UPPER SKAGIT TRIBAL COUNCIL

RESOLUTION 94- 37

WHEREAS the tipper Skagit Tribal Council is the governing body of

the tipper Skagit Tribe of Indians in accordance with its

Constitution and By-Laws approved by the Secretary of the Interior

on December 4, 1974, and in accordance with the Indian

Reorganization Act of June 18, 1934; and,

WHEREAS the tipper Skagit Tribal Council is the duly elected

governing body of the Upper Skagit Indian Reservation; and,

WHEREAS the Tribe entered into a Class III Gaming Compact with the

State of Washington, which Compact was approved by the Secretary of

the Interior on February 22, 1993; and

WHEREAS the Tribe desires to establish a Class II and Class III

Gaming Ordinance to provide for the regulation of gaming on all

lands under the control of the Tribe, including Reservation lands;

~OW THEREFORE BE IT RESOLVED that the tipper Skagit Indian Tribe

hereby adopts the Gaming Ordinance attached hereto and made a part

hereof;.. and

BE IT FURTHER RESOLVED that Harold Chesnin, counsel for the Tribe

is authorized to submit the Gaming Ordinance on behalf of the Tribe

to the National Indian Gaming Commission for approval and to

provide the NIGC any other materials necessary to obtain the

approval of the Ordinance.

CERT IFICATION

The above resolution was duly enacted by the Upper Skagit Tribal

Council at a regular meeting held on June 15, 1994, on the Upper

Skagit Reservation, at which time a quorum was present.

The resolution was adopted by a vote of 6 FOR, 0 AGAINST, and

0 ABSTENTIONS.

Elsie Ba er

Tribal Council Secretary

ATTEST:

oy.~~Williams

Tribal Council Chairman
UPPER SKAGIT INDIAN TRIBE

GAMING ORDINANCE

I. Purpose

The Upper Skagit Tribal Council, empowered by the Upper

Skagit Tribal Constitution to enact, ordinances, hereby enacts this

Ordinance in order to set the terms for Class II and Class III

gaming operations on Indian lands as defined in the Indian Gaming

Regulatory Act P.L. 100447, as amended, including reservation and

trust lands within .the territorial jurisdiction of the Tribe.

II. DEFINITIONS

A. Bingo °Bingo shall mean Bingo as defined in IGRA.

B. Casino Casino shall mean any Class II and / or Class

III gaming facility owned by the Tribe.

C. Class II Gaming Class II Gaming shall mean Class Il

Gaming as defined in IGRA.

D. Class III Gaining Class III Gaming shall mean Class III

Gaming as defined in IGRA and the Compact.

E. Compact Compact shall mean the Compact between the

State of Washington and the Tribe entered into December , 1992,

as approved by the Secretary of the Interior.

F. Distributor Distributor means any person, firm or

corporation that distributes Gaming Devices, or components

thereof, used or to be used in a Gaming Operation.

G. Gaming Gaming means Class II and Class III gaming. H. Gaming Devices Gaining Devices shall mean Electronic

Games of Chance as defined in the Compact and as defined in IGRA.

I. Gaming Employee Gaming Employee shall mean any person

employed in the operation or management of a Gaming Operation,

whether employed by or contracted to the Tribe, or by any person

or entity providing on or offsite services to the Tribe within or

without any Gaming Facility, including without limitation,

managers, assistant managers, accounting personnel, surveillance

personnel, security personnel, cashiers, supervisors, shift

bosses, machine mecj~anics, gaming consultants, management

companies and their principals, and any other natural person whose

employment duties require or authorize access to restricted areas

of any Gaming Facility not otherwise open to the public.

J. Gaming Facility Gaming Facility shall mean the

buildings, improvements and fixtures now or hereafter located

therein or thereon and associated and adjacent real property owned

by the Tribe.

K. Gaming Operation Gaming Operation shall mean any

enterprise on the Reservation for the conduct of Gaming.

L. Gaming Service Gaming Service shall mean any goods,

services or concessions provided by contract to the Tribe or to a

Manager in connection with the operation of Gaming in an amount in

excess of $5,000.00 in any calendar year, except for professional,

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Resolution 9437,
legal or accounting services. No contract may be broken up into

parts for the purpose of avoiding this definition and any

requirement of licensure or certification contained in this

Ordinance or in the Compact.

M. Key employee Key Employee shall mean:

(a) A person who performs one or more of the

following functions:

(i) Bingo caller;

(ii) Counting room supervisor

(iii) 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

Cx) Custodian of gambling devices including

persons with access to cash and

accounting records within such devices;

(b) Other job titles or positions as the Tribal

Commission may include in the future by rule

or regulation;

(c) If not otherwise included, any other person

whose total cash compensation is in excess of

$50,000 per year; or

(d) If not otherwise included, the four most

highly compensated persons in the gaming operation.

N. IGRA IGRA shall mean the Indian Gaming Regulatory Act

of 1988, 25 USC 2701 et seq, as amended from time to time.

0. Management Contract Management Contract shall mean a

contract between the Tribe and a Manager for the management of a

Gaming Operation, including any related subcontracts and

collateral agreements.

P. Manager Manager shall mean a person, firm or

corporation with whom the Tribe enters into a Management Contract.

Q. Manufacturer Manufacturer shall mean a person, firm or

corporation that manufactures Gaming Devices used or to be used in

a Gaming Operation. R. National Indian Gaming Commission National Indian Gaming

Commission shall mean the Commission established pursuant to

Section 5 of IGRA.

