The Gaming Act

7.12.7.2 Class B License. Persons not identified as requiring a Class A License, but
whom are to be employed at a Gaming Facility on Tribal Lands in another capacity, such as in
non-gaming related activities, shall be required to obtain no less than a Class B license from
the Gaming Commission. Such persons must establish that they have not been convicted of
certain crimes or engaged in any activity which the Gaming Commission in its sole discretion
deems to render such person a danger to the safety or integrity of the Gaming Activities, or to
the safety and security of the Tribe, property of the Tribe, any Tribal member, any Gaming
Employee or patron, or the public.

7.12.7.3 Gaming Resource Supplier. Gaming Resource Suppliers must meet all tribal
and state licensing and suitability requirements. Any Gaming Resource Supplier who, directly
or indirectly, provides, has provided, or is deemed likely to provide at least twenty-five
thousand ($25,000) in Gaming Resources in any 12-month period, or who has received at least
twenty-five thousand dollars ($25,000) in any consecutive 12-month period within the 24-
month period immediately preceding application, shall be licensed by the Gaming Commission
prior to the sale, lease, or distribution, or further sale, lease, or distribution, of any such
Gaming Resources to or in connection with the Tribe’s Gaming Operation or Gaming Facility.
The Gaming Resource Supplier license must be renewed at least every two (2) years. The Tribe
shall not enter into any contract or agreement that would require licensing if the Gaming
Resource Supplier has been denied a license or is deemed unsuitable, or the license or
suitability determination has expired without renewal.

7.12.7.4 Union License. Any labor union, including its management and
representatives, seeking to represent any Gaming Employees must first apply for and be
deemed suitable to obtain a license under standards and licensing requirements established by
the Gaming Commission.

7.12.7.5 Vendor License. Vendors providing other goods or services, and those
providing gaming related goods or services valued at less than $25,000 in a 12-month period,
may also be required to obtain a license from the Gaming Commission prior to doing business
with the Tribe’s Gaming Operation. Vendors who are deemed not to be Gaming Resource
Suppliers or who provide only non-gaming related goods or services to the Tribal Gaming
Operation shall, at minimum, complete a short form application and qualify for a vendor
license issued by the Gaming Commission. Such license must be renewed at least every two (2)
years and the Gaming Commission may require additional information or licensing at any
time.

7.12.7.6 Temporary or Provisional Licenses. Pending completion of an
investigation for a license, the Gaming Commission may issue a temporary or provisional
license of no more than ninety (90) days duration if, in its sole discretion, it deems such
issuance appropriate, and may grant an extension of such a license if necessary to complete the
investigation or to obtain the Criminal History Record Information results from fingerprint
submissions. Such licenses shall permit the licensee to engage in such activities pursuant to
such terms and conditions as the Gaming Commission may specify. Temporary or provisional
licenses shall expire ninety (90) days from date of issuance, upon issuance of a regular license,
or until a specified expiration date.

7.12.8 StateGaming Agency. Class III Gaming Employees, Gaming Resource
Suppliers, gaming management and investors may further be subject to State Gaming Agency

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7.6.14 Implement appropriate rules, regulations, and procedures to ensure the effective
enforcement of the provisions of this Gaming Act, including but not limited to:

7.6.14.1_ Protect the physical safety of gaming patrons, employees, and others in the
Gaming Facility;

7.6.14.2 Ensure the physical safeguarding of assets transported to, within, and from the
Gaming Facility;

7.6.14.3 Prevent illegal activity in the Gaming Facility or Gaming Operation through:

7.6.14.3.1_ Maintenance of employee procedures and a surveillance system in accordance
with industry standards;

7.6.14.3.2 Maintenance of detailed and permanent records of all occurrences and
incidents in the Gaming Facility that deviate from normal operating policies and procedures;

7.6.14.3.3 Establishment of employee procedures to detect theft, cheating and fraud;

7.6.14.3.4 Development of an exclusion policy that includes a right to a hearing and
requires maintenance of a list of persons barred from the Gaming Facility;

7.6.14.3.5 Conduct of an annual CPA audit;
7.6.14.3.6 Approval of all game rules and regulations;

7.6.14.3.7 Establish and impose license fees, sanctions, fines, and conditions as
appropriate under applicable law;

7-6.14.3.8 Investigate and ensure compliance with any requirements for tribal
ownership, management, and control of the Gaming Facility and Gaming Operation, as set
forth in applicable law;

7.6.14.3.9 Investigate and ensure compliance with age restrictions for patrons including
provisions prohibiting minors in the Gaming Facility and age limits on service of alcoholic
beverages as provided under applicable law;

7-6.14.3.10 Carry out any requirements under Tribal or federal law or Compact for the
protection of the health and safety of Gaming Facility patrons, guests, and employees,
including requirements that the Gaming Facility meets building and safety codes duly adopted
by the Tribe; and

7.6.14.3.11 Approval of Gaming Facility floor plans, closed-circuit television system, and
cashier’s cage, minimum staffing and supervisory requirements, and technical standards for
gaming device operations.

7.6.15 Ensure gaming devices are not transported to or from the Tribal Lands except in
accordance with procedures established by an agreement between the Gaming Commission
and the State Gaming Agency. The agreement shall require at least ten (10) days notice to the
county sheriff, and transportation only to specific destinations for specific purposes as
established in the agreement and the Compact.

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7.12.18.2.2.3.2 Gaming licenses that have been revoked, even if subsequently
reinstated;

7.12.18.2.2.3.3 Every known criminal charge brought against the applicant within
the last ten (10) years of the date of application; and

7.12.18.2.2.3.4 Every felony of which the applicant has been convicted or any
ongoing prosecution.

7.12.18.2.2.4 A copy of the eligibility determination.
7.12.19 Granting a Gaming License.

7.12.19.1 After the Gaming Commission has provided a notice of results to the NIGC, it
may issue a gaming license to any Key Employee or Primary Management Official.

7.12.19.2 After the Gaming Commission has issued a gaming license, it shall notify the
NIGC of the issuance within thirty (30) days of issuing the license.

7.12.19.2.1 If, within the thirty (30) day period after the NIGC receives a complete
notice of results for a Key Employee or Primary Management Official, the NIGC provides the
Gaming Commission with a statement itemizing objections to the issuance of a license to that
Key Employee or Primary Management Official applicant, the Gaming Commission shall
reconsider the application, taking into account the objections itemized by the NIGC. The
Gaming Commission shall make the final decision whether to issue a license to such applicant.
If the Gaming Commission issued a license before receiving the NIGC’s statement of
objections, notice and hearing shall be provided to the licensee as provided by § 558.4.

7.12.19.3 The Gaming Operation shall not employ or continue to employ a Key Employee
or Primary Management Official who does not have a gaming license within (90) days of
beginning work.

7.12.19.4 Ifthe Gaming Commission does not license an applicant:
7-12.19.4.1 The Gaming Commission shall notify the NIGC; and
7.12.19.4.2 The Gaming Commission shall forward copies of its eligibility
determination and notice of results to the NIGC for inclusion in the Indian Gaming Individuals

Record System.

7.12.19.5 The Gaming Commission shall retain the following for inspection by the NIGC for
no less than three (3) years from the date of termination of employment:

7.12.19.5.1 Applications for licensing;
7.12.19.5.2 Investigative reports; and
7.12.19.5.3 _ Eligibility determinations.
7.12.20 Denial of Gaming License Applicants. Applicants who are denied a license

must wait for at least two (2) years before they may reapply for a gaming license. The applicant
shall be entitled to appeal a license denial as set forth in this Gaming Act.

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7.6.20 Carry out such other duties as assigned by the Business Committee of the Tribe,
regardless of whether such duties relate to the regulation of Gaming Activities on Tribal Lands.
Such assignment shall be made through appropriate policy or procedure in order to capitalize
upon certain expertise of the Gaming Commission.

