(B) Currently and for the previous ten years, business and
employment positions held, ownership interests in those businesses, business and
residence addresses, and driver’s license numbers;

(C) The names and current addresses of at least three personal
references, including one (1) personal reference who was acquainted with the applicant
during each period of residence listed in Subsection (c)(3)(B) of this Section;

(D) — Current business and home telephone numbers;

(E) _ A description of any existing and previous business
relationships with Indian tribes, including ownership interests in those businesses, and a
description of any potential or actual conflict of interest between those businesses and
Indian tribes;

(F) A description of any existing and previous business
relationships in the gaming industry, including but not limited to ownership interests in
those businesses;

(G) The name and address of any licensing or regulatory
agency with which the applicant has filed an application for a License or permit related to
gaming, whether or not the License or permit was granted;

(H) _ For each felony charge for which there is an ongoing
prosecution or a conviction, the charge, the date of the charge, the name and address of
the court involved, and the disposition, if any;

(D For each misdemeanor charge for which there is an
ongoing prosecution or conviction (excluding minor traffic charges), the charge, the date
of the charge, the name and address of the court involved, and the disposition, if any;

(J) For each criminal charge (excluding minor traffic charges),
whether or not there is a conviction, if the criminal charge is not otherwise listed pursuant
to Subsection (c)(3)(H) or (c)(3)(1) of this Section, the criminal charge, the date of the
charge, the name and address of the court involved, and the disposition, if any;

(K) | The name and address of any licensing or regulatory
agency with which the person has filed an application for an occupational license or
permit, as an applicant, Principal, Primary Management Official, or Key Employee, and
whether or not the license or permit was granted;

(L) A current photograph;

(M) _ Fingerprints taken by the Commission;

16


(C) _ The arbitration panel shall permit the parties to engage in
reasonable discovery and shall establish other procedures to ensure a full, fair, and
expeditious hearing on the claim; and

(D) The award of the arbitration panel shall be final and
binding.

(c) Posting of Notice. The Gaming Enterprise shall prominently post a notice,
bearing the title, “PATRON DISPUTE AND VISITOR CLAIMS PROCEDURES,” to
inform patrons and visitors of the remedies set forth in this Section, and to set forth the
language of Subsection (a) and (b) of this Section in every room of every Gaming
Facility where Gaming Activity occurs.

SECTION 17. SOVEREIGN IMMUNITY.
Nothing in this Ordinance waives the sovereign immunity of the Pueblo, including the

Gaming Enterprise and the Commission, except to the extent explicitly set forth in
Section 15(f) and Section 16 of this Ordinance.

SECTION 18. SEVERABILITY.
In the event that any provision in this Ordinance or the application thereof to any person
or circumstance is held invalid or unenforceable by a court of competent jurisdiction,
such holding shall not invalidate or render unenforceable any other provision of this
Ordinance.
SECTION 19. AGENT FOR SERVICE OF PROCESS
For purposes of service of process, the agent shall be:

Governor

Pueblo of Tesuque

Route 42, Box 360-T

Santa Fe, New Mexico, 87506
SECTION 20. EFFECTIVE DATE.

This Ordinance shall be effective on the date approved by the chairman of the NIGC.

37


(i) To reduce the amount wagered or cancel the bet after acquiring knowledge
of the outcome of a Game of Chance or other event that is the subject of the bet,
including pinching bets.

G) To manipulate, with the intent to cheat, any component of an electronic
Game of Chance or Gaming Device in a manner contrary to the designed and normal
operational purpose for the component, including, but not limited to manipulating a
Gaming Device, with knowledge that the manipulation affects the outcome of the game
or with knowledge of any event that affects the outcome of the game.

(k) To knowingly use other than coins or tokens approved by the Commission or
other lawful coin or legal tender of the United States, or to use a coin not of the same
denomination as the coin intended to be used in the Gaming Device.

(1) To possess, with the intent to use, any device to assist in projecting the
outcome of a Game of Chance, in keeping track of the cards played. in analyzing the
probability of the occurrence of an event relating to the Game, or in analyzing the
strategy for playing or betting to be used in the Game.

(m) To use any device or means to cheat, or to possess any such device while at a
Gaming Facility.

(n) To knowingly entice or induce another to go to any place where Games of
Chance are being conducted or operated in violation of the provisions of this Ordinance
or regulations promulgated hereunder, IGRA, the Compact, or other applicable law and
regulation with the intent that the other person play or participate in those Games.

(0) To willfully obstruct any Commission investigation.

SECTION 15. VIOLATIONS, JURISDICTION, ENFORCEMENT OF
SUBPOENAS, LIMITED WAIVER OF SOVEREIGN IMMUNITY.

(a) Criminal Penalties.

(1) Except as otherwise provided in Subsection (b) of this Section or
federal law, any Non-Member who violates any provision of this Ordinance shall be
guilty of a criminal offense punishable by a fine, or by imprisonment, or both, the amount
of such fine and the length of such imprisonment to be up to the maximum amount and
length that federal law allows Indian tribes to impose.

(2) Pursuant to the Compact, the State may exercise concurrent
jurisdiction with the United States to prosecute violations by a Non-Member of any State
gambling law on the Reservation, any other crime against the Gaming Enterprise or any
employee thereof, or that occurs on the premises of a Gaming Facility. Immediately upon
becoming aware of any suspected crime by a Non-Member, the Gaming Enterprise or the

33


place at a Gaming Facility, including the issuance of Licenses to Gaming Facilities, and
the issuance of Temporary Licenses and other Licenses to Persons, and the verification of
internal controls, as required by this Ordinance, IGRA, and the Compact or equivalent
procedures prescribed by IGRA;

(N) | To keep minutes, records, and books in which shall be kept
a true, faithful, and correct record of all Commission proceedings;

(OQ) To require the Gaming Enterprise to provide a copy of the
annual audit and certified financial statement, by an independent certified public
accountant licensed by the State, covering all financial activities of the Gaming
Operation;

(P) To hire and fire employees of the Commission as necessary
to discharge the Commission’s duties, provided that all Commission employees shall be
required to submit to and satisfactorily pass a background investigation;

(Q) _ To investigate any suspicion of wrongdoing related to any
activity conducted at a Gaming Facility, to record and investigate unusual occurrences
related to Class II and Class III Gaming at a Gaming Facility, and to cause persons who
may be involved in illegal acts to be detained for the purpose of notifying appropriate law
enforcement authorities;

(R) To conduct or cause to be conducted an investigation as
may be necessary to determine, in connection with any Gaming Activity conducted at a
Gaming Facility, compliance with applicable law, including this Ordinance;

(S) To maintain a compilation of all laws and regulations
concerning the operation of Games of Chance on the Reservation;

(T) _ To take such action as may be reasonable and appropriate
to enforce this Ordinance and the rules and regulations of the Commission; and

(U) To act as the tribal gaming agency that is responsible for
actions of the Pueblo set forth in the Compact.

(2) | The Commission shall have the following powers and duties,
which may not be delegated:

(A) _ To hear appeals in accordance with this Ordinance;

(B) To certify Management Contracts in accordance with this
Ordinance;

10


concerning a Principal, Key Employee, or Primary Management Official who is the
subject of an investigative report. The request shall suspend the 30 day period under
Subsection (i)(1) of this Section until the Chairman of the NIGC and/or State Gaming
Representative receives the additional information; however, in no event shall the request
for additional information by the State Gaming Representative extend the 30 day period
under Subsection (i)(1) of this Section for a total period of more than 60 days from the
date the State Gaming Representative received the investigative report.

(3) If, within the 30-day period described above, the NIGC or State
Gaming Representative provides the Commission with a statement itemizing objections
to the issuance of a License to a Principal, Key Employee, or Primary Management
Official for whom the Commission has provided an application and investigative report,
the Commission shall reconsider the application, taking into account the objections
itemized by the NIGC and/or State Gaming Representative, and shall make a final
decision whether to issue a License to the applicant.

G) Duration and Renewal of Licenses. A License shall be effective for a period
of two years from the date of its issuance; however, a Licensee that has applied timely for
a License renewal may continue to be employed or engaged or to conduct business under
an expired License until the Commission takes final action on the renewal application.
Applicants seeking renewal of a License shall pay a renewal fee and update information,
as requested, on the appropriate renewal forms, but, in the discretion of the Commission,
may not be required to resubmit historical data already available to the Commission.

SECTION 9. MANAGEMENT CONTRACT.

(a) Hiring of Management Contractor. The Gaming Enterprise may hire and
employ a Management Contractor to manage all or part of the Gaming Operation. The
Management Contractor shall be hired pursuant to a written Management Contract. A
Management Contract must conform to the requirements of this Ordinance and IGRA.
The Gaming Enterprise shall provide the Commission with a copy of the Management
Contract.

(b) License Required Upon Approval of Management Contract. Upon

certification by the Commission and approval of any Management Contract by the
Council and the NIGC, all Principals must obtain a License from the Commission within
60 days.

({c) Standards for Approval. The Management Contract shall contain provisions
that address the following:

(1) __ the adoption and maintenance of adequate accounting procedures

and verifiable financial reports to be prepared and submitted to the Council on a monthly
basis;

20


&
72.
PUEBLO OF TESUQUE GAMING ORDINANCE <.

Be it enacted by the Tribal Council of the Pueblo of Tesuque, that the Pueblo of Tesuque
Gaming Ordinance is hereby amended as follows:

SECTION 1. NAME. This Ordinance may be cited as the Pueblo of Tesuque Gaming
Ordinance.

