MODOC TRIBE OF OKLAHOMA

515 G Southeast

Miami, Oklahoma 74354

918-542-1190 FAX 918-542-5415

RESOLUTION NO: 94-20

RESOLUTION TO ADOPT AN ACT RELATING TO

MODOC TRIBE OF OKLAHOMA

REGARDING TERMS OF CLASS III GAMING OPERATIONS ON TRIBAL LANDS

WHEREAS, the Modoc Tribe of Oklahoma is a federally

recognized Indian Tribe, organized under the Oklahoma Indian

Welfare Act of 1936, with a Constitution and By-Laws approved by

the United States Secretary of the Interior on July 27, 1990, and

WHEREAS, the Elected Council of the Modoc Tribe of Oklahoma

is empowered to act on behalf of the tribe under the Constitution

and By-Laws, and

WHEREAS, in certain treaties entered into between the Modoc

Tribe and the United States, the Modoc Tribe undertook to provide

protection to businesses which were located within its

jurisdiction and retained all of its inherent rights of self

government, and

WHEREAS, the Modoc Tribe of Oklahoma is desirous of defining

and setting forth the terms of Class III gaming operations on

Modoc Tribe Indian lands as defined by the Indian Gaming

Regulatory Act of 1988, and

WHEREAS, the Modoc Tribe desires to approve the attached

CLASS III GAMING ORDINANCE in order to set the terms for Class

III gaming on the Indian lands of the Modoc Tribe as defined by

the Indian Gaming Regulatory Act of 1988, and

WHEREAS, the Constitution and By-laws of the Modoc Tribe

provides that enactments are to be passed by a majority of the

Business Committee members present, and

NOW THEREFORE BE IT ENACTED BY THE MODOC TRIBE OF OKLAHOMA:

~UT~

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RESOLUTION NO: 94-20

MODOC TRIBE OF OKLAHOMA

CLASS III GAMING ORDINANCE

AN ACT RELATING TO MODOC TRIBE OF OKLAHOMA

REGARDING TERMS OF CLASS III GAMING OPERATIONS ON TRIBAL LANDS

I. Purpose

The Modoc Elected Council of the Modoc Tribe of Oklahoma

(hereinafter referred to as the Tribe) , empowered by the

Constitution and $y-laws of the Modoc Tribe of Oklahoma to enact

ordinances, hereby enacts this ordinance in order to set the

terms for class III gaming operations on tribal lands.

II. Gaming Authorized

Class III gaming as defined in the Indian Gaming Regulatory

Act, P.L. 100-497, 25 U.S.C. Section 2703(8) (IGRA) and by the

regulations promulgated by the National Indian Gaming Commission

at 25 C.F.R. § 502.4 (as published in the Federal Register at 57

FR 12382-12393, April 9, 1992) is hereby authorized.

III. Ownership of Gaming

The tribe shall have the sole propriety interest in and

responsibility for the conduct of any gaming operation authorized

by this ordinance.

IV. Use of Gaming Revenue

A. Net revenues from 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.

B. If the Tribe elects to make per capita payments 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).

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RESOLUTION NO: 94-20

MODOC TRIBE OF OKLAHOMA

CLASS III GAMING ORDINANCE

V. Audit

A. The Tribe shall cause to be conducted annually an

independent audit of gaming operations and shall submit the

resulting audit reports to 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 and accounting

services, shall be specifically included within the scope of the

audit that is described in subsection A. above.

VI. Protection of the Environment and Public Health and Safety

Class III gaming facilities shall be constructed, maintained

and operated in a manner that adequately protects the environment

and the public health and safety.

VII. Licenses for Key Employees and Primary Management Officials

The Tribe shall ensure that the policies and procedures set

out in this section are implemented with respect to key employees

and primary management officials employed at any class III gaming

enterprise operated on Indian lands:

A. Definitions

For the purposes of this section, the following definitions

apply:

1. Key employee means

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

following functions:

(1) Bingo caller;

(2) Counting room supervisor

(3) Chief of security;

(4) Custodian or gaming supplies or

cash;

(5) Floor manager;

(6) Pit boss;

(7) Dealer;

(8) Croupier;

(9) Approver of credit; or

(10) Custodian of gambling devices

including persons with access to

cash and accounting records within

such devices;

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RESOLUTION NO: 94-20

MODOC TRIBE OF OKLAHOMA

CLASS III GAMING ORDINANCE

(b) If not otherwise included, any other

person whose total cash compensation is

in excess of $50,000 per year; or

(c) If not otherwise included, the four most

highly compensated persons in the gaming

operation.

2. Primary management official means

(a) The person having management responsibility

for a management contract;

(b) Any person who has authority:

(1) 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.

