3.6

SECTION 4.
4.1

4.2

4.3

4.4

4.5

Designation of Agent: The Chairman of the Picayune Rancheria of the
Chukchansi Indians shall accept service of any official determination, order, or
notice of violation issued by the Commission as described in 25 CFR Part 519.

TRIBAL GAMING COMMISSION

Establishment: The Tribal Council hereby charters, creates and establishes the
Picayune Rancheria of the Chukchansi Indians Tribal Gaming Commission as a
governmental subdivision of the Tribe.

4.1.1 The Picayune Rancheria of the Chukchansi Indians Tribal Gaming
Commission shall be referred to throughout this Ordinance as the Tribal
Gaming Commission.

Location and Place of Business:

4.2.1 Principal Place of Business The Tribal Gaming Commission shall
maintain its principal place of business within the boundaries of the
Rancheria, which may include being located within the Gaming Facility.

4.2.2. Other Locations The Tribal Gaming Commission may, with a majority
vote of the Tribal Council, establish other offices in such other locations
as the Tribal Gaming Commission may from time to time determine to be
in the best interest of the Tribe.

Duration: The Tribal Gaming Commission shall have perpetual existence and
succession in its own name, unless dissolved by the Tribal Council pursuant to
Tribal law.

Attributes: As a governmental subdivision of the Tribe, the Tribal Gaming
Commission is under the directive and control of the Tribal Council, but it is the
purpose and intent of the Tribal Council that the operations of the Tribal Gaming
Commission be conducted on behalf of the Tribe for the sole benefit and interests
of the Tribe, its members and the residents of the Rancheria.

4.4.1 Arm of Tribe In carrying out its purposes under this Ordinance, the Tribal
Gaming Commission shall function as an arm of the Tribe.

4.4.2 Tribal Actions Notwithstanding any authority delegated to the Tribal
Gaming Commission under this Ordinance, the Tribe reserves to itself the
right to bring suit against any Person or entity in its own right, on behalf of
the Tribe or on behalf of the Tribal Gaming Commission, whenever the
Tribe deems it necessary to protect the sovereignty, rights and interests of
the Tribe or the Tribal Gaming Commission.

Recognition as a Political Subdivision of the Tribe: The Tribe, on behalf of the
Tribal Gaming Commission, shall take all necessary steps to acquire recognition

Page 13 of 53


5.5

5.6

authorize such entity to conduct fingerprinting and/or receive and process
fingerprint cards for background investigation purposes, so long as such
background investigation shall, at a minimum, include a check of criminal history
records maintained by the Federal Bureau of Investigation. The Tribal Gaming
Commission, if it chooses not to contract with any other entity, shall designate the
NIGC as its authorized entity for receiving and processing fingerprint cards for
background investigation purposes, so long as such background investigation, at a
minimum, includes a check of criminal history records information maintained by
the Federal Bureau of Investigation.

Notification and MOU with NIGC: If the Tribal Gaming Commission chooses
to utilize the NIGC pursuant to Section 5.4 above, the Tribal Gaming
Commission, with consent of the Tribal Council, shall notify the NIGC of the
forwarding of Tribal Gaming License applications to NIGC. Before obtaining
and processing fingerprints or fingerprint cards for background investigation
purposes, the Tribal Gaming Commission shall enter into a Memorandum of
Understanding (“MOU”) with the NIGC providing that any and all criminal
results obtained from the fingerprint cards for background investigation purposes
shall be viewed by Tribal government officials only.

Scope and Types of Gaming Employee Licenses:

5.6.1 Key Employee Gaming License A Key Employee Gaming License is for
those employees of the Enterprise or Gaming Facility that are Key
Employees and Primary Management Officials as defined by this
Ordinance. A Key Employee Gaming License issued pursuant to this
section shall be effective for any Key Employee or Primary Management
Official position within the jurisdiction of the Tribal Gaming Commission.

5.6.2 Gaming Employee License A Gaming Employee License is for
employees of the Enterprise or Gaming Facility who work in Gaming,
finance (including shipping and receiving), and information technology, or
who work in areas where Gaming is occurring as designated by the Tribal
Gaming Commission. A Gaming Employee License issued pursuant to
this section shall be effective for any Gaming Employee position within
the jurisdiction of the Tribal Gaming Commission. Gaming Employee
Licenses will not require the same level of background scrutiny and
standards required for Key Gaming Employee Licenses.

Page 34 of 53


(10)

en)

(12)

(13)

(14)

(5)
(16)

a7

(18)

(19)

(20)

The disclosure of any existing and previous business relationships
with Indian tribes, including ownership interests in those
businesses.

The disclosure of any existing and previous business relationships
with the gaming industry, including ownership interests in those
businesses.

A sworn statement whether the Applicant or any member of his/her
Immediate Family has a past or current financial interest in any
Gaming-related enterprise anywhere.

The name and address of any licensing or regulatory agency for all
Gaming-related licenses the Applicant has ever applied for,
whether or not they were granted such license.

The name and address of any licensing or regulatory agency for all
professional, occupational or business licenses the Applicant has
ever applied for, whether or not they were granted such license.

A statement of all languages written or spoken.

Written permission giving the Tribal Gaming Commission, any
authorized State or local law enforcement agency, the State
Gaming Agency and NIGC or its designees the right to access and
review the Applicant's background, including his criminal record.

A complete disclosure of any pending or anticipated civil or
criminal action against the Applicant.

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

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.

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 not otherwise
disclosed, including the name and address of the court involved
and the date of disposition.

Page 30 of 53


5.15

(4)

The construction, expansion or modification of the Facility shall
meet the standards of the federal American with Disabilities Act as
incorporated into the Tribal Building Ordinance.

Upon the inspection of the health and safety of the building, and
upon the inspection that all Gaming controls that are necessary to
insure the integrity of the Gaming are in place, the Tribal Gaming
Commission shall issue to the Facility a Certificate of Occupancy,
which shall be reissued upon similar inspections every two years.

5.14.2 Upon the issuance of a Facility License, the Tribal Gaming Commission
shall forward the License to the State Gaming Agency within ten (10) days
of issuance.

5.14.3 The Facility License shall be posted in a conspicuous and public place in
the Facility at all times.

State Gaming Agency Licensing:

5.15.1 Except as provided in Sections 5.15.2 and 5.15.3 below, the Tribe will not
employ or affiliate with any Person whose application to the State Gaming
Agency for a determination of suitability has been denied.

5.15.2 Notwithstanding Section 5.15.1, the Tribe may employ a Person who has
been denied for a determination of suitability by the State Gaming Agency

ift
qd)
(2)

The Person holds a valid and current Tribal License;

The denial by the State Gaming Agency is based on reasons that
antedate the filing of the Person’s initial application to the State
Gaming Agency;

The Person is not an Employee of another Gaming Enterprise;

The Person has been in continuous employ for at least three years
by the Tribe prior to the effective date of the Compact.

5.15.3 Notwithstanding Section 5.15.1, the Tribe may employ a Person who has
been denied for a determination of suitability by the State Gaming Agency

if:
qd)
(2)

The Person is an Enrolled Member of the Tribe;

The Person holds a valid and current Tribal License;

Page 39 of 53


2.33

2.34
2.35

2.36

2.37

2.38

2.39

2.40

“Gaming Facility” or “Gaming Establishment” means any building in which
Class III Gaming Activities or Gaming operations occur, or in which the business
records, receipts, or other funds of the Gaming operation are maintained (but
excluding offsite facilities primarily dedicated to storage of those records, and
financial institutions), and all rooms, buildings, and areas, including hotels,
ancillary businesses, parking lots and walkways, a principal purpose of which is
to serve the activities of the Gaming operation, provided that nothing herein
prevents the conduct of Class II Gaming (as defined under IGRA) therein.

[Reserved]

“Gaming Vendor” means the same as a “Gaming Resource Supplier” as defined
by the Compact or any Person or entity who, directly or indirectly, manufactures,
distributes, supplies, vends, leases or otherwise purveys Class II Gaming or Class
III Gaming resources to the Gaming Facility, provided that the Tribal Gaming
Commission may interpret this definition to exclude a purveyor of equipment or
furniture that is not specifically designed for, and is distributed generally for use
other than in connection of Gaming.

“General Manager” means the Person designated by the Tribe as having primary
management responsibility for the business operations of the Gaming Facility.

“Gross Revenues” means all gaming and non-gaming revenues collected or
received from the lawful Gaming Enterprise.

“Immediate Family” means, with respect to the Person under consideration, a
husband, wife, father, mother, son, daughter, brother, sister, father-in-law,
mother-in-law, son-in-law, daughter-in-law, brother-in-law, _ sister-in-law,
stepfather, stepmother, stepson, stepdaughter, stepbrother, stepsister, half-brother
or half-sister.

“Indian Gaming Regulatory Act” or “IGRA” means Public Law 100-497, 102
Stat. 2426, 25 U.S.C. §§2701, et seq. (1988), as amended.

“Indian Lands” means:

2.40.1 Lands within the limits of the Tribe’s exterior boundaries, whereby the
Tribe exercises sovereign jurisdiction over such lands, notwithstanding the
issuance of any patent and including rights-of-way running through such
lands; and

2.40.2 Lands title to which is either held in trust by the United States for the
benefit of the Tribe or an Enrolled Tribal Member or held by the Tribe
subject to restriction by the United States against alienation and over
which the Tribe exercises governmental powers; and

2.40.3 Lands that may be acquired by the Tribe that meet the requirements of
25 U.S.C. Section 2719 et seq.

Page 7 of 53


9.3

9.4

95

(3) Provide for permanent reporting in indelible ink in a bound
notebook;

(4) Require that each report include the following:

(i) The record number.

(ii) The date.

(iii) The time.

(iv) The location of the incident.

(v) A detailed description of the incident.

(vi) The persons involved in the incident.

(vii) The security personnel assigned to the incident.

9.2.6 The establishment of employee procedures designed to permit detection of
any irregularities, theft, cheating, fraud, or other form of stealing:

9.2.7 Maintenance of a list of persons barred from the Gaming Facility;

9.2.8 In accordance with section 8.4.1 of the Compact, except as provided in
subdivision 8.4.1(d) of the Compact, no State Gaming Agency regulation
shall be effective with respect to the Enterprise unless it has first been
approved by the Association, and further, the Tribe has had an opportunity
to review and comment on the proposed regulations.

Insurance Requirements: Pursuant to the Tribal/State Compact, the
Management Contractor shall ensure that the Enterprise shall carry a minimum of
Five Million Dollars ($5,000,000.00) liability insurance to protect the public in
the event of an accident.

IRS Requirements: The General Manager shall be responsible for seeing that
Gaming Activity is managed in accordance with Tribal and Federal law and that
such Gaming Activity complies with all IRS reporting requirements.

Audit Requirements:

9.5.1 Annual Enterprise Audit The Tribal Gaming Commission and the General
Manager of the Enterprise shall obtain an annual independent audit of
such Enterprise by a certified public accountant using the accounting
standards for audits of casinos of the American Institute of Certified
Public Accountants.

9.5.2 Contract Audits Each contract between the Management Contractor and
another Person for supplies, services (other than legal and accounting
services) or concessions for a contract amount in excess of Twenty-five
Thousand Dollars ($25,000) annually shall be subject to an independent
audit. For the purposes of the previous sentence, the term “services” does

Page 49 of 53


8.5

8.6

8.7

8.8

8.9

8.10

SECTION 9.

91

Civil Violation: Any non-Indian who violates or fails to comply with any
provision of this Ordinance, or who fails or neglects to comply with any final
order of the Tribal Gaming Commission, shall be charged and given due process
pursuant to Section 4.24 herein. If the non-Indian is found liable, he may pay a
civil fine not to exceed Five Thousand Dollars ($5,000) for each violation thereof.
Each day during which any such violation or failure to comply continues shall
constitute a separate violation of this Ordinance. The amount of any such civil
fine may be recovered in a civil action in an appropriate court of civil jurisdiction.

Cumulative Fines: All civil fines accruing under this Ordinance shall be
cumulative and a suit for the recovery of one fine shall not bar or affect the
recovery of any other fine, or judgment, penalty, forfeiture or damages, nor bar
the power of the Tribal Court to punish for contempt, nor bar any criminal
prosecution against any officer, director, agent, or employee of any Licensee, or
any other Person.

Purpose of Civil Penalties: The civil fines imposed under this Ordinance are
intended to be remedial and not punitive and are designed to compensate the
Tribe for the damage done to the peace, security, economy and general welfare of
the Tribe and the Rancheria, and to compensate the Tribe for costs incurred by the
Tribe in enforcing this Ordinance. The civil fines under this Ordinance are also
intended to encourage all people into complying with this Ordinance and Tribal
Gaming Commission regulations and not to punish such people for violation of
such laws and regulations.

Civil Action for Penalties: In enforcing the civil infraction provisions of this
Ordinance, the Tribal Gaming Commission shall proceed, in the name of the
Tribe, against a Person for violation of such provision by civil complaint in any
court of competent jurisdiction, or, if applicable, only in such other forums as the
Tribe has agreed to by contract. The Tribal Gaming Commission in such action
shall have the burden of showing, by the preponderance of the evidence, that such
Person violated the applicable provision of this Ordinance.