S. Net Revenues Net revenues shall mean the gross revenues

of a Gaming Operation less amounts paid out as, or paid for,

prizes and less total operating expenses, determined in accordance

with generally accepted accounting principles, but excluding

management fees paid to a Manager pursuant to IGRA.

T. Primary Management Official Primary Management

Official shall mean:

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(a) The person having management responsibility

for a management contract;

(b) Any person who has authority:

(i) To hire and fire employees; or

(ii) To set up working policy for the gaming

operation; or

(C) The chief financial officer or other person

who has financial management responsibility.

U. Principal -

Principal shall mean:

(i), any natural person having an interest in the

contract in question;

(ii) with respect to a trust, any beneficiary or

trustee;

(iii) with respect to a partnership, any partner;

(iv) with respect to a corporation, any person who

(a) is a director thereof, or (b) is one of

the 10 largest holders of the issued and

outstanding stock thereof, alone or in

combination with any other stockholder who is

such persons spouse, parent, child or

sibling;

(v) with respect to any entity other than a natural

person, firm or corporation that has provided

10% of the financing of such entity.

V. Reservation Reservation shall mean all lands within

the exterior boundaries of the Upper Skagit Indian Reservation as

now or hereafter determined by the Secretary of the Interior and

all lands held in trust for the Tribe or members of the Tribe over

which the Tribe asserts jurisdiction.

W. State State shall mean the State of Washington.

X. State Gaming Agency State Gaming Agency shall mean the

Washington State Gambling Commission.

Y. Technical Standards Technical Standards shall mean

operational standards for Gaming Devices.

Z. Tribal Gaming Commission Tribal Gaming Commission shall

mean the body created pursuant to this Gaming Ordinance to

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regulate Gaming in accordance with IGRA, the Compact and the

Gaming Ordinance.

AA. Tribe Tribe shall mean the Upper Skagit Indian Tribe.

III. Compliance with IGRA and the Compact

A. This Ordinance shall be construed in a manner that

conforms to IGRA in all respects. If this Ordinance is

inconsistent with IGRA in any manner the provisions of IGRA shall

govern.

B. This Ordinance shall be construed in a manner that

conforms to the Compact. If any provision of this Ordinance with

respect to Class Ill gaming is found to be inconsistent with the

Compact in any manner the provisions of the Compact shall govern.

IV. Ownership of Gaming

A. The Tribe shall have the sole propriety interest in, and

responsibility for, the conduct of gaming operations authorized by

this Ordinance. No individually owned Class II and / or Class III

gaming is permitted.

B. No individual, partnership, corporation or entity of any

kind shall own in whole or in part any Class II and / or Class III

Gaming Operation subject to the terms of this Ordinance.

C. The Tribe shall not, in any contract or agreement,

grant, transfer or convey any interest in the Tribes reservation

lands or lands held in trust for the Tribe by the United States

and subject to restriction by the United States against

alienation, or in any real property of the Tribe, unless specific

statutory authority exists and unless clearly specified in writing

in said contract or agreement.

D. Nothing in this Ordinance shall preclude the Tribe from

entering into Management Contracts as authorized under IGRA.

V. Licensed Gamin~q Authorized

A. Class II gaming, as defined in the IGRA is hereby

authorized.

B. Class III gaming as defined in IGRA and the Compact is

hereby authorized.

C. Gaming as authorized by this Ordinance shall be

conducted only by persons or entities which have obtained a valid

gaming operation license issued by the Tribe pursuant to this

Ordinance, and rules and regulations adopted pursuant thereto.

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VI. Tribal Gaming Commission

A. The Tribal Gaming Commission of five members is hereby

established and empowered to regulate Gaming in accordance with

this Ordinance, IGRA and the Compact.

B. The Tribal Council shall establish by resolution or

amendment to this Ordinance the operating procedures of the Tribal

Gaming Commission, including but not limited to Tribal Gaming

Commission membership, terms, duties and ByLaws.

C. The Tribal Gaming Commissions powers shall include, but

not be limited to:

i. Issue, deny, suspend or revoke any gaming license

to conduct Gaming activities authorized by this Ordinance, or

by rules and regulations adopted thereto, and to adopt a

schedule of fees to defray expenses of license processing and

background investigations;

ii. Conduct or cause to be conducted background

investigations of persons or business entities applying for

gaming licenses;

iii. Adopt rules and regulations, subject to

ratification by the Tribal Council, necessary to carry out

the purposes of this Ordinance;

iv. Regulate the collection of taxes, fees, community

contributions or other assessments related to Gaming;

v. Hire, subject to the approval of the Tribal

Council, employees of and contractors to the Tribal Gaming

Commission, and to establish personnel policies: Provided,

that such personnel policies shall require that Tribal Gaming

Commission members and employees shall be subject to

background investigations, including criminal and financial

background investigations, and to adopt such hiring and

retention policies necessary to maintain standards as a

qualified law enforcement agency;

vi. Issue civil citations, levy fines or other

penalties, or to close any Gaming Facility for violation of

applicable law, this Ordinance or rules and regulations

adopted pursuant thereto by the Tribal Gaming Commission;

vii. Enforce the Tribes powers and responsibilities

pursuant to the Compact;

viii.Require Manager to submit for approval by the

Tribal Gaming Commission minimum standards for internal

controls and rules of play for Class II or Class III gaming.

