NISQUALLY TRIBAL COUNCIL

RESOLUTION # cL -1995

RESOLUTION ADOPTING NISQUALLY GAMING LICENSE REGULATIONS

AND BACKGROUND INVESTIGATION PROCEDURES

WHEREAS, the Nisqually Indian Tribe is the successor descendent entity of the Nisqually Nation

signatory to the Treaty of Medicine Creek of 1854 (10 Stat. 1132), and unto this day has

retained and maintained its Tribal identity, its governing body, and its sovereign powers; AND,

WHERES, the Nisqually Indian Tribe is the federally recognized American Indian Tribe

organized under its governing Constitution and Bylaws approved bythe U.S. Secretary of

Interior on September 9, 1946, and as amended on October 28, 1994, pursuant to Section 16

of the Indian Reorganization Act, 25 U.S.C. 476; AND,

WHEREAS, the Nisqually Indian Tribe General Council is the duly constituted governing body

of the Nisqually Tribe, and the Tribal Council the duly elected representative body of the

Community Council by the authority of the Tribes Constitution and Bylaws; AND,

WHEREAS, the Tribal Council ott the 13th day of June, 1995, adopted an amended version of

Interim Nisqually Gaming Ordinance Title 22T, Resolution #43-1995, at the recommendation

of the National Indian Gaming Commission; AND,

WHEREAS, further deficiencies in the gaming laws of the Nisqually Tribe are hereby corrected

with the adoption of this Resolution and the Nisqually Gaming License Regulations and

Background Investigation Procedures attached; NOW

THEREFORE LET IT BE RESOLVED BY THE NISQUALLY TRIBAL COUNCIL that the attached

Nisqually Gaming License Regulations and Background Investigation Procedures is hereby

adopted for review by the National Indian Gaming Commission.

CERTIFICATION

I certify that the above Resolution # 6/ -1995 was adopted at a regular meeting of the

Nisqually Tribal Council, following prescribed procedures, on the 1st day of August, 1995, on

the Nisqually Indian Reservation, Washington, at which time a quorum was present and voting

7 FOR, ~9 AGAINST, and i~ ABSTAINED.

Steph nieJ. Sco Secretary

Nisqually Indian Community

Superint.r,d.nts approvel I~ u,u~nt

to authorltle~ to 209 ~i e. Secretary. Order t$~. 3177,

Secretary. Order No. 3150. ~ BIAM

Bulletins 13, 14, 15 arid /~r~ndm.nts

thereto, and1 Portland Area OffIce 10

May

AITEST:

Mi ael L. Stepetin, Chairman

Nisqually Indian Community

Date,
GAMING LICENSE REGULATIONS

AND

BACKGROUND INVESTIGATION PROCEDURES

Under the Nisqually Gaming Act of 1992, as Amended

Nisquaily Gaming Commission

Nisqually Indian Tribe

1.01 Licensing Program

The Nisqually Indian Tribe (Tribe) gaming licensing program is an investigative

licensing process under which applicants for a Class ifi or Class II gaming license or for a

license to work in a non-gaming position in a Tribal gaming facility are evaluated against the

standards set forth in, and subject to applicable provisions of the following: Nisquafly Gaming

Act of 1993, as amended; and tribal regulations, the Indian Gaming Regulatory Act (IGRA)

and regulations promulgated thereunder; and any other appliàable law or tribal-state compact

requirement. An applicant that meets the standards for licensing will receive a license and will

be subject to relicensing at least annually. All Class II and Class ifi gaming activities shall be

licensed and controlled and no person shall engage in any Class II or Class ifi gaming activities

on the Reservation without a valid license for that activity issued by the Nisqually Gaming

Commission (Gaming Commission). Any gaming license granted shall be deemed a privilege

that is subject to suspension or revocation at any time.

1.02 License Applications

A license applicant must submit all applicable material, including any fees required, to

the office of the Gaming Commission. License applications are subject to the following

requirements:

a. Applications must be submitted on forms approved by the Gaming Commission.

An application is considered incomplete until all information requested is provided to the Gaming

Commission. If the application is incomplete or if the applicant fails to promptly provide any

additional materials requested, the license may be denied. If the applicant does not respond to

written notification of an incomplete application, the failure to. submit additional materials, or

the failure to submit required fees, within thirty (30) days of the written notice, the Gaming

Commission may close the applicants file.

b. Applications must be signed under oath by an individual attesting that the

information provided in the application and any accompanying materials is true, accurate and

complete.

c. Applications must be signed by the following:

Nisqually Gaming License Regulations approved 8/1/95 Res. #51-1995 Page 1
(1) For a corporation (non-profit or for profit), the highest ranking officer or

official of the corporation.

(2) For a sole proprietorship, the principal owner.

(3) For a partnership, all partners; for a limited partnership, the general

partner.

(4) For employee licenses, the individual seeking a license.

d. The Gaming Commission may also require the following persons to sign the

application:

(1) -

The chair or members of the board of directors or trustees.

(2) The in~iividual in charge of financial records.