SMTC 7.7 Enforcement

In the event it is determined that a licensee or the Gaming Enterprise has violated Applicable
Law, including any internal control procedures or policy of the Gaming Enterprise, a written
report of such incident shall immediately be made to the Gaming Commission. The
Commission shall then investigate and determine what action should be taken, if any. If action
is required, the Commission shall issue a citation to the Gaming Enterprise, notifying it of the
specific violation(s) or issues, measures which must be taken for correction, and a reasonable
time limit in view of all the circumstances in which such action must be taken. Copies of any
such citation shall simultaneously be served on the Business Committee of the Tribe. The
Commission may enforce such citations by: (a) suspending or revoking the licenses of any
persons found to have violated Applicable Law; or (b) such lesser penalty or other remedy as
the Commission shall determine, including the imposition of fines or sanctions. Nothing
herein shall prevent or prohibit the Gaming Commission from seeking compliance assistance
from local, federal, or state gaming or law enforcement agencies, the Bureau of Indian Affairs,
or the NIGC, particularly but not limited to any instance in which the Gaming Enterprise and
the General Council have failed to correct a violation of Applicable Law.

SMTC 7.8 Permitted Gaming Activities; Regulation of Gaming Activities

7.8.1 Unauthorized Gaming Prohibited. All Gaming Activities on Tribal Lands are
prohibited except as expressly permitted under this Gaming Act.

7.8.1.1 Class I Gaming. Class I Gaming Activities are hereby permitted to the extent
consistent with Tribal custom and practice and provided the General Council is given at least
seven (7) days prior notice in writing of any intention to engage in such gaming. The General
Council may prohibit any conduct that is claimed to be Class I gaming if the Council finds that
such conduct is not in accordance with Tribal customs or practices or violates IGRA or any
other law.

7.8.1.2 Class II and Class III Gaming. Class II and Class III gaming on Tribal Lands
are hereby authorized as permitted under Applicable Law, provided the Tribe has the sole
ee, interest in and responsibility for the conduct of any Gaming Operation. —The Tribe

Recs, 7

» piiciankis ska ereaeah- oF GA-creokeohion venaeaa
ie kee Nothing herein shall prohibit the Tribe from engaging the services of non-tribal
persons as employees or engaging any person or entity to assist the Tribe in the management of
a Gaming Activity pursuant to a management agreement entered into under the provisions of
IGRA or any other applicable law. Class III gaming shall be conducted in accordance with a
Compact, or any alternative thereto as provided by IGRA.

SMTC 7.9 Use of Gaming Revenues

7.9.1 Except as provided for under the terms of an agreement pursuant to the provisions
of IGRA or as otherwise permitted by law, all net revenues generated from any Class II or Class

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The Gaming Act

investigation and suitability requirements, including issuance of a license or certification of
suitability, under the Compact.

7.12.9 Drug and/or Alcohol Testing. The Gaming Commission reserves the right to
require drug and/or alcohol testing for any license applicant or licensee at any time.

7.12.10 License Investigations. The Gaming Commission may employ all reasonable
means, including engaging outside services and investigators and holding hearings, to acquire
the information necessary to determine whether or not a license should be issued. Applicants
shall agree to release all information necessary in order for the Gaming Commission to achieve
its goals under this Gaming Act and to furnish such information to the NIGC, the State Gaming
Agency, or other agencies as may be required by Applicable Law.

7.12.11 License Renewal. All licenses shall be subject to renewal at least every two (2)
years, and more frequently if so required by the Gaming Commission or other applicable law.
Such licenses may be revoked or suspended upon the occurrence of any act that, if known
during the application process, would have tended to disqualify such person or entity for such a
license.

7.12.12 License Fees. Unless specifically waived by the Gaming Commission, all persons
applying for a license shall be required to pay all applicable license fees and costs when due,
including a reasonable deposit for costs that may be incurred in connection with the license
application. Estimates of licensing costs will be provided to applicants upon reasonable
request. All fees and costs must be received by the Gaming Commission prior to issuance of
the license, unless the Tribe or the Gaming Operation has agreed to reimburse the Gaming
Commission directly for all or part of such fees and costs.

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

7.12.14 Background Investigations

7.12.14.1 The Gaming Commission shall request from each Primary Management Official,
Key Employee, and any other applicant for a Class A license, unless provided otherwise by the
Gaming Commission consistent with Applicable Law, all of the information specified in
subsections 7.12.14.1.1 through 7.12.14.1.14 below, as well as any other information required on
the gaming license application. The Gaming Commission reserves the right, at any time, to
request additional information during or subsequent to any background investigation.

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

7.12.14.1.2 Currently and for at least the previous ten (10) years: business and
employment positions held, ownership interests in those businesses, business and residence
addresses and drivers license number(s);

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

7.13.1.2 Notice Regarding False Statements.

A false statement or any part of your license application may be grounds for denying a
license or the suspension or revocation of a license. Also, you may be punished by fine or
imprisonment (18 U.S.C § 1001).

7.13.2 Existing Licensees. Any existing Key Employee or Primary Management Official,
or other Class A licensee, unless otherwise specifically exempted by the Gaming Commission,
shall be notified that they shall either:

7.13.2.1_ Complete a new application form that contains the Privacy Act Notice and the
Notice Regarding False Statements; or

7.13.2.2 Sign a statement that contains the Privacy Act Notice and consent to the routine
uses described in that Notice and sign a statement that contains the Notice Regarding False
Statements.

SMTC 7.14 Class III Gaming; Compact

In addition to the provisions set forth above, Class III gaming shall be engaged in on the
reservation pursuant to a Compact or by an alternative as provided by IGRA. All negotiations
for such Compacts and amendments thereto shall be conducted through the Tribal Chairman,
with the advice and suggestion of the Gaming Commission, and shall be finalized only upon
majority vote of the General Council after consideration of the terms. In the event the
provisions of a Compact, as approved under IGRA, may be inconsistent with provisions herein,
the approved Compact provisions shall govern, but only to the extent inconsistent with this
Gaming Act.

SMTC 7.15 Interest in Management Contracts by Tribal Officials

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

SMTC 7.16 Limitations on Gaming

No elected or appointed official of the Tribe’s Gaming Commission, Entertainment Authority,
or Business Committee, or licensed employee shall engage in or be permitted to engage in
either directly or indirectly through another person, any Class II or Class III Gaming Activities
authorized hereunder. Such limitation shall not apply in instances where, as pre-approved by
the Gaming Commission, the individual engages in such activities as a part of an event
designed specifically for such individuals or for training purposes.

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the Gaming Commission and its agents shall keep confidential the identity of each person
interviewed in the course of the investigation.

7.12.16 Fingerprints. The Gaming Commission shall cause fingerprints to be taken and
forwarded to the NIGC and to the State Gaming Agency, as applicable, consistent with all
applicable laws and the Compact. Fingerprints shall be processed through the FBI and/or
other available state sources as applicable to determine the applicant’s criminal history, if any.

7.12.17 Eligibility Determination. The Gaming Commission shall review a person’s prior
activities, criminal record, if any, and reputation, habits and associations to make a finding
concerning the eligibility of a Key Employee or Primary Management Official to hold a gaming
license. If the Gaming Commission, in applying the standards adopted herein, determines that
licensing of the person poses a threat to the public interest or to the effective regulation of
gaming, or creates or enhances dangers of unsuitable, unfair, or illegal practices and methods
and activities in the conduct of gaming, the Gaming Commission shall not license that person
in a Key Employee or Primary Management Official position or in any other position for which
a Class A license is required.

7.12.18 Investigative Report and Notice of Results.
7.12.18.1 When a Primary Management Official or Key Employee is employed, the Gaming
Commission shall maintain a complete application file containing the information required by
section 7.12.14.1 above.

7.12.18.2 Before issuing a license to a Primary Management Official or Key Employee, the
Gaming Commission shall:

7.12.18.2.1 Create and maintain an investigative report on each background
investigation. The investigative report shall include the following information:

7.12.18.2.1.1 Steps taken in conducting a background investigation;
7.12.18.2.1.2 Results obtained;
7.12.18.2.1.3 Conclusions reached; and
7.12.18.2.1.4 The basis for those conclusions.
7.12.18.2.2 Submit a notice of results of the applicant’s background investigation to the
NIGC no later than sixty (60) days after the applicant begins work. The notice of results shall
contain the following information:

7.12.18.2.2.1 Applicant’s name, date of birth, and social security number;

7-12.18.2.2.2 Date on which the applicant began or will begin work as a key employee or
primary management official;

7.12.18.2.2.3 A summary of the information presented in the investigative report, which
shall include a listing of:

7.12.18.2.2.3.1 Licenses that have previously been denied;

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years. The renewal process shall include all inspections required to certify continued
compliance with all applicable Tribal Codes, the Compact, and NIGC Regulations.