Such internal controls and rules of play for Class

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III gaming shall be consistent with provisions of the

Compact.

ix. Adopt an annual budget of operating expenses of the

Commission, which shall be subject to Tribal Council

approval;

x. Other such powers subsequently authorized by the

Tribal Council.

D. Additional Powers and Duties.

i. The Tribal Gaming Commission shall have primary

responsibility for oversight of all Gaming in order to ensure the

integrity thereof. For that purpose, the Tribal Gaming Commission

shall employ Tribal Gaming Commission Inspectors.

ii. The Tribal Gaming Commission may on its own

initiative, investigate any aspect of any Gaming Operation in

order to protect the public interest in the integrity of Gaming

and to prevent improper or unlawful conduct. The Tribal Gaming

Commission shall investigate any report of a failure of any Gaming

Operation to comply with the Compact or this Ordinance. The

Tribal Gaming Commission may require any Gaming Operation to take

any corrective actions deemed necessary upon such terms and

conditions as the Tribal Gaming Commission shall determine

appropriate.

iii. The Tribal Gaming Commission shall carry out each

of the responsibilities and duties set forth for the Tribal Gaming

Commission in the Compact.

iv. The Tribal Gaming Commission shall issue and revoke

licenses.

v. The Tribal Gaming Commission shall require the

Manager to prepare a plan for the protection of public safety and

the physical security of patrons of Gaming Facilities, setting

forth the respective responsibilities of the Tribal Gaming

Commission, the security department of the Gaming Operation, and

any Tribal police, agency. Such plan, and any subsequent

modifications thereof, shall be submitted to and reviewed by the

Tribal Gaming Commission and, after such review, shall be adopted

with such modifications as the Tribal Gaming Commission shall deem

proper.

vi. Subject to Tribal Council approval, the Tribal

Gaming Commission may promulgate, review and revise as necessary,

regulations to govern the operation and management of any and all

Gaming.

vii. The Tribal Gaming Commission shall establish a list

of persons barred from the Gaming Facility because of their

criminal history or association with career offenders or career

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offender organizations which pose a threat to the integrity of

Gaming.

viii. The Tribal Gaming Commission shall review the

Technical Standards and insure that any Gaming Operation conforms

to the Technical Standards.

ix. The Tribal Gaining Commission shall enforce all

Tribal health and safety standards applicable to Gaming

Facilities. The Tribal Gaming Commission shall issue a

certificate of compliance to each Gaming Operation upon a

determination that the Gaming Facility complies with such

standards.

x. The Tribal Gaming Commission may, in the name of the

Tribe, but only with the prior written approval of the Tribal

Council, bring any civil action or criminal complaint in the

courts of the Tribe, State, or the United States to enforce this

Ordinance, IGRA, or the Compact or to enjoin or otherwise prevent

any violation of the Ordinance, IGRA, or the Compact.

xi. The Tribal Gaming Commission may receive any

complaint from any person, including any employee of any Gaming

Operation, who is or who claims to be adversely affected by any

act or omission of a Gaining Operation or any employee thereof and

which is asserted to violate this Ordinance, the Compact, or IGRA,

and may impose such remedial action as it deems appropriate to

bring the Gaming Operation into compliance with such provisions.

The Tribal Gaming Commission may for this purpose, in its sole

discretion, conduct a hearing and receive evidence with regard to

such complaint if it deems an evidentiary proceeding useful in the

resolution of such complaint.

xii. Subject to Tribal Council approval, the Tribal

Gaming Commission may employ such staff from time to time as it

deems necessary to fulfill its responsibilities under this

Ordinance and the Compact, and may retain legal counsel,

consultants and other professional services, including

investigative services, to assist it with respect to any of the

issues over which the Tribal Gaming Commission exercises

jurisdiction. The expenses of the Tribal Gaming Commission shall

be assessed against the Gaining Operation.

xiii. The Tribal Gaming Commission may compel any

licensee, any person employed by a Gaining Operation and any person

doing business with a Gaming Operation to appear before it and to

provide such information, documents or other materials as may be

in their possession to assist in any investigation conducted by

the Tribal Gaming Commission.

xiv. The Tribal Gaming Commission shall establish a

schedule of fees and charges for the issuance of licenses,

including application fees and annual renewal fees. In addition,

the Tribal Gaming Commission may impose such fees on licensees as

are reasonably related to the making of background investigations

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and the costs of enforcement of this Ordinance and of the licenses

issued hereunder.

xv. The Tribal Gaming Commission shall require each

Distributor and Manufacturer to verify under oath, on forms

prescribed by the Tribal Gaming Commission that the Gaming Devices

distributed or manufactured by them for use at any Gaming Facility

comply with the Technical Standards and all requirements of this

Ordinance. The Tribal Gaming Commission may require the testing

of any Gaming Device at the sole expense of the Distributor or

Manufacturer.

E. Procedures of the Tribal Gaming Commission The Tribal

Gaming Commission s.ha].1 conduct its operations in accordance with

procedural resolutions adopted in accordance with this Ordinance.

