~.

PUEBLO OF LAGUNA

GAMING CONTROL ORDINANCE

ORDINANCE NO. 100-95

WHEREAS, the Pueblo of Laguna (Pueblo) is a federally recognized

Indian Tribe organized under a Constitution adopted pursuant to the Indian

Reorganization Act; and

WHEREAS, the Constitution vests all governmental powers in the Pueblo

Council; and

WHEREAS, Congress has enacted the Indian Gaming Regulatory Act of

1988, 25 U.S.C. §~ 2701-2721 and 18 U.S.C. 1166-1168, to regulatecertain types

of gaming on Indian lands; and

WHEREAS, the Pueblo Council desires to regulate all gaming within the

Laguna Reservation and all lands subject to the jurisdiction of the Pueblo (Pueblo

lands) for purposes of generating income for the Pueblo, promoting the Pueblos

economic development and Pueblo self-sufficiency and a strong Pueblo

government; and

WHEREAS, the Pueblo Council has the power to regulate class I gaming

and class II gaming, as those terms are defined under the IGRA on Pueblo lands

and may jointly regulate all class III gaming, as the term is defined in the IGRA,

pursuant to a Tribal-State Compact (Compact) with the State of New Mexico;

and

WHEREAS, the Pueblo Council finds that it is in the best interest of the

Pueblo to enact a gaming ordinance to authorize and regulate all gaming on Pueblo

lands consistent with the IGRA.
Ordinance No. 100-95

Page 2

BE IT FURTHER ORDAINED, that the Governor of the Pueblo is hereby

authorized to enter into a compact with the State for the purpose of conducting

class III gaming on Pueblo land.

DULY ENACTED by the Pueblo Council of the Pueblo of Laguna this 18th

day of April, 1995.

Governor

Councilman ~\\

uncilman

ATTEST:

Pueblo Secret~ry
Ordinance No. 100-95

Page 3

CERTIFICATION

The foregoing Ordinance was enacted by the Pueblo Council of the Pueblo

of Laguna on the i8th day of April, 1995, by a vote of 16 for, 4 opposed, 0

abstaining, at a duly called meeting at which a quorum of the Pueblo Council was

present.

Governor

ATTEST:

Pueblo Secret~y
PUEBLO OF LAGUNA

P.O. BOX 194

Office of: LAGUNA, NEW MEXICO 87026 (505) 243-7616

The Governor (505) 552-6654

The Secretary (505) 552-6655

The Treasurer

PUEBLO OF LAGUNA GAMING CONTROL ORDINANCE NO. /X~?5

SECTION 1. PURPOSE. This Ordinance is enacted and shall be interpreted to accomplish

the following purposes:

(a) To legalize and regulate the conduct of Gaming Activity on Pueblo Lands;

(b) To maintain the highest standard of integrity in the conduct of Gaming

Activity on Pueblo Lands.

(c) To produce revenue to fund the Pueblos governmental operations and

programs;

(d) To promote the health, education, and welfare of the Pueblo and its

members; and

(e) To promote the Pueblos economic development.

SECTION 2. DEFINITIONS. For purposes of this Ordinance:

(a) Act means the Indian Gaming Regulatory Act of 1988, Pub.L. No. 100-

497, 25 U.S.C. §~ 2701-2721 and 18 U.S.C. § § 1166-1168, and all regulations

promulgated thereunder.

(b) Board means the Pueblo of Laguna Gaming Control Board established by

this Ordinance.

(c) Class I Gaming means Class I Gaming as defined in the Act.

(d) Class II Gaming means Class II Gaming as defined in the Act.

(e) Class III Gaming means Class III Gaming as defined in the Act.

(f) Commission means the National Indian Gaming Commission.

(g) Compact means any Tribal-State Compact between the Pueblo and the

State governing the conduct of Class III Gaming, which is approved by the Secretary

pursuant to the Act.

(h) Pueblo Council means the Pueblo Council of the Pueblo.
(i) Key Employee means a Person employed by a Gaming Operation or

Management Contractor and

(1) Who performs one or more of the following functions:

(A) Bingo caller;

(B) Counting room supervisor;

(C) Chief of security;

(D) Custodian of gaming supplies or cash;

(E) Floor manager;

(F) Pit boss;

(G) Dealer;

(H) Croupier;

(I) Approver of credit;

(I) Custodian of gambling devices, including Persons with access

to cash and accounting records within such devices;

(2) If not otherwise included, any other Person whose total cash

compensation is in excess of $50,000 per year; or

(3) If not otherwise included, the four most highly compensated Persons

in a Gaming Operation or Management Contractor.

(j) Gaming Activity means all forms of Class II Gaming and Class III Gaming

conducted by a Gaming Operation on Pueblo Lands.