Seizure and Forfeiture of Property: Property utilized in violation of this
Ordinance shall be subject to seizure and forfeiture by order of the Board of
Commissioners pursuant to such procedures and rules, as the Board of
Commissioners shall promulgate.

Reporting of Offenders The Tribal Gaming Commission, upon final conviction
of any Person under this subsection, shall report the name of the Person convicted
to the Tribal Council, State Gaming Board and NIGC.

GAMING MANAGEMENT

Gaming Facility Management:

Page 47 of 53


minimal requirements: Upon learning about a dispute, gaming
management shall expediently and informally gather sufficient
facts to make an initial determination about the dispute (ice.
whether the dispute has any merit, whether further investigation is
required, whether to take any corrective action, etc.). Gaming
management shall conduct an investigation, if appropriate and
inform the complainant, either orally or in writing, about its initial
determination as soon as is reasonably practicable. At that time, if
the complainant indicates that he or she has additional concerns or
is not satisfied, gaming management shall schedule an informal
hearing, if practical and appropriate, and thereafter inform the
complainant of its final determination and inform the complainant
that if they are dissatisfied with the final determination they may
file an appeal with the Tribal Gaming Commission.

10.3 Formal Dispute Resolution Procedure:

10.3.1 Complainants who have followed the initial dispute resolution procedure,
and who are unsatisfied with gaming management's initial determination,
may appeal that determination in writing to the Tribal Gaming
Commission no later than five (5) days after being informed about the
initial determination.

10.3.2 The Tribal Gaming Commission may investigate the dispute in any
manner it chooses. The Board of Commissioners shall offer the
complainant a fair opportunity to be heard in person or through counsel
about the dispute, either before or after it makes its own inquiries. The
complainant’s opportunity to be heard shall take place within thirty (30)
days after the Tribal Gaming Commission receives the complainant’s
written appeal.

10.3.3 After investigating (if it chooses to do so), and within thirty (30) days after
affording the complainant an opportunity to be heard, the Board of
Commissioners shall issue a written opinion on the complainant’s appeal,
and shall mail a copy of the opinion to the complainant at his/her last
known address. The decision of the Board of Commissioners shall be
final.

Page 53 of 53


8.3

standards once adopted is a violation of this Ordinance. The Chairman of
the National Indian Gaming Commission shall have the authority to
remedy violations of this ordinance under 25 U.S.C. 2713 and its
implementing regulations, and the Tribe shall have all rights and remedies
available thereunder.

Prohibited Acts: In addition to other civil and criminal offenses provided for in
this Ordinance, the following acts are prohibited by any Person and subject any
violator to the civil or criminal penalties specified herein:

8.3.1

8.3.2

8.3.10

8.3.11

Participating in any Gaming, which is not authorized by this Ordinance.

Knowingly making a false statement in connection with any Contract to
participate in any Gaming Activity.

Attempting to bribe any Person participating in any Gaming Activity.

Offering or accepting a loan, financing or other thing of value between a
member of the Board of Commissioners or employee of the Tribal
Gaming Commission and any Person participating in any Gaming
Activity.

Promoting or participating in any illegal Gaming Activity.
Failing to keep sufficient books and records to substantiate receipts,
disbursements and expenses incurred or paid from any Gaming Activity

authorized pursuant to this Ordinance.

Falsifying any books or records that relate to any transaction connected
with any Gaming Activity pursuant to this Ordinance.

Conducting or participating in any Gaming Activity, which results in
Cheating.

Allowing participation in Gaming Activity by or with an intoxicated or
disorderly Player.

Allowing or participating in the sale of liquor when such sale is prohibited
by Tribal law.

Accepting consideration other than money, or chips for participation in
any Gaming Activity.

Using bogus or counterfeit chips or Charitable Gaming Tickets, or to

substitute or use any cards, Charitable Gaming Tickets or Gaming
equipment that has been marked or tampered with.

Page 45 of 53


4.11

4.12

4.13

(iii) Enhance the dangers of unsuitable, unfair, or illegal
practices, methods, or activities in the conduct of Gaming;
or

(2) He/She has been convicted of or entered a plea of nolo contendere
to a felony of any jurisdiction or to a misdemeanor involving
dishonesty or moral turpitude in any jurisdiction; or

(3) He/She has a direct monetary or financial interest in the conduct of
any Gaming Enterprise or is in privity with a Management
Contractor; or

(4) He/She is presently a member of the Tribal Council.

Term of Office: Commissioners shall be appointed for a four (4) year term of
office, in staggered terms as set forth below, subject to nonmaterial deviation
based on the actual date in February of each year on which the Tribal Council
convenes to make Commissioner and other appointments. Commissioners may
be reappointed by the Tribal Council prior to the expiration of their current term.

4.11.1 Appointment_of the Board of Commissioners The terms of
Commissioners are staggered based on the appointments made by the
Tribal Council following the December 6, 2007 adoption of this
Ordinance. Terms of Commissioners shall begin and end on the fourth
Monday in the month of February, as described in Section 4.10.4, above.
Commissioners shall be appointed by resolution, and their appointment
shall be confirmed by a letter from the Tribal Council.

4.11.2 [Reserved

4.11.3 Appointment of Officers The Tribal Council shall appoint from among
the Commissioners a Chairperson every year in February at the time of the
annual Commissioner appointments, subject to reappointment at the
discretion of the Tribal Council. Thereafter the Commissioners shall
select from among themselves the Vice-Chairperson, Secretary, and
Treasurer.

Ex-Officio Members: At the direction of the Tribal Council, any member of the
Tribal Council, Tribe, Bureau of Indian Affairs employee, or any other Person
may be designated to participate, without vote, in Board of Commissioner
meetings.

Meetings:
4.13.1 Regular Meetings The Board of Commissioners shall meet not less

frequently than one day per week, on a designated day of the week to be
established annually by the Board of Commissioners during the first Board

Page 17 of 53


5.7

5.8

5.6.3

5.6.4

Non-Gaming Employee License A Non-Gaming Employee License is for
employees of the Enterprise or Gaming Facility who do not work in

Gaming, and who are not regularly in areas where Gaming is occurring,
including restaurant and hotel employees who are not Key Employees or
Primary Management Officials. Non-Gaming Employee Licenses will not
require the same level of background scrutiny and standards as are
required for Gaming Employee Licenses.

Transferring Licenses A Licensee shall apply to have his/her License
changed from one type of License to another by Application to the Tribal
Gaming Commission.

Temporary Licensing: Notwithstanding anything herein to the contrary, if the
Applicant has completed a License Application, the Tribal Gaming Commission
may immediately issue a temporary License if:

5.7.1

5.722

3.73

5.7.4

The Tribal Gaming Commission has conducted a preliminary, local,
background investigation; and

Based on the preliminary investigation, the information does not indicate
that the Applicant has a criminal history.

Temporary licenses may last no longer than 90 days from the date of
issuance.

Upon completion of a background investigation and a determination of
eligibility for any Key Employee, a report shall be sent by the Tribal
Gaming Commission to the NIGC within 60 days after the employee
begins work.

License Issuance, Term and Substance:

5.8.1

5.8.2

5.8.3

Issuance Upon completion of the necessary background investigation, and
after the Tribe has complied with the 30-day NIGC review requirements
found in 25 C.F.R. §558.3 and §558.4, the Tribal Gaming Commission
may issue a License on a conditional or unconditional basis. If the NIGC
objects to an Applicant, the Tribe shall reconsider the Application, taking
into account the reasons for the objections noted by NIGC. However, the
Tribe shall have the final word on whether to license an Applicant.
Nothing herein creates a property right in the License.

Term Any License issued pursuant to this section shall be effective for a
period of two (2) years from the date of issuance.

License Substance The License shall state on its face the name of the

Applicant, the Tribal Logo, the name of his/her employer , and the license
number. It shall also include a photograph of Licensee.

Page 35 of 53


4.12
4.13
4.14
4.15
4.16
4.17
4.18

4.19

4.20
4.21
4.22
4.23

4.24

SECTION 5.
5.1
5.2
5.3
5.4
535
5.6
5.7
5.8

TABLE OF CONTENTS

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Limitations on the Powers of the Board of Commissioners

and the Tribal Gaming Commission ...........s.ssssssssssesessssesessssesessssesseseseesescsneneares 24
Abiiial BIAS bcsraccccnamamnnannmnaminwnnARa NANI 24
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Right of Entrance; Bi-Monthly Inspection ...........ccsccsscsesesseesesseenseneseensesneneeneeen 25
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Due Process; Notice; EXamitier sicsessscsnssssssascswsasssssssasssssnssesssorvssresssscsssssseseshon 25
Monthly Report of Tribal Gaming Commission............::ssssssesseseseseeesesesseseeaeeees 26

Executive Director...

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Authorized Entity for Fingerprint Cards........i.ssssvssssocvsesesssesosssssssssesassossssvatvoseees 33

Notification and MOU and NIGC

Scope and Types of Gaming Employee Licenses..........s:ssssssssseeseseseseeneenen a4

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License: Issuance,’ Tetm and SubstanCe th. sssccsscssstssssesssssasssisscnescssssvavevsasesscesssvsaaeus ao

ii


5.2

Application Procedure:

52;

1

iS)

Submission to Tribal Gaming Commission An Applicant seeking a
License shall submit an Application to the Tribal Gaming Commission on

such form as the Tribal Gaming Commission may require.

Privacy Act and False Statement The application form for a Key

Employee Gaming License shall include the following notices:

(a)

(2)

Privacy Act

In compliance with the Privacy Act of 1974, the solicitation of
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
investigation 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 my result in errors in processing your application.

False Statement

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 (U.S. Code, title 18,
section 1001).

Page 28 of 53


4.6

4.7

of the Tribal Gaming Commission as a political subdivision of the Tribe,
recognized by all branches of the United States Government as having been
delegated the right to exercise one or more substantial governmental functions of
the Tribe.

Sovereign Immunity of the Tribal Gaming Commission:

4.6.1 Authority The Tribal Gaming Commission is clothed by Federal and
Tribal law with all the privileges and immunities of the Tribe, except as
specifically limited by this Ordinance, including sovereign immunity from
suit in the State, Federal or Tribal Court.

4.6.2. No Waiver Nothing in this Ordinance shall be deemed or construed to be
a waiver of sovereign immunity of the Tribal Gaming Commission from
suit, which shall only be waived pursuant to subsection 4.7 below.

4.6.3 No Consent to Jurisdiction Nothing in this Ordinance shall be deemed or
construed to be a consent of the Tribal Gaming Commission to the
jurisdiction of the United States or of any state or of any other tribe with
regard to the business or affairs of the Tribal Gaming Commission.

4.6.4 Actions by Tribal Council Notwithstanding any other provision herein, as
an entity of the Tribe, the Tribal Gaming Commission’s immunity from
suit shall at all times be deemed waived for actions initiated by the Tribal
Council of the Tribe.

Waiver of Sovereign Immunity of the Tribal Gaming Commission: The
sovereign immunity of the Tribal Gaming Commission may be waived only by
express resolutions of both the Board of Commissioners and the Tribal Council
and after consultation by the Tribal Gaming Commission with its attorneys.

4.7.1 Resolution Effecting Waiver All waivers of sovereign immunity must be
preserved with the resolutions of the Board of Commissioners and the
Tribal Council.

4.7.2 Policy on Waiver Waivers of sovereign immunity are disfavored and shall
be granted only when necessary to secure a substantial advantage or
benefit to the Tribal Gaming Commission.

4.7.3. Limited Nature of Waiver The Tribal Gaming Commission shall have
neither the authority nor the ability to enter into any waiver of sovereign
immunity except as to the Tribal Gaming Commission as set forth in this
Ordinance. Waivers of sovereign immunity shall not be general but shall
be specific and limited as to duration, grantee, transaction, property or
funds, if any, of the Tribal Gaming Commission subject thereto, court
having jurisdiction pursuant thereto and law applicable thereto. All
waivers of immunity issued by the Tribal Gaming Commission shall

Page 14 of 53


Commissioners shall have, and is authorized to exercise by majority vote, the
following powers in addition to all powers already conferred by this Ordinance:

4.18.1

4.18.2

4.18.3

4.18.4

4.18.5

4.18.6

4.18.7

4.18.8

4.18.9

To enforce this Ordinance, the IGRA, the Tribal MICS, the Compact, and
the regulations of the Tribal Gaming Commission over all Gaming within
the jurisdiction of the Tribe, provided that none of the Board of
Commissioners, any individual Commissioner nor any employee of the
Tribal Gaming Commission shall make management decisions as to the
day-to-day operations of the Gaming Enterprise.

To direct the investigation of any reported violations of this Ordinance, the
Compact, or any other applicable law regarding Gaming within the
jurisdiction of the Tribe.

To act as liaison with the NIGC, the California Division of Gambling
Control and the California Gambling Control Commission.

