of Gaming Revenue approved by the Secretary of the Interior under
§2710(b) (3) of IGRA.

v. Financial Audit

A. The Tribe shall cause to be conducted annually an
independent financial audit of gaming operations and shall submit
the resulting audit reports to the National Indian Gaming
Commission (“Commission”) .

B. All gaming related contracts that result in the purchase
of supplies, services, or concessions in excess of $25,000
annually, except for contracts for professional legal and
accounting services, shall be specifically included within the
scope of the audit that is described in subsection (A) above.

VI. Minimum Internal Control Standards

A. Applicable Standards. The Tribe shall comply with 25
CFR Part 542 by formally adopting and making applicable to the
tribe's gaming operation(s) internal control standards that:

1. Provide a level of control that equals or exceeds
those set forth in 25 CFR part 542, as published or
as revised by mutual agreement between the National
Indian Gaming Commission and the Tribe;

2. Contain standards for currency transaction reporting
that comply with 31 CFR Part 103; and

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

B. Annual CPA Testing of Compliance. In order to verify
that the gaming operation is in compliance with the internal

control standards adopted pursuant to paragraph A, 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).

c. Compliance. The Tribal Gaming Agency 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 purpose of enforcing compliance with
the internal control standards, have the power to:

a.monitor all Class II and Class III gaming on a
continuing basis;


(n) Fingerprints consistent with procedures
adopted by a tribe according to 25 C.F.R. §
522.2(h).

2. The Tribal Gaming Agency shall conduct an
investigation sufficient to make a determination under
subsection D below. In conducting a background investigation,
the Tribal Gaming Agency shall promise to keep confidential
the identity of each person interviewed in the course of the
investigation.

D. Eligibility Determination

1. The Tribal Gaming Agency shall review a person's
prior activities, criminal record, if any, and reputation,
habits and associations to make a finding concerning the
eligibility of a key employee or a primary management official
for employment in a gaming operation. If the Tribal Gaming
Agency determines that employment of the person poses a threat
to the public interest or to the effective regulation of
gaming, or creates or enhances dangers of unsuitable, unfair,
or illegal practices and methods and activities in the conduct
of gaming, such person is not suitable for a tribal gaming
license and the tribal gaming operation shall not employ that
person in a key employee or primary management official
position.

2. Without limiting the foregoing, a person who has
supplied materially false or misleading information with
respect to the required information for that person's
background investigation under subsection C above is not
suitable under paragraph 1 above.

3. The Tribe's gaming operation shall not employee ina
key employee position associated with Class III gaming
activity any applicant who fails to meet any necessary
suitability requirements under the tribal-state compact.

E. Procedures for Forwarding Applications and Reports for
Key Employees and Primary Management Officials to the
Commission

1. Unless otherwise provided for by the Commission, on
or before the date when a key employee or primary management
official begins work, the Tribal Gaming Agency shall forward
to the Commission a completed application and conduct the
background investigation and determination referred to in
subsections A, B, C and D of this section.

2. Upon completion, the Tribal Gaming Agency shall
forward the report referred to in subsection F of this section
to the Commission within 60 days after an employee begins work
or within 60 days of the Chairman's approval of this
ordinance.


B.

(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;
(b) If not otherwise included, any other person

whose total cash compensation is in excess of $50,000 per

year; or

(c) If not otherwise included, the four most highly
compensated persons in the gaming operation.

(d) If not otherwise included, any other person or
entity designated by the tribal-state compact or the
Tribe as an individual or entity that must be licensed.

2. Primary Management Official.

(a} The person having management responsibility for
a management contract;

(b) Any person who has authority:
(1) To hire and fire employees; or

(2) To set up working policy for the gaming
operation; or

{c) The chief financial officer or other person who
has financial management responsibility.

Application Forms

1. The following notice shall be placed on the

application form for a key employee or a primary management
official before that form is filled out by an applicant:

In compliance with the Privacy Act of 1974, the
following information is provided: Solicitation of
the information on this form is authorized by 25
U.S.C. 2701 et seq. The purpose of the requested
information is to determine the eligibility of
individuals to be employed in a gaming operation.

-4-


b. inspect and examine all premises on which Class II
or Class III gaming is conducted; and

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

D. Enforcement. Any failure to adopt internal control
standards pursuant to paragraph A, to perform Agreed-Upon
Procedures pursuant to paragraph B, to prevent or obstruct the
exercise of any of the Commission’s powers under paragraph C, or
to comply with the internal control 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.

VII. Environmental Protection

The construction, maintenance and operation of Class II and
Class III gaming facilities and Class II and Class III games shall
be conducted in a manner which adequately protects the environment
and the public health and safety.