(k) Gaming Device means any gambling device as defined in 15 U.S.C.

§ 1171(a).

(1) Gaming Employee means any person, other than a Key Employee or

Primary Management Official, employed by a Gaming Operation or Management

Contractor.

(m) Gaming Equipment means any equipment, device, or contrivance used to

conduct Class III gaming.

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(n) Gaming Facility means the building, room, or location at which Gaming

Activity is conducted on Pueblo Lands.

(o) Gaming Operation means the enterprise, corporation or other entity owned

by the Pueblo for the conduct of Gaming Activity in any Gaming Facility.

(p) Gaming-Related Contract means a contract or agreement providing of any

goods, services or concessions to the Pueblo, a Gaming Operation, or Management

Contractor in connection with the conduct of Gaming Activity in a Gaming Facility in an

amount in excess of $25,000 annually, except for professional, legal or accounting services.

No Gaming-Related Contract may be broken up into parts for the purpose of avoiding this

definition and any requirement of licensure or certification.

(q) Management Contract means any contract, subcontract, or collateral

agreement between the Pueblo and a Management Contractor or between a Management

Contractor and a subcontractor if such contract or agreement provides for the management

of all or part of a Gaming Operation.

(r) Management Contractor means any Person who enters into a Management

Contract with the Pueblo.

(s) Net Revenues means gross revenues of any Gaming Activity less amounts

paid out as, or paid for, prizes and total operating expenses, but excluding management fees

paid to a Management Contractor.

(t) Ordinance means the Pueblo of Laguna Gaming Control Ordinance.

(u) Person means any individual, partnership, corporation, company or other

legal entity.

(v) Primary Management Official means

(1) The Person having management responsibility for a Management

Contract;

(2) Any Person who has authority:

(A) To hire and fire employees;

(B) To set up working policy for a Gaming Operation; or

(C) The chief financial officer or other Person who has financial

management responsibility.

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(w) Pueblo means the Pueblo of Laguna, a federally recognized Indian Pueblo,

its authorized officials, agents and representatives.

(x) Pueblo Lands means (a) land within the exterior boundaries of the Laguna

Reservation or (b) land over which the Pueblo exercises governmental power and that is

either (i) held in trust by the United States for the benefit of the Pueblo or its members or

(ii) held by the Pueblo or its members subject to restriction by the United States against

alienation.

(y) Secretary means the Secretary of the Interior or his duly authorized

representative.

(z) State means the State of New Mexico, its authorized officials, agents and

representatives.

SECTION 3. NATURE AND SCOPE OF GAMING ACTIVITIES.

(a) Authorized Gaming A Gaming Operation may conduct all forms of

Gaming Activity in any Gaming Facility, subject to the provisions of the Compact and

applicable law.

(b) Forms of Payment All payment for wagers made in any Gaming Activity

conducted by a Gaming Operation shall be made by cash, chips, or tokens. A Gaming

Operation shall not extend credit. Unless otherwise prohibited by applicable law or the

Compact, chips or tokens may be purchased using cash, checks or credit card.

(c) Wagering Limitations The Board may set by regulation the maximum

wager for Class III Gaming.

(d) Hours of Operation A Gaming Operation may conduct any Gaming Activity

on the hours and days approved by the Board.

(e) Prohibition on Minors No person under the age of 18 shall participate in

any Class III Gaming. However, a person under age 21 may be employed by a Gaming

Operation or Management Contractor in food, non-alcoholic beverage, and maintenance

service.

SECTION 4. COMPLIANCE WITH THE ACT. This Ordinance shall be construed in

a manner that conforms to the Act in all respects, and, if the Ordinance is inconsistent with

the Act in any manner, the provisions of the Act shall govern.

(a) Proprietary Interest The Pueblo shall have the sole proprietary interest in

and responsibility for the conduct of any Gaming Activity on Pueblo Lands; however,

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nothing in this Ordinance shall prevent the Pueblo from entering into a Management

Contract.

(b) Use of Net Revenues The Net Revenues to the Pueblo after payment of any

management fees from any Gaming Activity shall be used for the following purposes:

(1) To fund the Pueblos government operations or programs;

(2) To promote and provide for the health, education and welfare of the

Pueblo and its members;

(3) To promote and provide for the Pueblos economic development;

(4) To donate to charitable organizations and causes;

(5) To help fund operations of local government agencies; or,

(6) Any other purposes authorized by the Tribal Council and permitted

under the Act.

(c) Annual Audit A Gaming Operation shall be subject to an annual audit by

independent certified public accountants approved by the Board. Copies of the annual audit

shall be sent to the Board, the Pueblo, and the Commission. All Gaming-Related Contracts,

except contracts for professional legal or accounting services, shall be subject to the annual

audit.