7.10.2 Protection of Environment and Public. The construction and maintenance of
any Gaming Facility, and the operation of Gaming Activities therein, shall be conducted in a
manner that adequately protects the environment and the public health and safety, in
compliance with any standards required under tribal and federal law, and the Compact.

7.10.3 Dispute Resolution. Patrons who have personal injury or property damage
complaints (“Patron Tort Claims”) against the Gaming Facility or Gaming Operation shall have
the right to remedies provided in the Tribe’s Gaming Facility Tort Liability Ordinance. Patrons
who have complaints arising from their participation in Gaming Activities at the Gaming
Facility (“Patron Gaming Claims”) shall have the right to remedies as provided in this Gaming
Act.

SMTC 7.11 Audits

7.11.1 Annual Audit. The Gaming Commission shall ensure the engagement of a
recognized independent accounting firm to conduct an annual audit of the Tribe’s Class II and
Class III Gaming Operations.

7.11.2 Contract Review and Audit. Each gaming related contract for supplies, services,
or concessions that results in purchases of more than $25,000 annually (except contracts for
professional legal or accounting services) relating to Class II or Class III gaming on the Tribal
Lands shall be included in the independent audits. At least three (3) bids shall be required
before any contract may be executed for goods or services in connection with any Gaming
Activity for an amount in excess of $25,000 or to be performed over a period of more than
twenty (20) days. The General Council may waive the requirement of three (3) bids upon good
cause shown. All proposals for bids as well as all bids received may be reviewed at the
discretion of the Gaming Commission. The Gaming Commission shall receive a copy of all
Gaming-Related Contracts for an amount in excess of $10,000 for filing and possible review.
To the extent possible, the Tribe will approve the lowest responsive and qualified bid.

7.11.3 Reporting Audit Results. The Tribe shall make available the results of each
annual audit to the Tribe’s General Council within thirty (30) days of completion of the audit.
The Gaming Commission shall provide audit results to the NIGC to the extent required and as
otherwise required under applicable law.

SMTC 7.12 Gaming Licenses
7.12.1 Licensing Procedure. The Tribe’s Gaming Licensing procedure shall be
administered through the Gaming Commission. The program shall be an investigative
licensing process under which all applicants for gaming licenses are evaluated against the
standards set forth in, and subject to, the following applicable laws:
7.12.11 The Gaming Act and any gaming regulations promulgated thereunder;
7.12.1.2 IGRA and NIGC regulations;

7.12.1.3 Compact requirements, to the extent applicable; and

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The Gaming Act

Commission. The Secretary/Treasurer to the Commission shall be responsible for
disbursement of Gaming Commission funds in accordance with Tribal governmental agency
policies and the Gaming Commission budget. The Commission and Secretary/Treasurer shall
approve payment of all goods and services for the Gaming Commission. All funds shall be paid
out from Tribal accounts for the Gaming Commission expenditures and charged against the
Gaming Commission’s approved budget. The Secretary/Treasurer to the Commission shall
also ensure that all official actions taken by the Gaming Commission are recorded, and that the
written records thereof are maintained in accordance with applicable document retention
policies.

7.5.3.2 Executive Director. The Gaming Commission may recruit and employ an
Executive Director who shall be responsible for managing, supervising and overseeing the daily
activities of the Gaming Commission. The Executive Director shall serve as a full-time
employee of the Gaming Commission and shall report to the Gaming Commission. The
Business Committee shall be notified of the hiring of an Executive Director.

7.5.4 Suitability Standards. Each Gaming Commissioner, Executive Director and
Gaming Commission employee must meet or exceed the qualifications established under this
Gaming Act and the Compact. For the purpose of conducting background investigations of and
issuing licenses to the Commissioner(s), Executive Director and Gaming Commission
employees, such persons shall be deemed to be Key Employees under this Gaming Act and
shall be required to pass a background investigation and hold a valid gaming license consistent
therewith, including a review of financial, criminal, and employment history, checking of
references, and all other suitability requirements for certification or licensing by the State or
the Tribal Gaming Commission.

7.5.5 Background Investigation. Background investigations of each Gaming
Commissioner(s), Executive Director, and Gaming Commission employee, as designated by the
Gaming Commission, shall be conducted by an independent investigator or an investigator
appointed by the Gaming Commission under the direction of the Gaming Commission, and if
deemed necessary, the Tribe’s attorney. The investigator shall conduct an investigation
sufficient to make a determination of eligibility as required under this Act and other applicable
law. This shall include verification of information submitted by the applicant. In conducting
the background investigation, the investigator and the Gaming Commission shall maintain as
confidential the identity of each person interviewed in the course of the investigation. The
investigator shall document all potential problem areas noted and any disqualifying
information. The attorney and/or Gaming Commission shall keep the details of the
investigation confidential, but the attorney may confer with the investigator or any other
person experienced in conducting or evaluating background investigations provided such other
person agrees to maintain the confidentiality of the information obtained about the applicant.

7.5.5.1 The attorney and/or Gaming Commission shall make a determination as to
whether the suitability standards contained within this Gaming Act have been met, and if so,
shall certify that finding in writing to the Business Committee.

7.5-5-2 Background investigations of all Gaming Commission employees that are not
conducted by an independent or appointed investigator as provided for above shall be
conducted by the appropriate Gaming Commission staff as directed by the Gaming
Commission, unless otherwise provided for by the Gaming Commission.


The Gaming Act

7.3.1 “Applicable Law” means IGRA and regulations promulgated thereunder, the
Compact, this Gaming Act, and all other applicable laws and regulations promulgated under
State, Federal, and Tribal law.

7.3.2 “Applicant” means an individual or entity that applies for a tribal gaming license.

7.3.3 “Association” means the association of tribal and state gaming regulators as
established under the Compact, the membership of which comprises up to two representatives
from each tribal gaming agency of those tribes with whom the State has a Compact under
IGRA, and up to two delegates each from the State Bureau of Gambling Control and the
California Gambling Control Commission.

7.3.4 “Commissioner” means a member of the San Manuel Gaming Commission.

7:35 “Compact” means any Tribal-State Gaming Compact, including amendments
thereto, entered into by the Tribe pursuant to IGRA to govern the conduct of certain Class III
gaming activities on Tribal Lands.

7.3-6 “Gaming Act” means the San Manuel Gaming Act of 1989, as amended.

73:7 “Gaming Activities” means any Class I, Class II, or Class III gaming activity
authorized under this Gaming Act or under the jurisdiction of the Tribe.

7.3.8 “Gaming Commission” means the tribal governmental agency established by the
Tribe under this Gaming Act to monitor Gaming Activities, investigate wrongdoing, conduct
background investigations, issue licenses, and perform other duties as required for the
regulation of gaming on the Reservation. For the purpose of conducting background
investigations of and issuing licenses to the Commissioners and Gaming Commission
employees, such persons shall be deemed to be Key Employees under this Gaming Act and
shall be required to pass a background investigation and hold a valid gaming license consistent
therewith.

7.3.9 “Gaming Employee” means any person who: (a) operates, maintains, repairs,
assists in any Gaming Activity, or is in any way responsible for supervising such Gaming
Activities, including persons who conduct, operate, account for, or supervise any such Gaming
Activity; (b) is in a category under federal law, the Compact, or tribal gaming law requiring
licensing; (c) is an employee of the Gaming Commission or of the Gaming Operation with
access to confidential or proprietary information; (d) is a person whose routine employment
duties require or authorize access to areas of the Gaming Facility that are not accessible to the
public; or (e) is a person whose routine employment duties require or authorize access to
confidential or proprietary information regarding the Gaming Facility where such person may
have the ability to alter or manipulate such information for illicit or unauthorized purposes.

7.3.10 “Gaming Enterprise” or “Gaming Operation” means any gaming business,
event, enterprise or activity conducted by or under the jurisdiction of the Tribe.