VIII. Licenses for Key Employees and Primary Management
Officials

The Tribal Gaming Agency shall ensure that the policies and
procedures set out in this section are implemented with respect to
key employees and primary management officials employed at Thunder
Valley Casino, and any Class II and/or Class III gaming enterprise
operated on tribal lands:

A. Definitions

For the purposes of this section, the following
definitions apply:

1. Key employee.

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

(1) Bingo caller;
(2) Counting room supervisor;

(3) Chief of security;

-3-


(g)

(h)

(i)

applicant during each period of residence
listed under paragraph (i) (b) of this section;

Current business and residence telephone
numbers;

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

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

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

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 is
not otherwise listed pursuant to paragraphs
(i)(h) and (i)(i) of this section, the
criminal charge, the name and address of the
court involved and the date and disposition;

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;

A current photograph;
Any other information the Tribal Gaming

Agency deems relevant; and

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2
2 %
* *
3 §
%, ~
S
a cont?
Jessica Tavares JAN i 1 2008
Chairperson
United Auburn Indian Community
575 Menlo Dr., Suite 2

Rocklin, CA 95765

Re: | Amended gaming ordinance, Resolution No. 11-28-07-01

Dear Chairperson Tavares:

This is in response to your November 29, 2007 submission seeking review and approval
of the amendments to the United Auburn Indian Community’s gaming ordinance en-
acted by Resolution No. 11-28-07-01. The amended ordinance makes NIGC’s minimum
internal control standards (MICS) applicable to the Community’s Thunder Valley Casino
and makes other, miscellaneous changes. It is consistent with the requirements of the
Indian Gaming Regulatory Act (IGRA) and this agency’s regulations and is therefore ap-
proved. The NIGC looks forward to once again providing assistance to the Community
in its regulation of Class III gaming.

Chairman

ce: Jane Zerbi, Esq.
Penny Coleman, Acting General Counsel
Michael Gross, Associate General Counsel, General Law

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

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


Ix.

2. The Tribal Gaming Agency shall respond to a request
for additional information from the Chairman of the Commission
concerning a key employee or a primary management official who
is the subject of a report. Such a request shall suspend the
thirty (30) day period under paragraph (G) (1) of this section
until the Chairman of the Commission receives the additional
information.

3. If, within the thirty (30) day period described
above, the Commission provides the Tribal Gaming Agency with a
statement itemizing objections to the issuance of a license to
a key employee or to a primary management official for whom
the Tribal Gaming Agency has provided an application and
investigative report to the Commission, the Tribal Gaming
Agency shall reconsider the application, taking into account
the objections itemized by the Commission.

4. The Tribal Gaming Agency shall ensure compliance
with any other procedures regarding licensure which may be
required under the tribal-state compact.

H. License Suspension

1. If, after the issuance of a gaming license, the
Commission receives reliable information indicating that a key
employee or a primary management official is not eligible for
employment under subsection D above, the Tribal Gaming Agency
shall suspend such license and shall notify in writing the
licensee of the suspension and the proposed revocation.

2. The Tribal Gaming Agency shall notify the licensee
of a time and a place for a hearing on the proposed revocation
of a license.

3. After a revocation hearing, the Tribal Gaming Agency
shall decide to revoke or to reinstate a gaming license. The
Tribal Gaming Agency shall notify the Commission of its
decision.

4. The Tribal Gaming Agency shall also suspend and
revoke the license of a key employee when such person is
deemed unsuitable under the tribal-state compact.

License Locations

The Tribal Gaming Agency shall issue a separate license to

each place, facility, or location on Indian lands where Class II
and Class III gaming is conducted under this ordinance.

x.

Customer Dispute Resolution Procedure

With respect to Class II and Class III gaming, the general

~9-


3. The gaming operation shall not employ a key employee
or primary management official who does not have a license
after 90 days.

F. Report to Commission

1. Pursuant to the procedures set out in subsection E
of this section, the Tribal Gaming Agency shall prepare and
forward to the Commission an investigative report on each
background investigation. An investigative report shall
include all of the following:

(a) Steps taken in conducting a background
investigation;

(b) Results obtained;
(c) Conclusions reached;
(d) The bases for those conclusions; and

(e) The Tribal Gaming Agency shall include in its
report a copy of the eligibility determination
made under section D of this section.

2. If a license is not issued to an applicant:

(a) The Tribal Gaming Agency shall notify the
Commission; and

(b) Forward copies of its eligibility
determination and investigative report (if
any) to the Commission for inclusion in the
Indian Gaming Individuals Records System.