(d) Public Safety Standards Each Gaming Facility shall be constructed and

maintained in a manner that adequately protects the environment and public health and

safety and in accordance with the Uniform Building Code which has been adopted by the

Pueblo.

SECTION 5. LICENSING.

(a) Gaming License Requirements Unless a compact shall allocate

responsibility to an entity other than the Board, the licensed authority for Class II Gaming

and Class III Gaming shall be the Board.

(I) Key Employees and Primary Management Officials The Board shall

license each Primary Management Official and Key Employee of a Gaming Operation and

Management Contractor.

(2) Gaming Employees The Board shall license each Gaming Employee.

(3) Gaming Facility The Board shall license each Gaming Facility.

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(4) Management Contractor Pursuant to the Act, the Commission shall

license a Management Contractor and any Person having a direct or indirect financial

interest in a Management Contract. The Board shall license such contractor or person if

the Commission is prohibited by the Act from doing so.

(5) Gaming Device and Gaming Equipment The Board shall license

each Gaming Device and Gaming Equipment.

(6) Gaming-Related Contractors The Board shall license each Person

proposing to enter into a Gaming-Related Contract.

(7) Other Persons The Board may license such other Persons as it

deems necessary to carry out the purposes of this Ordinance.

(b) Applications for Gaming Licenses

(1) An applicant applying for a license shall provide all the information

required by Section 6(b) of this Ordinance and the Act on an application form adopted by

the Board for that purpose. The applicant shall pay any fees required by the Board and the

Commission.

(A) The Board shall require each applicant to sign and submit a

Privacy Act notice on an application form as required by the Act (Privacy Act Notice):

In compliance with the Privacy Act of 1974, the following information is provided: Solicitation

of the information on this form is authorized by 25 U.S.C. 2701 et seq. The purpose of the

requested information is to determine the eligibility of individuals to be employed in a gaming

operation. The information will be used by National Indian Gaming Commission members and

staff who have need for the information in the performance of their official duties. The

information may be disclosed to appropriate Federal, Tribal, State, local, or foreign law

enforcement and regulatory agencies when relevant to civil, criminal, or regulatory

investigations or prosecutions or when pursuant to a requirement a tribe or the National Indian

Gaming Commission in connection with the hiring or firing of an employee, the issuance of

revocation of a gaming license, or investigations of activities while associated with a tribe or

a gaming operation. Failure to consent to the disclosures indicated in this notice will result in

a 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) The Board shall require each applicant to sign and submit a notice

regarding false statements on an application form as required by the Act (False Statements

Notice):

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 bc punished by fine or imprisonment.

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(C) The Board shall notify in writing each Person, who is required

to be licensed pursuant to Section 5(a) of this Ordinance, but who has not signed and

submitted an application form containing the Privacy Act Notice and False Statements

Notice, to either complete a new application form that contains the Privacy Act Notice and

False Statements Notice or sign a statement that contains the False Statements Notice and

Privacy Act Notice.

(2) On its application, a Gaming Operation or Management Contractor

shall designate an agent to accept service on its behalf of any official determination, order

or notice of violation that may be served by the Board or Commission pursuant to the Act.

(c) Granting a Gaming License

(1) If the Commission notifies the Board that it has no objection to the

issuance of a license to a Key Employee or Primary Management Official, the Board may

issue a license to such applicant.

(2) If the Commission provides the Board with a statement itemizing

objections to the issuance of a license to a Key Employee or Primary Management Official,

the Board shall reconsider the application by taking into account the objections itemized

by the Commission. The Board shall make the final decision whether to issue a license to

such applicant.

(d) Suspension and Revocation of Gaming License

(1) If, after the issuance of a license, the Board obtains reliable

information from the Commission or other source indicting that a licensee is not eligible

for a license under the standard set forth in Section 6(h) of this Ordinance, the Board shall

suspend the license and shall notify the licensee in writing of the suspension and the

proposed revocation of the license.

(2) The Board shall also notify the licensee of the time and place for a

hearing on the proposed revocation of the license.

(3) After the revocation hearing, the Board shall decide to revoke or to

reinstate the license. The decision shall be final and not subject to further appeal. The

Board shall notify the Commission of its decision.

(e) Duration and Renewal of Licenses Any license issued by the Board shall

be effective for one year from the date of issuance. Any license for a Management

Contractor shall be renewed automatically each year during the term of the Management

Contract unless the Board determines that the Management Contractor is in violation of

applicable law. A licensee who has submitted the required application for renewal and any

other information required by the Board at least 30 days before the expiration of his license

may continue to be employed under the expired license or until final action is taken on the

7
renewal application by the Board or, if required by the Act, the Commission. Such licensee

shall provide updated material and information as requested on the appropriate renewal

application, but shall not be required to resubmit historical data already provided or

otherwise available to the Board.