SECTION 2. DEFINITIONS.
(a) When used in this Ordinance, unless the context otherwise requires, the term:

qd) “Class II Gaming” means all forms of gaming as defined in 25
U.S.C. § 2703(7)(A) and 25 C.F.R. § 502.3.

(2) “Class II] Gaming” means all forms of gaming as defined in 25
U.S.C. § 2703(8) and 25 C.F.R. § 502.4.

(3) “Commission” means the Pueblo of Tesuque Gaming Commission.

(4) “Compact” means a tribal-state compact entered into and in effect
between the Pueblo and the State pursuant to IGRA.

(5) “Council” means the Pueblo of Tesuque Tribal Council, the
governing body of the Pueblo.

(6) “Executive Director” means the executive director of the
Commission.

(7) “Games of Chance” means Class II Gaming and Class III Gaming,
but shall not include social games played solely for prizes of minimal value, or traditional
forms of Indian gaming engaged in by individuals as part of, or in connection with, tribal
ceremonies or celebrations.

(8) “Gaming Activity” means the conduct or act of conducting Class II
and Class III Games of Chance.

(9) “Gaming Device” means a Gaming Machine or associated
equipment, and includes a system for processing information that can alter the normal
criteria of random selection that affects the operation of a Class III Game of Chance or
determines the outcome of a Class III Game of Chance, but does not include a system or
device that affects a Class III Game of Chance solely by stopping its operation so that the
outcome remains undetermined.


(c) Revocation. After notice and a hearing before the Commission pursuant
to this Section, the Commission may revoke the Licensee’s License. This sanction is in
addition to any other sanction that may be imposed under this Ordinance.

(d) Notice; Immediate Suspension. Proceedings to suspend or revoke a
License shall be initiated by the Commission by serving a complaint upon the Licensee.
If, in the Commission’s judgment, the public interest, the effective regulation and control
of gaming, or the safe, fair, and honest operation and conduct of Games of Chance so
requires, the Commission may suspend a License immediately pending the holding of a
hearing. The immediate suspension shall take effect upon service of the complaint upon
the Licensee.

(e) Contents of Complaint: Service. The complaint shall set forth the
violations of this Ordinance that the Commission has reasonable cause to believe the
Licensee has committed. The Commission shall cause the complaint and notice of
hearing to be served personally upon the Licensee or any agent of the Licensee, or to be
sent by certified mail to the Licensee at the address shown upon the License, with a copy
sent to the Council and the Gaming Enterprise. The complaint shall notify the Licensee of
the place and date of a hearing, such date to be not less than 20 days after the Licensee
receives a copy of the complaint.

(f) Answer; Subpoenas. Upon receipt of a complaint and notice of hearing,
the Licensee shall answer the complaint and shall inform the Commission whether the
Licensee desires to present evidence. At the request of the Licensee for good cause
shown, or on its own motion, the Commission shall issue subpoenas for the attendance of
witnesses and for the production of papers, books, records, and documents.

(g) Hearing; Written Decision. The hearing shall be held and concluded
without unreasonable delay. The Commission shall hear the matter and make a decision
in writing, including findings of fact in support of its decision. The Commission shall
issue its decision within 30 days of the hearing. The Licensee shall be informed
immediately of the decision and, in the event of a suspension, revocation, or
reinstatement of his or her License, of the effective date of the suspension, revocation, or
reinstatement. The Commission shall notify the NIGC, the Gaming Enterprise, the
Council, and the State Gaming Representative of its decision.

(h) Appeal. The decision of the Commission suspending or revoking a
License may be appealed to the Tribal Court. Written notice of the appeal must be filed
with the Tribal Court and served on the Commission within ten days of the Commission’s
decision. The Tribal Court shall decide the appeal based on the record before the
Commission, and shall state in writing the reasons for its decision.

(i Surrender of License. When the Commission suspends or revokes a
License, the Licensee shall surrender the License to the Commission on or before the
effective date of the suspension or revocation. No License shall be valid as of the

31


(N) _ The fee required by the Commission; and

(O) Any other information, including tax returns, financial
statements, or other financial information, that the Commission deems relevant.

(4) Inconducting a background investigation, the Commission and its
agents shall promise to keep confidential the identity of each person interviewed in the
course of the investigation.

(5) Background checks of applicants will be performed pursuant to the
following procedures:

(A) | The Commission will provide applications to applicants
upon request, and shall collect and maintain the applications;

(B) The Commission shall investigate or cause to be
investigated the information provided in the applications. The investigation shall include:
(i) contacting persons or entities identified in the application and verifying by written or
oral communication that the information contained in the application is accurate; (ii)
interviewing a sufficient number of knowledgeable people, such as former employers,
partners, business associates, and others referred to in the application, to provide a basis
for the Commission to make a determination on whether the applicant meets applicable
eligibility requirements; (iii) reviewing relevant financial records of the applicant for the
three years preceding the application; and (iv) contacting any state, federal, or other
government agency that is referred to in the application.

(C) |The Commission shall document any information obtained
that calls into question whether the applicant meets the eligibility requirements under this
Ordinance. The disposition of these problem areas shall be documented in detail,
indicating the follow-up investigations performed on the problem areas and the result of
the investigations.

(D) The Commission will review the results of the investigation
for all persons subject to licensing, including a determination as to the scope of the
investigation and whether sufficient information was obtained and verified. If the
information is found to be insufficient, the Commission will perform additional
investigations.

(E) Once the investigation is complete, the Commission will
decide whether the applicant meets the eligibility requirements under the Ordinance.

(F) __Inconducting a background investigation and review, the

Commission and its agents and all persons privy to the information shall keep
confidential the identity of each person interviewed in the course of investigation.

17


(2) Daily cash transactions for Gaming Activity at each Gaming
Facility, including but not limited to transactions relating to each gaming table bank,
game dropbox, and gaming room bank;

(3) All returned checks, hold checks, or other similar credit
instruments.,

(4) Individual and statistical game records (except card games) to
reflect statistical drop and statistical win; for electronic, computer, or other
technologically assisted games, analytic reports that show the total amount of cash
wagered and the total amount of prizes won;

(5) Contracts, correspondence, and other transaction documents
relating to all vendors and contractors;

(6) Records of all Commission enforcement activities;

(7) Audits of the Gaming Operation prepared by or on behalf of the
Pueblo or the Gaming Enterprise;

(8) Personnel information on all Gaming Employees, including
rotation sheets, hours worked, employee profiles, and background checks, if in the
possession of the Gaming Enterprise.

(c) Allowable Operating Expenses. No item of expense shall be incurred or paid
in connection with operating or conducting any Gaming Activity by a Gaming Operation
except a bona fide expense in a reasonable amount. Expenses may be incurred for the
items and purposes that a similar enterprise would incur or pay under generally
acceptable accounting principles, including but not limited to the following:

qd) the purchase of goods, wares, and merchandise furnished;

(2) services rendered by a Management Contractor (including
repayment of development fees and construction costs, if any) for maintenance or reports
of gaming and related equipment, and for operating or conducting Games of Chance;

(3) regulatory fees required to be paid to the Pueblo, the NIGC, or the
State under the Compact;

(4) rent, janitorial, and security services;
(5) legal and accounting fees;

(6) taxes and license fees;

23


(h) Report to the NIGC and the State Gaming Representative.

qd) Pursuant to the procedures set out in Subsection (g) of this Section,
the Commission shall prepare and forward to the NIGC and to the State Gaming
Representative an investigative report on each background investigation on each
applicant for a License. The investigative report shall include all of the following:
(A) __ steps taken in conducting the background investigation;
(B) results obtained;
(C) _ conclusions reached; and

(D) _ the bases for those conclusions.

(2) The Commission shall submit with the report a copy of the
eligibility determination made under Subsection (e) of this Section.

(3) Ifa License is not issued to an applicant, the Commission:

(A) — Shall notify the NIGC and State Gaming Representative;
and

(B) May forward copies of its eligibility determination and
investigative report (if any) to the NIGC for inclusion in the Indian Gaming Individuals
Records System.

(4) With respect to Principals, Key Employees, or Primary
Management Officials, the Commission shall retain applications for employment and
reports (if any) of background investigations for no less than three years from the date of
termination of employment.

(i) Granting of a Gaming License.

(1) If, within a 30 day period after the NIGC receives an investigative
report, the NIGC notifies the Commission that it has no objection to the issuance of a
License, and the State Gaming Representative has no objections within 30 days following
its receipt of an investigative report, the Commission may issue a License to the
applicant.

(2) | The Commission shall respond to a request for additional
information from the Chairman of the NIGC or the State Gaming Representative

19


effective date of the suspension or revocation, whether surrendered or not, or whether the
Commission’s decision is appealed or not.

0) Additional Sanctions. Upon its determination to suspend or revoke a
License, the Commission, in addition to any other penalties that may be imposed, may
declare the Licensee ineligible to operate or conduct Games of Chance, to participate,
directly or indirectly, in the operation or conduct of Games of Chance, or to apply for a
License for a period up to 12 months.

SECTION 14. PROHIBITED ACTS. In addition to any other act prohibited by this
Ordinance, it shall be a violation of this Ordinance for any person:

(a) To conduct or participate in any Class IJ or Class I] Gaming on the
Reservation other than at an authorized and licensed Gaming Facility.