Such resolutions shall include the following provisions:

i. Regular meetings of the Tribal Gaming Commission may

be held upon such notice, or without notice, and at such time and

place as shall from time to time be fixed by the Tribal Gaming

Commission. Unless otherwise specified, no notice of such regular

meetings shall be necessary.

ii. Speàial meetings of the Tribal Gaming Commission may

be called upon such notice as the Tribal Gaming Commission shall

provide. The person entitled to call the meeting shall be

designated by the Tribal Council at the time that it establishes

the structure of the Tribal Gaming Commission. The person calling

the meeting shall fix the date and time of the meeting and the

location thereof. Neither the business to be transacted nor the

purpose of the special meeting need be given in the notice.

iii. At any meeting of the Tribal Gaming Commission, a

majority of the members then in office shall constitute a quorum

for the transaction of business. The vote of a majority of the

members present at a meeting at which a quorum is present shall be

the act of the Tribal Gaming Commission. The person designated to

preside over such meetings shall be designated by the Tribal

Council when creating the structure of the Tribal Gaming

Commission.

iv. Any action required or permitted to be taken at a

meeting of the Tribal Gaming Commission may be taken without a

meeting if all of the members of the Tribal Gaming Commission sign

written consents to such meeting and action taken. Such consents

shall be the same as a unanimous vote of the Tribal Gaming

Commission.

v Members of the Tribal Gaming Commission may

participate in a meeting of the Tribal Gaming Commission by means

of conference telephone or similar communications equipment by

means of which all persons participating in the meeting can hear

each other. Participation in a meeting in such a manner by any

member who does not object at the beginning of such meeting to the

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holding thereof in such manner shall constitute presence in person

at such meeting.

vi. Any hearing conducted by the Tribal Gaming

Commission under this Ordinance may, at the direction of the

Tribal Gaming Commission, be conducted by not less than three

members of the Tribal Gaming Commission designated by the Tribal

Gaming Commission. for that purpose. Notwithstanding the

foregoing, with respect to a license suspension or revocation

hearing, if less than the full Tribal Gaming Commission shall hold

the hearing, then the members of the Tribal Gaming Commission who

are not present shall vote or abstain from voting after the

hearing through a ratification process.

vii. The Tribal Gaming Commission, subject to Tribal

Council ratification, may adopt such additional procedures and

rules as it deems necessary or convenient to govern its affairs

and which are consistent with this Ordinance and the Compact.

viii. The Tribal Gaming Commission shall keep minutes

of all of its meetings, whether in person, telephonic meetings or

other types of meetings, and shall submit copies of each such

meeting minutes to the Tribal Council within one week of the date

of the meeting.

F. Prohibition No member or employee of the Tribal Gaining

Commission shall participate as a player in any Gaming activity

conducted on the Reservation.

G. Tribal Gaming Commission Inspectors Subject to Tribal

Council approval, for the purpose of ensuring the integrity of all

Gaming, the Tribal Gaming Commission shall employ nonuniformed

inspectors who shall report directly to and be under the sole

supervision of the Tribal Gaming Commission and not under the

supervision of any Manager or any Gaming Operation. Tribal Gaming

Commission inspectors shall have unfettered access to all

facilities of all Gaming Operations at all times, including all

Gaming Facilities and all other locations where any equipment,

goods, supplies, books records or other material relating to

Gaming is kept or stored; for such purposes, personnnel employed

by any Gaming Operation shall provide Tribal Gaming Commission

inspectors access to locked and secure areas of the Gaming

Facilities or such other locations without restraint. Tribal

Gaming Commission inspectors shall report to the Tribal Gaming

Commission regarding any failure by a Gaming Operation to comply

with any of the provisions of the Compact or this Ordinance or any

other applicable Tribal laws and ordinances. Tribal Gaming

Commission inspectdors may also receive customer complaints with

respect to any Gaming Operation and shall assist in seeking

voluntary resolution of such complaints. Tribal Gaming Commission

inspectors shailbe licensed as Gaming Employees.

vii. Use of Gaming Revenue

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A. Net revenues from Class II and Class III gaming shall

be used only for the following purposes: to fund Tribal government

operations and programs; provide for the general welfare of the

Tribe and its members; promote Tribal economic development; donate

to charitable organizations; or help fund operations of local

government agencies; or for any other purposes permitted under

IGRA.

B. Notwithstanding the foregoing, if the Tribal Council

authorizes per capita payments with respect to Class II net

revenues to tribal 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): Provided, that:

(1) Such plan shall protect the interest of minors or

other incompetent persons who are eligible to receive per

capita payments.

(2) As long as required by law, the Tribe shall notify

persons receiving per capita payments that such payments are

subject to federal taxation.

VIII. Audit

A. The Tribal Gaming Commission shall cause to be

conducted annually an independent audit of gaming operations and

shall submit the resulting audit reports to the Upper Skagit

Tribal Council and the National Indian Gaming Commission.

B. All gaming related contracts that result in the

purchase of supplies, services, or concessions in excess of

$25,000.00 annually, except contracts for professional legal or

accounting services, shall be specifically included within the

scope of the audit described in clause A. of this Section:

Provided, that the Tribal Gaming Commission or the Tribal Council

may require that such contracts of less than $25,000 be included

in the scope of the audit if inclusion is deemed necessary to

protect the public interest in the integrity of Indian gaming.

IX. Protection of the Environment and Public Health and Safety

Gaming facilities shall be constructed, maintained and

operated in a manner that adequately protects the environment and

the public health and safety. Gaming facility construction,

maintenance and operation shall comply with the tipper Skagit

Environmental Protection Code as amended, the Building Code, as

adopted by the Tribe, and Tribal regulations adopted pursuant

thereto.