To publish and distribute copies of this Ordinance and Tribal Gaming
Commission regulations or policies and any Tribal Council, Board of
Commissioners or Tribal Court decisions regarding Gaming matters.

To work directly, and only, with the Tribal Council with regard to any
Gaming issues, including policy issues arising at or with the State and
Federal government.

To make or cause to be made reasonable inspections or investigations
through the Executive Director as it deems necessary to ensure compliance
with this Ordinance. In undertaking such investigations, the Board of
Commissioners may request the assistance of the Enterprise or Gaming
Facility employees, Federal and local law enforcement officials, legal
counsel and other appropriate third parties.

To arrange for training of members of the Board of Commissioners, within
the training budget approved by the Tribal Council in the annual budget.

Upon prior explicit resolution and approval of the Tribal Council, to
employ such advisors as it may deem necessary. Advisors may include,
but are not limited to, lawyers, accountants, law enforcement specialists
and Gaming professionals.

To promulgate rules and regulations to implement and further the
provisions of this Ordinance; provided such rules or regulations are
approved by Tribal Council resolution or ordinance.

4.18.10 To accept, review, approve or disapprove any Application for a License.

4.18.11 To consult with and make recommendations to the Tribal Council

regarding changes in Tribal Gaming laws and policies.

Page 20 of 53


4.10.3

4.10.4

4.10.5

(5) The officers and member at large shall attend meetings of the
Board of Commissioners and perform duties, in addition to those
described above, appropriate and necessary to the efficient conduct
of business of the Board of Commissioners.

(6) The Board of Commissioners shall keep minutes of meetings and
provide a copy to the Tribal Council upon the approval of such
minutes by the Board of Commissioners.

Qualifications for Board of Commissioners Positions

(1) Preference shall be given to Enrolled Tribal Members.

(2) Commissioners must pass the scrutiny of a Key Employee License
background check, and the additional requirements set forth at
4.10.5 below.

(3) Members of the Board of Commissioners shall have expertise,
experience, education or a combination thereof in the following
areas: gaming, finance, management, legal, business, governmental
regulation, and Tribal policy and law.

(4) Members of the Board of Commissioners shall be at least twenty-
five (25) years of age.

Date of Appointment Regular terms for members of the Board of
Commissioners shall begin and end on the fourth Monday of the month of
February during a duly convened Tribal Council meeting. The Tribal
Council shall appoint members of the Board of Commissioners as soon as
practically possible following any vacancy in accordance with the
Ordinance including Section 4.15.6 below. Appointments to the Board of
Commissioners shall be made by written resolution adopted at a meeting
of the Tribal Council.

Background Check Prior to the time that any member of the Board of
Commissioners takes office, the Tribe shall perform or arrange to have
performed a Key Employee License background check on each
prospective member. No Person shall serve as a Commissioner if:

(1) His/Her prior activities, criminal record, if any, or reputation,
habits or associations:

(i) Pose a threat to the public interest; or

(ii) Threaten the effective regulation and control of Gaming; or

Page 16 of 53


5.2.3 Submission to State Gaming Agency The Applicant shall also submit an
application for a Determination of Suitability along with required releases
to the State Gaming Agency.

Key Employee and Primary Management Official Gaming Applications

The Application for a Key Employee and Primary Management Official
Gaming License shall contain the following information:

5.2.4

Q)

(2)

(6)

(7)

(8)

(9)

The full name (and other names ever used), address, telephone
number, age, birth date and place, citizenship, gender, and social
security number or business identification number of the
Applicant.

If the Applicant has resided at his current address for less than five
years, his previous addresses for the five years prior to the
application, his previous business addresses for the five years prior
to the application, and his driver’s license numbers for the five
years.

To the best of his/her knowledge, a description of the job, task, or
service the Applicant will provide, if hired, and the department or
location where Applicant will be employed.

The names and addresses of the Applicant's Immediate Family.

The Applicant's criminal and civil record, if any, and an
explanation of any crimes, other than infractions, for which he has
been convicted or to which he has entered a plea of nolo
contendere, and civil suits he has lost.

A disclosure of any and all judgments rendered against the
Applicant.

The names, addresses and telephone numbers of three references
who are not related to, nor reside with, the Applicant, including at
least one reference who was acquainted with the Applicant during
each period of residence for the previous five years.

A list of the Applicant's current and previous business and
employment positions over the preceding five (5) years, ownership
interests held in those businesses and his present business
affiliations.

The identity of any ownership interest in any past business
ventures.

Page 29 of 53


2.61

2.62

2.63

2.64

2.65

2.66

2.67

2.68

2.69

2.70

c) Any investment company registered under the federal Investment
Company Act of 1940 (15 U.S.C. § 80a-1 et seq.).

d) Any retirement plan established and maintained by the United States, an
agency or instrumentality thereof, or by a state, its political subdivisions,
or any agency or instrumentality of a state or its political subdivisions, for
the benefit of its employees.

e) Any employee benefit plan within the meaning of Title I of the federal
Employee Retirement Income Security Act of 1974 (29 U.S.C. § 1001 et

seq.).

f) Any securities dealer registered pursuant to the federal Securities
Exchange Act of 1934 (15 U.S.C. § 78a et seq.).

g) Any entity, all of the equity owners of which individually meet the criteria
of this definition.

“Raffle” means a form of Gaming in which each player buys a ticket for a
chance to win a prize with the winner determined by a random method. "Raffle"
does not include a slot machine.

“Rancheria” means lands defined as “Indian Lands” herein.
“State” means the State of California.

“State Gaming Agency” means the entity of the State pursuant to the Gambling
Control Act, pursuant to Division 8 of the Business and Professions Code,
Chapter 5, Sec. 19800 et seq.

“State Gaming Facility Compliance Agent” means the Person appointed
pursuant to Section 6.4.2(d) of the Compact.

“Tribal Gaming Commission” means the Tribe’s Gaming Commission
described in Section 4 of this Ordinance.

“Tribal Council” means the duly elected Tribal Council of the Tribe.

“Tribal Court” means any Court created by the Tribe pursuant to the Tribe’s
Constitution.

“Tribe” means the Picayune Rancheria of the Chukchansi Indians, including the
Authority and any other political subdivision, agency or instrumentality of the
Tribe.

“Wager” means the initial bet made in any game.

Page 11 of 53


1.3.4 Tribal Class II Gaming Authorized: Class II Gaming is authorized as
defined in the IGRA and by regulations promulgated by the National
Indian Gaming Commission (“NIGC”).

1.3.5 Tribal Class III Gaming Authorized: Class III Gaming is authorized and
permitted only with respect to the games identified pursuant to Section 4.1
of the Compact as approved by the Secretary of the Interior, and played in
accordance within the definitions and scope of the IGRA and by
regulations promulgated by the NIGC.

1.3.6 Tribal Class III Internal Control Standards: The Tribe voluntarily, through
this Tribal Gaming Ordinance, shall maintain minimum internal control
standards (“MICS”) that equal or exceed those set forth in 25 C.F.R. 542
(as in effect on October 1, 2006). The Tribe will work with NIGC to
ensure compliance with MICS regulations.

SECTION 2. DEFINITIONS

In this Ordinance, except where otherwise specifically provided or the context otherwise
requires, the following terms and expressions shall have the following meanings:

2.1

2.2

2.3

2.4

2.5

“Adjusted Gross Revenues” means gross revenues less all cash prizes or the
aggregate price of merchandise prizes, except in the case of the games of draw
poker and stud poker. Regarding games of draw poker and stud poker, "adjusted
gross revenues,” means the time buy-ins or tournament fees collected by the
Licensee.

“Applicant” means any Person or entity who has applied for a License under the
provisions of this Ordinance.

“Application” means a request for the issuance of a License for employment at a
Gaming Facility, or for approval of any act or transaction for which approval is
required or permitted under the provisions of this Ordinance.

“Association” means a representative from California tribes, the California State
Division of Gambling Control and the California Gambling Control Commission
as established pursuant to Section 2.2 of the Compact.

“Authority” means the Chukchansi Economic Development Authority, a wholly
owned unincorporated entity and instrumentality of the Tribe.

Page 3 of 53


4.26

SECTION 5.
5.1

investigation report, provide a written notice to the affected party(ies)
setting forth, with specificity, the issue(s) to be resolved.

4.24.3 Hearing The Board of Commissioners shall, within 14 business days after
the notice of hearing pursuant to 4.24.2, provide the affected parties the
right to present oral or written testimony from all people interested therein
as determined by the Board of Commissioners.

4.24.4 Examiner The Board of Commissioners shall act as Examiner for the
purpose of holding any hearing, or the Board of Commissioners may
appoint a Person qualified in the law or possessing knowledge or expertise
in the subject matter of the hearing to act as Examiner for the purpose of
holding any hearing. Any such appointment shall constitute a delegation
to such examiner of the powers of the Board of Commissioners under this
Ordinance with respect to any such hearing.

4.24.5 Decision The Examiner shall render a written opinion within 10 business
days following the completion of the hearing.

4.24.6 A decision of the Examiner shall be final.

Monthly Report of Tribal Gaming Commission: The Tribal Gaming
Commission shall provide a monthly report to the Tribal Council summarizing
Tribal Gaming Commission official actions, activities, investigative reports and
reports received from the Tribe's Gaming Facility(ies) as it deems necessary to
keep the Tribal Council fully informed as to the status of the Tribal Gaming
Commission’s activities.

Executive Director

4.26.1 Hiring. The Executive Director shall be selected by the Board of
Commissioners and employed by the Tribal Gaming Commission.

4.26.2 Removal. The Executive Director may only be terminated by the Board of
Commissioners with the approval of the Tribal Council.

GAMING LICENSES
Applicability:

5.1.1 Every Employee, Key Employee, Primary Management Official, Gaming
Enterprise, and Gaming Facility that aids, participates in or is related to
Gaming is required to have a current and valid License as issued by the
Tribal Gaming Commission.

5.1.2. The Tribe will perform background investigations and issue licenses to
Key Employees and Primary Management Officials according to
requirements at least as stringent as those in 25 C.F.R. Parts 556 and 558.

Page 26 of 53


4.19

4.18.26

4.18.27

4.18.28

4.18.29

4.18.30

4.18.31

4.18.32

4.18.33

to issue such findings and orders as appropriate based upon the
results of the investigation.

To issue an order of temporary closure of a Gaming Facility in the event
the Board of Commissioners determines that immediate closure is
necessary to protect public safety and Gaming assets pursuant to the due
process and hearings required by Section 4.24 herein.

To become self-regulating whenever the Tribe becomes eligible for a
certificate of self-regulation under the IGRA.

To file with the State Gaming Agency a request to be heard on any
denial of a Determination of Suitability.

To ask for the assistance of the State Gaming Agency to carry out the
Class III provisions of this Ordinance and to reimburse the State Gaming
Agency for any costs that it incurs in the provision of this service.

To assist the Enterprise in taking all steps necessary and appropriate to
insure the physical safety of all Tribal Gaming Enterprises, their
Licensees, patrons and employees.

To enact and adhere to its own internal controls including a Conflict of
Interest Policy governing Commissioners and Tribal Gaming
Commission staff, which internal controls shall become effective upon
approval by the Tribal Council.

Policies and Procedures. The Board of Commissioners shall develop,
with the assistance of the Executive Director, policies and procedures
consistent with this Ordinance which shall govern the conduct of
meetings and hearings of the Board of Commissioners, which policies
and procedures shall become effective upon approval by the Tribal
Council, provided that, not withstanding any provision of this Ordinance
to the contrary, if the Tribal Council fails to take any action on the
proposed policies and procedures within ninety (90) days of their
submission to the Tribal Council, the policies and procedures shall be
deemed approved by the Tribal Council.

To hire, oversee, and direct an Executive Director, and to remove the
Executive Director with cause pursuant Section 4.24 and 4.26 of this
Ordinance.

Limitations on the Powers of the Board of Commissioners and the Tribal
Gaming Commission:

4.19.1

The Tribal Gaming Commission shall not require members of the Tribal
Council to obtain a License from the Tribal Gaming Commission.

Page 23 of 53


8.5
8.6
8.7
8.8
8.9

8.10

SECTION 9.
9.1
92
9.3
9.4
9.5
9.6

9.7

TABLE OF CONTENTS

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SECTION 10. PROCEDURES FOR RESOLVING DISPUTES BETWEEN

10.1
10.2

10.3

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5.9
5.10
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5.12
5.13
5.14
5.15
5.16
6.1
6.2
6.3

6.4

SECTION 7.
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7.6

7.7

SECTION 8.
8.1
8.2
8.3
8.4

TABLE OF CONTENTS

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State Gaming Agency Licensing

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Age Restrictions

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SECTION 3. GENERAL PROVISIONS

3.1

3.2

3.3

3.4

3.5

Authority: This Ordinance is enacted pursuant to the inherent sovereign powers
of the Tribe pursuant to Article IV, Section 2, of the Constitution, and pursuant to
the powers of the Tribal Council pursuant to Article V of the Constitution.