7.3.11 “Gaming Facility” means any building in which Class III gaming activities or
gaming operations occur, or in which the business records, receipts, or other funds of the Class
III gaming operation are maintained (but excluding offsite facilities primarily dedicated to
storage of those records, and financial institutions), and all rooms, buildings, and areas,
including parking lots and walkways, a principal purpose of which is to serve the activities of

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CHAPTER 7. THE SAN MANUEL GAMING ACT OF 1989:

SMTC 7.1 Title

This Chapter shall be known as the “San Manuel Gaming Act of 1989, as amended.”
SMTC 7.2 Findings and Policy

7.2.1 This Ordinance is adopted by the General Council of the San Manuel Band of
Mission Indians (“Tribe”), a federally recognized Indian Tribe, pursuant to its authority under
the Tribal Articles of Association; for the purpose of establishing the terms for gaming on
Tribal Lands for Tribal governmental and charitable purposes, and to continue to develop and
operate such gaming consistent with the findings herein and in conformity with the federal
Indian Gaming Regulatory Act (25 U.S.C. § 2701 et seq. (“IGRA”)), regulations promulgated
thereunder, and the Tribal-State Gaming Compact with the State of California (“Compact”).
This Gaming Act and regulations promulgated hereunder shall constitute gaming regulations
for the Tribe. Based on its experience and observations in connection with such gaming and its
studies of similar experiences by other Indian tribes, the Tribe finds that tribally controlled
gaming on its reservation is a valuable means of promoting Tribal economic development, self-
sufficiency, employment, job training and strong Tribal government. The Tribe further finds
that when regulated by the Tribe, such gaming can remain free from organized crime and other
corrupting influences and can be conducted fairly and honestly by both the operators and the
players.

7.2.2 The General Council finds that:

7.2.2.1 _ Gaming on its Tribal Lands is a valuable means of generating revenues needed to
promote Tribal self-sufficiency, economic development, employment, job training, and a strong
Tribal government, and to fund and ensure essential social programs and services;

7.2.2.2 The Tribe desires to conduct certain forms of gaming to provide needed revenues
to the Tribe and to regulate and control such gaming in a manner that will protect the
environment; the Tribal Lands; the health, security and general welfare of the Tribe; the
patrons; and the community; and

7.2.2.3 The Tribe desires to manage and regulate such gaming as authorized under this
Ordinance in a manner that will adequately address the interests and needs of the Tribe.

SMTC 7.3 Definitions

Unless specified otherwise, terms used herein shall have the same meaning as in IGRA,
including but not limited to references to “Class I,” “Class II,” and “Class III” gaming. Terms
shall have the following meanings:

1 Adopted by the General Council on August 31, 1989 as 89.02. Amended September 19, 1994; May 13, 1997;
September 28, 1999; November 9, 1999; November 11, 2003; March 6, 2004; September 9, 2008; July 13, 2010;
April 25, 2011; October 14, 2014; and January 13, 2015.

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7.12.1.4 Any other applicable tribal, federal, or state laws.

7.12.2 Licensing Policy and Requirements. It is the policy of the Tribe that all
Gaming Activities be licensed and controlled so as to protect the morals, good order and
welfare of tribal members and other persons on Tribal Lands, and to preserve the honesty,
fairness and integrity of such Gaming Activities. Accordingly, no person shall engage in any
Class II or Class III Gaming Activities on Tribal Lands without a valid license issued by the
Gaming Commission.

7.12.3 Gaming License is a Privilege. Any gaming license or finding of suitability
issued by the Gaming Commission shall be deemed a privilege, and is subject to suspension or
revocation at any time. No license or license renewal shall be issued that would place the Tribe
in violation of Applicable Law. A gaming license or finding of suitability is subject to renewal
at least every two (2) years.

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

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

7.12.6 Release of Information. Persons applying for a license shall agree to release all
information necessary in order for the Gaming Commission and any applicable federal or state
entity to complete their suitability determination. Applicants must update all such information
promptly on an on-going basis, and to furnish such information as may be required by the
State Gaming Agency, or such other governmental agency as may be required by law.

7.12.7. Types of Licenses

7.12.71 Class A License. Before permitting any person to become associated with any
Gaming Activity as an investor or other person owning or controlling 10% or more interest in
any management entity, or any Primary Management Official, Key Employee, a gaming related
position designated by the Gaming Commission as requiring a Class A license, closely
associated independent contractor, or other individual or entity with influence over the
management or operation of the gaming, or a Gaming Employee, such person shall obtain a
Class A license. The Gaming Commission shall conduct or cause to be conducted a background
investigation to determine if such person has:

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

7.12.7.1.2 Anything else in his/her background that might create or enhance the dangers
of unsuitable, unfair, or illegal practices, methods and activities in the conduct of gaming.

7.12.7.1.3 Those who at any time do not meet the above qualifications shall be denied a
Class A license, or in the case of an existing license, the license may be revoked.

7-14


The Gaming Act
7.3.19 “Reservation” or “Tribal Lands” means all lands under the jurisdiction and

control of the Tribe, including those lands that satisfy the definition of “Indian lands” as set
forth in IGRA.

7.3.20 “State” means the State of California.

7.3.21 “State Gaming Agency” means the entity authorized to investigate, approve, and
regulate Class III gaming licenses pursuant to the Gambling Control Act (Chapter 5,
commencing with section 19800, of Division 8 of the Business and Professions Code). If the
State fails, under a Compact provision, to designate an agency authorized to investigate,
approve, and regulate gaming licenses, any function otherwise assigned to the State Gaming
Agency shall be assumed by the Gaming Commission until such time as the State establishes
and designates such an agency.

7.3.22 “Tribal Court” means any court established by the Tribe under its Judicial Code to
hear disputes, or if there is none, an independent tribunal.

SMTC 7.4 Ownership of Gaming

The Tribe has the sole proprietary interest in and responsibility for the conduct of any
Gaming Operation authorized by this Gaming Act.

SMTC 7.5 Gaming Commission

7.5.1 Establishment. The Tribe hereby establishes the San Manuel Gaming
Commission to be comprised of one or more Commissioner(s) appointed by the General
Council. The appointed term for a Commissioner shall not be less than two years, as mutually
agreed by the Commissioner and the General Council. A Commissioner may be reappointed
for subsequent terms at the discretion of the General Council. A Commissioner may not be an
elected official of the Tribe, or employed in any Gaming Enterprise or by the Tribe in any other
capacity, while serving as a Gaming Commissioner. In the event more than one Commissioner
is appointed, one shall be designated as the Chair of the Commission and the Commissioners
shall report to the Chair.

7.5.1.1 Commissioner Credentials. Individuals possessing the following credentials
should be considered when selecting Commissioners: (1) a Certified Public Accountant with
auditing experience; (2) a licensed attorney who possesses regulatory experience; (3) an
individual with a background in law enforcement and criminal investigation; (4) an individual
with a background in gaming regulation with at least five (5) years of gaming regulation
experience; or (5) an individual with a background in information technology with at least five
(5) years of information technology experience.

7.5.2 Standard of Professional Conduct. Each Commissioner shall abide by the
following standard of professional conduct: confidentiality, impartiality, fairness, and
commitment to upholding the reputation of the Tribe for conducting Gaming Activities of the
highest integrity and honesty.

7.5.3 Other Commission Positions

7.5.3.1 Secretary/Treasurer. At the discretion of the Gaming Commission, a member
of the Gaming Commission staff may be designated as Secretary/Treasurer to the Gaming

7-4


The Gaming Act
7.12.21 License Suspension.

7.12.21.1 If, after issuing a gaming license, the Gaming Commission receives reliable
information from the NIGC or other reliable source indicating that a Key Employee, Primary
Management Official, or any other holder of a gaming license is not eligible to hold a gaming
license under the eligibility criteria established herein, the Gaming Commission shall
immediately suspend the license and shall provide the licensee with written notice of
suspension and proposed revocation.

7.12.21.2 The Gaming Commission shall notify the licensee of a time and place for a
hearing on the proposed revocation of a license in accordance with the procedures set forth in
this Gaming Act.