(f) Identification Cards The Board shall require all employees of a Gaming

Operation or Management Contractor to wear identification cards issued by the Board

which shall include such employees photograph, first and last name, employee number,

signature, and a date of expiration.

(g) Fees for Licenses The fees for licenses shall be set by the Board. If the

actual costs incurred by the Board for a background investigation exceed the amount

deposited by the applicant, those costs may be assessed to the applicant in the discretion

of the Board. In such cases, the Board shall submit a detailed billing of the costs and an

explanation as to why the excess costs were incurred. Payment in full of any required fee

is required before a license is issued.

SECTION 6. BACKGROUND INVESTIGATIONS

(a) Board Authority Unless a Compact shall allocate sole jurisdiction to an

entity other than the Board with respect to background investigations, the Board shall

conduct a background investigation of each Person required to be licensed pursuant to

Section 5(a) of this Ordinance according to standards at least as stringent as set forth in

the Act

(b) Required Information Each Person required to be licensed pursuant to

Section 5(a) of this Ordinance shall provide to the Board the following information on an

application form for that purpose:

(I) Full name, other names used (oral or written), social security

number(s), birth date, place of birth, citizenship, gender, all

languages (spoken or written);

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

positions held, ownership interests in those businesses, business and

residence addresses, and drivers license numbers;

(3) 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 Section

6(b)(2) of this Ordinance;

(4) Current business and residence telephone numbers;

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(5) A description of any existing and previous business relationships

with Indian tribes including ownership interests in those businesses;

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

with the gaming industry generally, including ownership interests in

those businesses;

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

which the person has filed an application for a license or permit

related to gaming, whether or not such license or permit was granted;

(8) For each felony for which there is an ongoing prosecution or a

conviction, the charge, the name and address of the court involved,

and the date and disposition, if any;

(9) For each misdemeanor conviction or ongoing misdemeanor

prosecution (excluding minor traffic violations), within 10 years of

the date of the application, the name and address of the court

involved and the date and disposition;

(10) For each criminal charge (excluding minor traffic charges), whether

or not there is a conviction, if such criminal charge is within 10

years of the date of the application and is not otherwise listed

pursuant to Section 6(b)(8) or (9) of this Ordinance, the criminal

charge, the name and address of the court involved, and the date and

disposition;

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

which the person has filed an application for an occupational license

or permit, whether or not such license or permit was granted;

(12) A current photograph;

(13) Any other information the Board deems relevant; and

(14) Fingerprints consistent with the procedures set forth in this

Ordinance.

(c) Release Form The Board shall obtain from each applicant a release form

signed by the applicant authorizing the Board and Commission to obtain any information

related to the applicants activities, including schools, property interests (real and personal),

employment, criminal justice agencies, regulatory agencies, businesses, financial institutions,

lending institutions, medical institutions, hospitals, and health care professionals.

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(d) Procedures for Conducting Background Investigations The Board shall

conduct a background investigation of each Person required to be licensed pursuant to

Section 5(a) of this Ordinance sufficient to enable the Board to make a determination of

suitability pursuant to Section 6(h) of this Ordinance (Suitability Determination).

(1) An applicant for a license shall provide to the Board all the

information required pursuant to Section 6(b) of this Ordinance and copies of the

applicants birth certificate, social security card, drivers license, passport and other

documents deemed necessary by the Board to conduct a background investigation of the

applicant.

(2) The Board shall confirm, verify, and investigate the information

provided by the applicant and obtain any additional information pursuant to the signed

release form. In conducting a background investigation, the Board shall keep confidential

the identity of each person interviewed in the course of the background investigation.

(3) Once the Board has satisfied itself of the accuracy of the information

provided by the applicant and other information obtained pursuant to a signed release form,

the Board shall analyze such information to make the Suitability Determination. The Board

may conduct any further background investigation should the circumstances warrant.

(e) Fingerprint Check

(1) The chairman of the Board is authorized to negotiate and enter into an

agreement with the Commission or a State or federal law enforcement agency for the

purpose of processing fingerprint cards to obtain criminal history record information

(CHRI) of Persons required to be licensed pursuant to Section 5(a) of this Ordinance.

(2) The Laguna Pueblo Police Department is hereby designated as the law

enforcement agency responsible for taking fingerprints of applicants for licenses. The

chairman of the Board is also authorized to negotiate and enter into an agreement with a

State or federal law enforcement agency to take such fingerprints. Such law enforcement

agency shall designate an individual for the purpose of communicating with the Board and

the Commission regarding the taking of the fingerprints.

