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GAMING ORDINANCE

OF THE

SMITH RIVER RANCH ERIA
TABLE OF CONTENTS

Page

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Section 1. Findings and Policy I

Section 2. Ownership of Gaming 2

Section 3. DefInitions 2

Section 4. Tribal Gaming Commission 6

A. Establishment of Gaming Commission 6

B. Qualifications 6

C. Disqualifications For Office

D. Terms of Office

E. Appointment

F. Removal From Office

G. Quorum

H. OfficersandDuties 8

1. \/oting 8

J. Meetings S

K. Compensation For Serving S

L. Powers and Duties

M. Reports 13

N. Disclosure of Information 13

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0. Administrative Hearings .

13

P. Public ~nfonnation 13

Section 5... Enforcement of Tribal/State Compact Provisions 14

A. Investigations and Sanctions 14

B. Assistance by State gaming agency 14

Section 6. Authorization of Gaming Activities 16

A. Class I Gaming 16

B. Class II Gaming 16

C. Class Ill Gaming 17

D. Conditions For Conducting Class II and Class UI Gaming 17

Section 7. Gaming Revenues 18

A. Tribal Property 18

B. Use of Net Revenues 18

C. PerCapita Payments 19

Section 8. Operation of Gaming Establishments 19

A. Gaming Permitted as Licensed 19

B. Protection of Environment and Public 20

C. Public/Patron Dispute Resolutions 20

Section 9. Audits 21

A. AnnualAudits 21

Li
Section 10. Contracts 22

A. Procurement 22

B. Audit Requirements 22

C. Preference 22

Section 11. Licenses 22

A. Licensing Requirements 22

B. Burden on Applicant 23

C. Standard For License 23

D. Standards of Conduct 24

E. Applicant Claim of Privilege 24

F. Release of Information 24

6. License Renewal 24

H. Temporary Licenses 24

I. License Investigations 25

J. LicenseFees 25

K. Appeals 25

L. Background Investigations 25

M. Suitability Determination 28

N. Forwarding License Applications and Reports to NIGC 29

0. Granting a Gaming License 30

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P. License Suspension .

30

Q. Facilities License ~ 1

R. Gaming Resource Supplier 32

S. Financial Sources 32

Section 12. Application Forms 32

A. Privacy Ordinance Notice 32

B. Notice Regarding False Statements 33

Section 13. Class Ill Gaming; Tribal/State Compact 33

Section 14. interest in Management Contracts by Tribal Officials 34

Section 15. Service of Process 34

Section 16. Tribal Gaming Corporation 34

Section 17. Repeal of Prior Gaming Ordinance - Effective Date 34

Section 18. Severability 34

Section 19. Amendments 34

CERllFICATION 35

-iv-
ORDiNANCE NO. 94-101

AN ORDiNANCE OF ThE SMITh RiVER RANCHER1A, OF CALIFORNIA

ADOVflNG AN ORDiNANCE AUTHORIZiNG AND REGULATiNG GAMiNG ON

ThE SMiTH RiVER RANCHERIA

The Smith River Rancheria of California, a federally recognized Indian Tribe

(Tribe), acting through its Tribal Council in the exercise of its inherent sovereign

power to enact ordinances and otherwise safeguard and provide for the health, safety

and welfare of the Smith River Rancheria (Rancheria) and the members of the Tribe,

hereby enacts this Ordinance which shall hereinafter be cited as the Smith River

Rancheria Gaming Ordinance of 1994 (Ordinance). This Ordinance and any

regulations promulgated thereunder shall constitute the entire gaming regulations for

the Tribe.

SECTiON 1. FiNDINGS ANt) POLiCY

This Ordinance s adopted by the Tribal Council, pursuant to its authority

granted under the Tribes Constitution, Art, Ill, Sec.1, for the purpose of establishing

the terms for gaming on the Rancheria for tribal governmental and charitable

purposes, and to develop, operate and regulate such gaming consistent with the

findings herein and in conformity with the federal Indian Gaming Regulatory Act (25

U.S.C. § 2701 etseg (IGRA) and regulations promulgated thereunder.

The Tribe finds that:

A. Gaming on its Rancheria is a valuable means of generating revenues that

are needed for economic development, to promote tribal self-sufficiency,

employment; job training, a strong tribal government and to fund and

ensure essential social programs and services;

B. The Tribe desires to conduct certain forms of gaming to provide needed

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

manner that will protect the environment, the Rancheria, the health,

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

C. The Tribe desires to own all gaming on tribal lands, and to manage and

regulate such gaming in a manner that will adequately address such

special interests and needs of the Tribe.

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SECTION 2. OWNERSHIP OF GAMiNG

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

conduct of any gaming operation facilities and/or enterprise(s) authorized by this

Ordinance, except to the extent the Tribe may contract with and license a person or

entity to, operate or manage the enterprise pursuant to the provisions of IGRA and the

regulations promulgated thereunder, or as otherwise permitted by law. It shall be

unlawful for any person, organization or other legal entity, other than the Tribe itself,

to conduct gaming activities on the Rancheria.

SECTION 3. DEF1NII1ONS

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

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

or Class lii gaming and except for references to Commissioners, Commission, or

Gaming Commission~, which shall mean the Smith River Ranchena Gaming

Commission or its Commissioners, established and described herein.

A. Confidential Records and information shall mean:

1. Records or information maintained by the Commission about

individuals (such as, but not limited to, personnel records and

records containing information about applications for Commission

licenses, permits or benefits);

2. Records or information reported to the Commission about

business transactions and finances of a gaming facility or an

applicant for a license or a licensee such as, but not limited to, real

or personal property transactions, financial records (e.g., income

statements, balance sheets, profit and loss statements), except for

financial information subject to disclosure under other provisions

of this Ordinance;

3. Records or information about complaints to the Commission or

investigations of those complaints by Commission officials, or

other investigations conducted by the Commission;

4. Correspondence of and to the Commission or the Commission

Chairman;

5. Records which reveal the deliberative processes, impressions,

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evaluations, opinions, recommendations, meeting minutes,

research, work product, theories or strategy of the Commission.

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/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 flde business transactions.

C. Gaming Activities shall mean any Class 1, Class Ii or Class UI gaming

activity conducted by or under thejurisdiction of the Tribe.

0. Gaming Commission or Tribal Gaming Agency shall mean the Gaming

Commission as established herein under tribal law, including, but not limited to, an

inter-tribal gaming regulatory agency approved to fulfill such functions set by the

National Indian Gaming Commission, to be primarily responsible for carrying out the

Tribes regulatory responsibilities under IGRA and this Gaming Act, and including the

duties and responsibilities set forth in any Gaming Compact adopted by the Tribe.