X. Licensing

The Tribe and the Tribal Gaming Commission, consistent with

IGRA and the Compact, shall ensure that the policies and

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procedures set out in this section are implemented with respect to

the following individuals and entities, who shall be required to

fill out an appliàation form for a license:

1) each Gaming Employee;

2) each Key Employee;

3) each Primary Management Official;

4) each Gaming Operation and Manager and each Principal

thereof;

5) each Distributor and Manufacturer;

6) each provider of a Gaming Service; and

7) each person, firm or corporation providing financing for

any Gaming Operation, Gaming Facility or any part thereof (other

than an agency of the United States, a member institution of the

Federal Deposit Insurance Corporation or an institution regulated

by the Comptroller of the Currency).

A. Application Forms - Notices

(1) Privacy Act Notice. The following notice shall be

placed on the application form for a key employee or a

primarymanagement official 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 investigations or

prosecutions 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

tribes being unable to hire you in a primary management

official or key employee position.

The disclosure of your Social Security Number (SSN) is

voluntary. However, failure to supply a SSN may result

in errors in processing your application.

(2) False Statements Notice. The following notice

shall be placed on the application form for a key employee or

a primary official before that form is filled out by an

applicant:

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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.

B. Burden of Proof

It is the determination of the Tribe that the public interest

in the integrity of gaming is such that the burden of proof to

establish fitness or eligibility to obtain or maintain a license

under this Ordinance shall be upon the applicant or licensee, as

the case may be.

C. Background Investigations

(1) The Tribal Gaming Commission shall require from

each primary management official and from each key employee,

and may require from all others listed in this Section X, all

of the following information:

(a) Full name, other names used (oral or written),

social security number(s), birth date, place

of birth, citizenship, gender, and all

languages (spoken or written);

(b:) Currently and for the previous 5 years:

business and employment positions held,

ownership interests in those businesses,

business and residence addresses, and drivers

license numbers;

(c) The names and current addresses of at least

three personal references, including one

personal reference who was acquainted with the

applicant during each period of residence

listed under paragraph D.(l)(b)of this

section;

(d) Current business and residence telephone

numbers;

(e) A description of any existing and previous

business relationships with the gaming

industry generally, including ownership

interests in those businesses;

(f) A description of any existing and previous

business relationships with the gaming

industry generally, including ownership

interests in those businesses;

(g) The name and address of any licensing or

regulatory agency with which the person has

filed an application for a license for permit

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related to gaming, whether or not such license

or permit was granted;

(h) For each felony for which there is ongoing

prosecution or a conviction, the charge, the

name and address of the court involved, and

the date and disposition if any;

(1) For each misdemeanor conviction or ongoing

misdemeanor prosecution (excluding minor

traffic violations), within 10 years of the

date of the application, the name and address

of the court involved and the date and

disposition;

(j) For each criminal charge (excluding minor

traffic charges), whether or not there is a

conviction, if such criminal charge was within

10 years of the date of the application and is

not otherwise listed pursuant to paragraph

D.(1)(h) or D.(l)(i) of this section, the

criminal charge, the name and address of the

court involved, and the date and disposition;

(k) The name and address of any licensing or

regulatory agency with which the person has

filed an application for a business or

occupational license or permit, whether or not

such license or permit was granted;

(1) Two (2) current photographs;

(m) Any other information the Tribe deems

relevant;

(n) Fingerprints consistent with procedures

adopted by the Tribe according to 25 C.F.R. SS

522.2 (h);

(o) For any person or entity subject to provisions

of the Compact, any other information required

to obtain a state certification pursuant to

the Compact; and

(p) Any other information required by Tribal

Gaming Commission rule or regulation.

(2) The Tribal Gaining Commission shall conduct, or

cause to be conducted under the Compact, an

investigation sufficient to make a determination under

subsection D below. In conducting a background

investigation, the Tribe, the Tribal Gaming Commission

or its agent shall promise to keep confidential the

identity of each person interviewed in the course of the

investigation.

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D. Eligibility Determination

The Tribal Gaming Commission shall review a persons or

entitys prior activities, criminal record, if any,

reputation, habits, and associations to make a finding

concerning the eligibility of a key employee or primary

management official or other individual or entity listed

above for employment in or association with a Gaming

Operation. If the Tribe determines that employment of or

contract with the person or entity 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 Tribal Gaming Operation shall not employ or

contract with that person or entity in a key employee or

primary management official position, or as an employee, nor

as a management contractor nor supplier of gaming goods or

services.

E. Procedures for Forwarding Applications and Reports for

Key Employees and Primary Management Officials to the

National Indian Gaming Commission

(1) When a key employee or primary management official

begins work at a gaming operation authorized by this

ordinance, the Tribal Gaming Commission shall forward to the

National Indian Gaming Commission a completed application for

employment and conduct the background investigation and make

the determination referred to in subsections C and D of this

section.

(2) The Tribal Gaming Commission shall forward the

report referred to in subsection E of this section to the

National Indian Gaming Commission within 60 days after an

employee begins work or within 60 days of the approval of

this ordinance by the Chairman of the National Indian Gaming

Commission.

(3) The gaming operation shall not employ as a key

employee or primary management official a person who does not

have a license after 90 days.

F. Report to the National Indian Gaming Commission

(1) Pursuant to the procedures set out in subsection E.

of this section, the Tribal Gaming Commission shall prepare

and forward to the National Indian Gaming Commission an

investigative report on each background investigation.

