for employment in a gaming operation.
If the Pala 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, such person is not
suitable fora tribal gaming license, and ghe Pala Casino shall not employ that person in a key

employee or primary management official position.

E. Procedures for Forwarding Applications and Reports for Key Employees and
Primary Management Officials to the National Indian Gaming Commission

Deleted: Band of Mission Indians
Executive Committee

Deleted: Band of Mission Indians
Executive Committee or its designated
gaming regulatory agency

Deleted: Band of Mission Indians
Executive Committee or its agent(s)

Deleted: Executive Committee or its
designated gaming regulatory agency
Deleted: Band Executive Committee or
its designated gaming regulatory agency

Deleted: gaming operation


2. inspect and examine all premises on which Class II or Class IT] gaming is *

Formatted: Bullets and Numbering

conducted; and

books, and records respecting gross revenues of all Class II and Class III
gaming or any other matters necessary to ensure and enforce compliance with
the MICS.

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

| VII. Protection of the Environment and Public Health and Safety

Class II and Class [II gaming facilities on the Pala Indian Reservation shall be constructed,
maintained and operated in a manner that adequately protects the environment and the public health
and safety, with the Pala Band of Mission Indians Executive Committee having primary
responsibility for assessing the environmental impact of all construction and gaming operations, and
taking such measures as it determines may be reasonably necessary to mitigate any adverse
environmental impacts as it may identify.

| VII. Licenses for Key Employees and Primary Management Officials

The Pala Band of Mission Indians gaming regulatory agency (“Pala Gaming Commission”)
shall ensure that the policies and procedures set out in this section are implemented with respect to
key employees and primary management officials employed at the Pala Casino and any Class II
and/or Class III gaming enterprise operated on Indian lands within the boundaries of the Pala Indian
Reservation:

A. Definitions

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

1. Key employee means

{a} A person who performs one or more of the following functions:

(1) Bingo Caller;
(2) Counting Room Supervisor
@G) Chief of Security
(4) Custodian of gaming supplies or cash;
(5) Floor Manager
3

3. demand access to and inspect, examine, photocopy, and audit all papers, *

D. Enforcement. Any failure to adopt internal control standards pursuant to paragraph +

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Formatted: Font: Bold

Deleted: Executive Committee or its
designated


B. If the Pala Band of Mission Indians Executive Committee elects to make per capita
payments to Pala Band of Mission Indians members, it shall authorize such payments only in
conformity with a plan submitted to and approved by the Secretary of the Interior pursuant to 25
US.C. '2710(b)(3).

v. Financial Audit

A. The Pala Band of Mission Indians Executive Committee shall cause to be conducted
at least annually an independent financial audit of all gaming operations and shall submit the
resulting audit reports to the National Indian Gaming Commission, and to such other agencies as
may be required by the terms and conditions of any Class III compact or other document authorizing
Class III gaming on the Pala Indian Reservation.

B. All gaming-related contracts that result in the purchase of supplies, services, or
concessions in excess of $25,000.00 annually, except contracts for professional legal and accounting
services, shall be specifically included within the scope of the audit that is described in Subsection A
above.

VI. Minimum Internal Control Standards

A. Applicable Standards. The Pala Band of Mission Indians Executive Committee shall +
comply with 25 CFR Part 542 by formally adopting and making applicable to the
tribe’s gaming operation(s) internal control standards that:

1. Provide a level of contro! that equals or exceeds those set forth in 25 CFR part
542, as published or as revised by mutual agreement between the National
Indian Gaming Commission and the Pala Band of Mission Indians Executive

Committee;

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

3. Establish internal control standards for Class II and Class III games thatare +

Formatted: Font: Not Italic
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not addressed in the MICS, if any.

B. Annual CPA Testing of Compliance. In order to verify that the gaming operation is +.

in compliance with the intemal control standards adopted pursuant to paragraph A, an
independent certified public accountant (CPA) shall be engaged annually to perform

“Agreed-Upon Procedures” in the manner provided for in 25 CFR $42.3(f).