Title, Repeal of Prior Laws, and Effect of Repeal: This Ordinance may be
cited as the Picayune Rancheria of the Chukchansi Indians Gaming Ordinance or
“Tribal Gaming Ordinance”.

3.2.1 All titles, chapters and sections of the Tribal Code, which pertain to
Gaming and are in effect as of the date that this Ordinance becomes
operative, are hereby repealed, and all other laws, or parts thereof,
inconsistent with the provisions of this Ordinance are hereby repealed.

3.2.2 Repeal of this Ordinance, or any portion thereof, shall not have the effect
of reviving any prior Law, Ordinance, or Resolution theretofore repealed
or suspended.

Construction: In construing the provisions of this Ordinance, unless the context
otherwise requires, the following shall apply:

3.3.1 This Ordinance shall be liberally construed to affect its purpose and to
promote substantial justice.

wo
bo
iv

Words in the present tense include the future and past tenses.

w
bo
bo

Words in the singular number include the plural, and words in the plural
number include the singular.

3.3.4 Words of the masculine gender or neuter include masculine and feminine
genders and the neuter.

Severability: If any section of this Ordinance is invalidated by a court of
competent jurisdiction, the remaining sections shall not be affected thereby.

Effective Date: This Ordinance and the rules, regulations, provisions,
requirements, orders, and matters established and adopted hereby shall take effect
and be in full force and effect after the adoption of this Ordinance by the Tribal
Council, and either the approval by the Chairman of the NIGC, or ninety (90)
days after submission of the Ordinance to the NIGC if the Tribe receives no
response pursuant to the IGRA.

3.5.1 The Tribal Secretary shall certify the adoption of this Ordinance and cause
the same to be published as required by law.

Page 12 of 53


13

1.2.4 Ensure that Gaming is conducted fairly and honestly by both Licensees
and players, and that it remains free from corrupt, incompetent,
unconscionable and dishonest practices.

1.2.5 Encourage Tribal economic development and employment opportunities.

1.2.6 Ensure that all Gaming revenue is used for the benefit of the Tribe and its
community.

1.2.7 Ensure that the Tribe agrees to resolution of gaming disputes in a fair and
impartial forum.

1.2.8 Ensure that Tribal Gaming laws are strictly and fairly enforced upon
Persons involved in Gaming Activity within the jurisdiction of the Tribe.

Policy:

1.3.1 Tribal Policy of Self-Government: The Tribe is firmly committed to the
principle of Tribal self-government. Consistent with Federal policy, Net
Revenues received by the Tribe shall be utilized and expended by the
Tribal Council by resolution and only for the following purposes:

qd) To fund Tribal government operations or programs.

(2) To provide for the general welfare of the Tribe and its members.
(3) To promote Tribal economic development.

(4) To donate to charitable organizations.

(5) To help to fund operations of local government agencies, general
governmental services, the maintenance of peace and good order,
the establishment of educational systems and programs, and the
promotion and regulation of economic activities within the
sovereign jurisdiction of the Tribe.

1.3.2. Tribal Gaming Policy: The establishment, promotion and operation of
Gaming is a desirable economic activity, provided that such Gaming is
regulated and controlled by the Tribe pursuant to the Compact authorized
by the IGRA, and that the Net Revenues received by the Tribe from
Gaming are used exclusively for the benefit of the Tribe.

1.3.3. Tribal Ownership of Gaming Facility: The Tribe shall have sole
proprietary interest in and responsibility for the conduct of Gaming

Facilities and/or Enterprises authorized by this Ordinance.

Page 2 of 53


4.14

of Commissioners meeting in following the new appointments. Such
regular meeting day may be varied by Commissioner vote for the purpose
of accommodating holidays or as necessitated by circumstances which in
the reasonable business judgment of the Commissioners require such
variance. Nothing in this Ordinance shall prohibit the Commission from
authorizing off-site meetings.

4.13.2 Special Meetings Special meetings may be called at the request of the
Tribal Council or by the written request of two members of the Board of
Commissioners, provided that (i) each Commissioner is provided at least
seventy-two (72) hours notice of the special meeting by direct contact and
by posting of the notice at the Tribal Gaming Commission offices, or (ii)
all members of the Commission are present (or present by telephone if so
authorized).

4.13.3 Meetings with Tribal Council The Tribal Council shall establish a time
for a monthly meeting between the Board of Commissioners and the
Tribal Council. All meetings with the Tribal Council shall be considered
special meetings of the Board of Commissioners. The Tribal Council may
also schedule emergency meetings with the Board of Commissioners
without regard to the notice requirements of Section 4.13.2.

4.13.4 Quorum A quorum for all meetings shall consist of three (3)
Commissioners. The Chairperson shall count towards the quorum.
Members present by telephone shall not count towards a quorum.

4.13.5 Voting All questions arising in connection with the actions of the Board
of Commissioners shall be decided by majority vote of those present at the
meeting. The Chairperson shall not vote except to break a tie. Members
present by telephone, if so authorized, shall not be entitled to vote.

Compensation of Board of Commissioners: The compensation of
Commissioners shall be established by the Tribal Council annually at the time of
the Tribal Council’s approval of the annual budget. If no action is taken by the
Tribal Council, the compensation for Commissioners shall remain the same as the
previous year.

Removal of Members or Vacancies:

4.15.1 Removal A Commissioner may be removed by the Council for the
following reasons: serious inefficiency, neglect of duty, malfeasance,
misfeasance, nonfeasance, misconduct in office, or for any conduct which
threatens the honesty and integrity of the Tribal Gaming Commission or
otherwise violates the letter or intent of this Ordinance or other applicable
Tribal or other law.

4.15.2 Due Process Except as provided below, no Commissioner may be
removed without notice and an opportunity for a hearing before the

Page 18 of 53


L
4,° a ‘NG,
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APR 16 2010

Morris Reid, Chairman

Picayune Rancheria of the Chukchansi Indians
46575 Road 417

Coarsegold, CA 93614

Re: Picayune Rancheria of the Chukchansi Indians Tribal Gaming Ordinance,
Resolution 2010-22

Dear Chairman Williams:

This is in response to your request for review and approval of an amendment to
the Picayune Rancheria of the Chukchansi Indians Tribal Gaming Ordinance enacted by
Resolution No. 2010-22 on February 22, 2010. The amendment changes requirements for
reappointment to the gaming commission and the background investigation requirements
of 25 C.F.R. § 556. The changes are consistent with the requirements of the Indian
Gaming Regulatory Act (IGRA) and this agency’s regulations and are therefore
approved.

Thank you for submitting the amended ordinance for review and approval. The
NIGC staff looks forward to working with you and the Tribe on future gaming issues. If
you have any questions or require assistance, please contact Dorinda Strmiska, Staff
Attorney, at (202) 632-7003

Sincerely,

ge Skibine
Acting Chairman

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


6.3

6.4

SECTION 7.

71

72

6.2.7 All Gaming related audits prepared by or on behalf of the Tribe or one of
its subdivisions.

Audit Requirements:

6.3.1 The Enterprise shall provide a copy of an annual independent audit to the
Tribal Gaming Commission, the Tribal Council, the State Gaming
Agency, and the National Indian Gaming Commission.

6.3.2 Each contract between the Tribe and another Person for supplies, services
(other than legal and accounting services) or concessions for a contract
amount in excess of Twenty-five Thousand Dollars ($25,000) annually
shall be subject to an independent audit. Such audit shall be solely limited
to a monthly printout from the accounts payable of the Gaming Operations
of the checks rendered. A copy of such audit will be provided to the
Tribal Gaming Commission, the Tribal Council, State Gaming Agency
and the National Indian Gaming Commission.

Notices to the Public:

6.4.1 The Gaming Facility shall have a copy of this Ordinance readily available
for inspection by any Person at each Gaming Facility.

6.4.2 The Gaming Facility shall post in a conspicuous location near each game
an explanation of the rules of play of every game operated or shall
otherwise provide the public with such an explanation.

GAMING ENTERPRISE RESTRICTIONS AND COMPLIANCE

Number of Facilities:

7.1.1 The Tribe may establish and operate not more than two Gaming Facilities,
and only on those lands on which Gaming may lawfully be conducted
under IGRA.

7.1.2. The Tribe may combine and operate in each Gaming Facility any forms
and kinds of Gaming permitted under the Compact, IGRA and this
Ordinance.

Gaming Device Restrictions:

7.2.1 Number of Class III Gaming Devices The Tribe may offer no more than
the number of Class III Gaming Devices allowed pursuant to the Compact.

7.2.2 Transfer of the Right to Operate Gaming Devices The Tribe may enter

into an agreement with one or more compacted California Indian tribes for

Page 41 of 53


2.18

2.19

2.20

2.21
2.22

2.23

2.24

2.25

2.26

2.27

2.28

“Compensation” means all wages salaries, perks, bonuses and all other forms of
remuneration for services rendered.

“Construction Contractor” means any Person who is not an Employee of the
Enterprise or the Gaming Facility, or a Gaming Vendor, and who, pursuant to a
Contract with the Enterprise or the Gaming Facility, will build or repair physical
property of the current Gaming Facility or area that is intended to become
Gaming Facility.

“Contract” means any legally binding agreement made between a Licensee and
another Person for the purpose of conducting any form of lawful Gaming
Activity, or providing goods or services to any lawful Gaming Activity or
operation.

“Council” or “Tribal Council” means the governing body of the Tribe.

“Determination of Suitability” means a formal finding by the Tribal Gaming
Commission or State Gaming Agency that the Applicant or Licensee is suitable to
obtain and/or maintain a License.

“Employee” means an individual who is paid by the Enterprise or the Gaming
Facility, and who (a) operates, maintains, repairs, assists in any Gaming Activity,
works in, or is in any way responsible for supervising such Gaming Activities or
persons who conduct, operate, account for, or supervise any such Gaming
Acivity, (b) is in a category under federal or Tribal gaming law requiring
licensing, (c) is an employee of the Tribal Gaming Commission with access to
confidential information, or (d) is a person whose employment duties require or
authorize access to areas of the Gaming Facility that are not open to the public.

“Enrolled Tribal Member” means an individual who is enrolled with the Tribe,
and whose name appears on the tribal membership roll.

“Enterprise” means the economic entity that is licensed by the Tribal Gaming
Commission, operates the games, receives the revenues, issues the prizes, and
pays the expenses. A gaming enterprise may be operated by the Tribe or a
Management Contractor.

[Reserved]

“Exclusive License” means a license which precludes the Tribal Gaming
Commission from issuing to another a license for the same specific form of
Gaming during the life of the exclusive license. An Applicant must demonstrate
and the Tribal Gaming Commission must find that the issuance of an Exclusive
License is in the economic interest and welfare of the Tribe.

“Executive Director” is that Person employed to direct and oversee the day-to-
day activities of the Tribal Gaming Commission. The Executive Director shall
report to the Board of Commissioners. The Executive Director shall oversee all

Page 5 of 53


2.6

2.7

2.8

2.9

2.10

2.11

2.12

2.13

2.17

“Bingo” means the game of chance commonly known as bingo (whether or not
electronic, computer or other technologic aids are used in connection therewith)
which is played for prizes, including monetary prizes, with cards bearing numbers
or other designations, in which the holder of each card covers such numbers or
designations when objects, similarly numbered or designated, are drawn or
electronically determined, and in which the game is won by the first Person
covering a previously designated arrangement of numbers or designations on such
cards, including (if played in the same location) pull-tabs, lotto, punch boards, tip-
jars, instant bingo and other games similar to bingo.

“Board of Commissioners” means the five-member board established pursuant
to Section 4.10 of this Ordinance to oversee the Tribal Gaming Commission.

“Breakage” means the difference between actual bet amounts paid out to bettors
and amounts won due to bet payments being rounded up or down. For example, a
winning bet that should pay $4.25 may actually be paid at $4.20 due to rounding.

“Capital Cost” means any disbursement for personal property, the useful life of
which is expected to extend beyond one year.

“Cash” means any currency commonly accepted as legal tender, including but
not limited to currency, traveler’s checks, credit cards, and electronic debit cards.

“Casino” means an establishment in which several Gaming activities or
enterprises are operated.

“Charitable Gaming Ticket” means any game piece used in the play of a paper
pull tab game, or jar ticket game, or raffle.

“Cheating” means a Person’s operating or playing in any game in a manner in
violation of the written or commonly understood rules of the game, with the intent
to create for himself or someone in privity with him an advantage over and above
the chance of the game.

“Class II Gaming” means those Gaming activities defined as Class II Gaming in
the IGRA.

“Class III Gaming” means those Gaming activities defined as Class II] Gaming
in the IGRA.

“Commissioner” means a member of the Board of Commissioners established
pursuant to Section 4.10 of this Ordinance to oversee the Tribal Gaming
Commission.

“Compact” means the Gaming compact between the Tribe and the State, as
authorized by the Indian Gaming Regulatory Act.