An investigative report shall include all of the following:

(a) Steps taken in conducting a background

investigation;

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(b) Results obtained;

(C) Conclusions reached; and

(d) The basis for those conclusions.

(2) The Tribal Gaming Commission shall submit, with the

investigative report, a copy of the eligibility determination

made under subsection D. of this section.

(3) If a license is not issued to an applicant, the

Tribal Gaming Commission:

(a) Shall notify the National Indian Gaming

Commission; and

(b) May forward copies of its eligibility

determination and investigative report (if

any) to the National Indian Gaming Commission

for inclusion in the Indian Gaming Individuals

Records System.

(4) With respect to key employees and primary

management officials, the Tribal Gaming Commission shall

retain applications for employment and reports (if any) of

background investigations for inspection by the Chairman of

the National Indian Gaming Commission or his or her designee

for no less than three (3) years from the date of termination

of employment.

G. Applicability of Compact Licensing Procedures

For those license applicants to whom the Compact

applies, and to the extent that the Compact procedures for

background investigations and eligibility determinations are

more stringent, thenthose procedures shall apply.

H. Granting a Gaming License

(1) Within a thirty (30) day period after the National

Indian Gaming Commission notifies the Tribal Gaming

Commission that it has no objection to the issuance of a

license pursuant to a license application filed by a key

employee or a primary management official for whom the Tribal

Gaming Commission has provided an application and

investigative report to the National Indian Gaming

Commission, the Tribal Gaming Commission may issue a license

to such applicant.

(2) The Tribal Gaming Commission shall respond to a

request for additional information from the Chairman of the

National Indian Gaming Commission concerning a key employee

or a primary management official who is the subject of a

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report. Such a request shall suspend the 30day period under

paragraph G.l. of this section until the Chairman of the

National Indian Gaming Commission receives the additional

information.

(3) If, within the thirty (30) day period described

above, the National Indian Gaming Commission provides the

Tribal Gaming Commission with a statement itemizing

objections to the issuance of a license to a key employee or

to a primary management official for whom the Tribal Gaming

Commission has provided an application and investigative

report to the National Indian Gaming Commission, the Tribal

Gaming Commission shall reconsider the application, taking

into account the objections itemized by the National Indian

Gaming Commission. The Tribal Gaming Commission shall make

the final decision whether to issue a license to such

applicant.

(4) The Tribal Gaming Commission may issue a license,

subject to the provisions of the Compact and IGRA to all

other eligible individuals and entities without submission to

the National Indian Gaming Commission.

(5) If, after the issuance of a license, an event occurs

that would have made the licensee ineligible for a license if

such event had occurred prior to the issuance of the license,

the Tribal Gaming Commission shall suspend the license in

accordance with Section X (P) and commence license revocation

procedures.

I. Licensure of Gaming Employees, Key Employees and Primary

Management Officials No person shall be employed as a

Gaming Employee, Key Employee or Primary Management Official

unless such person has a current license issued by the Tribal

Gaming Commission.

J. Licensure of Managers No person, firm or corporation

shall act as a Manager unless such Manager has a current

license issued by the Tribal Gaming Commission.

K. Licensure ~f Distributors No person, firm or corporation

shall distribute Gaming Devices, or components thereof, used

or to be used in a Gaining Operation unless such Distributor

has a current license issued by the Tribal Gaming Commission.

L. Licensure of Manufacturers No person, firm or

corporation shall use any Gaming Device, or component part

thereof, in a Gaming Operation unless the Manufacturer of

such GamingDevice, or component part has a current license

issued by the Tribal Gaming Commission.

M. Licensure of Providers of Gaming Services No person,

firm or corporation shall purchase any Gaining Service, or

enter into a contract for the purchase of any Gaming Service,

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unless the pr~ovider of such Gaming Service has a current

license issued by the Tribal Gaming Commission.

N. Licensure of Financiers No person, firm or corporation

shall accept financing with respect to any Gaming Operation

or Gaming Facility (other than from an agency of the United

States or a member institution of the Federal Deposit

Insurance Corporation or an institution regulated by the

Comptroller of the Currency) unless such person, firm or

corporation has a current license issued by the Tribal Gaining

Commission.

0. NonGaming Employees All persons who are not Gaming

Employees but -work at any Gaming Facility, must obtain a

nongaming work permit from the Tribal Gaming Commission

before commencing employment. Such work permits may be

issued upon a determination by the Tribal Gaming Commission

that the employee is not a threat to the effective regulation

of Gaming and creates no risk or enhances no danger of unfair

or illegal practices, methods or activities in the conduct of

Gaming. Allapplicants for work permits shall provide such

information as the Tribal Gaming Commission shall require.

P. License Suspension

(1) No Right Created by License Issuance. Any license

issued by the Tribal Gaming Commission under this Ordinance

shall constitute a privilege to conduct the licensed activity

and shall not create a right in the licensee to conduct such

activity. Subject to section P(9) below, if, after the

issuance of a gaming license, the Tribal Gaming Commission

receives reliable information indicating that any licensed

individual, firm, entity or corporation is not or may not be

eligible for employment or licensing, the Tribal Gaming

Commission may suspend such license and shall notify, in

writing, the licensee of the suspension and / or the proposed

revocation of the license.