E. Gaming Contractor shall mean any person or entity that supplies gaming

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

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

F. Gaming Employee shall mean any person who operates, maintains,

repairs, assists in, or is in any way responsible for supervising gaming activities or

persons who conduct, operate, account for, or supervise any gaming activity, is in a

category under federal or tribal gaming law, or an applicable tribal-state gaming

compact, requiring licensing, or is a person whose employment duties require or

authorize access to areas of the gaming facility which are not open to the public, in

defining those categories of persons who are required to be licensed under tribal

gaming law, the Tribe shall consider the inclusion of persons who are required to be

licensed pursuant to state gaming law.

G. Gaming Enterprise shall mean any gaming business, event, enterprise or

activity operated or licensed by the Tribe and located on the Smith River Rancheria.

H. Gaming Facility shall mean any building or room in which class HI gaming

activities or gaming operations occur, or in which the business records, receipts or

other funds of the gaming operation are maintained (but excluding offsite facilities

primarily dedicated to storage of such records, and financial institutions), and all

rooms, buildings and areas, including parking lots, walkways and means of ingress and

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egress associated therewith, provided nothing herein shall prevent the conduct of class

U gaming (as defined under IGRA) therein.

1. Investor shall mean any person who manages any gaming activity or owns

or leases equipment or facilities used in gaming activities or has loaned to or invested

funds in any gaming activities, or who owns or controls ten percent (10%) or more of

any entity that is an investor or has contributed more than Five Thousand Dollars

($5,000) to any such person or entity. Investor does not include a federally or state

chartered bank or savings and loan.

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

following functions:

1. (a) Bingo Caller,

(b) Counting Room Supervisor,

(c) Chief of Security,

(d) Custodian of gaming supplies or cash,

(e) Floor Supervisor/Manager,

(f) Card Table Supervisor/Manager,

(g) Pit Boss,

(h) Dealer,

(i) Croupier,

(j) Approver of credit,

(k) Custodian of gaming devices including those persons with

access to cash and accounting records within such devices.

2. if not otherwise included, the four most highly compensated

persons in the gaming operation.

3. if not otherwise included, any other person employed in the

gaming facility whose total compensation is in excess of $30,000

peryear. At the discretion of the Gaming Commission, or the

Tribal Council, other positions or persons may be included under

and subject to the requirements for key employees.

K. National Indian Gaming Commission: (NIGC) shall mean the

Commission established under 1GRA.

L Net Revenues shall mean gross gaming revenues from all Gaming Activities

of a Gaming Enterprise, less amounts paid out as, or paid for, prizes and less total

gaming-related operating expenses, excluding management fees.

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M. Public Inf~rmation means any information in the Commission records

that is not confidential records or information.

N. Person shall mean any natural person or entity, including but not limited

to, corporations, partnerships and trusts.

0. Primary Management Official shall mean the person who has management

responsibility for a management contact or any person who has authority to:

1. Hire and fire employees;

2. Set up working poLicy for the Gaming Enterprise;

3. Be the chief financial officer or other person who has financial

management responsibility, and;

4. At the discretion of the Gaming Commission and approval of the Tribal

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

the requirements for primary management officials.

P. Rancheria shall mean all lands under the jurisdiction and control of the Tribe.

Q, Related To shall mean immediate family member defined as: Domestic Partner,

Husband, Father, Son, Brother, Wife, Mother, Daughter, Sister, Grand Parent, Grand Child,

Step Parent, Step Child, In-Laws of immediate family. There shall be no waiver of the

Nepotism provision set out above.

R. State shall~mean the State of California.

S. Tribe shall mean the federally recognized entity known as the Smith River

Ranchena of California as cited in Federal Register, Volume 53, No. 250, December 29,

1988.

T. Tribal Council shall mean the governing body of the Smith River Rancheria

as established by Article HI of the Constitution of the Smith River Rancheria, adopted

on December 14, 1993.

U. Tribal Court shall mean any court established by the Tribe to hear disputes

or, if there is none that can exercisejurisdiction, then the Tribal Council.

V. Tribal Member shall mean any duly enrolled member of the Smith River

Rancheria.

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SEC11ON 4. TRIBAL GAMING COMMISSION

A. Establishment ofTribal Gaming Commission There is established by

the Tribe a Commission, acting under the authority of the Tribal Council, to be known

as the Smith River Rancheria Gaming Commission. The Commission shall be

composed of three (3)to five (5) tribal members, if qualified, and appointed by the

Tribal Council, as further provided herein.

B. Qualifications Commissioners must meet the following minimum

qualifications:

1. Must be an enrolled, eligible voting member of the Smith River

Ranchena.

2. Have knowledge in at least one of the following: gaming operations,

practice of gaming law, gaming control, law enforcement,

accounting or public administration.

3. Qualify for a license as a key employee or management official,

after submitting to a background investigation as authorized by

this Ordinance.

4. Must sign and be bound by a Confidentiality Agreement.

5. Agree to refrain from all forms of gambling at Lucky 7 Casino while

serving on the Smith River Rancheria Gaming Commission.

6. Agree to participate in random drug testing.

C. Disgualifications From Office The following persons may not serve as

Commissioners:

1. Employees of any Gaming Enterprise on the Rancheria.

2. Persons related to any Gaming Contractor (including any principal

thereof or Closely Associated Independent Contractor);

3. Peæons who fail to qualify for license as a key employee or primary

management official after the completion of a background

investigation as provided in this Ordinance; and

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4. Tribal Council members, their spouses or domestic partner.

D. Terms of Office The Tribal Gaming Commission shall remain in full

force and effect for the duration of the Gaming Enterprise.

E. Appointment Commissioners shall be appointed by the Tribal Council,

using the following procedure:

1. All applicants for Commissioner shall complete an application form

adopted by the Tribal Council, and submit to a background

investigation as authorized by this Ordinance.

2. At a duly called Tribal Council meeting, the Tribal Council shall vote

for candidates who have applied. They shall vote separately to fill

each vacancy. The candidate with the highest number of votes cast

shall be appointed.

F. Removal From Office Except as provided herein, Commissioners may

only be removed from office by the Tribal Council for neglect of duty, misconduct,

malfeasance, any cause that would disqualify them from serving on the Commission,

any material omission or false statement in applying for appointment, or other acts

that would render such persons unqualified for such duties or for licensing hereunder.

1. An affirmative two~thirds (2/3) majority vote of the Tribal Council,

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.

2. At the request of the member whose removal is at issue, a hearing

may be held in closed session. The Tribal Council may also elect to

receive in closed session any evidence of public disclosure which

might compromise any on-going law enforcement investigation.