7.12.21.3 After the revocation hearing, the Gaming Commission shall decide whether to
revoke or to reinstate the gaming license. The Gaming Commission shall notify the NIGC of its
decision within 45 days of receiving notification from the NIGC.

7.12.22 Hearings. The Gaming Commission may conduct hearings as needed to make
regulatory compliance determinations within the scope of this Gaming Act, and shall conduct
hearings for licensing determinations, the imposition of fines and applicable Patron Gaming
Claims; provided, however, hearings on Patron Tort Claims against the Gaming Facility shall
be conducted in accordance with the Gaming Facility Tort Liability Ordinance.

7.12.22.1 All Gaming Commission hearings shall:

7.12.22.1.1 Be properly noticed in writing to the party that is the subject of the Gaming
Commission’s decision or order. Such notice shall be delivered at least ten (10) business days
prior to the hearing;

7.12.22.1.2 Allow the party that is the subject of the Gaming Commission’s decision or
order to present written or oral statements or other evidence to support his or her position;

7.12.22.1.3 Be documented or recorded and maintained on file in accordance with the
governing records retention policy;

7.12,22.2 Advocates may participate in the hearing on behalf of either party at the party’s
own expense, and the Gaming Commission may seek the advice of the Tribe’s legal counsel as
needed.

7.12.22.3 The Gaming Commission shall weigh the evidence, testimony, and exhibits and
make its decision, based on the credibility of the evidence and witnesses, by a preponderance of
the evidence. Gaming Commission decisions shall be issued in writing within 30 days of the
hearing. All decisions shall include a statement of facts and a statement of legal authority on
which the decision is based. Decisions shall be delivered to the party and include information
and instructions for appealing the decision.

7.12.22.4 Nothing herein shall prohibit the Gaming Commission from taking immediate
action in emergency situations to protect the health and safety of patrons and employees or
assets of the Tribe. Such actions shall immediately be followed by the hearing process.

7.12.23 Appeals.

7-20


AL
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February 2, 2015

Teri Poust, Interim Gaming Commissioner
Tribal Gaming Commission

San Manuel Band of Mission Indians
27995 Highland Ave., suite 301

Highland, CA 92346

RE: San Manuel Band of Mission Indians gaming Ordinance and Resolution Number
2014-016

Dear Ms. Poust,

This letter responds to your November 5, 2014, request on behalf of the San
Manvel Band of Mission Indians to the National Indian Gaming Commission (NIGC) to
review and approve the Tribe’s amendments to its gaming ordinance. The amendments
to the gaming ordinance were adopted by Resolution No. 2014-016 by the General
Council of the Tribe and further amended as reflected in its December 12, 2014 Action
Item Request Form.

The Tribe revised current gaming ordinance to better meet the Tribe’s regulatory
needs and to comply with NIGC regulations. The amendments modify the Tribal Gaming
Commission provisions, revise the powers and duties of the Tribal gaming commission,
and remove the authorization of individually-owned gaming. Additionally, the licensing
and the background investigations provisions were amended to comply with NIGC
regulatory changes.

Thank you for bringing the amended gaming ordinance to our attention. The
ordinance is approved, as it is consistent with the requirements of the Indian Gaming
Regulatory Act and NIGC regulations. If you have any questions, please contact staff
attorney Heather Corson at (202) 632-7003.

Sincerely, gy
Vel Yes (7)

fonodev O. Chaudhuri
Chairman (Acting)

NEW MAILING ADDRESS: NIGC/DEPARTMENT OF THE INTERIOR 1849 C Stree! NW, Mail Stop # 1621 Washington, DC 20240 Tel: 202.632.7003 Fax: 202.632.7066

REGIONAL OFFICES Portland, OR; Sacramento, CA; Phoenix, AZ; St, Paul, MN; Tulsa OK; Oklahoma City, OK
WWW.NIGC.GoV


The Gaming Act

and, if it deems the allegation to be true, shall refer the allegation to the General Council for
action, which may include removal of a Commissioner for cause.

7.512 Gaming Commission Funding. The Gaming Commission shall be funded
through an annual appropriation by the General Council and such additional funding actions
as the General Council shall deem necessary. Unjust pressure shall not be placed upon the
Gaming Commission through the budgeting process. After meeting and conferring with the
General Council about such appropriation, the Gaming Commission shall prepare a budget.
Such budget shall be submitted to the Business Committee no later than sixty (60) days before
the end of each Tribal fiscal year. The Business Committee shall, in good faith, act to approve
the budget. The Business Committee may modify the budget where such modification is
needed to properly reflect the intent of the General Council. Within five (5) days after approval
of the budget, funds from the Tribe’s treasury shall be appropriated for the Gaming
Commission’s approved budget, except that at any time the General Council may prescribe
other schedules for disbursing such funds.

7.5.12... Financial Reports. The Gaming Commission shall maintain its accounts,
books and records, including records of all income and expenditures, in accordance with
generally accepted accounting principles and consistent with Tribal governmental policies
regarding management of funds and records. A financial report shall be rendered by the
Gaming Commission to the General Council at least quarterly. All expenditures shall stay
within ten percent (10%) of the approved budget.

7.5.12.2 Annual Reports. On or before April 30th of each year, the Gaming
Commission shall provide to the Business Committee an Annual Report summarizing its
activities during the prior twelve (12) month period ending on December 31, and accounting
for all receipts and disbursements, a copy of which shall be provided by the Business
Committee to any Tribal member upon his or her request.

SMTC 7.6 Powers and Duties

The Gaming Commission shall have the power, duty, and primary responsibility to carry out
the Tribe’s regulatory responsibilities under federal or tribal law and any applicable Compact;
to enforce those requirements; and to protect the integrity of the Gaming Activities and the
reputation of the Tribe and the Gaming Operation under provisions to include the following:

7.6.1 Conduct on-site gaming regulation and control; inspect, test, audit, examine, and
monitor the Gaming Facility, including internal control systems; prepare reports and monitor
compliance, including the authority to demand access to and inspect, examine, photocopy and
audit all papers, books and records related to the Gaming Facility or Gaming Activities.

7.6.2 Investigate any suspicion of wrongdoing in connection with the Gaming Facility or
Gaming Operation, or related to any Gaming Activity or licensee, including potential licensing
or internal control violations, or interference with Gaming Commission operations, and
require correction of violations as the Gaming Commission deems necessary, including
establishing and imposing fines or other sanctions against licensees or other persons who
interfere with or violate the Tribe’s gaming regulatory requirements under applicable federal or
tribal law or the Compact, and by notification to applicable regulatory authorities as deemed
necessary for violations not corrected in a timely manner.

77


The Gaming Act

7.56 Compensation. The salaries for Commissioners shall be approved by the Business
Committee as part of the annual budget, in conjunction with a recommendation of Human
Resources. Subject to a budget to be approved on an annual basis by the General Council,
Commissioners shall be reimbursed for expenses incurred in connection with the performance
of their duties as Commissioners and in accordance with the budget. Policies with respect to
reimbursement of expenses shall be the same as those applicable to other Tribal government
employees. Any Commissioner employed on a full-time basis shall be eligible for the same
fringe benefits as such other full-time Tribal government employees.

7.5.7 Removal for Good Cause. Commissioners may only be removed from office
before the expiration of their term by the General Council for neglect of duty, malfeasance or
other good cause shown (collectively referred to as “good cause”). Upon receipt of an
allegation of an act or omission that constitutes good cause from the Business Committee, the
General Council may suspend, with or without pay at its own discretion, a Gaming
Commissioner from office for no more than 60 days pending a full investigation of misconduct.
At the expiration of the suspension period, the suspension shall be lifted upon a determination
that no cause exists for removal under this Gaming Act, or, upon a finding of misconduct, the
General Council shall discipline the Commissioner as appropriate, up to and including removal
from office.

7.5.8 Post-Commission Restriction. Unless otherwise provided by the Gaming
Commission, Gaming Commissioners and Commission employees shall be precluded from
consulting or employment in any position with the Tribe’s Gaming Activities for a period of no
less than two (2) years from their date of termination at the Gaming Commission.