(b) To receive, distribute, apply, or divert any property, funds, proceeds, or other
assets of the Gaming Operation to or for the benefit of any person except as authorized by
this Ordinance, IGRA, or the Compact.

(c) To tamper with any Gaming Device or Gaming Equipment used in the
conduct of any Gaming Activity with the intent to cause any person to win or lose any
wager other than in accordance with the publicly announced rules of the Gaming
Enterprise.

(d) To do any other act in connection with any Gaming Activity with the intent
to affect the outcome of any wager other than in accordance with the publicly announced
tules of the Gaming Enterprise.

(ce) To alter or misrepresent the outcome of any other event on which wagers
have been made after the outcome is made sure but before it is revealed to the players.

(f) To place, increase, or decrease a bet or to determine the course of play after
acquiring knowledge, not available to all players, of the outcome of a Game of Chance or
any event that affects the outcome of the Game of Chance or which is the subject of the
bet or to aid anyone in acquiring such knowledge for the purpose of placing, increasing or
deceasing a bet or determining the course of play contingent upon that event or outcome.

(g) To claim, collect or take, or attempt to claim, collect or take, money or
anything of value in or from a Gaming Device or Gaming Equipment, with intent to
defraud, without having made a wager thereon, or to claim, collect or take an amount
greater than the amount won.

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

outcome of the game or other event that is the subject of the bet, including past-posting
and pressing bets.

32


(4) Each Gaming Employee;
(5) Each Management Contractor and Principal;

(6) Any Person proposing to provide, sell, or lease any Gaming
Device, Gaming Equipment, or Gaming Services to a Gaming Enterprise or Management
Contractor;

(7) Any Person proposing to sell, lease, or provide Non-Gaming
Services to a Gaming Enterprise or Management Contractor; and

(8) Any other Person who is directly involved in Gaming Activity that
the Commission may require to be licensed to protect the integrity of the Gaming
Operation and Gaming Activity and the revenues therefrom.

(b) License Application. Each applicant for a License shall file with the
Commission a written application in the form prescribed by the Commission, along with
the applicant’s fingerprint card, current photograph, and the fee required by the
Commission.

(i) The following notice shall be placed on the application form for all
employees before that form is filled out by an applicant:

In compliance with the Privacy Act of 1974, the following information is
provided: Solicitation of the information on this form is authorized by 25
U.S.C. §§ 2701, et seq. The purpose of the requested information is to
determine the eligibility of individuals to be employed in a gaming
operation. The information will be used by National Indian Gaming
Commission members and staff who have need for the information in the
performance of their official duties. The information may be disclosed to
appropriate Federal, Tribal, State, local, or foreign law enforcement and
regulatory agencies when relevant to civil, criminal, or regulatory
investigation or prosecution or when pursuant to a requirement by a tribe
or the National Indian Gaming Commission in connection with the hiring
or firing of an employee, the issuance or revocation of a gaming license,
or investigations of activities while associated with a tribe or a gaming
operation. Failure to consent to the disclosures indicated in this notice will
result in a tribe’s being unable to hire you in a primary management
official or key employee position. The disclosure of your Social Security
Number (SSN) is voluntary. However, failure to supply a SSN may result
in errors in processing your application.

(2) The Commission shall notify in writing all existing Key

Employees, Primary Management Officials and Gaming Employees who have not filled
out an application containing a Privacy Act notice that they shall either:

14


(6) promote tribal economic development and tribal self-sufficiency;

(7) regulate the operation of all activity taking place within any
Gaming Facility;

(8) protect the public’s health and safety; and

(9) ensure that all Gaming Activity taking place within a Gaming
Facility is conducted in compliance with applicable law.

(b) Construction. This Ordinance is enacted as an exercise of the sovereign
power of the Pueblo and shall be liberally construed to accomplish its purposes and to
comply with applicable federal law, including IGRA, and the Compact.

SECTION 4. GAMING POLICY.

(a) Games of Chance Prohibited. No Person may operate or conduct any Games
of Chance within the Reservation except in accordance with the Ordinance.

(b) Ownership of Gaming Enterprise. The Pueblo shall have the sole proprietary
interest in and responsibility for all Gaming Activity on the Reservation.

(c) Protection of the Environment, Public and Employee Safety, and Property.
The Pueblo shall construct, maintain, and operate all Gaming Facilities, and all activities
taking place at a Gaming Facility shall be conducted in a manner that adequately protects
the environment and the public health and safety.

(d) Licensing Procedures. The Commission shall adopt and strictly enforce
licensing procedures and license all Persons involved in Class II Gaming and Class III
Gaming Activity in accordance with IGRA, the Compact, and this Ordinance.

(e) Providers of Class III Gaming Equipment. The Pueblo shall ensure that any
Gaming Machines, Gaming Devices, Gaming Equipment, or supplies to be used in
conducting Class III Gaming shall comply with the standards imposed by the State of
Nevada on Class III Gaming Machines, Gaming Devices, Gaming Equipment, or
supplies.

SECTION 5. PUEBLO OF TESUQUE GAMING COMMISSION.

(a) Establishment. The Pueblo of Tesuque Gaming Commission is hereby
established as an agency of the Pueblo.


(21) The Commission shall certify annually to the State Gaming
Representative that the Commission has met its regulatory obligations under the Compact
in accordance with the Compact.

(22) The Gaming Enterprise will provide annually to the State Gaming
Representative a certificate of insurance showing that it is maintaining in effect policies
of liability insurance insuring the Gaming Enterprise, the Pueblo, and their agents and
employees against claims, demands, or liability for bodily injury and property damages
brought by a patron or visitor arising from an occurrence described in the Compact, and
that the policies shall provide bodily injury and property damage coverage in an amount
required by the Compact and include a provision under which the insurer agrees not to
assert the defense of sovereign immunity on behalf of the insured up to the limits of such
coverage, provided that such limits of liability insurance coverage shall be subject to
increase or decrease as may be required by the Compact.

(23) The Gaming Enterprise shall not operate more than two separate
gaming facilities on the Reservation.

{b) Class II] Gaming to be Conducted in Accordance with Compact. Any Class
III Gaming activities to be conducted by the Gaming Enterprise shall be conducted in
accordance with the Compact. If there is a conflict between this Ordinance and the
Compact, then the Compact shall control; however, if there is a conflict between the
Compact and IGRA or other federal law, then IGRA or other federal Jaw shall control.

(c) Lapse of Compact. Ifthe Compact no longer requires any provision in this
Section, then that provision shall lapse unless the Council by resolution or the
Commission by regulation continues the provision in force.

SECTION 12. MISCELLEANOUS

(a) Prohibition Against Employees Engaging in Gaming. No Key Employee,

Primary Management Official, or Principal may participate in Games of Chance
conducted by the Gaming Enterprise.

(b) Preference in Employment. Enrolled members of the Pueblo and their
spouses and children shall receive preference in employment and advancement if they
meet the qualifications for employment with the Gaming Enterprise or the Management
Contractor. If there are no qualified persons from among the enrolled members of the
Pueblo and their spouses and children to fill any available positions, the Gaming
Enterprise or the Management Contractor shall hire such qualified persons as are
available, but shal! give preference to qualified enrolled members of other Indian tribes.

(c) Regulation of Food & Beverage, Alcohol, and Cigarettes. The Council,
rather than the Commission, shall regulate, through other administrative agencies, all
aspects relating to food and beverage, alcohol, and cigarettes in a Gaming Facility.

29


(3) The Gaming Enterprise shall meet standards and requirements
equivalent to or more stringent than those in the Fair Labor Standards Act of 1938, the
Occupational Safety and Health Act of 1970, and other federal laws generally applicable
to Indian tribes relating to wages, hours and conditions of work, and the regulations
issued thereunder; however, the imposition of these standards shall not be construed as a
submission by the Pueblo to federal jurisdiction under those laws or as creating under
Pueblo law any causes of action available to any person under federal laws.

(4) | The Gaming Enterprise shall pay workers on any construction
project involving a Gaming Facility to be used for the conduct of Class II] Gaming or
related structure, which is funded in whole or part by federal funds, wages meeting or
exceeding the standards established for the State under the federal Davis-Bacon Act.

(5) | The Gaming Enterprise and any Management Contractor shall not
discriminate in the employment of persons at the Gaming Facility on the grounds of race,
color, national origin, gender, sexual orientation, age, or handicap; except that the Pueblo,
the Gaming Enterprise, and Management Contractor shall provide for Pueblo member
and other Indian preference in employment in any Gaming Activity as set forth in this
Ordinance, consistent with Title VII of the Civil Rights Act of 1964, 42 U.S.C. §§ 2000e
et seq.

(6) The Gaming Enterprise shall provide employment benefits to
employees of the Gaming Operation, including but not limited to sick leave, life
insurance, paid annual leave, medical and dental insurance, unemployment and workers’
compensation insurance through programs offering benefits at least as favorable as those
provided by comparable programs of the State, and the Pueblo shall ensure that these
programs afford the employees due process of law, a means to appeal an adverse decision
of an insurance carrier to the Tribal Court, and a timely resolution of the appeal. The
Gaming Enterprise shall ensure in any policy covering any program that the insurance
carrier cannot raise the defense of sovereign immunity.

(7) The Gaming Enterprise shall provide a grievance process for
employees of a Gaming Operation in cases of disciplinary or punitive action taken
against an employee that includes a process for appeals to persons of greater authority
than the immediate supervisor of the employee.