Notwithstanding the foregoing and without any prior notice or

opportunity for a hearing, the Tribal Council shall remove any

Commissioner who fails a background investigation or who

becomes disabled from performing his/her duties. The Tribal

Council shall fill any vacancy as provided in subsection E, above.

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

a quorum; if there are ~hree members. More than three members, two-thirds (2/3)

will constitute a quorum.

H. Officers ~ind Duties The Gaming Commission shall select, by majority

vote, a Chairman, Vice~Chairman and Secretary. The Chairman shall preside over

meetings of the Gaming Commission and the Vice-Chairman shall preside in absence of

the Chairman. The Secretary shall record in writing the minutes of all Gaming

Commission meetings and all official actions taken by the Commission. The

Commission shall work as a team and will maintain an equal status.

I. Voting All actions of the Gaming Commission shall be taken by majority vote. The Commission, Chairman may vote on any issue. Roberts rules of Order shall

apply, unless the Commission adopts specific rules that differ from Roberts Rules of

Order.

J. Meetings Meetings shall be held at least twice per month at the Tribes

primary meeting facility. Additional meetings shall be held as called by at least two (2)

other Commissioners. Meetings may be called at any time, by any means, with

unanimous consent of the Commissioners.

K. Compensation for Serving The Tribal Council shall determine and

authorize the compensation to be paid to Commissioners based on a determination of

time required to be expended upon Commission duties and the qualifications of the

appointed Commissioners.

1. Powers and Duties in order to meet the terms and responsibilities

set forth in this Gaming Ordinance and required by the Tribal/State Compact and IGRA

with respect to the gaming operation and facility compliance, and to protect the

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

for honesty and fairness, and the confidence of patrons that Tribal government gaming

in California meets the highest standards of regulation and internal controls, the

Gaming Commission shall be vested with the authority to promulgate, at a minimum,

rules and regulations governing the following subjects, and ensure their enforcement

in an effective manner:~

1. Provide independent information to the Tribal Council on the

status of Gaming Activities being conducted within any Gaming

Enterprise of the Smith River Rancheria;

2. Establish and administer standards and procedures for the

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licensing of employees, persons and entities who deal with the

Gaming Enterprise, such as, manufacturers, and suppliers of

machines, equipment and supplies;

3. Conductor cause to be conducted, background investigations

regarding any person in any way connected with any Gaming

Activities and issue licenses to all employees according to

requirements at least as stringent as those in 25 CFR, parts 556 and

558;

4. To deny any application for license, to limit; cancel, revoke,

terminate, condition, modify, suspend or restrict any license, to

make findings of suitability, (and approve the imposition of a fine

for any cause deemed reasonable by the Commission) upon any

person holding a license.

5. Notify National Indian Gaming Commission of licensing actions;

6. Retain licensing records and reports for three years from

termination of employment;

7. License each facility where gaming is allowed;

8. Ensure that gaming facility is constructed, to meet the building and

safety codes of the Tribe, which, as a condition for engaging in that

construction, shall amend its existing building and safety codes if

necessary, or enact such codes if there are none, so that they meet

the standards of either the building and safety codes of any county

within the boundaries of which the site of the facility is located, or

the Uniform Building Codes, including all uniform fire, plumbing,

electrical, mechanical and related codes, then in effect, provided

nothing herein shall be deemed to confer jurisdiction upon any

county or the State with respect to any reference to such building

and safety codes. Ensure the gaming facility is maintained and

operated in a manner that adequately protects the environment,

public health and safety and persons employed by the facility;

9. Shall cause to be conducted an audit of the gaming operation, not

less than annually, by an independent certified public accountant;

in accordance with the auditing and accounting standards for

audits of casinos of the American institute of Certified Public

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Accountants.

10. Ensure that net revenues from Gaming Activities are used for the

limited purposes set forth in the Tribal Gaming Ordinance;

11. Approve Minimum Internal Control Standards (M1CS) and

procedures for the Gaming Enterprise, including credit policies and

procedures for acquiring supplies and equipment;

12. Establish or approve rules of various games and inspect games,

tables, equipment; machines, cards, chips or tokens used in the

Gaming Enterprise. Establish standards/criteria for gaming

machines and facilitate the testing of machines for compliance;

13. inspect; examine and monitor Gaming Activities, including the

power to demand access to and inspect and examine any gaming

facility, machine, device, practice, paper, book, record or area and

in addition, to photocopy and audit all papers, books and records

to ensure compliance with tribal law and regulations;

14. Establish and supervise a video surveillance department for casino

monitoring purposes; Maintenance of a closed circuit television

surveillance system consistent with industry standards for gaming

facilities of the type and scale operated by the Tribe, which system

shall be approved and shall not be modified without the approval

of the Gaming Commission. The Gaming Commission shall have

current copies of the gaming facility floor plan and closed circuit

television system at all times and any modifications thereof first

shall be approved by the Gaming Commission;

15. Conduct investigations and/or hearings of possible vioLations of

regulatory or licensing matters and hold such hearings, sit and act

at such times and places, summon persons on the Rancheria to

attend and testify at such hearings, take such testimony, and

receive such evidence as the Gaming Commission deems relevant in

fulfilling its duties and take appropriate enforcement action;

16. Interact with other regulatory and law enforcement agencies

regarding the regulation of gaming;

17. Resolve patron disputes, employees grievances and other problems

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pursuant to the Gaming Ordinance;

18. Determine standards of customer conduct for patron exclusions

and maintain a list of those persons barred from the gaming facility

who, because of their past behavior, criminal history or association

with persons or organizations, pose a threat to the integrity of the

gaming activities of the Tribe or to the integrity of regulated gaming

within the State;

19. Protect patrons and property from illegal activity; the detention of

persons who may be involved in illegal acts for the purpose of

notifying appropriate law enforcement authorities;

20. Record any and all unusual occurrences within the Gaming

Enterprise, that deviate from normal operating policies and

procedures (incidents, hereafter) in indelible ink in a bound

notebook from which pages cannot be removed. The procedure for

recording incidents shall:

(a) Specify that security personnel record all incidents,

regardless of an employees determination that such incident

may be immaterial (all incidents shall be identified in

writing);

(b) Require the assignment of a sequential number to each

report, and;

(c) That each report include at a minimum:

(i) The record number;

(ii) The date;

(iii) The time;

(iv) The location of the incident;

(v) A detailed description of the incident;

(vi) The persons involved in the incident, and;

(vii) The security department employee assigned to

the incident.