7.5.9 Conflict of Interest. If any Commissioner has a conflict of interest in
investigating, hearing or deciding a matter to come before the Gaming Commission, the
Commissioner shall have a duty to disclose such conflict and shall recuse himself or herself
from that matter.

7.5.10 Personnel and Administrative Policies. The Gaming Commission shall be
deemed to be an agency of the Tribal government and as such shall be subject to the personnel
and other governmental administrative policies of the Tribal government, as the General
Council shall determine from time to time. In the absence of specific personnel policies, those
affecting management level employees of the Gaming Enterprise shall be applied to the
operation of the Gaming Commission. The Business Committee shall, in good faith, consider
and approve any exceptions necessary to tailor such policies to the Gaming Commission. All
Commissioners shall strictly abide by Gaming Commission oaths of confidentiality and
professionalism in the discharge of their duties.

7.5.11 Gaming Commission Independence. Notwithstanding the fact that the Gaming
Commission is a Tribal governmental agency and is accountable to the Business Committee, on
behalf of the General Council, for its administration, in order to maintain independence and
ensure the highest level of integrity, the Business Committee shall not interfere with Gaming
Commission business or compromise the Gaming Commission’s ability to perform its duties
and responsibilities as provided for in this Act. The decisions of the Gaming Commission
regarding licensing, suitability and compliance with Applicable Law shall be within the
exclusive province of the Gaming Commission, except that the Business Committee may review
any allegation that the Gaming Commission has exceeded its authority under this Gaming Act

7-6


The Gaming Act

the Tribe’s Gaming Operation. Nothing in this Gaming Act prevents the conduct of Class II
gaming (as defined under IGRA) in the Gaming Facility.

7.3.12 “Gaming Resources” means any goods or services provided to or used in
connection with Gaming Activities, whether exclusively or otherwise, including, but not limited
to, equipment, furniture, gambling devices and ancillary equipment, implements of Gaming
Activities such as playing cards and dice, furniture designed primarily for Gaming Activities,
maintenance or security equipment and services, gaming consulting services, and the like. The
term shall not include professional accounting or legal services.

7.3.13 “Gaming Resource Supplier” or “Gaming Contractor” means any person or
entity who, directly or indirectly, manufactures, distributes, supplies, vends, leases, or
otherwise purveys Gaming Resources to the Tribe’s Gaming Operation, Gaming Enterprise, or
Gaming Facility. The Gaming Commission may exclude a purveyor of equipment or furniture
that is not specifically designed for, and is distributed generally for use other than in
connection with Gaming Activities, if the purveyor is not otherwise a Gaming Resource
Supplier under the Compact, and the compensation received by the purveyor is not grossly
disproportionate to the value of the goods or services provided, and the purveyor is not
otherwise a person who exercises a significant influence over the Gaming Operation.

7.3.14 “General Council” means the governing body of the Tribe.

7.3.15 “Key Employee” means a person who performs one or more of the following
functions: bingo caller; counting room supervisor; chief of security; custodian of gaming
supplies or cash; floor manager; pit boss; dealer; croupier; approver of credit; or custodian of
gaming devices, including those persons with access to cash and accounting records within
such devices. If not otherwise included, any other person whose total cash compensation is in
excess of $50,000 per year, and the four most highly compensated persons in the Gaming
Operation, are included in the definition of Key Employee. Key Employee shall also include
any employee considered a Key Employee under criteria established by the State and the Tribe
under the Compact, as well as any person whose employment duties require or authorize
access to confidential or proprietary information regarding the Gaming Facility where such
person may have the ability to alter or manipulate such information for illicit or unauthorized
purposes. At the discretion of the Gaming Commission, other positions or persons may be
included under the definition of Key Employee and are subject to the requirements thereof.

7.3.16 “National Indian Gaming Commission” or “NIGC” means the federal gaming
commission established under IGRA.

7.3.17 “Person” means any natural person or entity, including but not limited to
corporations, partnerships and trusts.

7.3.18 “Primary Management Official” means the person who has management
responsibility for a management contract; any person who has authority to hire and fire
employees or to set up working policy for the Gaming Operation; or the chief financial officer
or other person who has financial management responsibility. At the discretion of the Gaming
Commission, other positions or persons may be included under and be subject to the
requirements for Primary Management Officials.

7-3


The Gaming Act

7.12.14.1.3 Names and current addresses of at least three (3) personal references (who
are not related to or living in the same household with applicant), including one personal
reference who was acquainted with the applicant during each period of residence as listed
under subsection 7.12.14.1.2 above;

7.12.14.1.4 Current business and residence telephone numbers;

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

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

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

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

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

7-12.14.1.10 For each criminal charge (excluding minor traffic charges) that you have
ever received, whether or not there is or was a conviction, if such criminal charge is within ten
(10) years of the date of the application and is not otherwise listed above pursuant to
subsections 7.12.14.1.8 or 7.12.14.1.9 above: the criminal charge, the name and address of the
court involved and the date and disposition, if any, of the case;

7-12.14.1.11 Name and address of any licensing or regulatory agency (federal, tribal,
state, local or foreign) with which the person has filed an application for an occupational
license or permit, whether or not such license or permit was granted;

7.12.14.1.12 Current photograph;

7.12.14.1.13 Any other information the Tribe or Gaming Commission deems relevant;
and

7.12.14.1.14 Fingerprints consistent with procedures adopted by the Gaming
Commission according to 25 C.F.R. § 522.2(h) and, as applicable, fingerprints to be processed
through the State Gaming Agency. For the limited purpose of obtaining fingerprints in
compliance with 25 C.F.R. § 522.2 (h) the Tribal Gaming Commission shall be the designated
law enforcement agency.

7.12.15 Investigation Process. The Gaming Commission shall conduct or cause to be
conducted, an investigation sufficient to make a determination of eligibility as required under
this Gaming Act and other Applicable Law. This shall include verification of information
submitted by the applicant. The Gaming Commission shall document all potential problem
areas noted and any disqualifying information. In conducting the background investigation,

TAT


The Gaming Act
SMTC 7.17 Service of Process

The Tribe designates the Chairperson of the Tribe as its agent for the service of official
determinations, orders, or notices of violation from any federal or state agency. The Gaming
Commissioner shall also receive any notice related to gaming from any state, local or federal
agency, including the NIGC and the State Gaming Agency.

SMTC 7.18 Tribal Gaming Corporation

Nothing in this Gaming Act shall prevent the Tribe, through its General Council, from
delegating the authority to conduct gaming to one or more Tribal corporations, so long as the
tribal gaming enterprises to which such authority is delegated agree to meet all criteria and
requirements established under this Gaming Act.

SMTC 7.19 Prior Gaming Act; Effective Date

Any and all prior Gaming Ordinances and versions of this Gaming Act are hereby repealed on
the effective date of this Gaming Act. After adoption by the General Council, this Gaming Act
and any subsequent amendments thereto shall become effective on the date of final approval
by the NIGC, as applicable.

SMTC 7.20 Severability

If any provision or application of this Gaming Act is determined by review to be invalid, such
determination shall not be held to render such provision inapplicable to other persons or
circumstances, nor shall such determination render invalid any other provision of this Gaming
Act.

SMTC 7.21 Amendments

All provisions of this Gaming Act are subject to amendment by the General Council.
Regulations promulgated by the Gaming Commission under this Gaming Act are subject to
amendment by the Gaming Commission.

SMTC 7.22 Sovereign Immunity Preserved

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

7-23


San Manuel Band of Mission Indians

Tribal Gaming Commission
OFFICE OF THE COMMISSION

27995 Highland Ave., Suite 301 (909) 863-2150
Highland, CA 92346 (909) 863-2156 Fax

5-3!

Im
i>

January 14, 2015

}}

Jonodev Chaudhuri, Acting Chair
National Indian Gaming Commission
c/o U. S. Department of the Interior
1849 C Street, N.W.

Mail Stop #1621

Washington, D.C. 20240

Dear Chairman Chaudhuri,

On behalf of the San Manuel Band of Mission Indians, I submit the attached Gaming
Ordinance for your approval. This amended Gaming Ordinance was approved by the General
Council of the Tribe on January 13, 2015, and incorporates changes requested by the Office of
the General Counsel for the National Indian Gaming Commission in December 2014. Further,
this Gaming Ordinance repeals and replaces all earlier versions of this Ordinance.