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

L monitor all Class If and Class III gaming on a continuing basis; +
2

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consent to the disclosures indicated in this notice will result in a tribe=s being
unable to hire you in a primary management official or key employee

position.

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

application.

2 The following notice shall be placed on the application form for all key
employees and primary management officials before that form is filled out by an applicant:

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

£. Background Investigations

1. The PalaGaming Commission shall request from each primary management
official and from each key employee all of the following information:

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,

Currently and for the previous five years: all business and
employment positions held, ownership interest in those businesses,
business and residence addresses, and drivers license numbers;

The names and current addresses of at least three personal references,
including one personal reference who was acquainted with the
applicant during each period of residence listed under paragraph
(1)(b) of this Subsection;

Current business and residence telephone numbers;

A description of any existing and previous business relationships with
the Pala Band of Mission Indians or any other Indian Tribe, including
ownership interests in those businesses;

A description of any existing and previous business relationships with
the gaming industry generally, including ownership interests in those
businesses;

The name and address of every 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;

| notice regarding false statements.§
4

Deleted: 2. Existing key employees
and primary management officials shall be
notified in writing that they shall either:

a. Complete a new application form that
contains a Privacy Act notice; or
Hi

._ Sign a statement that contains the
Privacy Act notice and consent to the
routine uses described in that notice.§

‘The Pata Indian
Reservation Executive Committee or its
designated gaming regulatory agency
shall notify in writing existing key
employees and primary management
officials that they shall either:§

1

. Complete a new application form that
contains a notice regarding false
statements; orf

b._ Sign a statement that contains the

Deleted: Band of Mission Indians
Executive Committee or its designated
gaming regulatory agency



ona’ ‘No,

SD
“On » ws

ti

q 6
Vc coms’

JAN 1 1 2008
Robert Smith, Chairman
Pala Band of Mission Indians
35008 Temecula Rd., PMB 50
Pala, CA 92059

Re: Amended gaming ordinance, EC Resolution No. 07-28

Dear Chairman Smith:

This is in response to your December 26, 2007 submission seeking review and approval
of the amendments to the Pala Band of Mission Indians’ gaming ordinance enacted by
EC Resolution No. 07-28. The amended ordinance makes NIGC’s minimum internal
control standards (MICS) applicable to the Band’s Class III Pala Casino Resort and Spa
and makes other, miscellaneous changes. It is consistent with the requirements of the
Indian Gaming Regulatory Act (IGRA) and this agency’s regulations and is therefore ap-
proved. The NIGC looks forward to once again providing assistance to the Band in its
regulation of Class III gaming.

Chairman

ce: Jane Zerbi, Esq.
Penny Coleman, Acting General Counsel
Michaei Gross, Associate General Counsel, General Law

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

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


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

| 2. The Pala Gaming Commission shall respond to a request for additional
information from the Chairman of the National Indian Gaming Commission concerning a key
employee or a primary management official who is the subject of a report. Such a request shail
suspend the 30-day period under Subsection G.1. of this Section until the Chairman of the National
Indian Gaming Commission receives the additional information.

3. If, within the thirty (30) day period described above, the National Indian
Gaming Commission provides the Pala Gaming Commission with a statement itemizing its
objection(s) to the issuance of a license to a key employee or to a primary management official for
whom the Pala Gaming Commission has provided an application and investigative report to the
National Indian Gaming Commission, the PalaGaming Commission shall reconsider the application,
taking into account the objection(s) itemized by the National Indian Gaming Commission. The Pala
| Gaming Commission shall make the final decision whether to issue a license to such applicant.