(8) The Gaming Enterprise shall allow inspectors from the New
Mexico Department of Environment or the United States Indian Health Service to inspect
the food service operations of a Gaming Facility where Class III Gaming is conducted
during the normal business hours of the Gaming Facility to assure that standards and
requirements equivalent to the New Mexico Food Service Sanitation Act are maintained.

(9) | The Gaming Enterprise shall not cash for patrons any paycheck or

any type of government assistance check, including Social Security, TANF, pension, and
other similar checks.

26


(i) Bingo caller;

(ii) Counting room supervisor;

(iit) Chief of security;

(iv) | Custodian of gaming supplies or cash;
(v) Floor manager;

(vi) Pit boss;

(vii) Dealer;

(viii) Croupier;

(ix) | Approver of credit; or

(x) Custodian of Gaming Devices, including persons
with access to cash and accounting records within Gaming Devices;

(B) _ Ifnot otherwise included, any other person employed in the
Gaming Operation whose total cash compensation is in excess of $50,000 per year; or

(C) — Ifnot otherwise included, the four most highly
compensated persons employed in the Gaming Operation.

(21) “License” means a license duly issued by the Commission to any
Person required to be licensed under this Ordinance.

(22) “Licensee” means any Person who has been duly licensed by the
Commission.

(23) “Management Contract” means a contract within the meaning of
25 U.S.C. §§ 2701(d)(9) and 2711 and as defined in 25 C.F.R. § 502.14.

(24) “Management Contractor” means any person or entity that has
entered into a Management Contract.

(25) “NIGC” means the National Indian Gaming Commission
established by IGRA.


(10) “Gaming Employee” means any natural person employed in the
Gaming Operation (other than a Key Employee or a Primary Management Official)
whose duties are directly connected with Gaming Activity or the assets therefrom, or who
is regularly required to work in a restricted area of a Gaming Facility, but does not
include bartenders, cocktail servers, food and beverage personnel, waitresses,
administrative personnel, janitors, or any other non-gaming personnel.

(11) “Gaming Enterprise” means a corporation or other business entity
that is wholly owned by the Pueblo and authorized by the Council to conduct and operate
Games of Chance on the Reservation.

(12) “Gaming Equipment” means any equipment, device, or
contrivance, other than a Gaming Device, used to conduct Games of Chance.

(13) “Gaming Facility” means the buildings or structures in which
Gaming Activity is operated on the Reservation pursuant to this Ordinance.

(14) “Gaming Machine” means a mechanical, electromechanical, or
electronic contrivance or machine that, upon insertion of a coin, token, or similar object,
or upon payment of any consideration, is available to play or operate a Class III Game of
Chance, whether the payoff is made automatically from the Gaming Machine or in any
other manner.

(15) “Gaming Operation” means the division, department, or unit of a
Gaming Enterprise that is responsible for receiving or disbursing the revenues, issuing
the prizes, and paying the expenses in connection with the conduct of Gaming Activity.
For purposes of the Ordinance, unless the context dictates otherwise, a Gaming Operation
includes any Management Contractor having a Management Contract.

(16) “Gaming Services” means any goods, services, or concessions in a
contract amount in excess of $25,000 annually, except legal and accounting services,
provided directly in connection with the conduct of Gaming Activity.

(17) “Governor” means the Governor of the Pueblo.

(18) “Gross Receipts” means the total amount of money or the value of
other consideration received from conduct of Gaming Activity.

(19) “IGRA” means the Indian Gaming Regulatory Act of 1988, 25
U.S.C. §§ 2701-2721, and its implementing regulations.

(20) “Key Employee” means:

(A) | A person who performs one or more of the following
functions:


(A) Complete a new application form that contains the Privacy
Act notice; or

(B) Sign a statement that contains the Privacy Act notice and
consent to the routine uses described in that notice.

(3) The following notice shall be placed on the application form for all
employees before that form is filled out by an applicant:

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

(4) | The Commission shall notify in writing all existing Key
Employees, Primary Management Officials and Gaming Employees who have not filled
out an application containing a notice regarding false statements that they shall either:

(A) Complete a new application form that contains a notice
regarding false statements; or

(B) Sign a statement that contains the notice regarding false
statements.

(c) Background Investigations.

QQ) Upon receipt of a completed application and the required fee, the
Commission shall conduct or cause to be conducted a background investigation to ensure
that the applicant is qualified for licensing.

(2) The background investigation shall be at least as stringent as is
required by the Compact and 25 C.F.R. Parts 537 and 556, and shall provide all available
information necessary to the determination required under 25 C.F.R. § 558.2. In
particular, the Commission shall cause a thorough criminal history check to be made of
each applicant, by having either the State or the NIGC process the applicant’s fingerprint
card through the Federal Bureau of Investigation.

(3) | The Commission shall request from each applicant, and from each
Gaming Employee, Principal, Primary Management Official, and Key Employee of each
applicant, all of the following information:

(A) _ Full name, other names used (oral or written), social

security number, birth date, place of birth, citizenship, gender, and all languages spoken
or written;

15


(33) “Principal” means any “person having a direct or indirect financial
interest in a Management Contract” as defined in 25 C.F.R. § 502.17, and any “person
having management responsibility for a Management Contract” as defined in 25 C.F.R. §
$02.18.

(34) “Pueblo” means the Pueblo of Tesuque, a federally recognized
Indian tribe.

(35) “Reservation” means all lands within the exterior boundaries of the
Pueblo of Tesuque Indian Reservation and its confirmed land grants from prior
sovereigns and any lands to which title is held in trust by the United States for the benefit
of the Pueblo or a member thereof and held by the Pueblo subject to a restriction by the
United States against alienation, and over which lands the Pueblo exercises governmental
power.

(36) “State” means the State of New Mexico.

(37) “State Gaming Representative” means the person or agency
designated by the State to be responsible for actions of the State set out in the Compact.

(38) “Temporary License” means a license for no longer than 90 days
issued by the Commission under this Ordinance.

(39) “Tribal Court” means the Pueblo of Tesuque Tribal Court.
SECTION 3. PURPOSES.
(a) Purpose. The purposes of this Ordinance are to:

() make lawful the operation, conduct, and playing of Games of
Chance on the Reservation;

(2) ensure that Games of Chance are conducted in a fair and honest
manner;

(3) afford patrons a fair chance to win Games of Chance in accordance
with the nature and rules of the games;

(4) generate revenue to fund tribal governmental operations and
programs;

(5) promote the health, education, and welfare of the Pueblo and its
members;


(2) access of the Commission to the Gaming Operation and
permission for the Commission to verify the daily gross revenues and income made from
Gaming Activity.

(3) a minimum guaranteed payment to the Pueblo, which payment
must be made prior to retirement of any development and construction costs;

(4) an agreed ceiling for the repayment of development and
construction costs;

(5)  acontract term not to exceed five years, except that the Gaming
Enterprise may authorize a contract term that exceeds five years but does not exceed
seven years if the Gaming Enterprise is satisfied that the investment required and the
income projections for the Gaming Operation require the additional time;

(6) grounds and procedures for terminating the contract;

(7) the Management Contractor’s lack of authority to waive the
Gaming Enterprise’s or the Pueblo’s sovereign immunity without a duly passed
resolution of the Council and the Gaming Enterprise on a contract by contract basis;

(8) all Gaming Activity covered by the Management Contract will be
conducted in accordance with this Ordinance, the Compact, if applicable, and IGRA; and

(9) all other provisions required by 25 C.F.R. § 531.1.

(d) Management Contract Fees. The Management Contract may provide for a
fee based upon a percentage of the Net Revenues of the Gaming Operation. The fee shall
not exceed 30% of the Net Revenues, except that the Gaming Enterprise, subject to the
approval of the Council, may approve a Management Contract providing for a fee that
exceeds 30% but not more than 40% of the Net Revenues of a Gaming Activity if the
capital investment required and income projections for the Gaming Activity require the
additional fee.

(e) Grounds for Disapproval. The Commission shall not certify any
Management Contract if it determines that:

(1) The Management Contractor, or any Principal, Primary
Management Official, or Key Employee of the Management Contractor, is not licensed or

is ineligible to be licensed; or

(2) A trustee, exercising the skill and diligence that a trustee is
commonly held to, would not approve the Management Contract.

21


ONAL Ivy
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December 28, 2007

VIA FACSIMILE AND US MAIL

Charles J. Dorame

Governor

Pueblo of Tesuque

Route 42 Box 360-T

Santa Fe, New Mexico 87506
Fax: (505) 983-2667

RE: Pueblo of Tesuque Gaming Ordinance Amendment

Dear Governor Dorame:

This letter is in response to your request for the National Indian Gaming Commission (NIGC)
to review and approve an amendment to the Pueblo of Tesuque Gaming Ordinance
(Ordinance), which was enacted on December 10, 2007, pursuant to Resolution No. 39-12-07-
07. This Ordinance was received by the NIGC on December 12, 2007.

The amendments to the Tribe’s previously-approved gaming ordinance do not conflict with
the requirements of the Indian Gaming Regulatory Act (IGRA) and the National Indian
Gaming Commission’s regulations. Therefore, the amended Ordinance is hereby approved.

It is important to note that the Gaming Ordinance amendments are approved for gaming only
on Indian Lands, as defined in the IGRA, over which the Tribe has jurisdiction.

Thank you for submitting the amendment for review and approval. If you have any questions
or require assistance, please contact Staff Attorney Esther Dittler at (202) 632-7003.