(3) Any person with a substantial interest in the applicants business,

organization or corporation.

e. Applicants must provide a general release and waiver for release of information

required to conduct the review and investigation. The release/waiver allows the Gaming

Commission to obtain from any and all sources that information that is otherwise privileged.

f. The Gaming Commission reserves the right, at any time, to require drug or

alcohol testing for any gaming license applicant or licensee.

g. The Gaming Commission shall require fmgerprinting and background checks for

Class A license applicants (to include any key employee or primary management official, as

defined in IGRA), and may require fingerprinting and background checks as part of the licensing

investigation for any person seeking a License or holding an interest in any gaming activity,

- including but not limited to an interest in equipment, financing, supplies or services The

Gaming Commission may submit fingerprints to the Federal Bureau of Investigation (FBI), the

National Indian Gaming Commission (NIGC) or another tribal, federal, local, or state agency

for the purpose of searching agency records for any criminal background information.

h. The Gaming Commission will only consider applications that are fully completed

and submitted on the Gaming Commissions forms. Application forms are available from the

office of the Gaming Commission or will be mailed upon request.

1.03 Burden on Applicant

The burden of proof with. respect to the granting of any license is at all times upon the

person applying for or holding such license. No license shall be granted unless and until the

applicant has satisfied the Gaming Commission of their good character, honesty, and integrity.

Nisqually Gaming License Regulations approved 8/1/95 Res. #51-1995 Page 2
1.04 Waiver of Liability

a. The application to receive a gaming license constitutes a request for determination

of the applicants general character, integrity and ability to participate or engage in or to be

associated with the gaming operation. Any written or oral statement made in the course of an

investigation, proceeding or process of the Gaming Commission by any member, employee or

agent of the Tribe or by any witness, testifying under oath, which is relevant to the

investigation, proceeding or process, is absolutely privileged and shall not impose any liability

for slander, libel or defamation, or constitute any grounds for recovery in any legal action. An

applicant must accept all risk of adverse public notice, embarrassment or other action that may

result from the application and investigation process, and must expressly waive any claim for

damages as a result of the process.

b. All applicant shall expressly waive any and all liability as to the Tribe, its

commissions, employees and agents for any damages resulting from disclosure or publication

in any manner of information acquired by the Gaming Commission during its licensing or other

investigations, inquiries or hearings.

1.05 Applicant Claim of Privileges

At any time during the licensing process or later investigation, the applicant may claim

any privilege afforded by law in connection with the application or investigation. The

applicants claim of privilege however, with respect to any testimony or evidence, or the

applicants failure to introduce documents or information required for licensing, may be grounds.,

for denial, suspension or revocation of the license. .

1.06 Withdrawal of Application

An applicant may request to withdraw the application by submitting to the Gaming

Commission a written request for withdrawal. The Gaming Commission retains the right, in its

sole discretion, to grant or deny a request for withdrawal. To be effective, the written request

to withdraw must be received by the Gaming Commission at least twenty-four (24) hours before

the Gaming Commissions issuance of denial of.the license.

1.07 Classes of Licenses .

a. Any license issued to an individual or entity for employment in, association with,

or to do business with any Class II or Class III gaming activity or enterprise in a related

capacity, shall be considered a Class A license. Further, any person associated with the Tribes

gaming activities, including Class II activities, as an investor or other person owning or

controlling, ten percent (10%) or more of an interest in any management entity, or any primary

management official, key employee or closely associated independent contractor shall obtain a

Class A license.

b. Those individuals or entities employed by, associated with, or doing business with

a gaming activity or enterprise in a non-gaming related capacity, and not identified in Section

Nisqually Gaming License Regulations appi~oved 8/1/95 Res. #51-1995 Page 3
1.07 a. above may apply for a Class B or Class C license. The Gaming Commission reserves

the right to require such individual or entity to acquire licensing under the Class A licensing

criteria and requirements.

c. Minors employed at a gaming facility are only eligible to apply for a Class C

license. Class C licensees may not be employed to operate, participate in, or supervise any

gaming activities.

1.08 Types of Licenses Issued

a. The Gaming Commission will license all persons employed in gaming related

activities, whether workingwithin or outside of the gaming facility, and all employees working

in a gaming facility in a non-gaming related position.

b. Employees in any Class II or Class ifi gaming enterprise including, but not

limited to, those who perform one or more of the following functions are considered to be key

employees, and must qualify for and be licensed as Class A employees: Bingo caller; counting

room supervisor; chief of security; custodian of gaming supplies or cash; floor manager: pit

boss; dealer; croupier; approver of credit; or custodian of gambling devices. Including persons

with access to cash and accounting records within such devices. If not otherwise included, all

persons whose total cash compensation exceeds $50,000 per year and the four (4) most highly

compensated persons in the gaming operation must qualify for and obtain a Class A lioense.

c. The following persons, whether employed at a Class II or a Class ifi gaming

enterprise, are considered primary management officials and must qualify for and be licensed

as Class A employees: (a) any person having management responsibility for a management

contract; (b) any person who has authority to hire and fire employees or to set up working policy

for the gaming operation; and (c) the chief financial officer or other person who has financial

management responsibility.

d. The Gaming Commission may issue the following types of licenses:

(1) Class H Gaming Employee License All persons employed in or associated

with Class H gaming activities, including bingo, non-banking, or other Class H card games, pull

tabs, punch boards, or any other Class II gaming activities, as well as any Class II employee

who is considered a key employee or primary management official must qualify for and hold a

Class A gaming employee license.

(2) Class HI Gaming Employee License All persons employed in Class III

gaming activities, including banking card games; lottery-type games; roulette; crap; and other

table games or activities designated as Class IH gaming, must qualify for and hold a Class ifi

gaming employee license issued under the requirements for the Class A license.