(2) Notice or Proposed License Revocation. The Tribal

Gaming Commission shall notify the licensee of a time and a

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

(3) Revocation of Licenses. Subject to section P(9)

below, any license issued by the Tribal Gaming Cominission may

be revoked by the Tribal Gaming Commission for breach of any

of the provisions of this Ordinance, the Compact, IGRA or the

license, upon a hearing before the Tribal Gaming Commission

after not less than ten (10) days written notice to the

licensee. The licensee, his or its attorney, and any person

affected by the license shall have the right to be present at

any hearing conducted in accordance with this paragraph P.(2)

and to offer sworn oral or documentary evidence relevant to

the breach charged. Subject to review by the Upper Skagit

Tribal Court, a license may be suspended during such pre

hearing period by the vote of a majority of the members of

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Resolution 943T
the Tribal Gaming Commission then in office where such

extraordinary action is essential to protect the public

safety or the integrity of Gaming; a license shall be

suspended during such period as required under IGRA if the

revocation hearing arises as a result of notice from the

National Indian Gaming Commission.

(4) Hearing upon Adverse Action. Any person or entity

who is affected by an adverse action by the Tribal Gaming

Commission in connection with denial of a license applied for

under this Ordinance may request a hearing before the Tribal

Gaming Commission by written request submitted within 30 days

following notice of the action by the Tribal Gaming

Commission. Thereupon, the Tribal Gaming Commission shall

afford such person or entity an opportunity to appear and be

heard before the Tribal Gaming Commission, either in person

or through a representative or legal counsel, and to submit

such evidence as such person or entity deems relevant in the

matter. The Tribal Gaming Commission may also receive

evidence from the Tribe, Tribal Gaming Commission or any

person or entity that the Tribal Gaming Commission deems

relevant to the matter. Thereafter, the Tribal Gaming

Commission shall either affirm or reconsider its decision.

(5). Appeal to the Tribal Council. Subject to the

burden of proof set forth in this Ordinance, the decision of

the Tribal Gaming Commission to deny, suspend or revoke a

license pursuant to this Ordinance may be appealed to the

Tribal Council by the aggrieved person or entity. The fact

that a member or members of the Tribal Council are also

members of the Tribal Gaming Commission shall not be grounds

for either the removal or recusal of such Tribal Council

member(s) with respect to any appeal to the Tribal Coucil.

Within 30 days following receipt of such appeal, the Tribal

Council shall afford the aggrieved person an evidentiary

hearing. Where any denial, suspension or revocation of a

license is based upon confidential information furnished to

the Tribal Gaming Commission which may not, as a matter of

law, be disclosed to the aggrieved person by the Tribal

Gaming Commission, such circumstances shall not be grounds

for reversal of the decision to deny, suspend or revoke the

license. -

(6) Appeal to the Tribal Court. Subject to the burden

of proof set forth in this Ordinance, a decision of the

Tribal Council on appeal to affirm or reverse the denial,

suspension or revocation of any license pursuant to this

Ordinance may be appealed to the Upper Skagit Tribal Court by

the aggrieved person or entity. In all appeals before the

Tribal Court, there shall be deference given by the Tribal

Court to the determination of the Tribal Gaming Commission as

the agency charged with responsibility for interpreting its

own regulations. Findings of fact and conclusions of law

made by the Tribal Gaming Commission may be reviewed de novo

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Resolution 9437
by the Tribal Court. The decision of the Tribal Court shall

be final.

(7) Stay Pending Review. The effectiveness of any

action to suspend or revoke an existing license under this

Section may be stayed by the Tribal Council during any period

of appeal or review under paragraphs P.(5) and P.(6).

(8) After a revocation hearing, the Tribal Gaining

Commission shall decide to revoke or to reinstate a gaming

license. If the decision is to revoke the license and, after

appeal, that decision is upheld, the Tribal Gaming Commission

shall notify the National Indian Gaming Commission, and where

applicable, the State Gaming Agency, of its decision.

(9) Notice of Concern Manager and Primary Management

Officials Notwithstanding the foregoing, in the event that the

Tribal Gaming Commission obtains reliable information that the

duly licensed Manager and I or a Primary Management Official may

have breached any provision of this Ordinance, the Compact, IGRA,

or its license, the Tribal Gaming Commission shall issue a Notice

of Concern to the licensee prior to any action of suspension or

the giving of notice of a revocation hearing with respect to its /

their license(s). The Notice of Concern shall describe the

alleged breach, shall describe the steps necessary to effect a

cure and shall provide the licensee with an opportunity to meet

with the Tribal Gaming Commission to discuss the matter. The

discontinuance or correction of the alleged breach shall

constitute a cure thereof, except where such alleged breach

constitutes a criminal violation by the Manager or the Primary

Management Official. If the alleged breach is not corrected or

discontinued as required herein, then the Tribal Gaming Commission

shall institute the notice and hearing procedure set forth above.

XI. Licensed Locations

A. The Tribal Gaming Commission shall issue a license to

each place, facility, or location on Indian lands where gaming is

conducted under this Ordinance.

B. No license shall be issued to any Gaming Facility unless

the floor plans and surveillance systems for such Gaming Facility

have been reviewed and approved by the Tribal Gaming Commission:

Provided, any floor plans and surveillance system for Class III

Gaming Facilities, or Facilities used in common by Class III and

Class II Gaming Operations, shall be approved pursuant to the

Compact.

XII. Prohibited Acts

It shall be a violation of this Ordinance for any person to:

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A. Conduct or participate in any Class 11 or Class III

gaming on the Upper Skagit Tribal lands other than in a licensed

Gaming Facility.