Deleted: Band Executive Committee or
its designated gaming regulatory agency
Deleted: Band Executive Committee or
its designated gaming regulatory agency

-.{ Deleted: Band Executive Committee o
its designated gaming regulatory agency
Deleted: Band Executive Committee or
its designated gaming regulatory agency

Deleted: Band Executive Committee

Deleted: Band Executive Committee or
its designated gaming regulatory agency

Deleted: Band Executive Committee or
its designated gaming regulatory agency

Deleted: Band Executive Committee



| 1. Unless otherwise provided by the Commission, on or before the dateywhen a
key employee or primary management official begins work at a gaming operation authorized by this
Ordinance, the Pala Gaming Commission shall forward to the National Indian Gaming Commission
a completed application and conduct the background investigation and make the determination
referred to in Subsection D of this Section.

| 2. The Pala Gaming Commission shall forward the report referred to in
Subsection F of this Section to the National Indian Gaming Commission within 60 days after an
employee begins work or within 60 days of the approval of this Ordinance by the Chairman of the
National Indian Gaming Commission.

| 3. The Pala Casino shall not employ a key employee or primary management
official a person who does not have a license after 90 days.

F. Report to the National Indian Gaming Commission

lL. Pursuant to the procedures set out in Subsection E of this Section, the Pala
| Gaming Commission shall prepare and forward to the National Indian Gaming Commission an
investigative report on each background investigation. An investigative report shall include all of
the following:
a. Steps taken in conducting the background investigation;
b. Results obtained;
c. Conclusions reached; and

d. The bases for those conclusions.

2. The Pala Gaming Commission shall submit, with the report, a copy of the
eligibility determination made under Subsection D of this Section.

| 3. Ifa license is not issued to an applicant, the Pala Gaming Commission:
a. Shall notify the National Indian Gaming Commission; and
b. May forward copies of its eligibility determination and investigative
report (if any) to the National Indian Gaming Commission for

inclusion in the Indian Gaming Individuals Records System.

4. With respect to key employees and primary management officials, the Pala

| Gaming Commission shall retain applications and reports (if any) of background investigations for _

inspection by the Chairman of the National Indian Gaming Commission or his or her designee for no
less than three (3) years from the date of termination or denial of employment.

G. Granting a Gaming License

Deleted: W

Deleted: Band Executive Committee or
its designated gaming regulatory agency

Deleted: for employment

Deleted: Band Executive Committee or
its designated gaming regulatory agency

Deleted: gaming operation

Deleted: Band Executive Committee or
its designated gaming regulatory agency

Deleted: Band Executive Committee or
its designated gaming regulatory agency

Deleted: Band Executive Committee or
its designated gaming regulatory agency

Deleted: Band Executive Committee or
its designated gaming regulatory agency

Deleted: for employment


(6) Pit Boss

(7) Dealer

(8) Croupier

(9) Approver of Credit; or

(10) Custodian of gambling devices including persons with access
to cash and accounting records within such devices;

(b) If not otherwise included, any other person whose total cash
compensation is in excess of $50,000 per year; or

(c) If not otherwise included, the four most highly compensated persons
in the gaming operation; or

(d),____ If not otherwise included, any other person designated by the Tribal- Deleted:

State Compact or the Pala Band of Miysion Indians Executive

2. Primary management official means

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

(b) — Any person who has authority:

(1) To hire and fire employees; or
(2) To set up working policy for the gaming operation; or

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

B. Application Forms

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

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. 12701 et seq. The purpose of the requested information is to

determine the eligibility of individuals to be employed in a gaming operation.

The information will be used by National Indian Gaming Commission

members and staff who have need for the information in the performance of

their official duties. The information may be disclosed to appropriate

Federal, Tribal, State, local, or foreign law enforcement and regulatory Deleted: Pala Band of Mission Indians

agencies when relevant to civil, criminal or regulatory investigations or

prosecutions, or when pursuant to a requirement by a tribe or the National

Indian Gaming Commission in connection with the hiring or firing of an

employee, the issuance or revocation of a gaming license, or investigations of

activities while associated with a tribe or a gaming operation. Failure to
4



COVER PAGE

“Redline Provided For Convenience”


restrictive than the original terms of this Ordinance, or that would constitute a violation of federal
law or would be inconsistent with the terms of an approved Tribal-State Class II] compact that is in

effect.

| XI. Repeal

To the extent that they are inconsistent with this ordinance, all gaming ordinances previously
enacted or amended by the Pala Band of Mission Indians General Council or Executive Committee

hereby are repealed,

of, 2007.