2L Copies of all incident reports from Security shall be forwarded to

the Gaming Commission within 24 hours of the incident.

22. To the extent required, comply with any reporting requirements

required by this Ordinance, Tribal law or 1GRA or established under

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a Tribal-State compact to which the Tribe is a party and other

applicable law;

23. Promulgate and issue such regulations as it deems appropriate,

subject to review and approval by the Tribal Council, in order to

implement and enforce the provisions of this Ordinance;

24. Carry out such other duties with respect to Gaming Activities on

the Rancheria as the Tribal Council shall direct.

25. Establishment of employee procedures designed to permit

detection of any irregularities, theft, cheating, fraud or the like;

26. Submission to and prior approval from the Gaming Commission of

the rules and regulations of each class lii game to be operated by the

Tribe, and of any changes of such rules and regulations. No Class

lii game shall be played which has not received Gaming

Commission approval.

27. Maintenance of a copy of the rules, regulations and procedures for

each game as presently played, including, but not limited to, the

method of play and the odds and method of determining amounts

paid to winners. Information regarding the method of play, odds,

payoff determinations, and player pool balances shall be visibly

displayed or available to patrons in written form in the gaming

facility. Betting limits applicable to any gaming stations shall be

displayed at such gaming station, in the event of a patron dispute over the application of any gaming rule or regulation, the matter

wilt be handled in accordance with the Tribal gaming ordinance and

any rules and regulations promulgated by the Gaming

Commission.

28. Maintenance of a cashiers cage in accordance with industry

standards for such facilities.

29. Maintain a description of minimum staff and supervisory

requirements for each gaming activity to be conducted; and

30. Regulations specific to technical standards for the operation of

gaming terminals and other games authorized herein to be adopted

by the Tribe, which technical specifications shall be no less stringent

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than those approved by a recognized gaming testing laboratory in

the gaming industry.

M. Reports

1. Monthly Reports The Commission shall make at least one report

a month to the Tribal Council to include a summary of gaming

activities and all licensing and enforcement actions.

2. Annual Reports On or before April 30th of each year, the Gaming

Commission shall provide to the Tribal Council an Annual Report

summarizing its activities during the prior twelve (12) month

period ending on December 3 1 ~. The Tribal Council shall release a

summary of the Annual Report to Tribal Members within thirty

(30) days after receipt.

3. Other Reporting Requirements As required, the Gaming

Commission shall comply with any reporting requirements

established under a Tribal-State compact to which the Tribe is a

party, and other applicable law, induding the IGRA and regulations

promulgated thereunder.

N. Disclosure of Information~ The Commission shall adopt rules consistent

with this Ordinance governing the disclosure of information in its records.

0. Administrative Hearings. The Gaming Commission may hold

administrative hearing~ to resolve any issue arising under this Ordinance. Such

hearings shall be condUcted according to the Rules and Regulations of the Commission

established pursuant to this Ordinance. In order to fully exercise the power granted

under this Section, the Commission may issue subpoenas in accordance with the Rules

and Regulations.

P. Public information Shall be available to any Tribal official or member

during normal business hours, (9:00 a.m. to 4:00 p.m.), upon reasonable notice. Any

Tribal official or member may request copies of any identifiable public record.

Commissioners shall nOt disclose confidential records or confidential information,

except as required to perform their specific job duties or to comply with applicable

legal requirements.

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SECTION 5. ENFORCEMENTOF TRiBAL/STATE COMPACT PROVISiONS

A. Investigations and Sanctions

1. The Gaming Commission shall investigate any reported violation of

the Tribal/State Compact provisions and shall require the gaming

operation to correct the violation upon such terms and conditions

as the Gaming Commission determines are necessary.

2. The Gaming Commission shall be empowered by this Ordinance to

impose fines or other sanctions within the jurisdiction of the Tribe

against gaming licensees or other persons who interfere with or

violate the Tribes gaming regulatory requirements and obligations

under IGRA, the Tribal/State Compact or this Ordinance.

3. The Gaming Commission shall be required to report continued

violations or failures to comply with their orders to the State

gaming agency, provided such continued violations and compliance

failures have first been reported to the Tribe and no corrective

action has been taken within a reasonable period of time.

13. Assistance by State gaming agency

1. if requested by the Tribal Gaming Commission, the State gaming

agency shall assist in any investigation initiated by the Tribal

Gaming Commission and provide other requested services to

ensure proper compliance with the provisions of the Tribal/State

corn pact.

2. The State shall be reimbursed for its reasonable costs of such

assistance provided it has received approval from the Tribe in

advance for such expenditures.

3. Access to premises by State gaming agency: Notification and

inspection. The State gaming agency shall have the right to inspect

he Tribes gaming facilities with respect to Class lii gaming activities

only, and all gaming operation or facility records relating thereto,

subject to the following conditions:

(a) With respect to public areas of a gaming facility, at any time

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without prior notice during normal gaming facility business

hours;

(b) With respect to private areas of a gaming facility not

accessible to the public, at any time during normal gaming

facility business hours, immediately after the State gaming

agencys authorized inspector notifies the tribal Gaming

Commission and gaming facility management of his/her

presence on the premises and presentation of proper

identification, and requests access to the nonpublic areas of

the gaming facility.

(c) The Gaming Commission, in its sole discretion, may require

an employee of the gaming facility or a tribal Gaming

Commissioner to accompany the State gaming agency

inspector at all times that he/she is on the premises of the

gaming facility, if the tribal Gaming Commission imposes

such a requirement, it shall require such an employee of the

gaming facility or the Tribal gaming agency to be available at

all times for such purposes.

4. With respect to the inspection and copying of gaming operation

records, at any time, immediately after notice to the Tribal gaming

agency, during the normal hours of the facilitys business office,

provided that the inspection and copying of such records may not

interfere with the normal functioning of the gaming operation or

facility. Notwithstanding any other provision of the law of the

State of California, all information, records and copies thereof that

the State gaming agency obtains, inspects or copies pursuant to the

Tribal/State Compact shall be and remain the sole property of the

Tribe, and shall not be released or divulged for any purposes

without the Tribes prior written consent, except that the

production of such records may be compelled by subpoena in a

criminal prosecution or in a proceeding for violation of the

Tribal/State Compact without the Tribes prior written consent, and

provided further that prior to the disclosure of the contents of any

such records, the Tribe shall be given at least 10 court days notice

and an opportunity to object or to require the redaction of trade

secrets or other confidential information that is not relevant to the

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proceeding in which the records are to be produced.

5. Whenever a representative of the State gaming agency enters the

premises of the gaming facility for any such inspection, such

representative shall immediately identify himself/herself to security

or supervisory personnel of the gaming facility.