(3) The Board shall impose a fee sufficient to cover the cost of processing

the fingerprint cards.

(0 Procedure for Processing Fingerprint Cards

(1) Upon receipt of a completed application for a license and the payment

of any required fees, the Board shall direct the applicant to the law enforcement agency

authorized to take fingerprints. The law enforcement agency shall take the applicants

fingerprints on cards provided by the Commission for that purpose. The fingerprint cards

10
shall be printed by a certified print technician and shall be of a quality as to be classifiable.

The fingerprint cards shall be signed by the person taking the prints and the applicant.

After taking the applicants fingerprints, the law enforcement agency shall forward the

fingerprint cards directly to the Commission for an FBI fingerprint check.

(2) The Board shall also send to the Commission a check in an amount

sufficient to cover the cost of processing each applicants fingerprint card and a list

containing the following information:

(A) the names of each applicant whose fingerprint cards will be

sent to the Commission by the law enforcement agency.

(B) the social security number for each applicant;

(C) the date of birth of each applicant; and

(D) the name of the law enforcement agency taking the

fingerprints.

(g) Criminal History Record Information The Board may use the CHRI for

the purpose of making a Suitability Determination and any other lawful purpose permitted

by an agreement with the Commission or a State or federal law enforcement agency. The

Board shall abide by all conditions or limitations imposed by such agreement on the

release, dissemination or use of the CHRI. The Board shall further ensure that the CHRI

is restricted to the personnel directly involved in the licensing deliberations. The Board

shall maintain records of the identities of all personnel receiving access to the CHRI and

shall furnish such records to the Commission upon request.

(h) Suitability Determination The Board shall review an applicants prior

activities, criminal record, if any, reputation, habits and associations to make a finding for

submission to the Commission concerning the eligibility of the applicant for a license. The

Board shall not issue a license to, nor shall a Gaming Operation or Management Contractor

employ, any Person whom the Board determines poses a threat to the public interest or to

the effective regulation of any Gaming Activity or creates or enhances the dangers of

unsuitable, unfair, or illegal practices and methods and activities in the conduct of any

Gaming Activity.

(i) Procedures for Forwarding Applications and Reports to the Commission

(1) When a Key Employee or Primary Management Official begins work

at a Gaming Operation, the Board shall send the completed application to the Commission.

(2) Upon completion of a background investigation conducted pursuant

to this Ordinance, the Board shall send the Investigative Report and the Suitability

11
Determination to the Commission within 60 days after a Key Employee or Primary

Management Official begins work at a Gaming Operation or within 60 days of the approval

of this Ordinance by the Commission. A Gaming Operation or Management Contractor

shall not employ any Key Employee or Primary Management Official, or any other Person

who does not have a license after 90 days unless that period is suspended by action of the

Commission pursuant to the Act.

Investigative Report to Commission

(j) The Board shall prepare a report on each background investigation conducted

pursuant to this Ordinance (Investigative Report). An Investigative Report shall include

the following information:

(A) A description of the steps taken in conducting a background

investigation;

(B) An explanation of results obtained;

(C) A statement as to the conclusions reached; and

(D) The bases or justifications for each of the conclusions.

(2) If a license is not issued to an applicant, the Board:

(A) Shall notify the Commission, and

(B) May forward copies of its Suitability Determination and

Investigative Report to the Commission for inclusion in the Indian Gaming Individuals

Records System.

(3) The Board shall retain all applications for license, Investigative

Reports, Suitability Determinations, and other records and information for inspection by the

Commission for no less than three years from the date of termination of employment.

(k) Fees for Background Investigation The fees for background investigations

shall be set by the Board. If the actual costs incurred by the Board for a background

investigation exceed the amount deposited by the applicant, those costs may be assessed to

the applicant at the discretion of the Board. In such cases, the Board shall submit to the

applicant a detailed billing of the costs and an explanation as to why the excess costs were

incurred.

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SECTION 7. MANAGEMENT CONTRACTS.

(a) Requirement for Review and Approval The Pueblo may enter into a

Management Contract subject to approval of the Commission and the Board

(b) Required provisions

(I) Governmental Authority A Management Contract shall provide that

all Gaming Activity conducted by a Management Contractor be conducted in accordance

with this Ordinance, the Compact, and the Act.

(2) Assignment of Responsibilities A Management Contract shall

identify the responsibilities of each party for each identifiable function set forth in the Act.

(3) Accounting A Management Contract shall provide for the

establishment and maintenance of satisfactory accounting systems and procedures that shall

include an adequate system of internal accounting controls and permit the preparation of

financial statements in accordance with generally accepted accounting principles.