(3) Employee License -

Non-Gaming Activity All persons employed in a

Class II or Class III gaming facility in a position unrelated to any gaming activity including, but

Nisqually Gaming License Regulations approved 8/1/95 Res. #51-1995 Page 4
not limited to, facilitys maintenance and food services employees, must qualify for and hold a

non-gaming employee license issued under the criteria for the Class B license.

(4) Class C (Minors)License An employee license for non-gaming activities

granted to a minor shall be a Class C license, valid for no more than six (6) months, and shall

be revoked when the minor reaches the age of eighteen (18), at that time, the employee may

apply for a regular Class A or B license.

(5) Management Company I Financiers License

(a) Any individual or business entity with which the Tribe enters into

a contractual agreement for financing, development, management or operation of any Class H

or Class ifi gaming enterprise, must qualify for and receive a Class A license. Any individual

or entity, other than a commercial lending institution, the Tribal government or the federal

government, who extends financing either directly or indirectly to the gaming facility or

operation must qualify for and receive a Class A license.

(b) No license shall be granted to a management company if any elected

official of the Tribe, or a member of a committee or agency of the band serves on the board of

directors or holds (directly or indirectly) ten percent (10%) or more of the issued and

outstanding stock of the corporation, or ten percent (10%) or more of the beneficial interest in

any partnership, trust, or other entity, in any such corporation, partnership, trust or other entity,

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

the foregoing, no license shall be granted to the management company if any member of the

Gaming Commission holds any interest whatsoever (directly or indirectly), in such company.

Nor shall any such license be granted if any elected official of the Tribe, member of the Gaming

Commission, or a member of any other committee or agency of the Tribe has a financial interest

in or management responsibility for any agreement between such management company and the

Tribe.

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

employee, official, or corporation director of a management or financing company to be licensed

individually if the public interest will be served by such licensing. Upon request, the

management or financing company shall require such persons to apply for a Gaming Commission

license in accordance with the laws and regulations in effect at that time.

(6) Suppliers. Distributors and Manufacturers License

(a) Any manufacturer, distributor, or supplier of gaming services or

goals must qualify for and receive a Class A license. Individuals or entities who supply legal

and accounting services are not required to be licensed.

~(b) The Gaming Commission reserves the right, in its sole discretion,

to waive the licensing requirements for suppliers, distributors, or manufacturers providing goods

or services of no more than $25,000 in value in any twelve (12) month period. Once goods or

Nisqually Gaming License Regulations approved 8/1/95 Res. #51-1995 Page 5
services provided by that entity total $25,000 in any twelve (12) month period, all licensing

requirements shall be applicable.

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

employee, officer, or corporation director of a supplier, distributor or manufacturer to be

licensed individually, if the public interest will be served by such licensing. Upon request, the

company shall require such persons to apply for a Gaming Commission license in accordance

with the laws and regulations in effect at that time.

(7) Gaming Facility License

(a) The Gaming Commission will issue a license to each facility or

location where Class 11 or Class III gaming is to be conducted on the Reservation. Gaming

facility licenses are valid for no more than two (2) years from date of issuance. Inspection of

gaming facilities includes review of security and surveillance procedures and equipment;

compliance with tribal ordinances and other applicable laws and regulations, including

requirements of any Tribal-state compact to which the Tribe is a party; and compliance with

applicable safety requirements and codes.

(b) Tribal gaming facilities in operation on or before February 19, 1993

shall be deemed by the Gaming Commission to be qualified for and operating under such a

license, but shall be subject to the license requirements no later than two (2) years from the date

of approval of the Nisqually Gaming Act, and to inspection by the Gaming Commission at any

time.

(c) The Gaming Commission may inspect a licensed gaming facility

at any time, with or without prior notice, and may take any action deemed necessary to:

(i) Ensure the safety and welfare of employees, Tribal

members, patrons, or the general public;

(ii) Ensure the honesty and integrity of any gaming activity

offered;

(iii) Ensure that rules of conduct for employees and patrons are

provided and that regulation of alcoholic beverages, food handling, entertainment, and other

matters as the Gaming Commission, in its sole discretion, shall determine are provided; and

(iv) Ensure compliance with Tribal ordinances and other

applicable laws or regulations and the requirements of any tribal-state compact to which the

Tribe is a party.

(8) Renewal License All applicants for renewal of a license must submit

updated information as requested on the appropriate Class A, Class B, or Class C license

renewal application form. Applicants for a renewal license will not be required to re-submit

historical data already available to the Gaming Commission. With the exception of Class C

Nisqually Gaming License Regulations approved 8/1/95 Res. #51-1995 Page 6
licenses, or as specifically provided in these regulations, all licenses shall be effective for one

(1) ~Iear from the date of issuance, unless revoked or suspended prior to expiration. A licensed

employee or entity that has applied for renewal of their license in a timely manner may continue

to be employed or provide goods or services under an expired license until the Gaming

Commission takes action to grant or deny the license or until the license is revoked or

suspended.

(9) Temporary or Conditional License. Any person or entity applying for a

license under these regulations may, at the sole discretion of the Gaming Commission, be

granted a temporary or conditional license in lieu of a regular license, pending completion of

a full and complete investigation and review of the application, or in order to~address specific

areas of concern. The expiration date and any applicable conditions to be satisfied prior to

issuance of the regular license will be stated on the temporary or conditional license. The

Gaming Commission will not authorize the continuation of employment of any person as a key

employee or primary management official for more than ninety (90) days, unless that person or

entity holds a valid license (issued under the criteria for Class A licenses), issued by the Gaming

Commission.