SEC11ON 6. AUTIIOR1ZA11ON OF GAMiNG AC11V~ES

A. Class I Gaming Class 1 Gaming Activities shall mean social games solely

for prizes of minimal value or traditional forms of Indian gaming as part of Tribal

ceremonies or celebrations and 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 1 gaming if the Tribal Council finds that such

conduct is not in accordance with tribal customs or practices or violates IGRA or any

other law.

B. Class ii Gaming Class U gaming as defined in the Indian Gaming

Regulatory Act, P.1. 1OO-447, 25 U.S.C. Section 27039(7)(A) (IGRA) and by the

regulations promulgated by the National Indian Gaming Commission at 25 C.F.R. §

502.3 (as published in the Federal Register at 57 FR 12382-12393, April 9, 1992 is

hereby authorized. Class II Gaming Activities shall mean:

1. The games of chance known as Bingo or Lotto whether or not

electronic, computer or other technological aids are used in

connection therewith, which are played for prizes, including

monetary prizes, with cards bearing numbers or designations, are

drawn or electronically determined and the game is won by the

first person covering a previously designated arrangement of

numbers or designations on such cards;

2. If played in the same location as Bingo, pull-tabs, punch board, tip

jars, instant Bingo, and other games similar to Bingo;

3. Non-banking card games that are: explicitly authorized by the laws

of the State or are not explicitly prohibited by the laws of the State

and played at any location in the State, but only if such card games

are played in conformity with laws and regulations of the State

regarding hours or periods of operation of such card games or

limitation on wagers or pot sizes in such card games;

16
S I

4. Class II gaming does not include baccarat. blackjack, or electronic or

electro-mechanical facsimiles of any game of chance or slot

machines of any kind.

C. Class HI 6aming Class Ill gaming as defined in the Indian Gaming

Regulatory Act,, P1. 100-447, 25 U.S.C. Section 2703(8) (iGRA) and by the regulations

promulgated by the National indian Gaming Commission (N1GC) at 25 C.F.R. §

502.4 (as published in the Federal Register at 57 FR 12382-12393, April 9, 1992) is

hereby authorized. Class HI gaming shall mean all forms of gaming that are not Class I

gaming or Class II gaming, including but not limited to:

1. Any house banking game, including but not limited to:

1. Card games such as baccarat. chemin de fer, blackjack (21), and

pai gow (if played as house banking games);

2. Casino games such as roulette, craps and Keno.

2. Any slot machines as defined in 15 U.S.C. 1 171(a)(1) and electronic

or electro-mechanical facsimiles of any game of chance;

3. Any sports betting and parimutuel wagering including but not

limited to wagering on horse racing orjai alai; or

4. Lotteries.

11). Conditions for Conducting Class II and Class III gaming Class 11 and

Class ill gaming is authorized as provided in subsections B. and C. above, provided the

Tribe has the sole proprietary interest in and responsibility for the conduct of any

Gaming Enterprise.

1. 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

1GRA.

2. Any Compact, when approved and published pursuant to IGRA, is

hereby incorporated within and enacted as an integral part of this

Ordinance with respect to all forms of Class HI gaming as set forth

herein; provided, however, that nothing in the adoption of a

17
Compact shall be deemed to affect the operation by the Tribe of

any Class II gaming, whether conducted within or without the

gaming facilities, or to confer upon any state anyjurisdiction over

such Class II gaming conducted by the Tribe on the Tribes lands.

SECTION 7. 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 H or Class Ill Gaming Activities are the property of

the Smith River Rancheria.

1. Any profits or net revenues from Gaming Activities shall be

deposited into the Tribes general treasury or such other tribal

account as the Tribe shall determine. Once becoming part of the

treasury such funds shall lose any identity as gaming revenues

except to the extent necessary to identify them as such in order to

comply with applicable law.

2. No Tribal Member shall be deemed to have any interest in such

profits or net revenues, provided that the Tribal Council may adopt

rules for distributing gaming proceeds to Tribal Members on a per

capita basis provided such plan meets the requirements of IGRA, 25

U.S.C. § 2710 (b)(3).

3. Payments from the general treasury funds to Tribal Members under

other tribal programs, including those related to health, welfare,

education, elderly care, and housing shall not be deemed to be per

capita payments.

B. Use of Net Revenues Net Revenues from Gaming Activities shall not be

used for purposes other than:

1. To fund tribal government operations or programs;

2. To provide for the general welfare of the Tribe and its members;

3. To promote economic development for the Tribe;

4. To donate to charitable organizations;

5. To help fund operations of local government agencies; or

6. Per capita payments.

18
C. Per Capita Payments When per capita payments are authorized under

subsectioü (8.6.) above, and the Tribal Council, in its sole discretion,

determines to make per capita payments:

1. The Tribal Council shall prepare a financial plan or ordinance to

allocate revenues to uses authorized under Section 6. The Tribal

Council may form an advisory committee consisting of Tribal

Council members to make recommendations regarding the

financial plan.

2. The financial plan or ordinance to allocate revenue must be

approved by majority vote of the Tribal Council present at a duly

called meeting with a quorum present.

3. No per capita payments shall be made pursuant to the financial

plan or ordinance until it has been approved by the Secretary of the

interior, or his duly authorized designee.

4. All per capita payments made to Smith River Ranchria Tribal

Members are subject to federal taxation. The members will be

notified of such tax liability and any required withholding when

payments are made.

SECTiON 8. OPERATiON OF GAMiNG ESTABLISHMENTS

A. Gaming Permitted as Licensed Gaming Activities shall only be

conducted in tribally owned, operated and licensed facilities pursuant to the provisions

of this Ordinance.

1. Such activities shall be conducted in accordance with the terms and

conditions of any license issued by the Tribe for such purposes as to

each facility before any Gaming Activities may occur therein.

2. Such licenses shall 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,

regulation of alcoholic beverages, food handling and

entertainment, and such other matters as the Gaming Commission

19
or~ the Tribal Council 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.

C. Public/Patron Dispute Resolutions if any customer or member of the

general public has a dispute with the manager or employee of a gaming facility, or the

Tribe, it shall be resolved using the following procedure. Any gaming facility manager

and the Tribe must endeavor to resolve disputes at the lowest level of management

possible. Toward that end, any dispute involving gaming must be presented using a

multi-step process.

1. Step 1 if a patron has a complaint involving the conduct of a game

or his/her treatment at the facility, he/she must discuss the

matter with the employee involved in the incident. The

employee must listen carefully and courteously to the

patrons complaint. All employees shall receive training in

customer relations. if the employee fails to resolve the

complaint to the customers satisfaction or lacks the

authority to remedy the complaint, he/she shall immediately contact his/her immediate supervisor, if available, or the

floor manager.