(4) Reporting A Management Contract shall require the Management

Contractor, at its own cost and expense, to provide monthly verifiable financial reports to

the Pueblo, the Board, and if required by the Act, the Commission.

(5) Access A Management Contract shall require a Management

Contractor to allow immediate access to a Gaming Operation, including its books and

records, by authorized officials of the Pueblo, Board, or Commission, who shall have the

right to verify the daily gross revenues and income from the Gaming Operation and access

to any other gaming-related information that such authorized officials deem appropriate.

(6) Guaranteed Payment A Management Contract shall provide for a

minimum guaranteed monthly payment in a sum certain to the Gaming Operation that has

preference over the retirement of any development and construction costs.

(7) Development and Construction Costs A Management Contract shall

provide for an agreed upon maximum dollar amount per month of revenues for the

recoupment of development and construction costs.

(8) Term Pursuant to the Act, a Management Contract shall not be for

a term exceeding five (5) years unless, upon request of the Pueblo, the Commission

authorizes a longer contract term not to exceed seven (7) years.

(9) Compensation Pursuant to the Act, a Management Contract shall

not provide for more than thirty percent (3 0%) of the Net Revenues of a Gaming Operation

to be paid to a Management Contractor unless, upon request of the Pueblo, the Commission

13
S

authorizes a higher percentage not to exceed forty percent (40%). The balance of any Net

Revenues shall be paid to the Treasurer of the Pueblo or other Pueblo entity as set forth

in a Management Contract.

(10) Termination; Disputes A Management Contract shall provide the

grounds and mechanisms for modifying or terminating such contract and include a

mechanism to resolve disputes between a Gaming Operation and Management Contractor,

Management Contractor and patrons, and Management Contractor and its employees.

(11) Assignments and Subcontracting A Management Contract shall

provide to what extent contract assignments and subcontracting are permissible.

(12) Ownership Interest A Management Contract shall provide that

changes in the ownership interest in such contract shall require the advance approval of the

Pueblo and the Board, and if required by the Act, the Commission.

(13) Prohibited provisions A Management Contract shall not transfer or

convey any interest in Pueblo Lands unless authorized by federal law.

SECTION 8. EXEMPTIONS.

(a) Class I Gaming Class I Gaming may be conducted solely for recognized

charitable, traditional, religious and social purposes of the Pueblo and for prizes of

minimal value without compliance with this Ordinance.

(b) Prize Limits For purposes of this Section, prizes of minimal value shall

mean the aggregate amount of all prizes awarded or given in a single gathering or session

that is no greater than that allowed under the laws of the State.

(c) Board Authority Notwithstanding the exemption granted by this Ordinance

for Class I Gaming, the Board shall have authority to investigate the conduct of any Class

I Gaming to determine whether such Class I Gaming is in violation of applicable law, to

regulate and take measures to ensure the integrity of Class I Gaming, and to enforce the

provisions of applicable law.

SECTION 9. DISPUTE RESOLUTION.

(a) Dispute Resolution Procedures If a Gaming Operation or Management

Contractor refuses to pay alleged winnings to a patron engaged in any Gaming Activity and

a Gaming Operation or Management Contractor and the patron are unable to resolve the

dispute and the dispute involves:

(1) At least $250, the Gaming Operation or Management Contractor

shall notify the Board in writing of the dispute within five calendar days of the date the

14
dispute arises, or the date of the written complaint, which ever is later (Notice of

Dispute), or

(2) Less than $250, the Gaming Operation or Management Contractor

shall inform the patron that the patron has the right within five calendar days of the date

the dispute arises to make a written request to the Board to conduct an investigation

(Request for Investigation).

(3) The failure the give a Notice of Dispute or make a Request for

Investigation within the five-day period shall bar the claim to any money in dispute.

(b) Investigation and Hearing Upon receipt of a Notice of Dispute or Request

for Investigation, the Board shall conduct whatever investigation it deems necessary to

resolve the dispute. The Board shall hold a hearing on the matter within ten days after

concluding the investigation of the dispute. At the hearing, the Gaming Operation or

Management Contractor and patron may submit any documentation or other written

evidence to the Board to support their respective positions.

(c) Decision Within ten days after the hearing, the Board shall issue a written

decision resolving the dispute and shall mail the written decision, by certified mail, return

receipt requested, to the patron and the Gaming Operation or Management Contractor. The

effective date of a decision of the Board made under this Section is the date the decision

is received by the aggrieved party as reflected on the return receipt (Effective Date).

(d) Review of Decision The decision of the Board shall be final and subject

to review by the Tribal Court, if the aggrieved party files a petition for review with the

Tribal Court within ten calendar days of the Effective Date.