Please feel free to contact me if you need any additional information or if you have any
questions.

ncerely,

el ‘ous!
Interim Gaming Commissioner


The Gaming Act

7.6.16 Promulgate rules governing the conduct of each Class I, Class II or Class III game
allowed under this Gaming Act.

7.6.17. Comply with a Tribal conflict of interest policy to ensure that Commissioners are free
from corruption, undue influence, compromise, and conflicting interests in the conduct of their
business.

7.6.18 The Gaming Commission shall ensure compliance with 25 C.F.R. Part 542 by
formally adopting and making applicable to the Gaming Operation(s) internal control
standards that:

7.6.18.1 Provide a level of control that equals or exceeds those minimum internal control
standards (“MICS”) set forth in 25 C.F.R part 542, as published or as revised by mutual
agreement between the National Indian Gaming Commission and the Tribe;

7.6.18.2 Contain standards for currency transaction reporting that comply with 31 C.F.R.
part 103; and

7.6.18.3 Establish internal control standards for Class II and Class III games that are not
addressed in the MICS, if any.

7.6.18.4 Verify the Gaming Operation is in compliance with the internal control standards
adopted pursuant to this section 7.6.18 by engaging an independent certified public accountant
to perform “Agreed-Upon Procedures” as set forth in 25 C.F.R. § 542.3(f).

7.6.18.5 Authorize the Gaming Commission and the NIGC to monitor and enforce
compliance with the internal control standards adopted pursuant to this section 7.6.18 in the
manner provided for in 25 C.F.R. § 542.3(g). In addition, the NIGC shall, for the purpose of
enforcing compliance with the internal control standards, have the power to:

7.6.18.5.1 Monitor all Class II and Class III gaming on a continuing basis;

7.6.18.5.2 Inspect and examine all premises on which Class II and Class III gaming is
conducted; and

7.6.18.5.3 Demand access to and inspect, examine, photocopy, and audit all papers,
books, and records respecting gross revenues of all Class II and Class III gaming or any other
matters necessary to ensure and enforce compliance with the MICS.

7.6.18.6 Provide that any failure to adopt internal control standards pursuant to this
section 7.6.18, perform Agreed-Upon Procedures pursuant to 7.6.18.4, prevent or obstruct the
exercise of any of the Commission’s powers under Section 7.6.18.5, or comply with the internal
control standards, once adopted, is a violation of this Gaming Act. The Chairman of the
National Indian Gaming Commission shall have the authority to remedy violations of this
Gaming Act under 25 U.S.C. § 2713 and its implementing regulations, and the Tribe shall have
all rights and remedies available thereunder.

7.6.19 Carry out such other duties with respect to the regulation of Gaming Activities on
Tribal Lands as required under Applicable Law, including this Gaming Act, IGRA, and the
Compact, and as the General Council shall direct.

7-10


The Gaming Act
7.9.1.1. To fund tribal government operations or programs;

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

7.9.1.4 To donate to charitable purposes; or

7.9.1.5  Tohelp fund operations of local governmental agencies.

7.9.2 Except for rights to per capita payments, if any, or as set forth below, no Tribal
member shall have any interest or expectation in any funds generated by any Gaming Activity.
All such funds are deemed Tribal funds only and are and shall remain the property of the Tribe
until disbursed, if at all, from the general treasury. The General Council shall retain the sole
discretion as to how such funds are utilized, and once becoming part of the treasury such funds
shall lose any identity as gaming revenues except to the extent necessary to identify them as
such for accounting purposes or to comply with applicable law. Notwithstanding anything
herein to the contrary, if the Tribe elects at any time to make per capita payments to the
members, it shall authorize such payments only upon approval of a plan submitted to the
Secretary of the Interior under 25 U.S.C. § 2710(b)(3). Payments out of general treasury funds
to tribal members under other tribal programs, including those relating to health, welfare,
education, elderly care, and housing, shall not be deemed to be “per capita” payments when
such funds are paid from the Tribe’s general treasury.

SMTC 7.10 Operation of Gaming Establishments

7.10.1 Gaming Facility License. Except to the extent authorized by an agreement
pursuant to the provisions of IGRA or as otherwise permitted by law, Gaming Activities shall
only be conducted in tribally owned, operated and licensed Gaming Facilities pursuant to the
provisions of this Gaming Act, the Compact and other applicable law. Such activities shall be
conducted in accordance with the terms and conditions of the license issued to the Gaming
Facility by the Gaming Commission prior to the conduct of any Gaming Activities therein.

7.10.11. The Tribe shall issue a separate license to each place, facility, or location on
Indian lands where the Tribe elects to allow any gaming activity. Before Gaming Activities can
be conducted in any Gaming Facility, the Gaming Commission shall inspect and license each
Gaming Facility in accordance with this Gaming Act, the Compact and other applicable law.
The Gaming Commission shall also determine and certify that the Gaming Facility and any new
Gaming Facility construction meets the Tribe’s building and safety codes, and any applicable
federal or Compact requirements, and issue a certificate of occupancy to the Gaming Facility as
required under the Compact.

7.10.1.2 The Gaming Facility license shall identify: the name and address of the Gaming
Facility; type of gaming allowed; effective date of the license; name and telephone number of
the Gaming Commission; and such other matters as the Gaming Commission may deem
necessary to the conduct of Gaming Activities therein, or as may be required under a Compact
or other applicable law.

7.10.1.3 The Gaming Facility’s license shall require renewal at intervals as determined by
the Gaming Commission, provided that the valid term for a facility license shall not exceed two

7-12


San Manuel Band of Mission Indians ———
CERTIFICATE OF RESOLUTION

Resolution No. 20/4 - 0] le

GENERAL COUNCIL
OF THE
SAN MANUEL BAND OF MISSION INDIANS

(Approval of Amendments to San Manuel Gaming Act of 1989)

WHEREAS, the San Manuel Band of Mission Indians (“Tribe”) is a
federally recognized Indian tribe;

WHEREAS, the San Manuel General Council is the Tribe’s duly-
authorized governing body;

WHEREAS, the General Council adopted the San Manuel Gaming Act of
1989 (“Act”) on August 31, 1989, which has since been amended on multiple
occasions; and

WHEREAS, in order to remain in compliance with federal law and in
furtherance of the overall best interests of the Tribe, the General Council has
determined it is appropriate to farther amend the Act.

NOW, THEREFORE BE IT RESOLVED, that the Tribe, by and through
its General Council, hereby approves the proposed amendments to the San
Manuel Gaming Act of 1989, as reflected in the proposed version attached
hereto and incorporated herein by reference.

CERTIFICATION

By a vote of the General Council of the San Manuel Band of Mission
Indians at a duly noticed meeting at which a quorum was present, held at
approximately 12:00 p.m. on October 14, 2014, at the Tribal Community
Center on the San Manuel Indian Reservation, the above-recited Resolution
was passed by the General Council following a vote of “16” in favor, “0” against,

and “5” abstentions. ; ;
me,

LYNN VALBUENA
Tribal Chairwoman

Dated: November 12, 2014

073014
26569 Community Center Drive « Highland, CA 92346 * Office: (909) 864-8933 » FAX: (909) 864-3370


The Gaming Act

7.12.23.1 Gaming Commission decisions may be appealed to the San Manuel Tribal Court
by filing a Notice of Appeal with the San Manuel Tribal Court and the Gaming Commission
within twenty (20) days of the issuance date of the Gaming Commission decision. Failure to file
a Notice of Appeal within the time specified herein renders the Gaming Commission decision
unappealable.

7.12.23.2 All decisions of the Tribal Court shall be final.

7.12.23.3 In the event the Tribal Court is not in operation or no longer in existence, parties
may appeal the Gaming Commission’s decision by filing a Notice of Appeal with the Gaming
Commission within twenty (20) days of the issuance date of the Gaming Commission decision.
Failure to request a hearing within the time specified herein renders the Gaming Commission’s
decision unappealable. The Gaming Commission shall transmit the Notice of Appeal to an
independent tribunal within seven (7) days of receipt along with the record created in the
Gaming Commission hearing.