B. Receive, distribute, apply or divert any property, funds

proceeds or other assets of a gaming operation to the benefit of

any individual or any other person except as authorized by this

Ordinance, IGRA or the Compact.

C. Tamper with any equipment used in the conduct of Gaming

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

Operation. -

0. Do any other act in connection with the conduct of

Gaming with the intent to affect the outcome of any game or any

wager other than in accordance with the publicly announced rules

of the Gaming Operation.

E. Alter or misrepresent the outcome or other event on

which wagers have been made after the outcome is made sure but

before it is revealed to the players.

F. Place, Increase or decrease a wager or determine the

course of play after acquiring knowledge, not available to all

players, of the outcome of the game or any event that affects the

outcome of the game or which is the subject of the bet, or aid

anyone in acquiring such knowledge for the purpose of placing,

increasing or decreasing a wager of determining the course of play

contingent upon that event or outcome.

G. Claim, collect or take, or attempt to claim, collect or

take, money or anything of value in or from any authorized game,

with intent to defraud, without having made a wager thereon, or to

claim, collect or take an amount greater than the amount won.

H. Place or increase a wager after acquiring knowledge of

the outcome of the game or other event which is the subject of the

wager, including past-posting and pressing wagers.

I. Reduce the amount wagered or cancel the wager after

acquiring knowledge~of the outcome of the game or other event,

which is the subject of the wager, including pinching bets.

J. Manipulate, with the intent to cheat, any component of

any authorized game in a manner contrary to the designed and

normal operational purpose for the component, including, but not

limited to manipulating the game, with the knowledge that

manipulation affects the outcome of the game or with knowledge of

any event that affects the outcome of the game.

K. Use tokens or chips for wagers other than those approved

by the Tribal Gaming Commission or coin or other than lawful,

legal tender of the United States of America, or coin or other

lawful, legal tender approved by Tribal Gaming Commission rule or

Page 20

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regulation, or use a coin not of the same denomination as the coin

intended to be used in the game.

L. Possess, with the intent to use, any device to assist in

projecting the outcome of any game, in keeping track of the cards

played, in analyzing the probability of the occurrence of an event

relating to any game, or in analyzing the strategy for playing or

betting to be used in any game.

M. Use any device or means to cheat or defraud, or possess

any such device at a Gaming Facility.

N. Entice or induce another to use any device or means to

cheat or defraud, ~r entice or induce another to possess any such

device at a Gaming Facility.

0. Entice or induce another to go to any place on the

Reservation where Gaming is being conducted or operated in

violation of the provisions of this Ordinance, the Compact, or

rules and regulations adopted pursuant thereto, with the intent

that the other person play or participate in the Gaming.

P. Possess or discharge any firearm in any Gaming Facility:

Provided, that duly authorized officers of the Tribal Police,

State Gaming Agents, or if so authorized by the Tribal Council,

Tribal Gaming Commission agents, shall be permitted to possess or

discharge firearms in the exercise of their official duties.

Q. Act or conspire with another to give, or offer to give,

any money, thing of value, gift, chattel of consideration to any

elected official or employee of the Tribe, or member or employee

of the Tribal Gaming Commission, for the purpose of influencing

any action, decision, contract, or consideration, or the promise

of any action, decision, contract or consideration.

R. Act or conspire with another to give, or offer to give,

any money, thing of value, gift, chattel of consideration to any

employee of a Gaming Operation, for the purpose of influencing any

decision, contract, purchase or consideration, or the promise of

any decision, contract, purchase or consideration.

XIII. Penalties

A. Any individual who violates any provision of this

Ordinance, including provisions of the Compact incorporated

herein, shall be subject to civil penalties including exclusion

from employment in any Gaming Operation, denial or revocation of

any license, exclusion from attendance at any Gaming Facility,

exclusion from the Upper Skagit Reservation if a nonmember of the

Tribe, or with respect to any person subject to the jurisdiction

of the Tribe, a fine of not more than $5,000.00 for each such

violation. Each calendar day that a violation occurs shall be

deemed a separate violation. The Tribal Gaming Commission shall

have the jurisdiction to impose such penalties on any person or

Page 21

Resolution 9437~
entity within the jurisdiction of the Tribe to impose such

penalties.

B. No action by the Tribal Gaming Commission to impose a

penalty pursuant to this Section shall be valid unless the person

or entity affected is given the opportunity to appeal and be heard

before the Tribal Gaming Commission, subject to the procedures set

forth in Section X. concerning appeals or in paragraph X (P)(9).

concerning a Notice of Concern, either in person or through a

representative or legal counsel, and to submit such evidence as

the Tribal Gaming Commission deems relevant to the matter at

issue. Notwithstanding the foregoing, if the Tribal Gaming

Commission deems it necessary to protect the public interest in

the integrity of Indian Gaming, the Tribal Gaming Commission may

take such action with immediate effect as it deems required, and

shall thereupon provide notice and an opportunity to be heard to

the affected person or entity as soon as is reasonably practicable

following such action.

XIV. Repealer and Severability

A. To the extent that they are inconsistent with this

ordinance, all prior gaming ordinances are hereby repealed.

B. If any provision of this Ordinance or its application

to any person or circumstance is held invalid, the remainder of

this Ordinance or the application of the provision to other

persons or circumstances is not affected.

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