B. Application Forms

1. The following notice shall be placed on the application

form f or a key employee or a primary management 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 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.

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RESOLUTION NO: 94-20

MODOC TRIBE OF OKLAHOMA

CLASS III GAMING ORDINANCE

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. Existing key employees and primary management officials

shall be notified in writing that they shall either:

a. Complete a new application form that contains a

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 a key employee or a primary official 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.

4. The Tribe shall notify in writing existing key

employees and primary management officials 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

1. The Tribe shall request from each primary management

official and from each key employee all of the following

information:

a. Full name, other names used (oral and written)

social security number(s), birth date, place of

birth, citizenship, gender, 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;

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RESOLUTION NO: 94-20

MODOC TRIBE OF OKLAHOMA

CLASS III GANING ORDINANCE

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 (1) (b) of this section;

d. Current business and residence telephone numbers;

e. A description of any existing and previous

business relationships with Indian tribes,

including ownership interests in those businesses;

f. A description of any existing and previous

business relationships with the gaming industry

generally Indian tribes, 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 or permit related to

gaming, whether or not such license or permit was

granted;

h. For each felony for which there is an on-going

prosecution or a conviction, the charge, the name,

and address of the court involved, and the date

and disposition if any;

i. For each misdemeanor conviction or on-going

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 is within 10 years of the

date of the application and is not otherwise

listed pursuant to paragraph (1) (h) or (1) (1) 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 an occupational license or

permit, whether or not such license or permit was

granted;

1. A current photograph;

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RESOLUTION NO: 94-20

MODOC TRIBE OF OKLAHOMA

CLASS III GAMING ORDINANCE

m. Any other information the Tribe deems relevant;

and

n. Fingerprints consistent with procedures adopted by

the Tribe according to 25 C.F.R. § 522.2(h).

2. The Tribe shall conduct an investigation sufficient to

make a determination under subsection D, below. In conducting a

background investigation, the Tribe or its agent shall promise to

keep confidential the identity of each person interviewed in the

course of the investigation.

D. Eligibility Determination

The Tribe shall review a persons prior activities, criminal

record, if any, and reputation, habits and associations to make a

finding concerning the eligibility of a key employee or primary

management official for employment in a gaming operation. If the

Tribe determines that employment of the person poses a threat to

the public interest or to the effective regulation of gaming, or

creates or enhances dangers of unsuitable, unfair, or illegal

practices and methods and activities in the conduct of gaming, a

tribal gaming operation shall not employ that person in a key

employee or primary management official position.

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 Tribe 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

subsection D of this section.

2. The Tribe shall forward the report referred to in

subsection F 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.

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RESOLUTION NO: 94-20

MODOC TRIBE OF OKLAHOMA

CLASS III GAMING ORDINANCE

F. Report to the National Indian Gaming Commission

1. Pursuant to the procedures set out in subsection E of

this section, the Tribe shall prepare and forward to the National

Indian Gaming Commission an investigative report on each

background investigation. An investigative report shall include

all at the following:

a. Steps taken in conducting a background

investigation;

b. Results obtained;

c. Conclusions reached; and

d. The bases for those conclusions.

2. The Tribe shall submit, with the 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 Tribe:

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 Tribe shall retain applications for employment and

reports (if any) of background investigations f or 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. Granting a Gaming License

1. If, within a thirty (30) day period after the National

Indian Gaming Commission receives a report, the National Indian

Gaming Commission notifies the tribe 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

tribe has provided an application and investigative report to the

National Indian Gaming Commission, the Tribe may issue a license

to such applicant.

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RESOLUTION NO: 94-20

MOIJOC TRIBE OF OKLAHOMA

CLASS III GAMING ORDINANCE

2. The Tribe 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 report. Such a request shall

suspend the 30-day 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 Tribe with a

statement itemizing objections to the issuance of a license to a

key employee or to a primary management official for whom the

Tribe has provided an application and investigative report to the

National Indian Gaming Commission, the Tribe shall reconsider the

application, taking into account the objections itemized by the

National Indian Gaming Commission. The Tribe shall make the

final decision whether to issue a license to such applicant.

H. License Suspension

1. If, after the issuance of a gaming license, the Tribe

receives from the National Indian Gaming Commission reliable

information indicating that a key employee or a primary manage

ment official is not eligible for employment under subsection D.

above, the Tribe shall suspend such license and shall notify in

writing the licensee of the suspension and the proposed revoca

tion.

2. The Tribe shall notify the licensee of a time and a

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

3. After a revocation hearing, the Tribe shall decide to

revoke or to reinstate a gaming license. The Tribe shall notify

the National Indian Gaming Commission of its decision.