Sincerely;

" Ae
Philip N. Hogan
Chairman

ce: Amanda Wilbur, General Counsel, Pueblo of Tesuque

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

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


(f) Officers. The Commission shall select a chairman and a vice chairman from
among its members to serve two-year terms. The vice chairman shall serve as chairman
during meetings at which the chairman is absent. No commissioner shall serve as
chairman for consecutive terms.

(g) Motions and Resolutions; Meetings; Quorum.

(1) _ All official actions of the Commission shall be taken by motion or
resolution approved by the affirmative vote of a majority of the commissioners.

(2) The Commission shall hold one regular meeting each month and
special meetings at the call of the chairman or a majority of its members.

(3) Two members of the Commission shall comprise a quorum.

(h) Annual Budget. The Commission’s annual budget shall be funded from the
following sources, which shall be reflected as revenues on the annual budget submitted to

the Council for approval:

(1) All fees and fines required by this Ordinance, which shall be
payable to and retained by the Commission;

(2) The annual regulatory fee permitted by the Compact, which shall
be payable by the Gaming Enterprise directly to the Commission in 12 equal monthly
installments; and

(3) Other amounts that the Commission may request and the Council
may grant.

(i) Stipend. Each commissioner when discharging official duties shall be paid a
stipend determined by the Council.

Gj) Powers.
(1) The Commission shall have the following powers and duties:

(A) _ To permit or refuse to permit the operation or conduct of
any Games of Chance within the Reservation and to specify the conditions therefore in
accordance with this Ordinance, the Compact, or IGRA;

(B) _ To grant, deny, condition, suspend, reinstate, revoke, or
renew any Licenses issued or required to be issued in accordance with this Ordinance,
and to decide matters affecting the granting, denying, conditioning, suspending,
reinstating, revoking, or renewing of Licenses;


(b) Composition and Appointment; Term; Removal.

(1) — The Commission shall consist of three commissioners appointed
by the Council. At least two commissioners must be Non-Members.

(2) The Council shall appoint one commissioner for a term of one
year, one commissioner for a term of two years, and one commissioner for a term of three
years. After these initial appointments expire, the Council shall appoint all
commissioners for terms of three years from the expiration date of the previous term so
that the commissioners serve staggered terms.

(3) The Council in its discretion may remove any commissioner from
office.

(c) Qualifications. The commissioner shall:

(1) not have been convicted of a felony, or a misdemeanor involving a
crime of dishonesty or moral turpitude;

(2) not have, directly or indirectly, a financial interest in or business
telationship with any Person licensed under this Ordinance; and

(3) have experience in public administration, business management,
law, or gaming.

(d) Background Investigation. The Council, before appointing any
commissioner, shall cause a background investigation to be performed on each proposed
Commissioner for appointment using the standards under this Ordinance. Upon
conclusion of the required background investigation, the Council shall decide whether or
not the commissioner is suitable for appointment after reviewing the background
investigation material gathered in connection with the investigation.

(e) Resignations and Vacancies.

(5) A commissioner may resign at any time by giving written notice to
the chairman of the Commission and the Governor. The resignation shall become
effective at the time specified in the notice.

(2) The Governor, with the advice and consent of the Council, may
appoint a qualified person to fill a vacancy on the Commission for the unexpired portion
of the vacated commissioner’s term.


(16) The Gaming Enterprise shall spend an amount no less than one-
quarter of one percent of its Net Win as that term is defined herein annually to fund or
support programs for the treatment and assistance of compulsive gamblers in New
Mexico or who patronize New Mexico gaming facilities, or for the prevention of
compulsive gambling in New Mexico, and shall distribute a substantial portion of such
funds to an organization that has expertise in and provides counseling, intervention, or
other services for compulsive gamblers in New Mexico, and whose services are available
to all persons without regard to race or tribal membership. Any information existing as a
result of this subparagraph (except for information identifying a gaming patron) shall not
be subject to the confidentiality provisions of the Compact and shall be made available
for inspection and publication by the State Gaming Representative without restriction or
limitation. The Gaming Enterprise shall provide the Commission with documents
sufficient to permit the Commission to verify compliance with this requirement,
including but not limited to a detailed budget of amounts spent for this purpose and the
recipients of the payments.

(17) The Gaming Enterprise shall not operate any Class III Gaming at
the Gaming Facility for at least four consecutive hours daily, Mondays through
Thursdays (except federal holidays).

(18) The Pueblo and the Gaming Enterprise shall not provide, allow,
contract to provide, or arrange to provide alcoholic beverages for no charge or at reduced
prices, or provide, allow, contract to provide, or arrange to provide food or lodging for no
charge or at nominal prices, at a Gaming Facility or lodging facility as an incentive or
enticement for patrons to participate in Class III Gaming, except that this provision shall
not apply to rewards received by gaming patrons in exchange for points or credits
accrued under any form of a players club program.

(19) The Gaming Enterprise shall report to the New Mexico secretary
of state, in the same manner and at the same times as are required of political committees
under the provisions of the New Mexico Campaign Reporting Act (NMSA 1978 §§ 1-19-
25 through 1-19-36) any contributions, whether directly or through an agent,
representative, or employee, of any moneys derived from revenue from the Gaming
Enterprise or of anything of value acquired with that revenue, to a candidate, political
committee, or person holding an office elected or to be elected at any election covered by
the New Mexico Campaign Reporting Act.

(20) The Commission shall provide true and correct copies of all tribal
laws and regulations affecting Class III Gaming to the State Gaming Representative and
the NIGC and provide true copies of any amendments thereto or additional laws or
regulations affecting Class III Gaming within 30 days after their enactment (or approval,
if any); provided that the Commission or the Pueblo shall provide copies of any
amendments to this Ordinance to the NIGC within 15 days after the adoption of the
amendments.

28


(10) The Gaming Enterprise shall not extend credit to patrons by
accepting IOUs or markers.

(11) The Gaming Enterprise shall ensure that all automatic teller
machines located within a Gaming Facility where Class III Gaming is conducted shall be
programmed so that the machines will not accept cards issued by the State to TANF
recipients for access to TANF benefits.

(12) | The Gaming Enterprise shall require that each Gaming Machine in
use at the Gaming Facility pay out a mathematically demonstrable percentage of all
amounts wagered, which percentage shall be not less than 80%, and the Gaming
Enterprise shall post, in visible locations within the Gaming Facility, a public notice (i)
stating that it is in compliance with this requirement, and (ii) explaining the meaning of
this requirement in plain comprehensible language.

(13) |The Gaming Enterprise shall connect all Gaming Machines on the
premises of the Gaming Facility to a central computerized reporting and auditing system
on the Gaming Facility’s premises, which shall collect on a continual basis the unaltered
activity of each Gaming Machine in use. The wager and payout data of each machine,
electronically captured by the Gaming Enterprise’s central computer, may be accessed
and downloaded electronically by the State Gaming Representative by a dedicated
telecommunications connection, on a “read-only” basis, upon entry of appropriate
security codes; however, in no event shall the State Gaming Representative be able to
alter or affect the operation of any Gaming Machine or other device on the premises of
the Gaming Facility, or the data provided to the central computer.

(14) _ If the law of the Pueblo permits alcoholic beverages to be served
and consumed at the Gaming Facility:

(A) No employee of the Gaming Operation shall sell, serve,
give, or deliver an alcoholic beverage to an intoxicated person or procure or aid in the
procurement of any alcoholic beverage for an intoxicated person at the Gaming Facility;

(B) | Employees of the Gaming Operation that dispense, sell,
serve, or deliver alcoholic beverages must attend Alcohol Server Education Classes
similar to those classes provided for in the New Mexico Liquor Control Act;

(C) The Gaming Enterprise shall purchase and maintain a
liquor liability insurance policy that will provide personal injury coverage of at least one
million dollars ($1,000,000) per incident and two million dollars aggregate per policy
year; and

(15) | The Gaming Enterprise shall not permit alcoholic beverages to be

sold, served, delivered, or consumed in that part of the Gaming Facility where Class III
Gaming is allowed.

27


(26) “Net Revenues” means the gross revenues of a Gaming Operation
less amounts paid out as, or paid for prizes and total gaming-related operating expenses,
excluding management fees.

(27) “Net Win”, as defined in § 11(C)(1) of the Compact, means the
total amount wagered in Class II] Gaming at a Gaming Facility on all Gaming Machines
less the following: (i) the amount paid out in prizes, including the cost of non-cash prizes,
won on Gaming Machines; (ii) the amount paid to the State on account of the State’s
regulatory costs; and (iii) the sum representing tribal regulatory costs, which shall
increase by three percent each year beginning on the first day of January occurring after
the Compact has been in effect for at least 12 months.

(28) “Non-Gaming Services” means any goods or services in a contract
amount in excess of $100,000 annually, except legal and accounting services, provided to
the Gaming Operation directly in connection with the operation of a Gaming Facility, but
that do not directly involve the operation of Gaming Activity, such as equipment,
transportation, food, beverage, alcohol, linens, janitorial supplies, maintenance, security
services, payroll, and records storage.

(29) “Non-Member” means any natural person who is not an enrolled
member of the Pueblo.

(30) “Ordinance” means this Pueblo of Tesuque Gaming Ordinance.

(31) “Person’” means a natural person, firm, association, partnership,
government or political subdivision or agency thereof, joint venture, corporation, or other
legal entity.