Page 4 of 53


(6)

7)

(8)

(9)

(10)

e8))

The Licensee knowingly promoted, played or participated in any
Gaming operated in violation of the laws of the Tribe, Federal law,
or the laws of the jurisdiction in which such activities occurred;

The Licensee is knowingly involved in the falsification of books or
records which relate to a transaction connected with the operation
of Gaming;

The Licensee violated this Ordinance or the rules and regulations
of the Tribal Gaming Commission;

The Licensee has been convicted or has entered a plea of nolo
contendere to any crime involving Gaming, fraud, theft, or
embezzlement;

The Licensee has refused to comply with any lawful order, inquiry
or directive of the Tribal Gaming Commission, the Tribal Council,
the Federal Government or any court of competent jurisdiction;
and

The Licensee has been convicted of, or entered a plea of nolo
contendere to, a crime involving the sale of illegal narcotics or
controlled substances.

5.12.2 Procedure for Suspension or Revocation

a

(2)

Upon reasonable cause that a violation of this Ordinance has
occurred, the Tribal Gaming Commission or its designee may
either:

(i) undertake an investigation of the Licensee; or

(ii) serve upon such Licensee an order to show cause pursuant
to Section 4.24 as to why the Licensee’s License should not
be suspended or revoked, or why the Licensee should not
be enjoined from conducting Gaming.

Additionally, if the NIGC notifies the Tribe that it has received
reliable information indicating that a Key Employee or Primary
Management Official is not eligible for employment under 25
C.F.R. §558.2, the Tribal Gaming Commission shall suspend such
license and notify the Licensee in writing that his/her License has
been suspended and may be revoked. Such notice shall state the
reason for the suspension and/or order, and the time and place for
the hearing before the Tribal Gaming Commission pursuant to
Section 4.24 herein.

Page 37 of 53


4.22

4.23

4.24

(4) The findings of any reports or other information required by or
necessary to implement this Ordinance; and

(5) The conduct of inspections, investigations, hearings, enforcement
actions and other powers of the Tribal Gaming Commission
authorized by this Ordinance.

4.21.2 No regulation of the Tribal Gaming Commission shall be of any force or
effect unless it is adopted by the Board of Commissioners by written
resolution and subsequently approved by a resolution of the Tribal Council
and both resolutions are filed for the record in the office of the Tribal
Secretary.

Right of Entrance; Bi-Monthly Inspection: The duly authorized employees of
the Tribal Gaming Commission, during regular business hours, may reasonably
enter upon any premises of any Gaming Facility for the purpose of making
inspections and examining the accounts, books, papers and documents of any
such Gaming Facility.

4.22.1 Aid to Entry The Gaming Facility staff shall facilitate such inspection or
examinations by giving every reasonable aid to the duly authorized
employees of the Tribal Gaming Commission.

4.22.2 Frequency of Inspection A duly authorized employee of the Tribal
Gaming Commission shall visit each Gaming Facility at least once every
two weeks during normal business hours for the purpose of monitoring its
operation. Such visits shall be unannounced.

Investigation: The Tribal Gaming Commission, upon complaint or upon its own
initiative or whenever it may deem it necessary in the performance of its duties or
the exercise of its powers, may investigate and examine the operation and
premises of any Person or Licensee within its jurisdiction. In conducting such
investigation, the Tribal Gaming Commission shall make no order or final
decisions without affording any affected party due process, notice and a hearing.

Due Process; Notice; Hearings; Examiner: The Board of Commissioners shall
provide due process and provide notice and a hearing if it is to utilize any of its
enforcement capabilities in the administration of its powers and duties hereunder.

4.24.1 No Hearing. Voluntary Resolution Whenever it shall appear to the
satisfaction of the Board of Commissioners that all of the interested parties
involved in any proposed hearing have agreed concerning the matter at
hand, the Board of Commissioners may dismiss the issue without a
hearing.

4.24.2 Notice of Hearing The Board of Commissioners shall, within 5 business
days after (a) the discovery of an event or circumstances giving rise to
concern, or (b) the receipt of a completed Tribal Gaming Commission

Page 25 of 53


73

7A

7233

the purpose of transferring the right to operate Gaming Devices. Any
agreements entered into between the Tribe and another Indian tribe shall
be regulated by the Tribal Gaming Commission. The total number of
Gaming Devices operated by the Tribe shall not exceed the number of
Gaming Devices permitted in the Compact.

Transferability of Devices The Gaming Enterprise, or any Licensee, is
prohibited from selling, renting or lending Gaming Devices to any Person
without prior written approval of the Tribal Gaming Commission.

Transportation of Devices Transportation of a Gaming Device to or from
the Gaming Facility within California is permissible only if:

The Tribal Gaming Commission has issued a permit to transport
theDevice; and

The Tribal Gaming Commission has provided at least ten (10) days notice
to the Madera County Sheriff and the California State Division of
Gambling Control; and

The final destination of the Device is a gaming facility of any tribe in
California with a Compact; or

The final destination is in a state or country whereby the Device is
otherwise legal; or

The final destination is located in California for the purpose of testing,
repair or storage by a Person that is licensed by the State Gaming
Agency.

Gaming Device Technical Standards: The technical standards for Gaming
Devices shall adhere to the standards of an approved independent testing facility
that is properly licensed by the Tribal Gaming Commission.

Age Restrictions:

TAA

7.4.2

7.4.3

No Person under the age of Eighteen (18) shall be employed by the
Gaming Facility, Management Contractor or the Tribal Gaming
Commission.

No Person under Eighteen (18) years of age shall be employed in the
service of alcoholic beverages at the Gaming Facility.

No Person under the age of Twenty-one (21) shall be permitted in any area
where Gaming is occurring and alcoholic beverages are being consumed.

Page 42 of 53


4.20

4.21

4.19.2 The Tribal Gaming Commission shall not regulate the Tribe or any entities
of the Tribe outside the activities of Gaming.

4.19.3 The Tribal Gaming Commission shall not regulate Net Revenues of
Gaming once Net Revenues have been distributed to the Tribe or to an
entity of the Tribe utilizing funds for non-Gaming activities.

4.19.4 The Board of Commissioners shall not oversee the day-to-day activities of
the Tribal Gaming Commission departments, which is the role of the
Executive Director.

4.19.5 The Board of Commissioners only has the authority to act as the Board of
Commissioners during a duly called meeting of the Board of
Commissioners. Commissioners have no authority to act on behalf of the
Board of Commissioners without the express authority of the Board of
Commissioners.

4.19.6 All personnel and procurement policies, all policies and procedures
relating to the regulation of Gaming, and all regulations of the Tribal
Gaming Commission, whether new or amended, are not valid until
approved by the Tribal Council.

Annual Budget: The Tribal Gaming Commission shall prepare an annual
operating budget for all Tribal Gaming Commission activities and present it to the
Tribal Council by October 15 of the year preceding the budget year. The fiscal
year for the Tribal Gaming Commission shall begin on January 1 and end on
December 31. The annual budget shall include the proposed licensing fees
(including the Facility License fee) for the year. The annual budget shall not be
effective until approved by the Tribal Council. The Tribal Council shall approve
the budget no later than January 1 of the budget year.

Tribal Gaming Commission Regulations:

4.21.1 Tribal Gaming Commission regulations necessary to carry out the orderly
performance of its duties and powers shall include, but shall not be limited
to, the following:

(1) The Minimum Internal Control Standards (“MICS”) as adopted by
the Board of Commissioners;

(2) Interpretation and application of this Ordinance, as may be
necessary to enforce the Tribal Gaming Commission's duties and
exercise its powers;

(3) A regulatory system for overseeing Gaming, including accounting,
contracting, management and supervision;

Page 24 of 53


SECTION 1. FINDINGS, INTENT AND POLICY

11

1.2

Findings: THE PICAYUNE RANCHERIA OF THE CHUKCHANSI INDIANS
(“Tribe” or “Tribal”) on behalf of the General Council finds that:

Lid

LAT

Tribal regulation and control of Gaming within the jurisdiction of the
Tribe is essential for the protection of public health and welfare of the
Tribe and visitors to the Tribal community.

The Tribe has the legal authority to license and regulate any Gaming
Activity within the jurisdiction of the Tribe.

Properly licensed and regulated Gaming is in conformance with
announced Federal policy promoting Indian self-government and Indian
Tribal economic self-sufficiency.

It is essential that the Tribal Council regulate Gaming in a manner
commensurate with applicable Federal, State and Tribal law and policy.

The present needs of the Tribe are not adequately addressed by State and
Federal programs including the need for increased employment, training,
housing, health care, nutrition, educational opportunities, preservation of
culture, social services and community and economic development.

Tribal operation and licensing of Gaming is a legitimate means of
generating revenue to address the aforementioned needs and pursuing the
Tribe’s goals of self-sufficiency and self-determination.

The State, in recognition of the Tribe’s sovereign right and need for
Gaming, has entered into a Tribal-State Compact with the State of
California (“Compact”) pursuant to the terms and conditions of the Indian
Gaming Regulatory Act of 1988 P.L. 100-497, 102 Stat. 2426, 25 U.S.C.
§§2701, et seq. (1988) (““IGRA”).

As a result of the foregoing, the adoption of a new and expanded Gaming
Ordinance is in the best interest of the Tribe and State.

Intent: The Tribal Council, on behalf of the Tribe, declares that the intent of this
Ordinance is to:

Regulate, control, and oversee Gaming within the jurisdiction of the Tribe.

State, declare and otherwise clarify that a License related to Gaming is a
revocable privilege, not a right.

Ensure that the operation of Tribally regulated Gaming can continue as a
means of generating Tribal revenue.

Page 1 of 53


4.8

4.9

4.10

expressly state that the waiver does not extend to the Tribe or any entity of
the Tribe other than the Tribal Gaming Commission.

4.74 Limited Effect of Waiver No express waiver of sovereign immunity
issued in accordance with this section shall be deemed a consent to the
levy of any judgment, lien or attachment upon property of the Tribal
Gaming Commission other than property specifically pledged or assigned,
or a consent to suit in respect of any land within the exterior boundaries of
the Rancheria or a consent to the alienation, attachment or encumbrance of
any such land.

Sovereign Immunity of the Tribe: All inherent sovereign rights of the Tribe as
a Federally-recognized Indian Tribe, with respect to the existence and activities of
the Tribal Council, are hereby expressly reserved, including sovereign immunity
from suit in any state, Federal or Tribal court.

Assets of the Tribal Gaming Commission: The Tribal Gaming Commission
shall have only those assets specifically assigned to it by the Tribal Council or
acquired in its name by the Tribe or by it on its own behalf. No activity of the
Tribal Gaming Commission or any indebtedness incurred by it shall implicate or
in any way involve any assets of tribal members or the Tribe not assigned in
writing to the Tribal Gaming Commission.

Membership on the Board of Commissioners:

4.10.1 Number_of Commissioners The Board of Commissioners shall be
comprised of five (5) part-time Tribal Gaming Commissioners.

4.10.2 Organization The Board of Commissioners will consist of a Chairperson,
Vice-chairperson, Secretary, Treasurer, and one member at large.

qd) The Chairperson shall preside over meetings of the Board of
Commissioners.

(2) The Vice-Chairperson shall act as the Chairperson in the absence
of the Chairperson.

(3) The Secretary shall be responsible for ensuring all Tribal Gaming
Commission meeting minutes are properly recorded and
maintained,

(4) The Treasurer shall be responsible for ensuring that the annual
budget of the Tribal Gaming Commission is submitted by the
Executive Director to the Board of Commissioners for timely
approval, in order for the annual budget to be presented to the
Tribal Council pursuant to this Ordinance.

Page 15 of 53


9.7.4

prepared by an independent auditor who is mutually acceptable to
the Tribe and the Management Contractor.

(2) A provision guaranteeing the Tribe a minimum guaranteed
payment that shall always take precedence over the Management
Contractor's right to recoup development and construction costs.

(3) An agreed upon ceiling for the Management Contractor's
development and construction costs.

(4) A provision that the contract shall not exceed seven (7) years or
30% of Net Revenues.

(5) A provision for termination of the Contract and the grounds for
termination.

If the Council is satisfied with the information it receives it shall submit its
proposed contract along with all of the above-described information to the
Tribal Gaming Commission, State Gaming Agency and to the Chairman
of the NIGC for Licensure approval.

SECTION 10. PROCEDURES FOR RESOLVING DISPUTES BETWEEN THE
GAMING PUBLIC AND GAMING MANAGEMENT

10.1

10.2

General Principles: The Tribe values its customers and intends, at all times, to
see that questions, concerns, issues, and/or disputes raised by the gaming public
are addressed in a fair and orderly manner.

Initial Dispute Resolution Procedure:

10.2.1 Members of the gaming public who, in the course of their otherwise

lawful and proper use of the Tribe’s gaming facilities, have questions or
concerns about the condition or operation of any part of the Gaming
Facility, or who otherwise believe themselves to be aggrieved by some
aspect of the condition or operation of any part of the Gaming Facility,
shall direct their questions, concerns, or disputes (hereinafter collectively
“disputes”) in the first instance to gaming management at the Gaming
Facility, either orally or in writing.

10.2.2 Concerns or disputes shall be raised as soon as reasonably possible after

the events giving rise to the dispute occur; however, no dispute may be
raised more than ten (10) calendar days after said events take place.

