CHAPTER 7. POWERS OF THE TRIBAL GAMING COMMISSION.

The Tribal Gaming Commission shall have the following powers in
addition to any powers specified elsewhere in this Ordinance:

Section 1. Regulations.

To promulgate regulations necessary to carry out the Tribal Gaming
Commission's duties and responsibilities to regulate class II and
class III gaming under this Ordinance, after providing a notice and
comment period of thirty days for the general public.

Section 2. Background Investigations.

To cause the Tribal Police to conduct background investigations of
management officials and employees of gaming operations.

Section 3. Licensing Gaming Operators, Primary Management
Officials and All Employees of Gaming Operations.

To license gaming operators, primary management officials and
employees of gaming operations.

Section 4. Licensing Gaming Facilities.

To license, each facility, place or location on the Indian lands of
the Tribe where gaming is to be conducted.

Section 5. Monitoring Compliance and Accountability.

To monitor compliance with this Ordinance and regulations
promulgated thereunder, the Class III Compact Between the Tribe and
the State of South Dakota, and the Indian Gaming Regulatory Act, 25
U.S.C. § 2701 et seq., to ensure that all gaming is conducted
fairly and honestly by both the operator and players, and to ensure
that all gaming funds, proceeds, and revenues are properly
accounted for, through inspections of records, procedures, and
premises, reviews of security and surveillance systems, accounting
reviews, audits and investigations.

Section 6. Enforcement.

To enforce this Ordinance and regulations promulgated thereunder,
the Class III Compact Between the Tribe and the State of South
Dakota, and the Indian Gaming Regulatory Act, 25 U.S.C. § 2710 et
seq. by issuing or denying licenses, conducting administrative
review hearings, and after holding hearings, by issuing compliance
orders, issuing license restrictions, suspensions, revocations, and
terminations, imposing fines, and in the case of a licensee's
failure to comply with Gaming Commission orders, to seek injunctive
relief in tribal court.

14


CHAPTER 13. PROHIBITIONS AND PENALTIES
Section 1. Prohibition on Unauthorized Gaming.

Any Class II and Class III Gaming not in accordance with this
ordinance or any other tribal or federal gaming law is strictly
prohibited.

Section 2. Prohibition on Gaming by Minors.

Gaming by any person under the age of twenty-one is prohibited to
participate in any gaming activity, except that persons eighteen
years of age or older may play bingo and purchase raffle or lottery
tickets.

Section 3. Prohibition on Gaming by Intoxicated Persons.

It is prohibited for any person who is visibly intoxicated to
participate in any gaming activity.

Section 4. Prohibition on Cheating.

It is prohibited for any person to conduct or knowingly participate
in any gaming or gaming related activity which results in cheating,
misrepresentation, or other unfair practice which detracts from the
opportunity of all players to have a fair and equal chance to win,
or which otherwise removes the outcome of the game from the realm
of chance.

Section 5. Mandatory Compliance with Federal and Tribal Revenue
Laws.

It is prohibited for any operator to fail to comply with all
applicable federal and tribal revenue laws.

Section 6. No Credit Extended.

Gaming shall be conducted on a cash basis only. Except as herein
provided, no person shall be extended credit for gaming by any
gaming facility operated within the territory of the Tribe, and no
operation shall permit any person or organization to offer such
credit for a fee. This restriction shall not apply to credits won
by players who activate play on gaming machines after inserting
coins or currency into the game, and shall not restrict the right
of the Tribe or any other person to offer check cashing or accept
bank card or credit card transactions.

Section 7. Standards for Class III Gaming Devices.

No class III gaming device shall be operated within the territory
of the Tribe, unless it meets or exceeds requirements for hardware

30


among its membership a Treasurer. Subject to the oversight of the
Commission, the Treasurer shall be vested with the following powers
and duties:

(1) to ensure, in consultation with an independent certified
public accountant, that a system of internal financial
controls is in place for Commission finances, including
revenues, receipts, checks, and expenditures;

(2) to ensure, in consultation with an independent certified
public accountant, that proper records are maintained of
all Commission finances, including revenues, receipts,
checks, and expenditures;

(3) to periodically report to the Commission on Commission
finances; and

(4) to consult with the Chairman in the preparation of the
proposed annual budget for the Commission.