CERTIFICATION

’ The foregoing resolution was adopted by a vote of for, and against and abstentions, *,
ata duly called meeting of the Executive Committee, at which a quorum was present, on this day

Robert H. Smith, Chairman

Leroy H. Miranda Jr., Vice-Chairman

Theresa J. Nieto, Treasurer

Kilma S. Lattin, Secretary

Formatted: Font: Bold

Deleted: This is to certify that the
foregoing Ordinance was adopted on
Apni13, 1994, at a duly-catled meeting
Of the Pala Band of Mission Indians
General Council at which a quorum was
present, by a vote of 2 in favor, 0 opposed
and 3 abstaining §

Deleted: Dated: April 13,
194

—1
Secretary

Annalee H. Yanez, Committee Member

Dion Perez, Committee Member, ¢

ll

Formatted: No widow/orphan
control



PALA BAND OF MISSION INDIANS
35008 Pala Temecula Rd. PMB SO
Pala, CA 92059

EC Resolution 07-28

Ph: (760) 891-3800 Executive Committee Resolution No. 07-28 <
Fax: (760) 742-141 Amendment of Tribal Class II and III Gaming Ordinance

At a regular meeting of the Executive Committee of the Pala Band of Mission Indians, duly noticed and called at
approximately 8 am on 19 December 2007, for the purpose of transacting such business as might be brought before the
council members; and

WHEREAS:
1. The Pala Band of Mission Indians is a federally recognized Indian Tribe (the “Tribe”); and

2. The Tribe is governed by a Tribal Constitution approved by the Commissioner of Indian Affairs which establishes
an Executive Committee composed of officials elected by the membership; and

3. The Tribe enacted a Class II and Class II] gaming ordinance, which was approved in 1994 by the National Indian
Gaming Commission and provides for amendment by the Tribe’s Executive Committee; and

4. The Executive Committee wishes to amend Ordinance No. 98-1 Tribal Class II and Class III Gaming Ordinance
and to specifically affirm the Tribe’s adoption of minimum internal control standards for the gaming operation that
provide a level of control that equal or exceed those federal standards set forth in 25 CFR Part 542 and the
monitoring and enforcement of compliance with such standards by the Tribe’s regulatory authority as well as by
the National Indian Gaming Commission; and

5. The Executive Committee has reviewed the attached Amended Tribal Class II and Class III Gaming Ordinance and
finds that it will serve the best interests of the Tribe.

NOW THEREFORE BE IT RESOLVED THAT: The Pala Band of Mission Indians Executive Committee hereby
adopts the attached Amended Ordinance No. 98-1, Tribal Class IJ and Class II] Gaming Ordinance and authorizes the
Tribal Chairman or his designee to submit said amended ordinance to the National Indian Gaming Commission for
review and approval.

CERTIFICATION

We, the undersigned members of the Executive Committee, certify that the above resolution was adopted by a
majority vote of the Executive Committee with 4 in favor and 0 in opposition, at a duly called regular meeting of the

Executive C ee December, 2007.
we OO a
a

Robert H. Smith, Chairman

Mace

Theresa J. Nieto, Treasurer Kilma S. Lattin, Secretary

an Qu ALE Le

Niclee vale Comnthtee -Office of the Secretary- Dion Perez, Commitee

Leroy H. Miranda Jr., Vice-Chairman



PALA BAND OF MISSION INDIANS

35008 Pala Temecula Rd. PMB 50
Pala, CA 92059

Ph: (760) 891-3500

bax: (760) 742-1411 de ©
December 21, 2007 a 2s S
Philip Hogen, Chairman Ny

Attention: Michael Gross, General Counsel
National Indian Gaming Commission

1441 L Street NW, Suite 9100

Washington, DC 20005

Re: | Amendment to Tribal Gaming Ordinance
Dear Chairman Hogan:

On behalf of the Pala Band of Mission Indians, enclosed for the review and approval of the
National Indian Gaming Commission (“NIGC”) under the Indian Gaming Regulatory Act at
25 U.S.C. Section 2710 is an amended tribal gaming ordinance along with the original
Executive Committee resolution adopting the amended ordinance and authorizing its
submission for review and approval.