(1) | Gaming management shall develop formal written administrative
procedures for the processing of patron complaints and disputes,
which procedures shall be finalized only after Tribal review and
approval. The final procedures shall include the following

Page 52 of 53


5.3

5.2.6 In addition to the relevant information requested in 5.2.4, business entities,
including Gaming Vendors, and Non-Gaming Vendors and Construction
Contractors who have not been exempted, shall also submit the following
for (a) each of its officers and directors; (b) each of its principle
management employees, including any chief executive officer, chief
financial officer, chief operating officer, and general manager; (c) each of
its owners or partners, if an unincorporated business; (d) each of its
members, if a limited liability company; (e) each of its shareholders who
own more than 10 percent (10%) of the shares of the corporation, if a
corporation; and (f) each person or entity that, alone or in combination
with others, has provided financing in connection with Gaming authorized
under the Compact:

(1) A list of all Gaming-related licenses the individual Applicant has
ever applied for, whether or not they were granted such license.

(2) Written permission from the individual Applicant giving the Tribal
Gaming Commission, any authorized State or local law
enforcement agency, the State Gaming Agency and NIGC or its
designees the right to access and review the Applicant's
background, including his criminal record.

(3) A complete disclosure of any pending or anticipated civil or
criminal action against the individual Applicant.

(4) A sworn statement that if the License applied for by the entity is
issued, the individual Applicant will submit to the jurisdiction of
the Tribe and the Tribal Court.

(5) A sworn statement that the individual Applicant will abide by all
applicable Tribal and Federal laws, regulations and policies.

(6) A written statement that the information contained in the
individual’s Application and the Application of the related
business entity is true and correct to the best of Applicant’s
knowledge.

Review of License Application: The Tribal Gaming Commission shall
thoroughly review and conduct a background investigation for each Tribal
Gaming License Application sufficient to make a determination of eligibility as
required under this Ordinance. The Tribal Gaming Commission’s review and
background investigation shall include, but is not limited to the following:

Page 32 of 53


5.3.1 Each Applicant shall submit to fingerprinting to be conducted by the
Tribal Gaming Commission.

5.3.2 The Tribal Gaming Commission shall diligently review the information
provided in the Tribal Gaming License Application, including, but not
limited to, contacting and investigating all resources identified in the
Tribal Gaming License Application. An authorized Tribal Gaming
Commission designee identified by the Tribal Gaming Commission, shall
review an Applicant’s prior activities, criminal record (if any), reputation,
habits, and associations in order to make an eligibility determination for
Key Employees and Primary Management Officials. For purposes of
conducting a criminal history check on each Key Employee and Primary
Management Official (in addition to the check of the criminal history
records information maintained by the Federal Bureau of Investigation, as
described below), and the processing, transmission and reporting of
information and findings relating to such criminal history checks, the
Tribal Gaming Commission may contract for such services on an as-
needed basis with any public or private agency it deems qualified.

5.3.3. The Tribal Gaming Commission shall provide a written report as to
findings and conclusions of the foregoing background investigation,
including, but not limited to:

qd) Steps taken in conducting diligence;

(2) Results of the conducted diligence;

(3) Conclusions from review of conducted diligence; and
(4) The basis for those conclusions.

5.3.4. The Tribal Gaming Commission shall transmit the Applicant’s
Application, file, and eligibility determination report to the NIGC and the
California State Division of Gambling Control.

5.3.5 The Tribal Gaming Commission shall maintain the Applicant’s file,
including applications, background investigation reports, and eligibility
determination reports, for inspection by the NIGC for no less than three
(3) years from the date of termination of employment.

5.3.6 The Tribal Gaming Commission, when it does not license an Applicant,
shall notify the NIGC and forward copies of the Tribal Gaming
Commission’ eligibility determination report and the investigative report
(if any).

Authorized Entity for Fingerprint Cards: The Tribal Gaming Commission
may contract with any entity, with approval from the Tribal Council, and

Page 33 of 53


9.2

9.1.4

The Management Contractor, or the Tribe if no Management Contractor
exists, shall identify in writing a Person who shall serve as General
Manager of the Gaming Enterprise. The General Manager appointed shall
undergo a background check by the Tribal Gaming Commission and shall
obtain a License before commencing work.

The General Manager shall have access to any area within the Gaming
Facility, excluding areas defined or designated as Tribal Gaming
Commission space, unless authorization is granted by the Tribal Gaming
Commission.

The General Manager shall present a written monthly report to the Tribal
Gaming Commission which estimates the number of patrons served, the
amount of income generated, the numbers of employees working at the
establishment, a detailed description of any patron complaints and other
problems experienced at the establishment, a written statement of any
changes in Primary Management Officials and all bills which are thirty
(30) days or more past due.

The General Manager shall present additional reports to the Tribal Gaming
Commission as requested.

Rules and Regulations for Management: The Tribal Gaming Commission
shall, with the input and suggestions of Primary Management Officials,
promulgate rules and regulations or specifications governing the following

subjects:

9.2.1 The enforcement of all relevant laws and rules with respect to the Gaming
Operation and the Facility;

9.2.2 Ensuring the physical safety of Enterprise patrons and Employees;

9.2.3 The physical safeguarding of assets transported to, within, and from the
Gaming Facility;

9.2.4 The prevention of illegal activity from occurring within the Gaming
Facility including employee procedures and surveillance:

9.2.5 The recording of occurrences that deviate from normal operating policies

including the following procedure for reporting incidents:

(1) Specify that security personnel record all incidents, regardless of
immateriality;

(2) Require the assignment of a sequential number to each report;

Page 48 of 53


4.18.12

4.18.13

4.18.14

4.18.15

4.18.16

4.18.17

4.18.18

4.18.19

To examine under oath, either orally or in writing, in hearings or
otherwise, any Person or agent, officer or employee of any Person, or
any other witness with respect to any matters related to this Ordinance,
and according to the requirements of this Ordinance, including
enforcement of Tribal Gaming laws, regulations, and policies, and to
compel by subpoena the attendance of witnesses and the production of
any books, records, and papers with respect thereto.

To direct, through the Executive Director, an examination or
investigation, according to the requirements of this Ordinance, of the
place of business, equipment, facilities, tangible Personal property and
the books, records, papers, vouchers, accounts, documents and financial
statements of any Gaming operating, or suspected to be operating,
within the jurisdiction of the Tribe.

To delegate to an individual member of the Board of Commissioners, to
an employee of the Tribal Gaming Commission, to an individual
member of the Tribal Council, or to Tribal staff, such of its functions as
may be necessary to administer this Ordinance efficiently; provided, that
the Board of Commissioners may not re-delegate its power to exercise
any of the substantial governmental functions of the Tribe or its power
to promulgate rules and regulations; and provided further that the Board
of Commissioners may not delegate to any Person the power to
permanently revoke a License.

To issue fines and sanctions to the Gaming Facility, gaming licensees or
other persons who interfere with or violate the Tribe’s gaming
regulatory requirements and obligations under IGRA, the Tribal Gaming
Ordinance or the Gaming Compact, and to report significant violations
of the Compact to the State Gaming Agency.

To use the seal of the Tribal Gaming Commission or the seal of the
Tribe with the approval of the Tribal Council.

To negotiate or settle any dispute to which it is a party relating to the
Tribal Gaming Commission's authorized activities, in consultation with
the Tribal Council.

To purchase insurance from any stock or mutual company for any
property or against any risk or hazard, in accordance with the approved
annual budget.

With prior approval of the Tribal Council, to make application and
accept grants and other awards from private and governmental sources
to carry out or further the purposes of the Tribal Gaming Commission or
of the Tribe.

Page 21 of 53


the state in which the company is organized, unless a current copy has
previously been filed with the Tribal Gaming Commission.

9.7 Management Contracts:Error! Bookmark not defined.

OF]

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9:78

Each Management Contract is subject to the prior approval of the National
Indian Gaming Commission.

Each Management Contract shall be approved by the Tribal Council. In
making its selection, the Tribal Council shall review the following:

qd)

Background information on the proposed Management Contractor
including: its name, its address, the names and addresses of each
Person or entity having a direct financial interest or management
responsibility for the proposed management contractor, and (i) in
the case of a corporation the names and addresses of each member
of its board of directors and all stockholders who hold directly or
indirectly ten percent (10%) or more of its issued or outstanding
stock; and (ii) in the case of a limited liability company, the names
and addresses of each member and each manager.

A description of any previous experience that each Person listed in
subsection above has had with other Gaming contracts with Indian
Tribes or with the Gaming industry generally, including the name
and address of any tribal government or licensing agency with
which such Person has had a contract relating to Gaming.

A complete financial statement of each Person listed in subsection
9.7.2(1).

The Tribal Council shall undertake any additional steps it can to
determine the character and reputation of each proposed
management contractor.

If the Tribal Council, after reviewing the above-described
information, still desires to enter into a management contract with
the proposed management contractor, such management contract
shall be placed in writing and submitted to legal counsel for review
before the Council approves it.

Any Management Contract approved by the Tribal Council must contain
at a minimum the following with respect to the Gaming Enterprise to
which the contract is applicable:

(dy

A provision requiring a monthly financial accounting of the
Gaming Enterprise's income and expenses. Such reports shall be

Page 51 of 53


SECTION 1.
LA
1.2
13

SECTION 2.

SECTION 3.

3.1

SECTION 4.
41
42
43
44
4.5
4.6
4.7
4.8
4.9
4.10

4.11

TABLE OF CONTENTS

Page

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5.16

SECTION 6.
6.1

6.2

(3) The denial by the State Gaming Agency is based on reasons that
antedate the filing of the Person’s initial application to the State
Gaming Agency;

(4) The Person is not an Employee of another Gaming Enterprise;

Miscellaneous Licensing Provisions:
5.16.1 No License shall be sold, lent, assigned or otherwise transferred,

5.16.2 Each Gaming Facility shall have a copy of this Ordinance and applicable
regulations readily available for inspection by any Person.

5.16.3 The Tribe shall monthly provide the State Gaming Agency with the name,
badge identification number, and job descriptions of all non-key Gaming
Employees.

BANK ACCOUNTS AND RECORD KEEPING

Bank Account: The Tribe and/or the Authority, as applicable, shall open a
separate bank account for the Enterprise and all receipts of each Gaming Activity
shall be deposited in the account.

Record Keeping: Accounting records of the Gaming, Enterprise, and Facility
shall be kept on a double entry system of accounting, maintaining detailed
supporting and subsidiary records. The Tribe shall maintain the following records
for not less than three (3) years:

6.2.1 Revenues, expenses, assets, liabilities and equity for each location at
which Class II and Class II] Gaming is conducted.

6.2.2 Daily cash transactions for Gaming, including but not limited to
transactions relating to each Gaming table, game drop box and game room
bank.

6.2.3 All markers, IOU’s, returned checks, hold checks or other similar credit
instruments.

6.2.4 Individual and statistical game records to reflect statistical drop and
Statistical win for electronic, computer, or other technologically assisted

games.

6.2.5 Contracts, correspondence and other transaction documents relating to all
Gaming Vendors.

6.2.6 Records of all customer complaints and Tribal Gaming enforcement
activities.

Page 40 of 53


5.13

5.14

(3) The Licensee shall have an opportunity to present testimony and
cross-examine opposing witnesses, and to present any other
evidence as to why a revocation order or suspension should not be
issued.

(4) The hearing shall be set for not less than two (2) business days or
more than ten (10) business days from the date of the notice. The
hearing shall be governed in all respects in accordance with Tribal
law and Tribal Gaming Commission regulations. Any revocation
or suspension decision of the Tribal Gaming Commission after
hearing shall be final. The Tribe shall notify NIGC of its decision.

Enterprise License: The Gaming Enterprise authorized by the Compact and this
Ordinance shall be licensed by the Tribal Gaming Commission. The Tribal
Gaming Commission shall automatically issue a License if the following
threshold criteria are met:

5.13.1 The Gaming is located on lands taken into trust after October 17, 1988, as
a settlement of a claim.

5.13.2 The Gaming is authorized pursuant to this Ordinance, the Compact and the
IGRA.

5.13.3 The Gaming is authorized by a Tribal Council resolution.

5.13.4 The Tribe has the sole proprietary interest and the Management Contract,
if applicable, is consistent with Tribal and Federal law and is properly
approved by the Chairman of the NIGC.

Facility License: The Gaming Facility authorized by the Compact and this
Ordinance shall be licensed by the Tribal Gaming Commission.

5.14.1 A Facility License shall be issued if the following criteria are met:

() The Tribal Gaming Commission has determined, based on the
reports of qualified inspectors and a review by the Board of
Commissioners of all relevant contracts and operational policies
and procedures, including safety manuals and intergovernmental
agreements relating to environmental protection, health, safety and
emergency services, that the Gaming Facility has been constructed
and shall be maintained and operated in a manner that adequately
protects the environment and the public health and safety.

(2) The construction, expansion or modification of the Facility shall
meet the Tribal Building Ordinance.