SECTION 10. GAMING CONTROL BOARD.

(a) Establishment of the Board, Appointment; Term There is hereby

established a Board to be known as the Pueblo of Laguna Gaming Control Board. The

Board shall consist of three members who shall be appointed by the Pueblo Council to

serve staggered terms of three years commencing on the date of their appointment.

(b) Compensation The Pueblo Council shall establish the compensation, if any,

for the members of the Board.

(c) Removal The Pueblo Council may remove any member of the Board for

any reason at any time.

(d) Vacancies The Pueblo Council shall fill any vacancies in the Board.

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(e) Designation as Agent The Board is hereby appointed as the agent for the

Pueblo to accept on behalf of the Pueblo service of any official determination, order, or

notice of violation that may be served by the Commission pursuant to the Act.

(f) Powers and Duties The Board shall have the following powers and duties:

(1) To monitor and regulate any Gaming Activity conducted on Pueblo

Lands, except as provided by applicable law or the Compact.

(2) To inspect and examine all premises on Pueblo Lands on which any

Gaming Activity is conducted.

(3) To conduct background investigations as may be necessary and to

conduct such other investigations to protect the public interest in the integrity of any

Gaming Activity and to prevent improper or unlawful conduct in the course of any Gaming

Activity.

(4) To demand access to, inspect, examine, photocopy, or audit or to

cause an audit to be conducted on all papers, books, and records of any Gaming Operation

or Management Contractor relating to any Gaming Activity conducted on Pueblo Lands and

any matters necessary to carry out its duties pursuant to this Ordinance, the Compact, and

applicable law.

(5) To compel any Person to appear before it and provide such

information, documents or other materials as may be in such persons possession and to

administer oaths or affirmations to witnesses appearing before it.

(6) To promulgate such regulations and guidelines as it deems

appropriate to implement the provisions of this Ordinance, the Compact, or other applicable

law.

(7) To issue, suspend and revoke licenses in accordance with this

Ordinance.

(8) To enforce the health and safety standards applicable to any Gaming

Facility.

(9) To levy and collect fees and to impose any penalties and fines for

violations of this Ordinance.

(10) To bring in the name of the Pueblo with concurrence of the Tribal

Council any action in a court of competent jurisdiction, including the Tribal Court, to

enforce this Ordinance, the Compact or applicable law, or to enjoin or otherwise prevent

any violation of this Ordinance, the Compact or applicable law.

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(11) To adopt an annual operating budget subject to the approval of the

Pueblo Council and, in accordance with such budget, to employ a staff as it deems

necessary to fulfill its responsibilities under this Ordinance, and to retain legal counsel,

consultants and other professional services, including investigative services, to assist it in

carrying out its powers.

(12) To issue any order or make any decision which the Board has the

power to issue or make pursuant to applicable law and to take any action as may be

required to protect to the public interest in any Gaming Activity.

(13) To conduct any hearing, take testimony, and receive any evidence

and to compel the production of any information or documents,

(14) To enter into such contracts and agreements with State, federal and

private entities for activities necessary to the discharge of its duties.

(15) To take any other action necessary and proper to carry out its powers

set forth in this Ordinance.

(g) Executive Director The Board may appoint and retain an individual to

serve as executive director of the Board to administer and execute its duties and

responsibilities hereunder and other staff as the Board may deem necessary to carry out

such duties and responsibilities. The executive director shall be responsible for

coordination of the functions with the Commission and other federal, state, Pueblo and

local agencies as necessary.

(h) Certificate of Self Regulation As provided in the Act, the Board on behalf

of the Pueblo may petition the Commission for a certificate of self regulation.

(i) Procedures of the Board

(1) Regular meetings Regular meetings of the Board may be held upon

such notice, or without notice, and at such time and place as shall from time to time be

fixed by the Board. Unless otherwise specified by the Board, no notice of such regular

meetings shall be necessary.

(2) Special meetings Special meetings of the Board may be called by

the chairman of the Board or may be held by teleconference or by polling. The chairman

of the Board shall fix the time and place of the special meeting. Neither the business to

be transacted at, nor the purposes of, any regular or special meeting of the Board need to

be specified in the notice of the meeting.

(3) Quorum At any meeting of the Board, a majority of the Board

members shall constitute a quorum for the transaction of business. The vote of a majority

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of the members present at a meeting at which a quorum is present shall be the act of the

Board. The chairman of the Board shall preside at all meetings of the Board unless the

chairman of the Board designates another member to preside in his absence. Approval of

action telephonically or by polling is also authorized.