3. With respect to key employees and primary management
officials, the Tribal Gaming Agency shall retain applications
and reports (if any) of background investigations for
inspection by the Chairman of the Commission or his or her
designee for no less than three (3) years from the date of
termination of employment.

G. Granting a Gaming License

1. If, within a thirty (30) day period after the
Commission receives a report, the Commission notifies the
Tribal Gaming Agency that it has no objection to the issuance
of a license pursuant to a license application filed by a key
employee or a primary management official for whom the Tribe
has provided an application and investigative report to the
Commission, the Tribal Gaming Agency may go forward and issue
a license to such applicant.

-8-


The information will be used by National Indian
Gaming Commission members and staff who have need
for the information in the performance of their
official duties. The information may be disclosed
to appropriate Federal, Tribal, State, local, or
foreign law enforcement and regulatory agencies
when relevant to civil, criminal or regulatory
investigations or prosecutions or when pursuant to
a requirement by a tribe or the National Indian
Gaming Commission in connection with the hiring or
firing of an employee, the issuance or revocation

of a gaming license, or investigations of
activities while associated with a tribe or a
gaming operation. Failure to consent to the

disclosures indicated in this notice will result in
a tribe's being unable to hire you in a primary
management official or key employee position.

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

2. The following notice shall be placed on the
application form for all key employees and primary management
officials before that form is filled out by an applicant:

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

Cc. Background Investigations:

1. The Tribal Gaming Agency shall request from each
primary management official and from each key employee all of
the following information:

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

(b) Currently and for the previous 5 years:
business and employment positions held,
ownership interests in those businesses,
business and residence addresses, and drivers
license numbers;

(c) The names and current addresses of at least
three personal references, including one
personal reference who was acquainted with the

-5-


UNITED AUBURN INDIAN COMMUNITY

AMENDED ORDINANCE NO. 99-2

TRIBAL CLASS II AND CLASS III GAMING ORDINANCE

I. Purpose

The Tribal Council of the United Auburn Indian Community of
the Auburn Rancheria of California (hereinafter "Tribe"), empowered
by the Tribe's Constitution to enact ordinances, hereby amends its
Class II and Class III gaming ordinance in order to set the terms
for such gaming activities on tribal lands and minimum standards
for the Tribe’s wholly owned enterprise Thunder Valley Casino.

II. Gaming Authorized

A. All forms of Class II gaming as defined in the Indian
Gaming Regulatory Act, P.L. 100-447, 25 U.S.C. Section 2703(7) (A)
("IGRA") are hereby authorized, including but not limited to bingo,
pulltabs, and non-banking card games.

B. All forms of Class III gaming as defined in the Indian
Gaming Regulatory Act, P.L. 100-447, 25 U.S.C. Section 2703(8)
("IGRA") and authorized by the tribal-state compact between the
Tribe and the State of California (hereinafter "tribal-state
compact") are hereby authorized.

III. Ownership of Gaming
The Tribe shall maintain the sole propriety interest in and

responsibility for the conduct of all Class II and Class III gaming
activities authorized by this ordinance.

Iv. Use of Gaming Revenue

A. Net revenues from the Tribe's share of Class II and Class
III gaming activities authorized herein shall be used only for the
following purposes: to fund tribal government operations and
programs; provide for general welfare of the Tribe and its members;
promote tribal economic development; donate to charitable
organizations; or help fund operations of local government
agencies.

B. If the Tribe elects to make per capita payments, it shall
authorize such payments only pursuant to a Plan for the Allocation

-1-


®

MIWOK United Auburn I

® ® ® ®

indian Community

MAIDU _ of the Auburn Rancheria

JESSICA TAVARES, Kim DUBACH David KEYSER DOLLY SUEHEAD. GENE WHITEHOUSE
CHAIRPERSON Vice CHAIR SECRETARY TREASURER COUNCIL MEMBER

Ame

WHEREAS,

WHEREAS,

WHEREAS,

WHEREAS,

WHEREAS,

WHEREAS,

WHEREAS,

RESOLUTION NO, _11-28-07-01
ndment of Ordinance No. 99-2Tribal Class II and III Gaming Ordinance

the United Auburn Indian Community is a federally recognized Indian Tribe (the
“Tribe”); and

the Tribe is governed by a Constitution of the United Auburn Indian Community of the
Auburn Rancheria (the “Tribal Constitution”) approved by the Secretary of the
Interior; and

the Tribal Council is the governing body of the Tribe pursuant to Article IV of the
Tribal Constitution; and

Article VIII of the Tribal Constitution, among other powers, provides the Tribal
Council with the power to promulgate and adopt ordinances to promote the economic
well-being of the Tribe and its members; and

the Tribal Council enacted a Class II and Class III] gaming ordinance, which was
approved in 2000 by the National Indian Gaming Commission; and

the Tribal Council wishes to amend the gaming ordinance and to specifically affirm
the Tribe’s adoption of minimum internal control standards for the gaming operation
that provide a level of control that equal or exceed those federal standards set forth in
25 CFR Part 542 and the monitoring and enforcement of compliance with such
standards by the Tribe’s gaming regulatory authority as well as by the National Indian
Gaming Commission; and

the Tribal Council has reviewed the attached Amended Tribal Class II and Class III
Gaming Ordinance and finds that it will serve the bests interests of the Tribe.