(32) “Primary Management Official” means:

(A) _ The person having management responsibility for a
Management Contract;

(B) Any person who has authority to:
(i) hire and fire employees; or
(ii) establish working policy for the Gaming Operation;

(C) _ The chief financial officer or other person who has
financial management responsibility; or

(D) _ The board of directors of the Pueblo of Tesuque
Development Corporation or its successors in interest.


(d) Temporary License. Within 20 days of the receipt of a completed application
for licensing, and upon request by the Gaming Enterprise, the Commission may issue a
temporary License to the applicant unless the background investigation undertaken
discloses that the applicant has a criminal history, or unless other grounds sufficient to
disqualify the applicant are apparent on the face of the application. The Commission may
suspend a Temporary License, pending further investigation, if additional information
comes to light in the course of the investigation suggesting that the applicant will not
qualify for a License or if the applicant has made a false statement or deliberately or
substantially failed to provide information to the Commission. The Temporary License
shall become void and be of no effect upon either (i) the issuance of the License; (ii) the
issuance of a notice of denial; or (iii) 90 days after the Licensee has begun working.

(e) Eligibility Determination. The Commission shall review the person’s prior
activities, criminal record, if any, and reputation, habit, and associations to make a
finding concerning the eligibility of an applicant, including a Principal, Key Employee,
or Primary Management Official, for employment or involvement in the Gaming
Operation. Upon completion of the investigation, the Commission shall either determine
that an applicant is eligible to be licensed or deny the application. If the Commission
determines that employment or involvement of any person or applicant poses a threat to
the public interest or to the effective regulation of any Gaming Activity, or creates or
enhances dangers of unsuitable, unfair, or illegal practices and methods and activities of
any Gaming Operation, the Commission shall deny the application. Once the
Commission has determined that a key employee or primary management official is
ineligible, that individual shall no longer be employed as a key employee or primary
management official by any gaming facility within the tribe’s jurisdiction.

(f) Additional Background Investigations. The Commission may conduct
additional background investigations of any person holding a License under this
Ordinance at any time while the license is valid.

(g) Procedures for Forwarding Applications and Reports for Key Employees
and Primary Management Officials to the NIGC and the State Gaming Representative.

qd) When a Key Employee or Primary Management Official begins
work at the Gaming Operation, the Commission shall forward to the NIGC
and the State Gaming Representative a completed application for employment and
conduct the background investigation and make the eligibility determination referred to
in Subsection (e) of this Section.

(2) The Commission shall forward the investigative report referred to
in Subsection (h) of this Section to the NIGC and the State Gaming Representative within
60 days after an employee begins work.

(3) The Gaming Enterprise shall not employ as a Key Employee or
Primary Management Official a person who does not have a License after 90 days.

18


an appeal from the Tribal Court, it shall notify both the appellant and the Commission
and shall give both the appellant and the Commission the opportunity to be heard.

(e) Enforcement of Orders and Subpoenas. If a Person is ordered by the
Commission or the Council to attend or to produce books, accounts, records, or other
documents in any investigation or hearing conducted by the Commission or the Council
and fails to obey the command of the subpoena without legal cause, or if a person in
attendance at any hearing or investigation refuses, without lawful cause, to be examined,
to answer a legal and pertinent question, or to exhibit any book, account, record, or other
document when ordered to do so by the Commission or the Council, the Commission or
the Council may apply to the Tribal Court for an order returnable in not less than five nor
more than ten days directing the Person to show cause why he or she should not comply
with such order for purposes of this Ordinance. No person shall be excused from
testifying or producing any books, accounts, records, or other documents in any
investigation or hearing on the ground that such testimony or documentary evidence may
tend to incriminate such person, if the Council or the Tribal Court agrees in writing that
such person shall not be prosecuted, punished, or subjected to any penalty or forfeiture
resulting from such testimony or production, provided that no person shall be exempt
from prosecution or punishment for any act of perjury committed by him or her under a
grant of immunity under this Subsection.

(f) Limited Waiver of Sovereign Immunity. The Pueblo hereby waives the
immunity of the Gaming Enterprise and its employees from suit for the sole and limited
purpose of permitting the Tribal Court to hear and determine proceedings initiated by the
Commission to enforce this Ordinance against the Gaming Enterprise, including the
assessment of fines, sanctions, and injunctive relief.

SECTION 16. PATRON DISPUTES AND VISITOR CLAIMS.

(a) Procedures for Resolving Patron Disputes. Except as otherwise provided in

Subsection (b) of this Section, the following procedure applies whenever a patron of any
Gaming Activity conducted by the Gaming Enterprise under the provisions of this
Ordinance believes that he or she should not have lost any money, or has not received
any winnings to which the patron believes he or she was entitled:

(1) the patron shall report the dispute to any Gaming Employee, Key
Employee, or Primary Management Official. The Gaming Employee, Key Employee, or
Primary Management Official shall refer the patron to the manager of the Gaming
Facility.

(2) the manager of the Gaming Facility shall investigate the dispute
and attempt to promptly resolve the dispute. If the dispute cannot be resolved promptly,
the casino manager shall propose resolution of the dispute to the patron in writing, not
more than ten days after the dispute was brought to the attention of the casino manager.
The manager of the Gaming Facility shall serve a copy of the proposed resolution (by
certified mail) to the patron and the Executive Director.

35


(3) If the patron is dissatisfied with the proposed resolution by the
manager of the Gaming Facility, the patron may appeal the dispute to the Executive
Director in writing, within ten days of receipt of the casino manager’s proposed
resolution.

(4) Upon receipt of the dispute from the patron, the Executive Director
shall investigate the facts underlying the dispute and the actions and proposed resolution
of the manager of the Gaming Facility. After the investigation, the Executive Director
shall issue a written decision of the dispute and serve a copy of the decision (by certified
mail) to both the patron and the manager of the Gaming Facility.

(5) If either the patron or the Gaming Enterprise is dissatisfied with
the Executive Director’s decision, the patron or the Gaming Enterprise may appeal the
Executive Director’s decision to the Commission.

(b) Resolving Patron and Visitor Claims of Liability for Bodily Injury or
Property Damage.

(1) The Tribal Court shall have original jurisdiction over claims of
liability by a patron or visitor to a Gaming Facility where Class III Gaming is conducted
for bodily injury or property damage proximately caused by the conduct of the Gaming
Enterprise.

(2) If a patron or visitor having a claim described in Subsection (b)(1)
of this Section pursues that claim in the Tribal Court or, at the option of the patron or
visitor, in binding arbitration, the patron or visitor shall make a written election that is
final, binding, and unappealable.

(3) The claims brought under Subsection (b)(1) of this Section must be
commenced by filing an action in the Tribal Court, or serving a demand for arbitration,
within three years of the date that the claim accrues.

(4) The arbitration shall be conducted, pursuant to an election by a
patron or visitor under Subsection (b)(2) of this Section, as follows:

(A) | The patron or visitor shall submit a written demand for
arbitration to the Gaming Enterprise by certified mail, return receipt requested;

(B) _ The patron or visitor and the Gaming Enterprise shall each
designate an arbitrator within 30 days of receipt of the demand by the Gaming Enterprise,
and the two arbitrators shall select a third arbitrator, but in the event the two arbitrators
cannot agree on the selection of the third arbitrator within 30 days of their appointment,
they shall apply to the Tribal Court to appoint the third arbitrator;

36


(7) utilities and trash removal costs;

(8) advertising;

(9) vehicle expenses;

(10) insurance;

(11) __ the interest portion of any debt payments;
(12) — employee training;

(13) necessary and appropriate business travel;
(14) employee wages; and

(15) prizes for winners of Games of Chance.

{d) Deposit of Gross Receipts; Payment of Operating Expenses. All Gross

Receipts shall be deposited in a separate gaming general operating account of the Gaming
Enterprise. All operating expenses shall be withdrawn from that account by
consecutively numbered checks duly signed by the official or officials designated by the
Gaming Enterprise payable to a specific person or organization.

(e) Annual Audit.

(1) The Gaming Enterprise shall retain a certified public accountant,
licensed by the State, as the independent outside auditor of the Gaming Operation. The
auditor shall conduct an annual outside independent certified audit of all activities
conducted by the Gaming Operation. The audit shall be prepared in accordance with
generally accepted accounting principles consistently applied. The auditor shall report on
the auditor’s examination of the books and records of the Gaming Operation and on the
auditor’s recommendations with respect to the management of the Gaming Operation and
any failure to comply with applicable law or contractual obligations. Prior to
commencement of the audit, the Gaming Enterprise and the auditor, in consultation with
the Council, shall define the scope of the audit. The Council may, in its discretion,
require that the scope of the audit be expanded to better reflect the financial operations,
condition, and obligations of the Gaming Operation. The Council may designate a
representative to observe and maintain communication with the independent auditor once
the Gaming Enterprise has selected the auditing firm.

(2) The Gaming Enterprise, within 120 days of the close of the

Pueblo’s fiscal year, shall deliver the audit and financial statement to the Council and the
Commission.