2. Step 2 If the supervisor or floor manager fails to resolve the dispute

to the customers satisfaction or lacks the authority to

remedy the complaint, he/she shall refer the complaint to

the gaming facility manager. The supervisor or floor

manager shall also notify Security, if a customer is referred

to the gaming facility manager, the gaming facility manager

shall interview the customer and, if necessary, the involved

employee(s) and shall make a decision within a reasonable

time, not to exceed five (5) days. The manager shall obtain

the customers name, address and telephone number. The

manager shall notify the customer that if he/she remains

dissatisfied, he/she can request in writing, review by the

Tribal Gaming Commission within seven (7) days of the

managers decision.

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3. Step~3 The Tribal Gaming Commission shall review the customers

written appeal and may interview the customer, the manager

and any involved employees. The Commission shall issue a

written decision to the customer within five (5) working

days of receiving the customers appeal. The Commissions

written decision shall include a notice that the customer may

appeal the Commissions decision to a hearing panel, to be

appointed by the Tribal Council. The written appeal must

include all information the customer wants the hearing

panel to consider in acting on the appeal. The appeal must

be filed within seven (7) days of the date on the

Commissions decision.

4. Step~ 4 The hearing panel shall conduct such hearing on the appeal

as it deems appropriate. It may limit its review to the

written appeal and the written decision of the Commission

or it may invite the customer to present written testimony

and it may receive testimony from the involved employees.

Tribal Council, based on the recommendation of the hearing

panel, shall issue a written decision which shall be final.

5. All written notices and decisions shall be sent by regular first class

mail to the customer at the address furnished by the customer. The

time limits for complaints shall be calculated from the date

appearing on the notices or decisions, provided these items are

mailed on that date. The time limits for tribal officials shall be

calculated from the postmarks appearing on the envelopes

containing the appeals.

6. AU claims by patrons shall be limited to a maximum recovery of

$10,000 per occurrence, and a cumulative limit of $20,000 per

patron in any twelve (12) month period.

SECTiON 9. AUDITS

A. Annual Audit5 The Tribal Council shall contract with a qualified,

independent certified public accountant or finn of accountants to conduct annual

audits of each gaming activity and the results thereof reported to the Gaming

Commission, and, to the extent required by law, the National Indian Gaming

Commission (41NJGC).

21
SECTiON 10. CONTRACTS

A. Procurement The Tribal Council shall adopt procurement policies from

time to time. All purcl~ases of services or supplies shall comply with the tribally

adopted procurement policies.

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 H or Class HI gaming on the Rancheria

shall be subject to independent audits, and such contracts shall so specify.

1. The Gaming Commission shall cause to be conducted an audit of the

gaming operation, not less than annually, by an independent

certified public accountant, in accordance with the auditing and

accounting standards for audits of casinos of the American

institute of Certified Public Accountants.

2. A minimum bi-annual certification of compliance to established

Minimum Internal Control Standards shall be promulgated by the

Gaming Commission.

C. Preference Any management and investment gaming contracts or

other contracts must make provision for the preferential hiring of Smith River

Rancheria members and their spouses followed by a preference for Native American

indian people and their spouses from the Smith River and surrounding areas for jobs

in the construction and operation of any gaming facilities or activities.

SECTiON 11. UCENSES

A. Licensing Requirements it is the declared policy of the Smith River

Rancheria that all Gaming Activities be licensed and controlled so as to protect the

morals, good order and welfare of Tribal Members and other persons on the Rancheria

and to preserve the honesty, fairness and integrity of such Gaming Activities.

Accordingly, no person shall engage in any Class ii or Class Ill Gaming Activities on the

Rancheria without an appropriate and valid independent Class H or Class 111 license

issued by the Gaming Commission.

1. 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.

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2. No license shall be issued that would place the Rancheria in

violation of the IGRA and regulations promulgated thereunder and,

as applicable, provisions of a Tribal-State compact, or of any

applicable law.

3. The Gaming Commission shall require that all persons who are

required to be licensed shall wear, in plain view at all times while in

the gaming facility, identification badges issued by the Gaming

Commission.

4. identification badges must include information including but not

limited to, a photograph and an identification number which is

sufficient to enable agents of the Gaming Commission and of the

National indian Gaming Commission (N1GC), to readily identify

such employees and determine the validity and date of expiration

of their license.

5. The licensing requirements of this Ordinance are in addition to any

state certificates or licenses required by the Tribal/State Compact

and the N1GC.

6. Persons The following persons must obtain licenses as a

precondition to employment in, or management of, any Gaming

Operation:

a. All Primary Management Officials;

b. All Key Employees; and

c. Any other employee or class of employees as determined by

the Commission or the Tribal Council.

B. Burden on Applicant The burden of proving an applicants qualification to

receive any license hereunder is at all times on the applicant. Applicants must accept

any risk of adverse public notice, embarrassment or other action which may result

from the application process and expressly waive any claim for damages as a result

thereof.

C. Standard for License Licenses issued hereunder shall be issued according

to requirements at least as stringent as those set forth in 25 CFR parts 556 and 558,

and any amendments thereto, and, in the case of Class HI Gaming Licenses, also

according to requirements at least as stringent as those set forth in the Compact. The

Tribal Council and the Gaming Commission reserve the right in any case to issue

23
p

Licenses pursuant to standards which are more stringent than those required either by

N1GC or the Compact.

11). Standards of Conduct All persons engaged by or associated with any

gaming activity on the Rancheria 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 any violation of any rule, ordinance, custom or tradition of the Tribe, the

Rancheria or the Gaming Activity, or the terms or conditions of the license, may be

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

E. Applicant Claim of Privilege An applicant may refuse to disclose

information based upon a claim of 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.

F. Release ofInformation All persons applying for a license shall agree to

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

goals under this Ordinance, and to furnish such information to the Bureau of Indian

Affairs, the NJGC, or such other governmental agency as may be required by law.

6. License Renewal All licenses shall be subject to renewal at least every

two (2) years, and may be revoked or suspended upon the occurrence of any act which,

if known during the application process, would have tended to disqualify such person

for such a license, or for any material omission or false statement in an application.

H. 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.

1. Such licenses shall permit the licensee to engage in such activities

and pursuant to such terms and conditions as may be specified by

the Gaming Commission.