VIII. License Locations

The Tribe shall issue a separate license to each place,

facility, or location on Indian lands where class III gaming is

conducted under this ordinance.

IX. Repeal

To the extent that they are inconsistent with this

ordinance, all prior gaming ordinances are hereby repealed.

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RESOLUTION NO: 94-20

MODOC TRIBE OF OKLAHOMA

CLASS III GAMING ORDINANCE

X. Agent for Se~vice

All notices and other legal service related to activities

under this ordinance should be delivered by certified mail to:

PAYNE & JONES Chartered

Attn: Mr. Kip Kubin, Esq

11000 King

Overland Park, Kansas 66228

Telephone 913-469-4100

XI. Procedures for Background Investigations of Key Employees

and Primary Management Officials

The Modoc Tribe Gaming Commission (sometimes referred to as

the MTGC) is responsible for conducting all background

investigations and suitability determination. The members of the

MTGC are appointed by the Chief of the Modoc Tribe. The MTGC

will:

A. Designate an agent to conduct the background

investigations.

B. Review and approve all investigative work done by an

agent of the Commission.

C. Report the results of the background investigations to

the National Indian Gaming Commission.

D. Make arrangements with a local law enforcement agency

approved to take fingerprints and to forward these

prints directly to the National Indian Gaming

Commission for processing through the Federal Bureau of

Investigation. All resulting reports will sent to the

MTGC.

E. Make suitability determination of background

characteristics based upon the results of the

background investigation.

F. Verify by written and/or documented oral communication

the following items concerning a prospective employee:

1. Prior activities.

2. Criminal record and reputation.

3. Interviews of former employers, personal

references and other applicable individuals in

reference to the applicant.

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RESOLUTION NO: 94-20

MODOC TRIBE OF OKLAHOMA

CLASS III GAMING ORDINANCE

4. Document the disposition of all potential problem

areas noted and disqualifying information

obtained.

G. Prepare an investigative report setting forth the

following:

1. Steps taken in conducting the background

investigation.

2. Results obtained.

3. Conclusions reached and the bases for those

conclusions.

XII. Procedures for Dispute Resolution with the Gaming Public

The Modoc Tribe Gaming Commission is responsible for the

resolution of disputes between the gaming public (the patrons)

and the Tribe and/or the Tribes management contractor. The

following procedures shall apply to the various types of

disputes:

A. Refusal to Pay Winners Whenever the gaming enterprise

refuses payment of alleged winnings to patron, and the

enterprise and the patron are unable to resolve the

dispute to the satisfaction of the patron and dispute

involves:

1. At least five hundred dollars ($500), the

enterprise shall immediately notify the MTGC for

investigative action; or

2. Less than five hundred dollars ($500), the

enterprise shall inform the patron of his or her

right to request that the MTGC conduct an

investigation. The MTGC, through an inspector,

shall conduct whatever investigation it deems

necessary and shall determine whether payment

should be made.

B. Notice to Patrons The MTGC inspector shall mail

written notice by certified mail, return receipt

requested, to the enterprise and the patron of his or

her decision resolving the dispute within thirty (30)

days after the date that the MTGC first receives

notification from the enterprise or a request to

conduct an investigation from the patron.

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RESOLUTION NO: 94-20

MODOC TRIBE OF OKLAHOMA

CLASS III GAMING ORDINANCE

C. Inspector Decision The decision of the inspector is

effective on the date it is received by the aggrieved

party as reflected on the return receipt.

D. Review of Decision Within thirty (30) days after the

date of receipt of the written decision of the

inspector, the aggrieved party may file a petition with

the MTGC requesting a review of the decision. The MTGC

may set a hearing on the matter or may make a decision

based solely upon the inspectors decision and other

documentation provided to it by the patron and the

enterprise. The MTGC shall then issue a written

decision and mail it to the parties pursuant to the

procedures et forth in Section XII.B. The decision of

the MTGC shall be final and binding upon the patron and

the enterprise and shall not be subject to judicial

review or other legal action in the courts of the state

where the enterprise is located.

XIII. Inherent sovereiqnty of the Modoc Tribe of Oklahoma

With the passage of this legislative act notwithstanding any

other law or ordinance, this ordinance does not limit the

inherent sovereignty of the Modoc Tribe of Oklahoma.

CERTIFICATION

The foregoing resolution was passed by tlie Modoc Elected Council

on September / , 1994, with a vote of 4~ for, 4 against, ~L.

abstaining.

Secretary

Filed with

Bureau of Indian Affairs -

Miami Agency

Chairman, National Indian Gaming Commission

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