Page 38 of 53


2.41

2.42

2.43

2.44

2.45

“In privity with” means a relationship involving one who acts jointly with
another or as an accessory before the fact to an act committed by the other or as a
co-conspirator with the other.

“TRS” means the United States Internal Revenue Service.

“Key Employee” means:

2.43.1 A Person who performs one or more of the following functions for the
Gaming Facility and / or Enterprise:

Gy) Bingo caller;

(2) Counting room supervisor;

(3) Chief of security;

(4) Custodian of 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.

2.43.2 If not otherwise included, any other person whose total cash compensation
is in excess of fifty thousand dollars ($50,000) per year.

2.43.3 If not otherwise included, the four most highly compensated persons in the
gaming operation.

“License” means the official, legal and revocable permission granted by the
Tribal Gaming Commission to an Applicant to conduct "Licensed" Gaming
Activities of the Tribe.

“Licensee” means the Employee, Key Employee, Primary Management Official,
Vendor, Enterprise or Facility that has legitimately obtained a valid License.

Page 8 of 53


9.6

95.3

not include contracts the purpose of which is to extend financing to the
Management Contractor, the Tribe, or the Enterprise.

Copies A copy of all such audits shall be provided to the Tribal Gaming
Commission, the Tribal Council, State Gaming Agency and the NIGC.

Annual Reports from Management Contractor: Management Contractor, if
any, shall file an annual report with the Tribal Gaming Commission and the Tribal
Council between the 15th and the last day of the 12th month duration of each such
License period. The report shall include, at a minimum, the following

information:

9.6.1 The name, address and telephone number of the Licensee;

9.6.2 The names, addresses and titles of all of its current managers of the
Licensee;

9.6.3 A description of the Gaming operated and Gross Revenue;

9.6.4 The name and address of the Person who will be designated as Primary
Management Official, or new Key Employees over the next License Term;

9.6.5 Written proof that the Licensee has paid to the National Indian Gaming
Commission such fees as Federal and Tribal law may require it to pay;

9.6.6 A sworn statement that the Licensee has complied with the IRS including
written notice of customer winning;

9.6.7 The number of full-time equivalent people, on an annualized basis,
employed by the operation during the past twelve (12) months, together
with a projection of the number of full-time equivalent people who are
expected to be employed during the next license period;

9.6.8 A sworn statement that the Licensee will continue to comply with all
Tribal and Federal laws applicable to Gaming;

9.6.9 The name, address and signature of the agent who will accept service of
process on behalf of the Licensee, who must reside on the Rancheria;

9.6.10 If the Licensee is a corporation, a copy of any amendment to its articles of
incorporation, properly certified by the incorporating government, unless a
current copy has already been filed with the Tribal Gaming Commission;

9.6.11 If the Licensee is a limited liability company, a copy of any amendment to

its operating agreement or its articles of organization, properly certified by

Page 50 of 53


2.55

2.56

2.57

2.58

2.59

2.60

“Player” means a Person participating in a game with the hope of winning money
or other benefit, but does not include a Licensee or any assistant of a Licensee.

“Preference” means that Enrolled Tribal Members who meet the minimum
qualifications for a position with the Tribal Gaming Commission will be offered
the position before a better-qualified non-Enrolled Tribal Member. Preference
applies to hiring, promotions, and lay-offs of employees of the Tribal Gaming
Commission.

“Primary Management Official” means:

2.57.1. The Person having management responsibility for a management
contract; and

2.57.2 Any person who has authority:
(1) To hire and fire employees; or
(2) To set up working policy for the gaming operation; or

2.57.3. The chief financial officer or other persons who have financial
management responsibility.

“Progressive Gaming” means any game in which a cash prize which, not being
won by any player during any game, is retained and further monetarily enhanced
by the Licensee or eligible organization, and offered as a prize to players in the
next game.

“Pull-tabs, Punchboards and Tip Jars” means a form of Gaming in which
preprinted cards utilizing symbols or numbers in random order which are
uncovered by random choice in expectation of cash prizes if prescribed
combinations of symbols and numbers are revealed.

“Qualified Financial Source” means any of the following entities (including
wholly-owned subsidiaries), acting for its own account or the accounts of other
entities listed within this definition that in the aggregate owns at least one-
hundred-million dollars ($100,000,000) of securities of issuers that are not
affiliated with the entity:

a) Any federal-regulated or state-regulated bank or savings association or
other federal- or state-regulated lending institution.

b) Any company that is organized as an insurance company, the primary and
predominant business activity of which is the writing of insurance or the
reinsuring of risks underwritten by insurance companies, and that is
subject to supervision by the Insurance Commissioner of California, or a
similar official or agency of another state.

Page 10 of 53


TRIBAL GAMING ORDINANCE
OF

THE PICAYUNE RANCHERIA OF
THE CHUKCHANSI INDIANS

Amended as of February 22, 2010

REGULATION OF CLASS II AND CLASS III GAMING

A law to authorize, license and regulate the conduct of Class II and Class III Gaming within the
jurisdiction of the PICAYUNE RANCHERIA OF THE CHUKCHANSI INDIANS.


(21)

(22)

(23)
(24)
(25)
(26)

(27)

(28)

A sworn statement that if the License applied for is issued, the
Applicant will submit to the jurisdiction of the Tribe and the Tribal
Court.

A sworn statement that the Applicant will abide by all applicable
Tribal and Federal laws, regulations and policies.

A photograph of the Applicant taken within the past year.
Fingerprints.

Driver’s license or government-issued photo identification.

Social Security card.

A written statement that the information contained in the
Application is true and correct to the best of Applicant’s
knowledge.

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.

Gaming and Non-Gaming Application The Application for a Gaming and

Non-Gaming License shall include the following information:

qd)

Driver’s license or other government-issued photo identification.
Social Security Card.
Fingerprints, provided that fingerprints for Non-Gaming

employees are only required at the discretion of the Tribal Gaming
Commission.

Page 31 of 53


4.16

4.17

4.18

4.15.4

4.15.5

4.15.6

4.15.7

Council, and then only after the Commissioner has been given written
notice of the specific charges at least ten (10) days prior to such hearing.
At any such hearing, the Commissioner shall have the opportunity to be
heard in Person or by counsel and to present witnesses on his/her behalf.

Temporary Suspension If the Council determines that immediate
suspension of a Commissioner is necessary to protect the interests of the
Tribe, the Council may hold a hearing with the Commissioner to suspend
the Commissioner temporarily, and the question of permanent removal
shall be determined thereafter pursuant to Tribal Gaming Commission
hearing procedures pursuant to 4.15.2 herein.

Written Record A written record of all removal proceedings together with
the charges and findings thereon shall be kept by the Tribal Secretary.

Removal Final The decision of the Tribal Council upon the removal of a
Commissioner shall be final.

Vacancies If any Commissioner shall die, resign, be removed or for any
reason be unable to serve as a Commissioner during the term of the
Commissioner’s appointment, the Council shall declare said
Commissioner position vacant and shall appoint another Person to fill the
vacant position within ninety (90) days of the vacancy. The term of office
of any Person appointed to fill a vacancy shall be in accordance with
Section 4.11 of this Ordinance. Said appointed Commissioner shall be
appointed for the balance of any unexpired term and shall meet the
qualifications established by this Ordinance.

Temporary Appointments If necessary, the Tribal Council may appoint
one or more temporary Commissioners, if any vacancy or vacancies
prohibit establishment of a quorum. Temporary appointments shall be for
no longer than ninety (90) days. Temporary appointments need not
complete a background check prior to serving, although the background
check still must be conducted pursuant to 4.10.5 herein.

Conflict of Interest: No Person shall serve as a Commissioner if he/she or any
member of his/her Immediate Family has an ownership, partnership or other
direct financial interest, other than a regular salary interest, in any Gaming
Enterprise, or if he/she has any other personal or legal relationship which places
him/her in a conflict of interest.

Due Process Afforded: The Board of Commissioners and its members shall take
no action to carry out its duties that fails to afford due process and protection of
the Tribal and federal Constitutional rights of the parties and persons involved.

Powers of the Board of Commissioners: In furtherance, but not in limitation, of
the Tribal Gaming Commission's purposes and responsibilities, and subject to any
restrictions contained in this Ordinance or other applicable law, the Board of

Page 19 of 53


Picayune Rancheria
of the

CHUKCHANSI INDIANS

46575 Road 417 » Coarsegold, CA 93614 + (559) 683-6633 - FAX (559) 683-0599

RESOLUTION MR,
No. 2010- 22 < 200

APPROVAL OF AMENDED TRIBAL GAMING ORDINANCE

WHEREAS, the Picayune Rancheria of the Chukchansi Indians (the “Tribe”) is a sovereign,
federally recognized Indian Tribe organized under the Constitution of the Tribe
ratified on October 22, 1988; and

WHEREAS, the Tribal Council of the Tribe is authorized pursuant to Article IV, Section 2 of
the Tribe’s Constitution (the “Constitution”) to exercise governmental authority
on behalf of the Tribe; and

WHEREAS, the Tribal Council of the Tribe is authorized pursuant to Article V(a) of the
Constitution to promulgate and enforce ordinances necessary to carry out its
powers under the Constitution; and

WHEREAS, the Tribal Council finds that it is in the best interests of the Tribe to amend the
Tribal Gaming Ordinance.

NOW, THEREFORE, BE IT RESOLVED, the Tribal Council hereby approves the Amended
Tribal Gaming Ordinance attached hereto, and authorizes the same to be submitted to the
National Indian Gaming Commission for approval pursuant to 25 U.S.C. § 2710.

CERTIFICATION

The Tribal Council of the Picayune Rancheria of Chukchansi Indians does hereby certify that a
meeting duly called, noticed, and convened on the 22nd day of February, 2010, where a quorum
was present, the foregoing resolution was adopted by the Picayune iy of the Chukchansi

Indians Tribal Council by a vote_S___for,__O against, _© abstain, not voting, and
absent.
Otris Reid
Chairman
ATTEST:

L Yo bro Mt tyes,

Charlene M. Cordero
Secretary

Page 1 of 1


TS

7.6

Te

SECTION 8.
8.1

74.4

745

No Person under the age of Twenty-one (21) shall be permitted to place
any wager, directly or indirectly, in any Gaming Activity.

No Person under the age of Twenty-one (21) shall be permitted in any
room in which Gaming is being conducted unless the person is en-route to
a non-gaming area of the Gaming Facility.

Methods of Payment:

7.5.1

152

Gaming chips of value may be sold and redeemed by the Enterprise and
only for full value.

Consideration to participate in Gaming shall be cash only. No other form
of consideration shall be allowed unless the Tribal Gaming Commission
gives prior written approval.

Compliance requirements:

7.6.1

7.6.4

Evidence of win or loss incurred by a Player must, upon request, be
provided in such form as will be acceptable to the Intemal Revenue
Service.

The Enterprise shall pay all fees and file all reports required by law within
the time prescribed.

The Enterprise shall respond immediately to all inquiries, subpoenas, or
orders of the Tribal Gaming Commission, the State Gaming Agency, the
Tribal Council, or the NIGC.

The Enterprise shall make its premises and books and records available for
inspection during normal business hours by the Tribal Gaming
Commission, the State Gaming Agency, the National Indian Gaming
Commission and members of the Tribal Council or their designee.

Miscellaneous:

TEL

TAD

The Enterprise shall provide adequate security to protect the public before,
during, and after Gaming.

The Enterprise may not discriminate on the basis of sex, race, color, or
creed in its employment practices related to Gaming.

ENFORCEMENT

Jurisdiction: Except as provided in this Ordinance or the Compact, the Tribal
Gaming Commission shall have jurisdiction over all violations of this Ordinance.

Page 43 of 53


5.1.5

Every Gaming Vendor that provides or receives, or is likely to provide or
receive materials or services valued at Twenty-five Thousand Dollars or
more in any twelve (12) month period from the Enterprise or Gaming
Facility is required to have a current and valid License as issued by the
Tribal Gaming Commission.

Every Non-Gaming Vendor and Construction Contractor that provides or
receives, or is likely to provide or receive materials or services valued at
Twenty-five Thousand Dollars or more in any twelve (12) month period
from the Enterprise is required to have a current and valid License as
issued by the Tribal Gaming Commission, unless the Tribal Gaming
Commission has exempted the Non-Gaming Vendor or Construction
Contractor from the licensing requirements herein.

Any Financial Source is required to have a current and valid License
issued by the Tribal Gaming Commission, provided that any Financial
Source presently extending financing shall be Licensed within Ninety (90)
days of execution of this Ordinance.

Any person or entity submitting an application for a Qualified Financial
Source license, in accordance with the regulations of the Tribal Gaming
Commission, shall be exempt from paying any application or background
fees or any other fee associated with or related to the Tribal Gaming
Commission’s processing of such Qualified Financial Source license
application. Notwithstanding the foregoing, a Qualified Financial Source
shall remain responsible for paying any penalty imposed by the Tribal
Gaming Commission pursuant to Section 8 of this Ordinance.