Appeals shall be conducted before an independent tribunal, which shall schedule a hearing
within ninety (90) days of receipt of the Notice of Appeal from the Gaming Commission. The
independent tribunal shall send written notice to each party informing them of the hearing
date, time and location at least thirty (30) days prior to the hearing. All hearings shall be
conducted in accordance with the rules established by the independent tribunal. The decision
of the independent tribunal shall be final.

7.12.24 Effect of Compact. Notwithstanding anything in this Gaming Act to the contrary,
any licensing procedures required under the Compact shall be implemented as provided
therein, and the Gaming Commission may adopt regulations integrating such procedures with
the foregoing.

SMTC 7.13 Application Forms

7.13.1 Notices. Each application form for a Key Employee or a Primary Management
Official, as well as for all other Class A license applicants, unless otherwise specifically
exempted by the Gaming Commission consistent with applicable law, shall contain the notices
set forth in subsections 7.13.1.1 and 7.13.1.2 below:

7.13.1.1 Privacy Act Notice.

In compliance with the Privacy Act of 1974, the following information is provided:
Solicitation of the information on this form [your application for a gaming license and any
renewal thereof] 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 granted a gaming license. The
information will be used by the Gaming Commission and by the National Indian Gaming
Commission (“NIGC”) members and staff who have need for the information in the
performance of their official duties. The information may be disclosed by the Tribe or the
NIGC 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 NIGC in connection with the issuance, denial, 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 Tribe’s being unable to license you for a primary management official or key employee
position, or other position as determined by the Tribe. The disclosure of your Social Security

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San Manuel Band of Mission Indians
Tribal Gaming Commission

OFFICE OF THE COMMISSION

27995 Highland Ave., Suite 301 (909) 863-2150
Highland, CA 92346 (909) 863-2155 Tax

November 13, 2014

Jonodev Chaudhuri, Acting Chair
National Indian Gaming Commission
c/o U.S. Department of Interior

1849 C Street N.W.

Mail Stop #1621

Washington, D.C. 20240

VA 12

Re: Revised Gaming Act
Dear Chairman Chaudhuri,

On November 5, 2014, I sent a letter forwarding a copy of revised Gaming Act for your
approval. This letter is being sent in follow-up to that letter to forward a copy of Certification of

Resolution No. 2014-016, which documents approval by the General Council of the San Manuel
Band of Mission Indians.

Please contact me if you have any questions.

incerely,

eri Poust |
Interim Gaming Commissioner



The Gaming Act

7.6.3 Conduct, or cause to be conducted, such investigations as may be necessary to
determine compliance with applicable laws, including this Gaming Act, or any contracts,
agreements, goods, services, events, incidents, or other matters related to Gaming Activities.

7.6.4 Conduct, or cause to be conducted, background investigations regarding any person
or entity in any way connected with any Gaming Activity and/or the Gaming Operation, and
issue licenses and identification badges to, at minimum, all Key Employees, Primary
Management Officials, and Gaming Resource Suppliers according to requirements at least as
stringent as those established in 25 C.F.R. Parts 556 and 558; provided no Commissioner shall
provide any personal endorsement, recommendation or other support for an applicant, in
accordance with this Gaming Act and the Compact.

7.6.5 Administer oaths or affirmations to witnesses appearing before the Gaming
Commission; hold hearings, sit and act at such times and places, summon persons on Tribal
Lands to attend and testify at such hearings, take testimony, and receive such evidence as the
Gaming Commission deems relevant to fulfill its duties.

7.6.6 Execute agreements necessary to receive comprehensive criminal history and other
background investigation information from other jurisdictions and sources.

7.6.7. Implement and administer a system for investigating, licensing (including license
issuance, renewal, denial, and revocation), and monitoring for the Gaming Facility, employees,
Gaming Contractors, vendors, suppliers, investors, and others connected with Gaming
Activities, as described below, including the licensing of Gaming Facilities, individuals and
entities as required under this Gaming Act, IGRA, or any applicable Compact.

7.6.8 Ensure, monitor, and direct inspections of Gaming Facilities by qualified building
and safety experts in order to comply with the Tribe’s building and safety codes; provide
reports as requested to the State if applicable under the Compact; review reports; and issue a
certificate of occupancy to the Gaming Facility.

7.6.9 Provide a copy of each Gaming Facility license and renewals thereof to the NIGC,
including, at minimum: the Tribe’s name; name and address of the Gaming Facility; type of
gaming allowed; effective date of license; the signature of the tribal official responsible for
issuing the license; and the name and phone number of the Gaming Commission.

7.6.10 Hear and resolve disputes against the Gaming Facility or Gaming Operation, in
accordance with procedures established in this Gaming Act and the Tort Liability Ordinance,
consistent with the Compact.

7.6.11 Hire staff and support services as deemed necessary, subject to the Gaming
Commission budget approved by the Business Committee.

7.6.12 To the extent required, comply with any reporting requirements established under
this Gaming Act, the Compact, IGRA and regulations promulgated thereunder, and other
applicable law.

7.6.13 Develop necessary documentation and protocols, and establish joint cooperative

working relationships with federal, state, and local jurisdictions as necessary to assist in
ensuring the effective regulation of the Tribe’s Gaming Activities.

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The Gaming Act

7.6.20 Carry out such other duties as assigned by the Business Committee of the Tribe,
regardless of whether such duties relate to the regulation of Gaming Activities on Tribal Lands.
Such assignment shall be made through appropriate policy or procedure in order to capitalize
upon certain expertise of the Gaming Commission.

SMTC 7.7 Enforcement

In the event it is determined that a licensee or the Gaming Enterprise has violated Applicable
Law, including any internal control procedures or policy of the Gaming Enterprise, a written
report of such incident shall immediately be made to the Gaming Commission. The
Commission shall then investigate and determine what action should be taken, if any. If action
is required, the Commission shall issue a citation to the Gaming Enterprise, notifying it of the
specific violation(s) or issues, measures which must be taken for correction, and a reasonable
time limit in view of all the circumstances in which such action must be taken. Copies of any
such citation shall simultaneously be served on the Business Committee of the Tribe. The
Commission may enforce such citations by: (a) suspending or revoking the licenses of any
persons found to have violated Applicable Law; or (b) such lesser penalty or other remedy as
the Commission shall determine, including the imposition of fines or sanctions. Nothing
herein shall prevent or prohibit the Gaming Commission from seeking compliance assistance
from local, federal, or state gaming or law enforcement agencies, the Bureau of Indian Affairs,
or the NIGC, particularly but not limited to any instance in which the Gaming Enterprise and
the General Council have failed to correct a violation of Applicable Law.

SMTC 7.8 Permitted Gaming Activities; Regulation of Gaming Activities

7.8.1 Unauthorized Gaming Prohibited. All Gaming Activities on Tribal Lands are
prohibited except as expressly permitted under this Gaming Act.

7.8.1.1 Class I Gaming. Class I Gaming Activities are hereby permitted to the extent
consistent with Tribal custom and practice and provided the General Council is given at least
seven (7) days prior notice in writing of any intention to engage in such gaming. The General
Council may prohibit any conduct that is claimed to be Class I gaming if the Council finds that
such conduct is not in accordance with Tribal customs or practices or violates IGRA or any
other law.

7.8.1.2 Class II and Class III Gaming. Class II and Class III gaming on Tribal Lands
are hereby authorized as permitted under Applicable Law, provided the Tribe has the sole
proprietary interest in and responsibility for the conduct of any Gaming Operation. Nothing
herein shall prohibit the Tribe from engaging the services of non-tribal persons as employees
or engaging any person or entity to assist the Tribe in the management of a Gaming Activity
pursuant to a management agreement entered into under the provisions of IGRA or any other
applicable law. Class III gaming shall be conducted in accordance with a Compact, or any
alternative thereto as provided by IGRA.

SMTC 7.9 Use of Gaming Revenues

7.9.1 Except as provided for under the terms of an agreement pursuant to the provisions
of IGRA or as otherwise permitted by law, all net revenues generated from any Class II or Class
Ill Gaming Activity are the property of the Tribe. Net revenues from Class II and Class III
Gaming Activities shall only be used for the following purposes:

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