1.09 Application Forms

a. The Gaming Commission shall provide application forms and instructions, as

applicable, to any individual or entity seeking to be licensed.

b. Class A license applicants .(to include key employee and primary management

officials) and Class B license applicants, unless specifically exempted by the Gaming

Commission, must acknowledge in writing the applicability of the Privacy Act of 1974 and sign

a notice regarding .

the penalty for making false statements on the application. The following

notices shall be placed on the application form.

(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. § 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 infonnation in the peifonnance Of their

o$cial 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 by a tribe or the

National Indian Gaming Commission in cOnnection with the hiring orfiring ofan employee, the

issuance or 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 the Tribes being unable to hire you in a primary management official or key employee

position. The disclosure ofyour Social Security Number (SSN) is voluntary. However, failure

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

Nisqually Gaining License Regulations approved 8/1/95 Res. #51-1995 Page 7
(2) A false statement on any part ofyour application iiiay be grounds for not

hiring you, or for firing you after you begin work. Also, you may be punished by fine or

imprisonment. (U.S. Code, Title 18, § 1(X)l).

c. Any gaming employee identified in subsection b. above, who has not signed an

application containing the above notices, must either: (1) sign a statement which contains the

notices; or (2) complete and sign a new application form which contains the notices.

1.10 Information Required From License Applicants

a. All Class A license applicants (to include key employees and primary management

officials), as well as Class B license applicants unless specifically exempted by the Gaming

Commission, shall provide information to the Gaming Commission including, but not limited

to, the following:

(1) For, a corporate entity, a copy of the corporate applicants articles of

incorporation and bylaws; or, if a business entity or organization but not a corporation, a copy

of any bylaws and other documents which set out the organizational structure and purposes of

the organization;

(2) Details and copies of any franchise or other agreements, whether written

or oral, between the applicant and distributors or manufacturers or suppliers of equipment, or

between the applicant and any person or entity where those agreements relate to gaming

activities or gaming equipment;

(3) Full name, current address and telephone number(s) (both business and

residence), date and place of birth, Social Security number(s); any other names used (oral or

written), citizenship, gender, and all languages spoken or written;

(4) The name, address, and telephone number for all businesses and

organizations in which the applicant has any financial interest and the details of that financial

interest;

(5) Completed copy of the Gaming Commissions Personal History

Information form;

(6) 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 numbers;

(7) 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 listed in subsection (6) above;

(8) Description of any existing and previous business relationships with Indian

tribes, including ownership interests in those businesses;

Nisqually Gaming License Regulations approved 8/1/95 Res. #51-1995 Page 8
-

(9) Description of any existing and previous business relationships with the

gaming industry generally, including ownership interests in those businesses;

(10) Name and address of any licensing or regulatory agency (federal, tribal,

state, local or foreign) with which the person has ever filed either: (a) an application for a

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

(b) an application for an occupational license or permit, whether or not such license or permit

was granted;

(11) For each felony for which there is currently or has been, during at least

the previous ten (10) years, 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;

(12) For each misdemeanor conviction or on-going prosecution (excluding

minor traffic violations for which the fine isno more than twenty-five dollars ($25.00) within

at least 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;

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

there is or was a conviction, if such criminal charge is within no less than ten (10) years of the

date of the application and is not otherwise listed above in subsections (11) or (12): the criminal

charge, the name and address of the court involved and the date and disposition, if any, of the

case;

(14) Current photographs;

(15) Fingerprints consistent with procedures adopted by the Gaming

Commission consistent with 25 C.F.R. § 522.2(h); and

(16) Any other information the Tribe or the Gaming Commission deems

relevant.

b. The Gaming Commission may require any~ Class C applicant to submit some or

all of the information required under Section 1.10 for Class A and Class B applicants.

1.11 Supplemental or Additional Information

In addition to the completed application form and attachments, an applicant or licensee

shall submit to the Gaming Commission any supplemental or additional information requested.

Supplemental or additional information must be submitted within thirty (30) days from the

request, or within such other time as the Gaming Commission may direct. Failure to submit any

of the requested information in a timely manner shall be grounds for denial of the license sought

and for revocation of any license held. Drug or alcohol testing may be required at any time for

any license applicant or licenses -

Nisqually Gaming License Regulations approved 8/1/95 Res. #51-1995 Page 9
1.12 Licensing Prior to Employment

Unless otherwise exempted by the Gaming Commission, or as provided for in the

Gaming Act or regulations promulgated thereunder, an individual or entity required to be

licensed must obtain the required license, whether regular, temporary or conditional, prior to

the commencement of their employment at or by any Tribal gaming activity or enterprise.

1.13 License in Compliance with Applicable Laws

No gaming license shall be granted in violatiçn of any provision of tribal laws and

regulations, provisions of an applicable Tribal-state compact, IGRA and regulations promulgated

thereunder, or other applicable law. The Gaming Commission shall deny a license to any

individual or entity based on such criteria.