(4) Notice of Board Action~ Hearings No action of the Board taken

pursuant to this Ordinance shall be valid unless the Person affected is given notice of the

proposed action and the opportunity to appear and to be heard before the Board and to

submit such evidence as the Board deems relevant to the matter at issue. Any hearing

conducted may at the direction of the Board be conducted by the executive director or by

one or more members of the Board designated by the Board for that purpose.

(5) Rules and Procedures The Board may adopt such additional

procedures and rules as it deems necessary or convenient to govern its affairs consistent

with applicable law.

SECTION 11. PROHIBITED ACTS. It shall be a violation of this Ordinance for any

person:

(a) To conduct or participate in any Gaming Activity on Pueblo Lands other

than at a licensed Gaming Facility.

(b) To receive, distribute, apply or divert any property, funds, proceeds, or other

assets of a Gaming Operation to the benefit of any Person except as authorized by this

Ordinance, the Compact, or applicable law.

(c) To tamper with any Gaming Device or Gaming Equipment used in the

conduct of any Gaming Activity with the intent to cause any Person to win or lose any

wager other than in accordance with the publicly-announced and approved rules of a

Gaming Operation.

(d) To do any other act in connection with the conduct of any Gaming Activity

with the intent to affect the outcome of any wager other than in accordance with the

publicly-announced and approved rules of a Gaming Operation.

(e) To alter or misrepresent the outcome of any event on which wagers have

been made after the outcome is made sure but before it is revealed to the players.

(f) To place, increase or decease a bet or to determine the course of play after

acquiring knowledge, not available to all players, of the outcome of the game or any event

that affects the outcome of the game or which is the subject of the bet or to aid anyone in

acquiring such knowledge for the purpose of placing, increasing or decreasing a bet or

determining the course of play contingent upon that event or outcome.

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7*

(g) To claim, collect or take, or attempt to claim, collect or take, money or

anything of value in or from a Gaming Device or Gaming Equipment, with intent to

defraud, without having made a wager thereon, or to claim, collect or take an amount

greater than the amount won.

(h) To place or increase a wager or bet after acquiring knowledge of the

outcome of the game or other event which is the subject of the bet, including past-posting

and pressing bets.

(i) To reduce the amount wagered or cancel the bet after acquiring knowledge

of the outcome of the game or other event which is the subject of the bet, including

pinching bets.

U) To manipulate, with the intent to cheat, any Gaming Device or Gaming

Equipment, including, but not limited to manipulating a Gaming Device or Gaming

Equipment with knowledge that the manipulation affects the outcome of such device or

equipment.

(k) To knowingly use other than coins or tokens approved by the Board or

other lawful coin, legal tender of the United States of America, or to use a coin not of the

same denomination as the coin intended to be used in the Gaming Device or Gaming

Equipment.

(I) To possess, with the intent to use, any device to assist in projecting the

outcome of the game, in keeping track of the cards played, in analyzing the probability of

the occurrence of an event relating to Gaming Activity, or in analyzing the strategy for

playing or betting to be used in the Gaming Activity.

(m) To use any device or means to cheat, or to possess any such device or

means while at a Gaming Facility.

(n) To knowingly entice or induce another to go to any place where Gaming

Activity is being conducted or operated in violation of the provisions of this Ordinance, the

Act, the Compact, or other applicable law with the intent that the other person play or

participate in that Gaming Activity.

SECTION ~2. PENALTIES. Any person who violates any provision of this Ordinance

shall be subject to civil penalties, termination of employment by the Gaming Operation or

Management Contractor, denial, suspension or revocation of a license, exclusion from any

Gaming Facility, or exclusion from Pueblo Lands. The Board may impose a fine of not

more than $5,000.00 for each violation. The Board shall have the jurisdiction to impose

any penalties on any Person within the jurisdiction of the Pueblo.

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SECTION 13. SEVERABILITY. In the event any section or provision of this Ordinance

or its application to any particular activity is held to be invalid, the remaining sections and

provisions of this Ordinance and the remaining applications of such section or provision

shall continue in full force and effect.

SECTION 14. SOVEREIGN IMMUNITY. The Pueblo does not in any way waive its

sovereign immunity from suit in any court. However, decisions of the Board may be

appealed to and shall be subject to final appellate review only in the Tribal Court. No

decision of the Board shall be reversed unless the Tribal Court finds that the Boards action

was arbitrary, capricious, or not in accordance with the law. No compensatory, punitive,

monetary, or exemplary damages may be awarded against the Board for any action taken

or decision made by the Board.

SECTION 15. REPEAL. To the extent inconsistent with this Ordinance, all prior

ordinances, or parts thereof, are hereby repealed.

SECTION 16. AMENDMENTS. This Ordinance may be amended by the Pueblo

Council.

If \USERS\.STATION~\WPTEXT\GAME 200-01

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