The Pala Band of Mission Indians consents to the jurisdiction of the NIGC with respect to the
monitoring and enforcement of minimum internal control standards adopted by the Tribe that
meet or exceed the federal standards at 25 CFR Part 542 (“MICS”), and we previously
communicated this to the NIGC last year. We are enclosing amendments to our gaming
ordinance at Section VI which affirm once again the Pala Band’s adoption of minimum
internal control standards for the gaming operation that provide a level of control that equal or
exceed those federal standards set forth in 25 CFR Part 542 and the monitoring and
enforcement of compliance with such standards by the Pala Gaming Commission as well as
by the National Indian Gaming Commission. A redline of the original ordinance approved in
1994 is also enclosed for your convenience. If you have any questions or comments
regarding these amendments, please contact our tribal attorney Jane Zerbi at (916) 244-8550.

The federal MICS support strong regulatory practices at Indian casinos and strengthen the
public’s confidence in the integrity of Indian gaming. We look forward to continuing to
work with the NIGC to promote the integrity of Indian gaming over the years to come.

Sincerely,

Robert Smith, Tribal Chairman

ce: Jane Zerbi, Dickstein & Zerbi



H. License Suspension

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

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

3. After a revocation hearing, the PalaGaming Commission shall decide whether
to revoke or to reinstate a gaming license. The Pala Gaming Commission shall notify the National
Indian Gaming Commission of its decision.

1X. Licensing of Gaming Places, Facilities and Locations

A separate license shall be required for each place, facility, or location on Indian lands where
Class II and/or Class II] gaming is to be conducted on the Pala Indian Reservation.

x. Creation of Pala Band of Mission Indians Gaming Commission

A. There is hereby created the PalaGaming Commission, which shall consist of three
persons who would themselves qualify for licensing under this Ordinance.

B. The members of the PalaGaming Commission shall be appointed by the Pala Band of
Mission Indians Executive Committeg, and said appointees shall not be removed during their terms
of office except for misconduct, neglect of duties or other acts that would render such persons
unqualified for licensure hereunder. An affirmative vote of at least four members of the Pala Band
Executive Committee, taken in an open meeting after a duly-noticed hearing at which the member
charged with misconduct shall have the right to hear and present evidence concerning his/her
removal, shall be required to remove a member of the Commission. At the request of the member
whose removal is at issue, the hearing may be held in executive session. The Pala Band Executive
Committee also may elect to receive in executive session any evidence public disclosure of which
might compromise any ongoing law-enforcement investigation, or which might jeopardize any
privilege or immunity possessed by the Pala Band Executive Committee.

lon There shall be a Chairperson of the PalaGaming Commission, who shall be appointed
for a term of two years, The remaining members of the Commission shall be appointed for terms of
one year. The Executive Committee shall determine and authorize the compensation to be paid to
members of the Pala(Gaming Commission based upon the Executive Committee=s determination of
the time required to be expended upon Commission duties and the qualifications of the appointed
Commissioners.

D. The Pala Gaming Commission shall be authorized and hereby is directed to
promulgate, subject to review and approval by the Executive Committee, detailed and
comprehensive regulations for the implementation and enforcement of this Ordinance. Said

9

Deleted: Band Executive Committee or
its designated gaming regulatory agency
Deleted: Band Executive Committee or
its designated gaming regulatory agency
Deleted: Band Executive Committee or
its designated gaming regulatory agency

Deleted: Band Executive Committee or
its designated gaming regulatory agency

(Deleted: vind Vu
Formatted: Font: Bold

Deleted: I

Deleted: Band of Mission Indians
Gaming Commission

Deleted: Band of Mission Indians
Deleted: at such time as the Executive

Committee determines that the best
interests of the Band require that the
Gaming Commission be activated

Deleted: Band of Mission Indians
Deleted: Band of Mission Indians

Deleted: Band of Mission Indians