1.14 Continuing Duty to Provide Information

Any applicant or licensee shall have a continuing duty to provide any materials,

assistance or other information required by the Gaming Commission, and to fully cooperate in

any investigation conducted by or on behalf of the Gaming Commission. Any information

relevant to the application or to the licensee or applicants character or fitness to be involved

with the gaming activity or enterprise, shall be delivered to the Gaming Commission promptly

with or without a formal request from the Gaming Commission. If any information provided

on the application changes or becomes inaccurate in any way, the applicant or licensee shall

promptly notify the Gaming Commission of such changes or inaccuracies. If subsequent to a

formal request to respond or produce information, evidence, or testimony, an applicant or

licensee or any person with a substantial interest in the applicant or licensee refuses or fails to

comply with such request, the Gaming Commission may deny the application or revoke the

license.

1.15 License Information I Confidentiality

The Gaming Commission may disclose to the public or discuss at a public meeting all

information set forth in the application and all supplemental information provided. All licensing

information submitted becomes the property of the Gaming Commission and is subject to

inspection and disclosure unless otherwise protected under provisions of a tribal law or

regulation, or under an applicable exception as indicated below: -

a. Documents Designated as Confidential An applicant may designate specific

materials or documents it reasonably believes to contain confidential information by clearly

marking, prior to providing the information to the Gaming Commission, the materials or

documents as Confidential. These materials and documents shall not be subject to public

disclosure or made part of a public record of the Gaming Commission without first providing

the license applicant notice and an opportunity to seek a ruling by the Gaming Commission that

the materials or documents or information contained therein should not be made public. The

Gaming Commission will balance the license applicants claimed confidentiality concern against

the materiality of the information to the license application, the publics right to be made aware

Nisqually Gaining License Regulations approved 8/1/95 Res. #51-1995 Page 10
of the information, aiid the Gaming Commissions need to make the information part of the

public record in order to remain fully accountable for the licensing decision. The Gaming

Commission shall consider all facts and circumstances relevant to making a proper ruling. All

decisions of the Gaming Commission shall be final when issued. -

b. Protection of Arrest and Conviction Records Information or statements

regarding arrests or convictions of any person will not be disclosed to the public, except as

relevant to the applicanes suitability in an administrative hearing to appeal denial, revocation,

or suspension; or other legal proceeding.

c. Protection of Persons Interviewed The identity of each person interviewed in

the course of a license applicant background investigation shall be kept confidential.

1.16 License Investigations - General

a. All Class A license applicants, and other applicants unless exempted by the

Gaming Commission, shall be subject to a complete background investigation, including

fingerprinting, prior to granting of a license. The Gaming Commission will refer persons to the

Thurston County Sheriffs Office or the Tribal Police Department for fingerprinting, and will

coordinate, with these law enforcement agencies regarding criminal history check procedures.

The Gaming Commission shall use any information available to it in conducting -

such

investigation.

b. Inspection of Applicant Books and Records The books and records of any

person, organization ~r entity applying for a license shall be subject to inspection at any time,

on demand and with or without notice, during the background investigation process and the term

of any license granted.

1.17 License Investigations -

Authority. Responsibility and Standards

a. The Gaming Commission~ shall have the responsibility for the conduct of any

required background investigations, development and transmittal to the NIGC of the eligibility

determination and investigative reports, and the licensing of all gaming employees as well as

other individuals and entities involved in gaming activities or doing business with the gaming

enterprise on the Reservation. For each Class A applicant (to include key employees and

primary management officials), and other applicants, unless exempted by the Gaming

Commission, the Gaming Commission will conduct, or cause to be conducted, a background

investigation. After independent review of all background investigation materials, the Gaming

Commission will issue or deny the license requested.

b. Each applicant for a gaming license will be assessed and evaluated and the

investigation shall be conducted under standards at least as stringent as those contained in tribal

laws and regulations as well as other applicable laws and regulations, including IGRA and

regulations promulgated thereunder and the provisions of any applicable tribal-state compact to

which the Tribe is a party. All background investigations will be conducted to ensure that the

Tribe does not employ or contract with persons whose prior activities, criminal record,

Nisqually Gaining License Regulations approved 8/1/95 Res. #51-1995 Page Li
reputation, habits and associations pose a threat to the public interest or the effective regulation

of gaming, or create or enhance the danger of unfair, unsuitable or illegal practices, methods

and activities in the conduct of such gaming. Th.e Gaming Commission reserves the right to

conduct a more comprehensive background investigation than required by other licensing

jurisdictions or any applicable law.

1.18 Conduct of Investigations

The Gaming Commission is authorized to conduct investigations and develop eligibility

and suitability determinations using Gaming Commission employees; by using the State

Gambling Commission as may be required under a tribal-state compact for Class ifi gaming; or

contracting for such services with a qualified independent investigation entity (either privateor

public entity) to perform all or any portion of the work required in completing the background

investigation and providing information for the eligibility or suitability determination. The

Gaming Commission shall make such determinations regarding how investigations are conducted

based on requirements under applicable law, availability of staff and resources, and other

considerations and requirements. In the event the Gaming Commission contracts with an

independent investigation entity for such investigative work, the Gaming Commission Supervisor

and Agents (as necessary) will review each background investigation report from the independent

investigator (whether public or private), approve or disapprove the investigative work, compile

the eligibility determination materials, and make a preliminary recommendation to deny or issue

a license. This recommendation, together with the application materials, shall be forwarded to

the members of the Gaming Commission for a final determination. In all cases, the final

decision regarding the issuance or denial of any license remains, at all times, with the Gaming

Commission.