24


CERTIFICATION

I, the undersigned, as Governor of the Pueblo of Tesuque, hereby certify that at a duly-

called meeting of the Tribal Council of Tesuque Pueblo, convened and held on this/774 day of
< I Rcenber , 2007, at the Pueblo of Tesuque, New Mexico, approved this Resolution, a
quorum being present, with &~ members voting in favor, ()_ opposed, and _@ _ abstaining,

and _/ _ being absent.
Charles |. Doe SSS
Governor

ATTEST:

Lieuténanft Governor


(C) To cooperate with federal, state, and tribal law enforcement
officials when necessary to carry out or enforce this Ordinance;

(D) _ To carry out the responsibilities and exercise the rights of
the tribal gaming agency under the Compact;

(E) _ To obtain any necessary approvals from the Governor or
Council, if required by the Ordinance, the Compact, or IGRA;

(F) To recommend amendments to this Ordinance to the
Council;

(G) | To submit quarterly and annual reports to the Council on
the activities of the Commission, which reports shall also include information on funding,
revenues, and expenses;

(H) _ To adopt an annual budget of the Commission and any
modifications to the budget, subject to the approval of the Council;

() To negotiate and enter into, on behalf of the Pueblo,
contracts, memoranda of understanding, and joint powers agreements with tribal, federal,
and state governments or agencies for activities necessary to the discharge of the duties of
the Commission and to contract with the NIGC for the enforcement of federal regulations
governing gaming on Indian lands, subject to the approval of the Council;

(J) To promulgate regulations to implement the provisions of
this Ordinance;

(K) _ To issue subpoenas to require the attendance and testimony
of witnesses and the production of all books, papers, and documents relating to any
matter under review, consideration, or investigation by the Commission, and to authorize
the Executive Director to bring actions in the Tribal Court for the enforcement of
subpoenas;

(L) To authorize the Executive Director to bring suit in the
Tribal Court seeking temporary and permanent orders closing a Game of Chance or
Gaming Facility in accordance with this Ordinance;

(M) _ To authorize the Executive Director to bring suit in the
Tribal Court seeking sanctions, including civil monetary sanctions, for violations of this
Ordinance, regulations promulgated hereunder, or the Compact;

(N) _ To hold such hearings, to sit and act at such times and

places, and to take testimony and receive evidence as the Commission deems relevant in
fulfilling its duties;

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SECTION 7. REGULATIONS.

(a) Procedure. The following procedure shall govern the promulgation of
regulations authorized by this Ordinance:

(1) | The Commission shall first hold an informal meeting with the
Gaming Enterprise to discuss the purpose and substantive content of the proposed
regulation. The Gaming Enterprise shall be given an opportunity at that meeting to advise
the Commission of any concerns.

(2) After the meeting with Gaming Enterprise and taking into
consideration the Gaming Enterprise’s concerns, the Commission shall publish the
proposed regulation for public comment. The Commission shall allow the public a
minimum of 45 days to submit written comments on the proposed regulation.

(3) After considering all public comments, the Commission shall
publish the regulation in final form.

(4) The proposed or final regulation shall be effective upon
publication when the Commission mails the proposed or final regulation to the Gaming
Enterprise and to any Person known by the Commission to be directly affected by the
proposed or final regulation, and posts a copy of the proposed or final regulation at the
Pueblo’s administration office, the Gaming Enterprise’s office, and each Gaming
Facility.

(5) | The Commission shall keep copies of all regulations and Council
resolutions and ordinances involving or affecting Gaming Activity in the Commission’s
office for public inspection and copying during normal office hours, Monday through
Friday, excluding holidays.

(b) Council Approval. The Council’s approval is not necessary for any
regulation to take effect, but the Council shall have the power, prior or subsequent to the
effective date of the regulation, to modify or rescind any regulation.

SECTION 8. LICENSES.

(a) Licenses Required. The Commission shall license:

(1) Each Gaming Facility;

(2) | The Gaming Enterprise;

(3) Each Key Employee and Primary Management Official;

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WHEREAS on November 7, 2007, the Tribal Council submitted an amended ordinance to
the NIGC, the 2007 Gaming Ordinance, which was attached to Tribal Council
Resolution 33-1 1-05-2007;

WHEREAS the NIGC subsequently informed the Tribal Council that several provisions,
Section 8(e) and Section 13(a), require minor corrections in order to comply
with NIGC regulations, and NIGC also recommended that a new section be
added to designate an agent for service of process; and

WHEREAS the 2007 Gaming Ordinance has now been amended to comply with the
NIGC’s regulations and include a section designating the Governor of the
Pueblo as the agent for service of process.

NOW THEREFORE BE IT RESOLVED,

That the Tribal Council hereby rescinds in its entirety the 2007 Gaming Ordinance submitted
to the NIGC on November 7, 2007, and adopts in its entirety the 2007 Gaming Ordinance as
amended to incorporate the NIGC’s suggestions.

BE IT FURTHER RESOLVED,

That the 2007 Gaming Ordinance submitted with this resolution shall be effective on the date
approved by the chairman of the NIGC, pursuant to the IGRA.

BE IT FURTHER RESOLVED,

That the Tribal Council hereby authorizes and directs the Governor to submit this Resolution
and the amended 2007 Gaming Ordinance to the chairman of the NIGC for review and
approval in accordance with the IGRA.

BE IT FINALLY RESOLVED,

That the Tribal Council of the Pueblo of Tesuque hereby authorizes and adopts the
aforementioned, subject to future amendments for specific commitments or repeals by
subsequent Tribal Councils.


Commission will notify the State Attorney General and the District Attorney for Santa Fe
County of the particulars known to the Gaming Enterprise or Commission. Upon any
reasonable request by the District Attorney for Santa Fe County, the Pueblo’s Law
Enforcement Department and the Commission will conduct an additional investigation
and cooperate fully with such District Attorney and State law enforcement agencies on
the matter. In the event of an emergency involving a possible violation by a Non-
Member, the Pueblo and its constituent agencies may act as they see fit in accordance
with the laws of the Pueblo in order to protect against any immediate threat to lives or

property.

(3) The Pueblo may enter into a Memorandum of Understanding with
the District Attorney for Santa Fe County, to which Memorandum of Understanding the
United States Attorney also may be a party, to address such matters as the specific
procedures by which cases under Subsection (a)(2) of this Section will be referred,
participation of the Commission and the Pueblo’s Law Enforcement Department in the
investigation and prosecution of any such case, and payments by the Pueblo to the Office
of the District Attorney for Santa Fe County to defray the costs of handling such cases.

(b) Civil Sanction. Any person who violates any provision of this Ordinance,
including the Gaming Enterprise and its employees, shall be liable for civil monetary
sanctions not to exceed five thousand dollars for each day such violation occurs, along
with any civil damages caused by the commission of such violation. Such person also
may be excluded from the Reservation to the extent such exclusion is consistent with the
laws of the Pueblo and the United States.

(c) Tribal Court Jurisdiction. The Tribal Court shall have jurisdiction over all
violations of this Ordinance and over all persons who are Licensees, including agents,
employees, owners, directors, and officers of such persons. In addition to the penalties
and civil sanctions prescribed in Subsections (a) and (b) of this Section, the Tribal Court
may grant such other legal and equitable relief as is necessary and proper for the
enforcement of this Ordinance and of the provisions of any Management Contract entered
pursuant thereto, including but not limited to injunctive relief against acts in violation
thereof. Nothing in this Ordinance, however, shall be construed to authorize or require
the exercise of criminal jurisdiction over Non-Members who are non-Indians, except to
the extent allowed by any applicable present or future Act of Congress or any applicable
federal court decision. In any proceeding arising under this Ordinance, the Tribal Court
shall state in writing the reasons for its decision.

(d) Appeal from Tribal Court to the Council. Unless specified otherwise by
resolution of the Council, a party not satisfied with the decision of the Tribal Court may

seek review by the Council. Notice of appeal to the Council shall be filed with the
Governor and served on the Commission within seven days from the Tribal Court’s
written decision, with notice given to the Tribal Court. The Council need not accept an
appeal from a decision of the Tribal Court, and its failure to act within 14 days of
receiving an appeal shall be deemed summary denial of the appeal. If the Council accepts

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(f) Modification and Revocation of Management Contract. The Commission
may require appropriate contract modifications and may void any Management Contract
if it determines that this Ordinance or the Management Contract has been violated.

(g) Management Contract Binding Upon Approval. No Management Contract,
and no modification, revision, or amendment thereto, shall be binding unless and until
certified by the Commission and approved by the Council and the Chairman of the
NIGC.

SECTION 10. FINANCIAL PRACTICES AND REPORTING.

(a) Monthly Reports. On or before the 25th day of each month, the Gaming
Enterprise shall file with the Governor a certified financial reports for the preceding
calendar month showing the amount of Gross Receipts derived by the Gaming Operation,
the operating expenses incurred or paid, the specific classifications of operating expenses,
and the Net Revenues derived from the Gaming Operation, and the financial strength,
performance and changes in financial position of the Gaming Enterprise. Within 15 days
of receipt, the Governor shall report to the Council on the contents of the reports. Both
the chief executive officer and the chief financial officer of the Gaming Enterprise shall
sign the monthly reports, certifying that the report is true and correct to the best of their
knowledge. It is the duty of the Gaming Enterprise to maintain and keep books and
records as may be necessary to substantiate the particulars of each report. If the Gaming
Enterprise fails to file a report within the time allowed, or if a report is not properly
certified or not fully, accurately, and truthfully completed, the Gaming Enterprise may be
fined until the deficiency has been corrected.