2. Such temporary licenses shall expire ninety (90) days from date of

issuance, upon issuance of a regular license, or atan earlier

specified expiration date, whichever occurs first

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I. License Investigations The Gaming Commission may employ all

reasonable means, to acquire the information necessary to determine whether or not a

license should be issued. Applicants shall also agree to release the information

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

and to furnish such information to the NJGC, or such other agency as may be required

bylaw.

J. License Fees Unless specifically waived by the Gaming Commission, all

license applicants shall be required to pay all applicable license fees and costs when

due, including a reasonable deposit for costs incurred in obtaining information in

connection with the license application. Estimates of licensing costs shall be provided to applicants upon reasonable request. Payment for all reasonable fees and costs must

be received prior to the issuance of a license.

K. Appeals All decisions of the Gaming Commission regarding the issuance

or revocation of licenses shall be effective when issued.

1. An applicant or licensee whose license is denied, revoked or

suspended may, within thirty (30) days after the date of receipt of a

written decision of the Gaming Commission, file a petition with

the Gaming Commission requesting a hearing to reconsider the

decision, and shall have the right to appeal such decision to the

Tribal Court in accordance with such rules and regulations as may

be promulgated by the Tribal Court for that purpose.

2. Any Tribal Member who is denied a license by the Gaming

Commission may, within sixty (60) days of 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, and shall have the right to appeal such decision to

the Tribal Council, provided that no such license shall be issued for

more than one (1) year, subject to the renewal procedures set forth

herein, and provided further that no order of the Gaming

Commission or Tribal Council that a license be issued shall be valid

if such issuance would place the Tribe in violation of any TribalState compact to which the Tribe is a party, or of any applicable

law.

L. Background Investigations

1. The Gaming Commission shall request from each employee all of

the information specified in subsections (a) through (n) below.

25
, b.

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

additional information either prior to, during or subsequent to any

background investigation.

(a) 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);

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

business and employment positions held, ownership

interests in those businesses, business and residence

addresses and drivers license number(s);

(c) 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;

(d) Current business and residence telephone numbers;

(e) Description of any existing and previous business

relationships with the gaming industry generally, including

ownership interests in those businesses;

(1) A description of any existing and previous business

relationships with indian tribes, including ownership

interests in those businesses;

(g) 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;

(h) 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;

(1) For each misdemeanor conviction or on-going misdemeanor

prosecution (excluding minor traffic charges), whether or

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

26
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;

(j) 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 (i) above: the criminal charge, the name and address

of the court involved and the date and disposition, if any, of

the case;

(k) 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;

(1) Current photographs;

(m) Any other information the Tribe and the Gaming

Commission deems relevant, and

(n) Fingerprints consistent with procedures adopted by the

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

2. The Tribe shall conductor cause to be conducted an investigation,

through the Gaming Commission, sufficient to make a Suitability

Determination as required under this Ordinance. In conducting

the background investigation, the Gaming Commission and its

agents shall promise to keep confidential the identity of each

person interviewed in the course of the investigation.

3. The Gaming Commission shall arrange to take the applicants

fingerprints and forward those fingerprints directly to the NIGC, to

be forwarded to the Federal Bureau of investigation (FBI),

National Criminal Information Center (NC1C), for review of the

applicants criminal history, and perform or arrange to have

performed the necessary background investigation of the applicant

required by this Ordinance.

4. Such investigation shall include contacting each reference provided

27
I

in the application and taking all appropriate steps necessary to

verify the accuracy of the information contained in the application.

5. There shall be a written investigation report of the findings and

conclusions of each investigation. The investigative report shall

indude:

(a) the steps taken in conducting a background investigation;

(b) the results obtained;

(c)~ the conclusions reached; and

(d) the basis for those conclusions,

6. The Gaming Commission shall review the findings and conclusions

of the report for the purpose of determining whether to grant or

deny the license applied for.

M. Suitability Determination The Gaming Commission shall review a

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

to make a finding concerning the eligibility of an applicant for employment in a

Gaming Enterprise.

1. The Gaming Commission shall consider whether issuance of the

license is inimical to public health, safety, or welfare, and whether

issuance of the license will undermine public trust that the Tribes

gaming operations, or tribal government gaming generally, are free

from criminal and dishonest elements and would be conducted

honestly.

2. No license shall be issued unless, based on all information and

documents submitted, the Gaming Commission is satisfied that the

applicant is all of the following, in addition to any other criteria in

JGRA or this Ordinance:

(a) A person of good character, honesty and integrity;

(c) A person poses no 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

Enterprise;

28
. I

(c)~ A person that may have been deemed to have violated a law

in the exercise of or protection of a Tribes sovereignty rights

in connection with fishing, hunting, protection of burial

grounds, repatriation of remains of artifacts or gaming.

N. Forwarding License Applications and Reports to NIGC

On or before the date a Key Employee or Primary Management

Official is employed by a Gaming Enterprise authorized under this

Ordinance, the Gaming Commission, acting on behalf of the Tribe,

shall forward to the NJGC, the persons completed application for

employment containing the information required above under

Section ii of this Ordinance.

2. 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 Suitability

Determination made under section 11 .M. above, an investigative

report on each background investigation.

4. The investigative report on each background investigation shall be

forwarded to the N1GC 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 Enterprise shall not employ

or continue to employ any person as a Key Employee or Primary

Management Official who does not have a license within ninety

(90) days of beginning work. The investigative report shall include

th~ following information:

(a) Steps taken in conducting a background investigation;

(b) Results obtained;

(c) Conclusions reached; and

(d) The basis for those conclusions.

4. The Gaming Commission, acting on behalf of the Tribe, shall

provide to the NIGC or any other agency, any other reports and

information required by IGRA and regulations promulgated

thereunder. Further, with respect to Key Employees and Primary

Management Officials, the Gaming Commission shall retain

applications for employment and reports (if any) of background

investigations for inspection by the N1GC for no less than three (3)

29
. I ~

years from the date of termination of employment.

5. i~ a license is not issued to an applicant, the Gaming Commission

shall notify the NIGC and may forward copies of its Suitability

Determination and investigative report (if any) to the NIGC for

inclusion in the indian Gaming individuals Record System.

0. Granting a Gaming License

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

required under subsection 11.1 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 a license.

2. The Gaming Commission shall provide any additional information

requested by the NIGC concerning a Key Employee or Primary

Management Official who is the subject of a report as required

under this subsection. An NIGC request for additional information

shall suspend the thirty (30) day period established under this

subsection until the NIGC receives the additional information.

3. 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, die 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. License Suspension

If, after issuance of a gaming license, the Gaming Commission

receives reliable information from the NIGC or other reliable source

indicating that a Key Employee or Primary Management Official is

not eligible for employment under the eligibility criteria established

in section 10 above, the Gaming Commission shall suspend the

license and shall notify the licensee in writing of the license

suspension and proposed revocation.