1.19 License and Investigation Reports to NTGC

a. Within sixty (60) days after a Class A license applicant or licensee begins work

in a gaming operation, or within sixty (60) days after approval of the Gaming Act by the NIGC,

the Gaming Commission will complete and forward to the NTGC the application materials,

investigative reports and eligibility determination used to evaluate the applicant or licensee

eligibility for a license. The responsibility for transmittal (or causing the transmittal) of

investigative reports to the NIGC remains with the Gaming Commission Chairman at all times.

The investigative report provided shall include at least the following information:

(1) Steps taken in conducting the background investigation;

(2) Results obtained;

(3) Conclusions reached; and

(4) The basis for those conclusions.

b. If, upon investigation and for any reason, the Gaming Commission does not issue

or renew a Class A license, the Gaming Commission will notify the NTGC of such denial and

may forward copies of The eligibility determination and investigative report, if any, to the NTGC

for inclusion in the Indian Gaming Individuals Records System.

Nisqually Gaming License Regulations approved 8/1/95 Res. #51-1995 Page 12
c. The Gaming Commission will retain applications for Class A licenses, including

reports of background investigations, for a period of no less than three (3) years from the date

of license denial or termination of employment, whichever is later. Those records will be made

available for inspection by. the Chair of the NIGC or his or her designee.

d. For Class B or Class C license applicants who are not key employees or primary

management officials, no investigative report or eligibility determination will be forwarded to

the NTGC, unless specifically requested by the NIGC and approved by the Gaming Commission.

1.20 Gaming Commission Staff

Gaming Commission staff responsible for review of gaming applications; either directly

or by outside investigators, includes the Administrator, Reviewing Agents (Agents), and the

Supervisor. Gaming Commission staff selepted must be qualified for such review and

investigation work to ensure accurate and complete review and investigation of all applicants.

In general, staff will be trained and have experience in auditing, or law enforcement, or both.

At least one agent in the review section must be qualified by experience or training to review

law enforcement matters. All candidates for Gaming Commission positions must apply through

the Gaming Commission office and will be tested and pre-screened by that office prior to

interviewing for a position with the Gaming Commission. The Gaming Commission may

request any potential employee to submit an application and authorize a background investigation

to be conducted. At the discretion of the Gaming Commission such investigation of potential

employees may include a review of the individuals personal history, criminal history, and

financial history-~

1.21 Gaming Commission Office

In addition to the responsibility of the Gaming Commission staff in background

investigations and licensing of applicants, the office will distribute application materials, provide

information regarding the application and licensing process and accept license applications for

processing. Any individual or business entity seeking a license to work in, or to do business

with, the Tribes gaming or other enterprise(s) may contact the Gaming Commission for

application information and materials.

1.22 Review Process - License Applications

a. Upon receipt, applications will be date-stamped, logged in, accepted and reviewed

for completeness by the Gaming Commission Administrator. Each application question will be

checked to ensure that information requested has been provided, including any required

attachments~ The Administrator will contact the applicant by. telephone facsimile or in writing

regarding any incomplete information or additional materials required prior to processing of the

application. Fingerprint cards, if required, will be handled according to the process required

by the agency transmitting such cards to the FBI for processing. All fingerprint cards that are

required to be or will be sent to the NIGC for processing through the FBI must be sent directly

from the law enforcement agency completing those cards to the NIGC. If the Tribe receives

fingerprint cards under other requirements for processing, such as those imposed under an

Nisqually Gaming License Regulations approved 8/1/95 Res. #51-1995 Page 13
applicable Tribal-State Compact, the fingerprint cards will be processed accOrding to the

required~procedures of the authorized processing agency and, if appropriate, the Administrator

will forward the fingerprint cards to the authorized agency for processing.

The Administrator will ensure that a check or money order in the correct amount of the

basic license fee is included with the application, note the amount received, and forward the

check or money order for deposit.

b. When the application is deemed complete and ready for full review and

investigation, the Administrator will separate the application sections and forward each section

(or the entire application) to the appropriate Agent for review. The Administrator will maintain

a complete and updated record of each license application, noting each portion of the application

and the date and to whom is it forwarded for investigation and review.

c. All portions of the license application will be fully reviewed by one or more

Gaming Commission Agents. An Agent with experience or training in law enforcement will, at

minimum, review the criminal history portion of each application prior to completion of the

review process.

d. Any application, and in particular those for management companies,

manufacturers, suppliers, or distributors, may require an on-site review of records and

operations prior to completion of the review process. This review will be conducted by at least

one Agent who is experienced in auditing and is qualified to review and assess applicants

records.

e. On or before the date a key employee or primary management official begins

work at a gaming operation, the Gaming Commission Administrator will forward a copy of the

employees application for employment to the NIGC.

1.23 Class A License Review Process -

a. For all Class ~A license applicants (to include key employees and primary

management officials), reviewing Agent(s) will complete, during their review and investigation,

a checklist containing the information required for development of the eligibility determination.

Information will be verified, any problem areas and discrepancies will be noted, and other

comments will be provided as applicable.

b. At minimum, the review of a Class A license application will include a

complete review of applicants criminal history, personal history and financial history in order

to detect any unusual relationships or criminal associations, and to assess applicants reputation.

Background investigations will include, but are not limited to:

(1) Verification (written or oral) of information submitted by applicant.

(2) A search of law enforcement records (such as NCIC) to ensure the

applicant has no outstanding warrants.