NOW THEREFORE BE IT RESOLVED THAT:

lL.

The Tribal Council of the United Auburn Indian Community hereby adopts the

attached Amended Ordinance No. 99-2, Tribal Class II and Class III Gaming Ordinance.

2.

The Tribal Council authorizes the Tribal Chairperson or designee to submit said

amended ordinance to the National Indian Gaming Commission for review and approval.

The foregoing resolution was adopted by a vote of _5

abstentions, at

28th day of November 2007.

ATTEST:

CERTIFICATION

for, and 0 against and 0 _
a duly called meeting of the Tribal Council, at which a quorum was present, on this



® ® ® ® ®

MIWOK United Auburn Indian Community
MAIDU of the Auburn Rancheria

JESSICA TAVARES Kim DuBack Davi KEYSER DOLLY SUEHEAD GENE WHITEHOUSE
CHAIRPERSON VICE CHAIR ‘SECRETARY TREASURER COUNCIL MEMBER

November 29, 2007

Philip Hogen, Chairperson

National Indian Gaming Commission
1441 L Street NW, Suite 9100
Washington, DC 20005

Re: Amendment to Tribal Gaming Ordinance
Dear Chairman Hogan:

On behalf of the United Auburn Indian Community, enclosed for the review and approval
of the National Indian Gaming Commission (“NIGC”) under the Indian Gaming
Regulatory Act, 25 U.S.C. Section 2701 et seq, is an amended tribal gaming ordinance
along with the original Tribal Council resolution adopting the amended ordinance and
authorizing its submission for review and approval.

As communicated to the NIGC Regional Director for California last year and stated in
our previous correspondence to you, United Auburn Indian Community consents to the
jurisdiction of the NIGC with respect to the monitoring and enforcement of minimum
internal control standards adopted by the Tribe that meet or exceed the federal standards
at 25 CFR Part 542 (“MICS”). A full MICS audit was conducted by the NIGC at our
gaming operation Thunder Valley Casino several months ago.

We believe federal regulatory standards promote and support strong regulatory practices
at Indian casinos and strengthen the public’s confidence in the integrity of Indian gaming.
The enclosed amendments to our gaming ordinance at Section VI affirm once again the
Tribe’s adoption of minimum internal control standards for the gaming operation that
provide a level of control that equal or exceed those federal standards set forth in 25 CFR
Part 542 and the monitoring and enforcement of compliance with such standards by the
Tribal Gaming Agency as well as by the National Indian Gaming Commission.

A redline of the original ordinance approved in 2000 is also enclosed for your
convenience. If you have any questions or comments regarding these amendments,
please contact our tribal attorney Jane Zerbi at (916) 244-8550.

Sincerely,

ayn Sur

ssica Tavares, Tribal Chairperson

ce: Jane Zerbi, Dickstein & Zerbi

Uso 0? -


manager of the tribal gaming operation shall attempt to resolve on
an informal basis any customer complaints relating to payment of
prizes or services and report any such resolution to the governing
body of the enterprise. If the complaint cannot be resolved at the
general manager level, the customer shall be informed that he/she
has the right to present his or her complaint to the Tribal Gaming
Agency, as provided for in the tribal-state compact.

XI. IGRA Compliance

The Tribal Gaming Agency shall ensure enforcement of rules
and regulations for all games played to ensure that they conform to
the IGRA, including any effective tribal-state compact, and that
the games are honest and fair.

XII. Amendments

The Tribal Council may amend this Ordinance in any manner
deemed appropriate to protect the Tribe's best interests so long as
any such amendment is no less restrictive than the original terms
of this Ordinance, complies with all applicable federal law, and is
consistent with the terms of any effective tribal-state compact.

CERTIFICATION

The foregoing ordinance was adopted by a vote of 5 for, and 0
against and 0 abstentions, at a duly called meeting of the Tribal
Council, at which a quorum was present, on this 28th day of
November, 2007.

David Keyser, /fecretary

ca Tavares, Chairperson

-10-