(1) Exemptions: The following lenders, regardless of their
relationship to the Tribe, and regardless of whether they would
otherwise be considered a Financial Source, are exempt from the
Financial Source licensing requirements of this section: federally
or state regulated banks; federally or state regulated savings and
loan institutions; any other federally or state regulated lending
institution including commercial lenders licensed under Division 9,
Article 3, § 22000 et seq. of the California Finance Code; any
agency of the federal, State or local government; or any investor
who extends financing, directly or indirectly, to the Tribe in an
amount less than 10% of the aggregate amount of outstanding
indebtedness (whether by loans, securities such as bonds or
otherwise) of the Tribe.

Page 27 of 53


5.9

5.10

5.11

License Denial: Any Application for a License shall be denied if the Tribal
Gaming Commission, after an adequate review, determines the Application is
incomplete or deficient, or that the employment of the Applicant poses a threat to
the Tribe, the public interest, or the effective regulation of gaming, or creates or
enhances the danger of unsuitable, unfair or illegal practices and methods and
activities in the conduct of gaming. If the foregoing determinations about the
Applicant are made, no management contractor or Tribal gaming operation shall
employ the Applicant.

Renewals: A Licensee shall petition to have the License renewed by applying to
the Tribal Gaming Commission for a renewal at least ninety (90) days before the
License expires. Applicants may be required to provide updated material as
requested.

Wearing and Display of License: Licensees are required to wear, in plain view
at all times while on duty, their License issued by the Tribal Gaming
Commission. The License must display information including, but not limited to,
a photograph of the Licensee and an identification number that is adequate to
enable agents of the Tribal Gaming Commission to readily identify the person and
determine the validity and date of expiration of his or her License. Licensees are
not required to wear their License when not on duty and in the areas of the
Gaming Facility open to the public.

License Suspension or Revocation of License:
5.12.1 Temporary Suspension or Revocation The Tribal Gaming Commission

may suspend or revoke a License, after notice and an opportunity for a
hearing pursuant to Section 4.24 herein, for any of the following reasons:

qd) The Licensee withheld pertinent information on the Application;
(2) The Licensee made false statements on the Application;

(3) The Licensee participated in Gaming that was not authorized by
any Gaming License or regulatory approvals, and therefore
deemed illegal;

(4) The Licensee attempted to bribe a Tribal Council member,
Commissioner or other Person, in an attempt to avoid or
circumvent Tribal law;

(5) The Licensee offered and/or gave, either directly or through a third
party, something of value to a Tribal Gaming Commission
member;

Page 36 of 53


4.18.20

4.18.21

4.18.22

4.18.23

4.18.24

4.18.25

To require the filing of any records, forms, and reports and all other
information desired by the Tribal Council or required by this Ordinance.

To provide for an internal system of record keeping and storage of said
records with adequate safeguards for preserving confidentiality as
deemed necessary by the Board of Commissioners for retaining records,
forms and reports for at least three (3) years.

To adopt a schedule of fees to be charged for Licenses and background
investigations, subject to the approval of the Tribal Council, and
pursuant to the Tribal power to tax. Additionally, the Board of
Commissioners may waive any fee charged for Licenses or background
investigations, upon prior consultation with, and written approval of the
Tribal Council that such a waiver of fees is in the best interest of the
Tribe.

To adopt a schedule of fees for services rendered relating to transcripts
and the furnishing or certifying of copies of proceedings, files, and
records.

To conduct or arrange for background investigations of all Applicants.

To discipline any Licensee or Person participating in Gaming after
affording the individual due process and conducting an investigation that
results in a showing of a reasonable likelihood of noncompliance with
this Ordinance by said Licensee or Person participating in Gaming, by
ordering immediate compliance with this Ordinance and give notice of
the potential for temporary suspension of said License. If necessary and
appropriate and after providing adequate notice to said Licensee or
Person participating in Gaming, to thereafter issue an order of temporary
suspension of any License issued under this Ordinance and in accord
with the procedures set forth in this Ordinance.

(1) In exigent circumstances wherein the health or safety of any
individual Licensee, patron, Tribal Member, or other is at risk, or
where significant financial damage or harm to the integrity of
Gaming would be likely to occur in the absence of immediate
action, to discipline any Licensee or Person participating in
Gaming by ordering immediate compliance with this Ordinance,
and to simultaneously issue an order of immediate temporary
suspension of any License issued under this Ordinance and in
accord with the procedures set forth in this Ordinance. In such a
case, thereafter to hold a noticed hearing and conduct a complete
investigation of said circumstances and Licensee or Person
participating in Gaming. Upon completion of the investigation,
which shall be conducted and completed within a reasonable time,

Page 22 of 53


2.29

2.30

2.31

2.32

departments of the Tribal Gaming Commission and all other employees of the
Tribal Gaming Commission. The Executive Director shall act as the
administrative and operational supervisor for all Tribal Gaming Commission
personnel, and shall develop, for approval by the Board of Commissioners,
policies and procedures for effective staff communications and protocols. The
Executive Director, consistent with the directives of the Board of Commissioners,
shall implement and enforce this Ordinance, the IGRA, the Tribal MICS, the
Compact, and the regulations of the Tribal Gaming Commission. The Executive
Director shall report to the Board of Commissioners at their weekly meeting on
all matters of significance related to the operations of the Tribal Gaming
Commission, shall make recommendations to the Board of Commissioners
regarding amendments to existing regulations and policies and the development of
new regulations and policies, shall be responsible for the scheduling and
organization of any hearings before the Board of Commissioners, and shall
develop, for approval by the Board of Commissioners, plans for short term and
long term staffing and budgeting of the Gaming Commission, including the
annual budget required by this Ordinance. The Executive Director shall schedule
appropriate training and relevant education opportunities for Tribal Gaming
Commission employees. The Executive Director shall act as the agent for service
of process for the Tribal Gaming Commission. The Executive Director, at the
direction of the Board of Commissioners, shall act as liaison between the Tribal
Gaming Commission and other tribal entities. The job description of the
Executive Director is subject to the approval of the Tribal Council.

“Financial Source” as that term is used in 6.4.6 of the Compact and in this
Ordinance, means every Person with whom the Tribe enters into an agreement or
Contract for the purpose of extending financing to the Tribe, the proceeds of
which are used either directly or indirectly to finance the Gaming Facility or
Enterprise.

“Games of Chance” means any game or activity, which falls within the broad
definition of Gaming or Gaming Activity.

“Gaming” or “Gaming Activity” means any activity, operation or game of
chance in which any valuable consideration may be wagered upon the outcome
determined by chance, skill, speed, strength or endurance, and in which any
valuable prize is awarded to the player so wagering.

“Gaming Device” means a slot machine, including an_ electronic,
electromechanical, electrical, or video device that, for consideration, permits:
individual play with or against that device or the participation in any electronic,
electromechanical, electrical, or video system to which that device is connected;
the playing of games thereon or therewith, including, but not limited to, the
playing of facsimiles of games of chance or skill; the possible delivery of, or
entitlement by the player to, a prize or something of value as a result of the
application of an element of chance; and a method for viewing the outcome, prize
won, and other information regarding the playing of games thereon or therewith.

Page 6 of 53


8.2

Minimal Internal Control Standards:

8.2.1

8.2.2

8.2.3

8.2.4

Applicable Standards The Tribal Gaming Commission shall comply with
25 CFR Part 542 by formally adopting and making applicable to the
Tribe’s Gaming operation(s) internal control standards that:

qd) Provide a level of regulatory control that equals or exceeds that set
forth in 25 CFR part 542, as published or as revised by mutual
agreement between the National Indian Gaming Commission and
the Picayune Rancheria of the Chukchansi Indians;

(2) Contain standards for currency transactions reporting that comply
with 31 CFR Part 103; and

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

Annual CPA Testing of Compliance In order to verify that the Gaming
operation is in compliance with the internal control standards adopted
pursuant to Section 8.2.1, an independent certified public accountant
(CPA) shall be engaged annually to perform “Agreed-Upon Procedures”
in the manner provided for in 25 CFR 542.3(f).

Compliance The Tribal Gaming Commission and the NIGC shall monitor
and enforce compliance with the internal control standards adopted
pursuant to paragraph A, in the manner provided for in 25 CFR 542.3(g).
In addition, the National Indian Gaming Commission shall, for the
purposes of enforcing compliance with the internal control standards, have
the power to:

() Monitor all Class II and Class II] Gaming on a continuing
basis;

(2) Inspect and examine all premises on which Class II or
Class III Gaming is conducted;

(3) Demand access to and inspect, examine, photocopy, and
audit all papers, books, and records respecting gross
revenues of all Class II and Class III Gaming on a
continuing basis or any other matters necessary to ensure
and enforce compliance with the MICS.

Enforcement Any failure to adopt internal control standards pursuant to
Section 8.2.1, to perform Agreed-Upon Procedures pursuant to Section
8.2.2, to prevent or obstruct the exercise of any of the Commission’s
power under Section 8.3.3, or to comply with the internal control

Page 44 of 53


8.4

8.3.14

8.3.15

8.3.16

8.3.23

8.3.24

Employing or possessing any Cheating device or to facilitate Cheating in
any Gaming Activity.

Willfully using any fraudulent scheme or technique to change the odds of
any Game of Chance.

Soliciting, directly or indirectly, or using inside information on the nature
or status of any Gaming Activity for the benefit of an individual.

Tampering with a Gaming Device, attempting to conspire to manipulate
the outcome or the payoff of a Gaming Device, or otherwise unlawfully
tampering with or interfering with the proper functioning of the machine.

Alter or counterfeiting a Gaming license.
Aiding, abetting, or conspiring with another Person knowingly or
knowingly to cause any Person to violate any provision of this Ordinance

or any rules and regulations adopted hereunder.

Operating, using or making available to the public any illegal Gaming
Device, apparatus, material or equipment.

Selling, holding out for sale or transporting into or out of the jurisdiction
of the Tribe any illegal Gaming Device, apparatus, material or equipment.

Assisting or allowing a Person who is under the age of Twenty-one (21) to
participate in a Gaming activity.

Possessing any illegal narcotics or controlled substances on any licensed
Gaming site.

Stealing or attempting to steal funds or other items of value from any
Gaming Facility or from the Tribal Gaming Commission.

Employing any Person at a licensed Gaming Facility whom the Licensee
knows has been convicted of a Gaming crime or a crime of fraud.

Criminal Violation: Any Indian who violates or fails to comply with any
provision of this Ordinance, or who fails or neglects to comply with any order,
decision of the Tribal Gaming Commission, shall be charged and given due
process pursuant to Section 4.24 herein. If such Indian is found to be guilty of a

crime,

he may be required to pay a fine not to exceed Five Thousand Dollars

($5,000). Each day during which any such violation or failure to comply
continues shall constitute a separate violation of this Ordinance.

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“Lotto” means a form of Gaming in which the revenues derived from the sale of
tickets or chances are pooled and those revenues or parts thereof allotted by
chance to one or more chance takers or ticket purchasers. The amount of cash
prizes or winnings is determined by the Licensee conducting the "lottery," and a
progressive pool is permitted.

“Management Contract” means any Contract for the management of Class II or
Class III Gaming within the meaning of IGRA and any Contract entered between
the Tribe and a Vendor, which authorizes the Vendor to manage any Gaming or
Gaming Facility, including any Contract defined as a Management Contract under
IGRA by the NIGC.

“Management Contractor” means any Person or entity who has entered into a
Class II or Class III] Gaming Management Contract or is a Vendor who is
authorized to manage Gaming or Gaming Facility, including any Person who is
regarded as a Management Contractor within the meaning of IGRA by the NIGC.

“National Indian Gaming Commission” or “NIGC” means the National Indian
Gaming Commission established by the IGRA.

“Net Revenues” means Gross Revenues less amounts paid out as prizes and less
total Gaming related operating expenses, excluding Management Contractor fees.

“Non-Gaming Vendor” means the same any Person who is not a Gaming
Vendor who, directly or indirectly, manufactures, distributes, supplies, vends,
leases or otherwise purveys resources to the Gaming Facility that are not directly
utilized in Class II or Class III Gaming, including but not limited to providers of
food, beverages, hotel supplies, and capital-funded purchases such as carpets and
light fixtures.

“Ordinance” means this Tribal Gaming Ordinance of the Picayune Rancheria of
the Chukchansi Indians, as amended.

“Participate” in any Gaming means operating, directing, financing or in any way
assisting in the establishment or operation of any class of Gaming or any site at
which such Gaming is being conducted, directly or indirectly, whether at the site
in Person or off of the Rancheria.

“Person” means any individual, partnership, joint venture, corporation, joint
stock company, company, firm, association, trust, estate, club, business trust,
municipal corporation, society, receiver, assignee, trustee in bankruptcy, political
entity and any owner, director, officer or employee of any such entity or any
group of individuals acting as a unit, whether mutual, cooperative, fraternal,
nonprofit, or otherwise, the government of the Tribe, any governmental entity of
the Tribe or any of the above listed forms of business entities that are wholly
owned or operated by the Tribe; provided, however, that the term does not include
the Federal Government and any agency thereof. The plural of "Person" is
"people."

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