Nisqually Gaming License Regulations approved 8/1195 Res. #51-1995 Page 14
(3) -

A request for information about the applicant, directed to the law

enforcement authority in each jurisdiction where the applicant has worked or lived in at least the

past ten (10) years. Agents may send such a request for information to jurisdictions where

applicant has lived prior to the ten (10) year period in order to obtain complete background

information. At minimum, the Gaming Commission Agent will inquire into applicants prior

activities, criminal Eecord, if any, and reputation, habits and associations. Personal and

professional references, as well as other individuals may be interviewed in order to develop a

complete and accurate picture of the applicant, including any unusual relationships, financial

problems, or criminal record. Such inquiries shall be of sufficient number and depth for the

Gaming Commission to make a finding concerning the applicants eligibility or suitability for

employment in or association with the gaming enterprise.

(4) A complete review of the criminal history record information (CHRI) from

the FBI fmgerprint check.

(5) A review of applicants credit report.

(6) Documentation of the disposition of all potential problems noted and any

disqualifying information obtained.

c. During the investigation, reviewing Agent(s) will note all potential problem areas

and any possible disqualifying information obtained for development of the eligibility

determination statement. When the Agent(s) has completed the review process, the completed

file with comments and other information received by the Agent(s) will be forwarded to the

review section Supervisor. The Supervisor will review all materials, approve investigative work

performed, and make a preliminary recommendation to approve or disapprove issuance of the

license based on the recommendations of reviewing Agents, and an independent review of all

investigative materials. The eligibility (suitability) determination will be completed by the

Supervisor for review and approval by the Gaming Commission.

(1) The investigative report for each applicant, to be completed by the Gaming

Commission supervisor, will establish a record of the review process, including the steps taken

in conducting the background investigation, the results obtained, conclusions reached, and the

process in reaching such conclusions and determinations.

(2) All applicant materials and pertinent investigative work will be reviewed,

and approved or disapproved by action of the members of the Gaming Commission.

(3) For key employees and primary management officials, if the determination

of the Gaming Commission is that a license be issued to the applicant, all portions of the file

which must be reviewed by the NIGC will, at that time, be copied and forwarded by the Gaming

Commission, together with a copy of the license eligibility determination and the investigative

report, to the NIGC for review.

d. .

Upon approval by the Gaming Commission a license, either with or without

restrictions, may be issued to the applicant.

Nisqually Gaming License Regulations approved 8/1/95 Res. #51-1995 Page 15
e. The Gaming Commission may issue a temporary license to the applicant prior to

completion of the investigative process; provided, no temporary license will be valid for more

than ninety (90) days.

1.24 Review Process for Class B and C Applicants

a. Class B and Class C license applicants will obtain and submit forms as above.

Applications will be reviewed by Agents of the Gaming Commission and an eligibility

determination will be developed for internal use. Licenses will be granted or~ denied based on

information Obtained during the review process.

b. Although the background investigation will generally be narrower than that for

Class A applicants, it will be conducted in a similar manner by the Gaming Commission staff,

at minimum, investigative procedures to be performed for au license applicants shall include the

following:

(1) Review of application for completeness.

(2) Verification of information submitted by applicant. /

(3) Search of law enforcement records for any outstanding warrants.

(4) Review of credit history including a review of applicants credit report if

necessary.

(5) Sufficient inquiry into applicants prior work record, perspnal, and criminal

record, if any, to develop an understanding of applicants reputation, habits and associations.

This inquiry may include interviewing (by phone or in person) personal and professional

references, former employers, and others in order to provide a basis for the development of an

eligibility determination, and to assess the applicants chance for development of a successful

working relationship with the tribal gaming operation.

(6) Documentation of any potential problem areas and disqualifying

information obtained.

1.25 Applicants and Licensees / Penalty for Bribes and Rewards

No applicant or licensee shall give or provide, or offer to give or provide, either directly

or indirectly, to any official of the Tribe, the Gaming Commission or any other Commissions

or agents of the Tribe any compensation or reward or share, of the money received through

gambling activities, in consideration for obtaining any license, authorization or privilege to

participate in any gaming activity or enterprise. Any violation shall result in denial or

revocation of any license held or sought.

Nisqually Gaming License Regulations approved 811/95 Res. #51-1995 Page 16
1.26 License Fees

a. Basic license fees are established by the Gaming Commission, and may be

changed without prior notice at any time, for any class of license, The Gaming Commission will

publish notice of the basic fee for license applications. If the cost of investigation and

processing the license exceeds the fee established, the Gaming Commission may request that

additional fees be paid prior to issuance of the license. License application fees, including

renewal fees, may include an amount sufficient to cover the reasonable costs of regulation and

enforcement under the requirements of Tribal laws and regulations, a tribal-state compact, and

other applicable laws and regulations. Applicants must comply promptly with any requests. for

a deposit to cover the estimated cost of investigation and processing. The applicants failure to

pay any deposit as and when requested may result in denial of the license. The Gaming

Commission, in its sole discretion, may delay the issuance of a license for a sufficient period

of time to ensure that a check offered to cover such fees has cleared the bank.

b. The Gaming Commission reserves the right to waive or adjust license fees for a

member of the Tribe or a member of another Tribe. The decision of the Gaming Commission

regarding such requests shall be final and non-appealable.

1.27 NIGC Review of Licensing

a. The NIGC has a period of thirty (30) days after receipt of the report provided by

the Gaming Commission as established above, to notify the Tribe of any objections to the

issuance of the Class A license. If the NIGC, within the thirty (30) day period, provides to the

Tribe a statement itemizing objections to the issuance of a license to a Class A license applicant,

the Gaming Commission will reconsider the application taking into account the objections raised.