(b) Maintenance of Books and Records: Commission Access. Full and accurate
books of account, maintained in accordance with generally accepted accounting
principles consistently applied, shall be kept on the premises of a Gaming Facility
showing the condition of the business and all transactions conducted by the Gaming
Operation. The Council shall have access to the books of account of the Gaming
Enterprise and shall be entitled to examine them in any form or medium without notice
during normal business hours, either in person or by an agent, and the Gaming
Enterprise’s consent to such access and examination shall not be necessary. The
Commission shall have access to the books of account of the Gaming Operation and shall
be entitled to examine them in any form or medium without notice during normal
business hours, either in person or by an agent, and the Gaming Enterprise’s consent to
such access and examination shall not be necessary. All records required to be kept by
this Section in whatever form or medium shall be maintained for not less than five years.
The records shall include:

(1) Revenues, expenses, assets, liabilities, and equity of the Gaming
Operation;

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Office of the Governor
Mk

Pueblo of Tesuque 72
Route 42 Box 360-T
Santa Fe, New Mexico 87506

RESOLUTION NO. _39-12-07-07__

Resolution Rescinding the Amended and Restated Gaming Ordinance Submitted to
NIGC on November 7, 2007, and Adopting an Amended 2007 Gaming Ordinance

WHEREAS

WHEREAS

WHEREAS

WHEREAS

WHEREAS

WHEREAS

WHEREAS

WHEREAS

WHEREAS

the Pueblo of Tesuque (“Pueblo”), acting in our capacity as a federally
recognized sovereign Tribal Government, to preserve for ourselves and our
descendents the inherent sovereign rights of our Indian people, do hereby
submit the following resolution; and

the Pueblo of Tesuque Tribal Council is the duly constituted governing
body, acting with the authority of the Pueblo; and

in 2001, the Pueblo and the State of New Mexico (the “State”) entered into a
tribal-state compact to govern class III gaming on the Pueblo’s lands (the “2001
Compact”); and

the Secretary of the Interior (the “Secretary”) approved the 2001 Compact,
pursuant to the Indian Gaming Regulatory Act of 1988 (the “IGRA”); and

the Tribal Council, by Resolution No. 2002-04-02 (Apr. 30, 2002), adopted an
Amended and Restated Pueblo of Tesuque Gaming Ordinance (the “2002
Gaming Ordinance”) to regulate gaming on the Pueblo’s lands; and

the chairman of the National Indian Gaming Commission (the “NIGC”)
approved and published notice of the approval of the 2002 Gaming Ordinance
in the Federal Register; and

in 2007, the Pueblo and the State amended certain provisions of the 2001
Compact (the “2007 Compact”); and

the Secretary approved and published approval of the 2007 Compact in the
Federal Register, pursuant to the IGRA; and

the Tribal Council desires to amend and restate the 2002 Gaming Ordinance
(the “2007 Gaming Ordinance”) to, among other things, conform the 2007
Gaming Ordinance to the 2007 Compact, restructure the Pueblo gaming
commission, and for other purposes.

Phone (505) 983-2667 Fax (505) 982-2331


(d) Public Health and Safety. Each Gaming Facility and additions thereto shall
comply with health, safety, and construction standards that are at least as stringent as the
current editions of the National Electrical Code, the Uniform Building Code, the Uniform
Mechanical Code, the Uniform Fire Code, and the Uniform Plumbing Code. The Pueblo
shall cause inspections to be conducted with respect to these standards at least annually.
Pursuant to the Compact, the State Gaming Representative may be present during an
annual inspection, provided the request to be present is made sufficiently in advance of
the inspection. Upon a written request by the State Gaming Representative, the
Commission shall provide copies of relevant inspection reports to the State Gaming
Representative.

SECTION 13. SUSPENSION OR REVOCATION OF LICENSE.

(a) Grounds for Suspension and Revocation. The Commission may suspend a
License if a licensee:

(1) makes a false statement in any application for a License, in any
statement annexed thereto, or in any response to a request by the Commission for
information;

(2) fails to keep sufficient books and records to substantiate the reports
required by this Ordinance;

(3)  falsifies any books or records relating to any transaction in
connection with the operation or conduct of any Games of Chance;

(4) _ is convicted of any felony or gaming offense;
(5) interferes with or unduly influences or attempts to interfere with or
unduly influence any decision or process of the government of the Pueblo relating to

gaming, or the Commission;

(6) deliberately or substantially fails to provide information to or
answer relevant questions of the Commission;

(7) _ fails to comply with this Ordinance;

(8) fails to comply with the terms of any License; or

(b) Grounds for Suspension and Revocation. The Commission shall suspend

a License if a licensee is the subject of reliable information from the NIGC or any other
source indicating that the Licensee does not meet the standard established in Section 8(e)
of this Ordinance.

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(3) The Commission, within 120 days of receiving the audit and
certified financial statement, shall furnish copies of the audit and certified financial
statement to the State Gaming Representative, if required by the Compact, and the NIGC,
if required by IGRA.

(f) Audit of Contracts. All contracts for Gaming Services shall be specifically
included within the audit referred to in Subsection (e) of this Section.

(g) Disposition of Net Revenues. The Net Revenues from Gaming Activity shall
be used for the following purposes:

(1) To fund Pueblo governmental operations and programs;

(2) To provide for the general welfare of the Pueblo and its
members;

(3) To promote tribal economic development;

(4) To contribute to charitable organizations; and

(5) To help fund operations of local Pueblo governmental agencies.
(h) Compliance with Internal Revenue Code. The Gaming Operation shall

maintain a permanent record containing the name and address of each player who
receives a prize if and as required by, and in accordance with, the Internal Revenue Code.

(i) Compliance with Bank Secrecy Act. The Gaming Operation shall comply
with all applicable provisions of the Bank Secrecy Act, P.L. 91-508, October 26, 1970,
31 U.S.C. §§ 5311-5314, and all record-keeping and reporting requirements of the
Internal Revenue Service.

SECTION 11. COMPACT COMPLIANCE.

(a) Provisions Required by Compact. The following provisions to the extent
required by the Compact shall apply only to Class III Gaming Activities:

(1) No person under 21 years of age shall participate in Class III
Gaming.

(2) | The Gaming Enterprise shall not employ any person in Class III

Gaming who is under 21 years of age or who has not been licensed in accordance with
this Ordinance.

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(C) To monitor and oversee on a continuing basis the operation
and conduct of all Games of Chance and other activity taking place in any Gaming
Facility within the Reservation, including but not limited to ongoing monitoring and
oversight of Licensees engaged in the operation and conduct of such games;

(D) To inspect and examine all Gaming Facilities at which
Games of Chance are played during all hours of Gaming Activity and to have immediate,
unrestricted access to any areas of a Gaming Facility to ensure that all Gaming Facilities
are constructed, operated, and maintained in a manner that adequately protects the
environment and the public health and safety, and to otherwise ensure compliance with
this Ordinance, the Compact, and IGRA;

(E) To enforce regulations promulgated pursuant to this
Ordinance, minimum internal control standards, and any other standards required by the
Compact or IGRA;

(F) To prepare and provide the Gaming Enterprise with the
formula to calculate the monthly minimum bankroll requirement, and to review the
Gaming Operation’s monthly calculation for the same;

(G) To inspect and make copies of State records concerning all
Class III Gaming conducted under the Compact;

(H) _ To conduct or cause to be conducted background
investigations of any Person involved, directly or indirectly, in the operation or conduct
of Games of Chance within the Reservation;

ie) To inspect, examine, photocopy, and audit all papers,
books, and records respecting Gaming Activities operated or conducted within the
Reservation and any other matters necessary to carry out the duties of the Commission
under this Ordinance, including all Gaming Activity conducted at a Gaming Facility;

(@)) To obtain an order of the Tribal Court to enforce the
Commission’s authority to inspect, examine, photocopy, and audit all papers, books, and
records;

(K) _ To establish and collect license and permit fees,
investigation fees, and regulatory fees to defray the costs associated with the
Commission’s regulatory activities;

(L)  Toassess civil administrative fines for violations of this
Ordinance, any regulations promulgated hereunder, or the Compact;

(M) To implement and administer a system for investigating
and licensing all Persons connected with Gaming Activities and related activities taking


(O) To administer oaths and affirmations to witnesses
appearing before the Commission;

(P) To conduct, before appointing the Executive Director, a
background investigation of the Executive Director using the standards in this Ordinance;
and

(Q) _ To oversee and monitor the Executive Director in the
competent and ethical operation of the Commission.

SECTION 6. EXECUTIVE DIRECTOR.

(a) Appointment. The Commission shall appoint the Executive Director, and the
Executive Director shall serve at the will and pleasure of the Commission. No individual
currently serving as a member of the Council, or an officer or official of the Pueblo shall
be eligible for the appointment of Executive Director.

(b) Qualifications. The Executive Director shall:

(1) have at least five years of experience in public administration,
business management, law, or gaming;

(2) devote his entire time and attention to his duties under this
Ordinance and the business of the Commission and shall not pursue any other business or
occupation or hold any other office;

(3) not have been convicted of a felony, or a misdemeanor involving a
crime of dishonesty or moral turpitude; and

(4) not have, directly or indirectly, a financial interest in or a business
relationship with any Person licensed under the Ordinance.

(c) Salary. The Executive Director shall be paid an annual salary in the amount
specified by the Commission.

(d) Staff. The Executive Director may employ employees who possess training
and experience in the fields of investigation, law enforcement, accounting, law, and
gaming to assist in a carrying out all powers and perform all duties assigned to the
Executive Director under the Ordinance.

(e) Powers and Duties. The Executive Director shall manage the day-to-day
activities of the Commission and exercise all powers and perform all duties of the
Commission, except those that cannot be delegated under Section 5(j)(2) of the
Ordinance.

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