30
2. The Gaming Commission shall notify the licensee of a time and

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

3. After the revocation hearing, the Gaming Commission shall

determine whether to revoke or to reinstate the gaming license.

For actions taken in response to information provided by the N)GC,

the Gaming Commission shall notify the NIGC of its decision.

Q. Facilities Licenses. A separate license shall be required for each place,

facility, or location on any land where Class H and/or Class Hi gaming is to be

conducted on the Rancheria. Before Class H or Class ill Gaming Activities can be

conducted therein, the Gaming Commission shall inspect and license each such facility

in accordance with this Ordinance, the Tribal/State Compact and any such

requirements of IGRA.

1. The issuance of this license shall be reviewed and renewed every

two years thereafter, inspections by qualified building and safety

experts shall be conducted under the direction of the tribal Gaming

Commission as the basis for issuing or renewing any license

hereunder, who shall determine and certify that as to new

construction or new use for gaming, the facility meets the Tribes

building and safety code, or as to facilities or portions of facilities

that were used for the Tribes gaming activities prior to the

Tribal/State Compact, such facility or portions thereof do not

endanger the health or safety of occupants or the integrity of the

gaming operation.

2. The State gaming agency shall be given at least 30 days notice of

each inspection by such experts, and, on 10 days notice to the Tribe,

and accompany any such inspection. The Tribe agrees to correct

any facility condition noted in an inspection that does not meet the

standards set forth above.

3. The tribal Gaming Commission and the State gaming agency shall

exchange any reports of such inspection within ten days after their

completion, which reports shall also be separately and

simultaneously forwarded by both agencies to the Tribal

Chairperson.

4. Upon certification by such experts that a facility meets applicable

standards, the Tribal gaming agency shall forwar&the experts

31
certification to the State within 10 days of issuance. if the State objects to

such certification, the Tribe shall make a good faith effort to address the

States concerns, but if the State does not withdraw its objection the

matter will be resolved in accordance with the dispute resolution

provisions provided in thejribal/State Compact..

R. Gaming Resource Supplier Any gaming resource supplier who provides,

has provided or is deemed likely to provide at least twenty-five thousand dollars

($25,000) in gaming resources in any 12-month period, shall be licensed by the

Gaming Commission prior to the sale, lease or distribution, or further sale, lease or

distribution of any such gaming resources to or in connection with the Tribes gaming

operation or facility. These licenses are to be renewed every two years.

S. Financial Sources Any party extending financing, directly or indirectly, to the Tribes gaming facility or gaming operation shall be licensed prior to extending

such financing. These licenses are to be renewed every two years. Financing from a

federal or state regulated bank, savings and loan, or other lending institution, a

federally recognized Tribal government or tribal entity thereof, or any agency of the

federal7 state or local government may be excluded from obtaining a license.

Section 12. Application Forms

Each application form for a Key Employee or Primary Management Official, or any

employee shall contain the notices set forth in subsections (1) and (2) below:

A. Privacy Ordinance Notice

1. 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. §270 1 et seq

2. The purpose of the requested information is to determine the

suitability of individuals to be employed in a gaming operation.

3. 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.

4. The information may be disclosed to appropriate federal, tribal,

32
state, local or foreign law enforcement and regulatory agencies

when relevant to civil, criminal or regulatory investigations or

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

NIGC 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.

5. Failure to consent to the disclosures indicated in this notice will

result in a Tribes being unable to hire you in a Primary

Management Official or Key Employee position. The disclosure of

your Social Security Number (SSN) is voluntary. However, failure

to supply a SSN may result in errors in processing your application.

B. Notice Regarding False Statements

1. Any existing Key Employee or Primary Management Official, or any

other employee, 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 shall either;

2. Complete a new application form that contains the Privacy

Ordinance Notice and the Notice Regarding False Statements; or

3. Sign a statement that contains the Privacy Ordinance Notice and

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

statement that contains the Notice Regarding False Statements.

6. A f~lse statement on any part ofyour application may be grounds

for not hiring you, or for firingyou after you begin work. Also, you

may be punished by fine or imprisonment. (U.S. Code, title 18,

§1001).

Section 13. Class Dl Gaming; Tribal-State Compacts

The standards of operation and management for Class Hi games shall be

those set forth in a Compact.

2. The Tribe may adopt standards of operation and management for Class IH

games that are no less stringent than, or not otherwise inconsistent with,

a Compact.

33
.4

3. All negonatons for such Compacts shall be conducted through the Tribal

Council, with the advice and suggestion of the Gaming Commission on

issues of regulation, monitoring and Internal Controls, and shall be

finalized in accordance with tribal law.

Section 14. 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, trust1 or other

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

Section 15. Service of Process

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

or notice of violation, the Chairperson of the Smith River Rancheria.

Section 16. Tribal Gaming Corporation

Nothing in this Ordinance shall prevent the Tribe, through its Tribal Council,

from delegating the authority to conduct Gaming to one or more tribal commissions

or corporations, so long as the tribal Gaming Enterprises to which such authority is

delegated agree to meet all criteria and requirements established under this Ordinance.

Section 17. Repeal of Prior Gaming Ordinance; Effective Date

This Ordinance and the regulations promulgated thereunder shall constitute the

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

Tribe are repealed, and this Ordinance shall become effective upon its approval by the

NIGC.

Section 18. Severability

if any provision or application of this Ordinance is determined by review to be

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

other persons or circumstances, nor shall such determination render invalid any other

provision of this Ordinance.

34
p.

Section 19. Amendments

All provisions of this Ordinance are subject to revision, repeal, or amendment by

the Gaming Commission or the Tribal Council at any time. Regulations promulgated

by the Gaming Commission under this Ordinance are subject to revision, repeal or

amendment by the Tribal Council at any time.

CERTIFJ CATiON

We, the undersigned duty elected officials of the Smith River Rancheria, do

herqby

~

certify that the foregoing Ordinance was ado ted on

8 , 1994, ata duly called meeting of the Tribal Council

for the Smith River Rancheria with a quorum present by a vote of (~)For, (o)Against

(i )Abstaining and (O)Absent.

This ORDINANCE WAS REVISED AND AMENDED ON:

~ 1999, at a duly called meeting of the Tribal Council for

the Smith River Rai~1ieria with a quorum present by a vote of (~) For, (0) Against

(I ) Abstaining andjo) Absent.

~/Æ~ ~ /~

William H. Richards, Sr. Date

Tribal Council Chairman

2~, J~9CJ

Tamara E. Husberg (J Date

Tribal Council Secretary

35