The Gaming Commission will fully consider the information provided by the NIGC and issue

a fmal decision after full reconsideration of the application and additional information.

b. If, within the thirty (30) day period, the NIGC requests additional information

concerning a Class A applicant for whom a report is provided, that request will suspend the

thirty (30) day period until the Chairman of the NIGC receives the information requested.

c. If, after issuance of a Class A license, the Tribe receives reliable information from

the NIGC that the licensee is not eligible for employment under the above provisions, the

Gaming Commission will take the following steps:

(1) Suspend the license and notify the licensee immediately of the suspension

and proposed revocation of the license;

(2) Notify the licensee of a time and a place for a hearing on the proposed

revocation of the license;

(3) Conduct the revocation hearing and make a determination whether to

revoke or to reinstate the Class A license; and

Nisqually Gaming License Regulations approved 8/1/95 Res. #51-1995 Page 17
(4) Notify the NIGC of the final decision regarding the revocation or

reinstatement of the Class A license.

d. The above provisions may, in the sole discretion of the Gaming Commission, be

applicable to Class B licenses.

1.28 Grounds for Denial Suspension or Revocation of License

The Gaming Commission may deny a license, or suspend or revoke a license when the

applicant or licensee, or any other person or entity with any interest if the applicant or licensee:

a.. has violated, failed or refused to comply with the provisions, requirements,

conditions, limitations or duties imposed by the Tribes Gaming Act and regulations provision

of any applicable tribal-state compact, the IGRA and regulations promulgated thereunder, or any

other applicable laws or regulations;

b. knowingly causes, aids, abets or conspires with another to cause any person to

violate any of the Tribes laws or regulations or applicable laws or regulations;

c. has obtained a license by fraud, misrepresentation, concealment or through

inadvertence or mistake;

d. fails to promptly produce for inspection or audit any book, record, or document

required by the Tribes laws or regulations;

e. has been convicted of, or forfeited bond upon a charge of, or pleaded guilty to

the crime of forgery, larceny, extortion, conspiracy defraud, tax evasion, or similar offenses,

or of any crime, whether a felony or misdemeanor, involving moral turpitude or any gambling

activity; or

f. allows any person who has been convicted of, or forfeited bond upon, any of the

offenses above to participate in the management or operate in a key position with the entity

licensed by the Gaming Commission, without prior notice to and written approval from the

Gaming Commission.

Upon receiving written notice of the suspension or revocation of any license issued by

the Gaming Commission the licensee is required, within five (5) days, to surrender and return

the license to the Gaming Commission.

1.29 License. Suspension or Revocation Process

Any license issued under these regulations may be suspended or revoked by the Gaming

Commission for the breach or violation of the requirements or provisions of the Tribes laws or

regulations upon a hearing before the Gaming Commission held not more than twelve (12) or

less than eight (8) working days from the time licensee is given notice of the alleged breach or

violation. The licensee, and any person directly affected by the license action shall have the

Nisquafly Gaming Licease Regulations approved 8/1/95 Res. #51-1995 Page 18
right to be present and to offer sworn oral or documentary evidence relevant to the breach or

violation charged. Notwithstanding the foregoing, the Gaming Commission may summarily

-

suspend or revoke any license if the continued licensing appears to constitute a threat to the

public health, safety or welfare.

1.30 Appeal of Denial. Suspension or Revocation of License

a. Decisions of the Gaming Commission regarding the denial, suspension or

revocation of licenses shall be final and effective when issued.

b. An applicant or licensee whose license is àenied, revoked or suspended may,

within fifteen (15) 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. The petition must set forth the basis of the request for reconsideration. If no petition

for reconsideration is filed within the time prescribed, the decision shall be deemed final and not

subject to further reconsideration or appeal to and review by the Gaming Commission.

c. Notwithstanding the above, a member of the Tribe may, in addition, appeal a

denial, suspension or revocation of a license to the Gaming Commission under the following

procedures. Such appeals from Tribal Members must be in writing and be delivered to the

Gaming Commission within sixty (60) days of receiving notice of the denial, suspension or

revocation. The Gaming Commission shall consider the evidence presented by the applicant and

the Gaming Commission, prior to making a determination on the licensing decision. The

appellant and the Gaming Commission may offer such information and documents as are relevant

to the determination of the applicants suitability for a license and may call witnesses to testify

in such a proceeding if such witnesses can provide information regarding the applicants

suitability. No determination of the Gaming Commission shall be considered valid if it would

place the Tribe in violation of an applicable tribal-state compact, the IGRA and regulations

promulgated thereunder, or any other applicable law. Any license so issued, based on a reversal

of the Gaming Commission denial shall be issued for a period no longer than one (1) year.

1.31 Hearings Closed to Public

All hearings regarding gaming licensing proceedings or reconsideration of an application

shall be closed to the public unless specifically opened to the public by a two-thirds (2/3)

majority vote of the Gaming Commission.

1.32 Notification of Licensing Action

The Gaming Commission shall promptly notify, in writing, each applicant upon the grant

or denial of the license. To the extent required under federal or state laws and regulations, or

other applicable law, the Gaming Commission shall promptly notify the NIGC and any other

applicable federal or state agency of all licenses issued.

Nisqually Gaming License Regulations approved 8/1/95 Res. #51-1995 Page 19