E. Commission Secretary. The Commission shall select from
among its membership a Secretary. Subject to the oversight of the
Commission, the Secretary shall be vested with the following powers
and duties:

(1) to ensure that accurate, verbatim records are kept of all
Commission meetings, hearings, actions, and orders;

(2) to regularly review the work of any Commission employees
hired to assist with Commission record keeping; and

(3) to present the minutes of Commission meetings to the
Commission for approval; and

(4) to periodically report to the Commission on Commission
record keeping.

Section 3. Terms of Office.

A. In General. Each member of the Tribal Gaming Commission
shall hold office for a term of 5 years, except as provided in sub-
paragraph B below.

B. ni A nts. The initial members of the Tribal
Gaming Commission shall be those Commission members elected prior
to the effective date of this Ordinance, who shall serve until the
expiration of their original terms as set forth in the Ordinance of
March 1, 1990.

Thereafter, to stagger the terms of the members of the Gaming
Commission and provide a means to ensure institutional experience,
the initial General Council election for the Commission under the

8


Tribal Gaming Commission hearings, swear witnesses, admit evidence
and rule on evidentiary issues, including objections or preliminary
motions by counsel for interested parties.

B. Order of Proceeding. An attorney or agent of the Tribal
Gaming Commission shall begin by presenting information or evidence
concerning the Commission's reason for holding the hearing. Then
any interested parties shall have an opportunity to rebut and offer
information or evidence in their own behalf. At the close of the
evidence, the Tribal Gaming Commission shall take the matter under
advisement and render its decision thereafter.

Section 5. Evidence.

The Chairman of the Tribal Gaming Commission may admit probative
information and evidence without regard to formal Rules of
Evidence, provided, that all parties' rights to due process of law
are protected. If witnesses are called to testify, testimony may
be limited to relevant matters, and opposing parties shall be
afforded an opportunity to cross-examine the witnesses.

Section 6. Commission Orders.

Whenever official action is necessary after a hearing, the Tribal
Gaming Commission shall issue written orders which may grant, deny,
restrict, suspend, revoke, or terminate a license, enjoin an
activity or order an activity to be undertaken, impose a fine, or
grant such further relief as it finds necessary to fulfill its

regulatory responsibility together with the reasons for the action
taken.

Section 7. Appeal.

Within 30 days after the issuance of an order of the Tribal Gaming
Commission, an interested party may appeal an adverse order to
tribal court. The tribal court shall uphold the order of the
Tribal Gaming Commission, unless it finds that the Tribal Gaming
Commission committed a clear error of law, abused its discretion,
or there was no support for the Commission's factual findings.

18


Section

Section
Section
Section
Section

Section

CHAPTER

CHAPTER

Section
Section
Section
Section

Section

Section

Section

Section

CHAPTER

Section
Section

Section

Section

10.

11.

Temporary Restraining Orders
and Show Cause Orders

Subpoenas
Procedure
Evidence
Commission Orders

Appeal
CONFLICTS OF INTEREST
LICENSES FOR KEY EMPLOYEES AND PRIMARY
MANAGEMENT OFFICIALS
Definitions
Application Forms
Background Investigations
Eligibility Determination
Procedures for Forwarding Applications
and Reports for Key Employees and Primary
Management Officials to the National

Indian Gaming Commission

Report to the National Indian
Gaming Commission

Granting a Gaming License
License Suspension

FACILITY AND OTHER LICENSES;
ANNUAL FEES
Facility Licenses
Other Licenses

Licenses Subject to Restriction,
Revocation, or Termination

Class III Gaming Standard

17
17
17
18
18
18

19

20
20
21
22
25

25

25
26
27

28
28
28

29
29


CHAPTER 12. FACILITY AND OTHER LICENSES; ANNUAL FEES.

Section 1. Facility Licenses.

The Tribal Gaming Commission shall issue a separate operating
license to each place, facility, or ‘location on tribal lands where
class II or class III gaming is conducted under this ordinance.
The fee for each facility license shall be $5,000, unless the
Tribal Gaming Commission by regulation establishes a different fee.
This fee is in addition to the cost of any background
investigation.

Section 2. Other Licenses.

In addition to facility licenses, the Tribal Gaming Commission
shall issue the following licenses:

A. Slot Machine Operator. The fee for a license to operate
slot machines is $1,000 annually unless the Tribal Gaming
Commission by regulation establishes a different fee. No
person or entity that is not eligible for a key employee
or primary management license shall be granted a license
to operate slot machines. This fee is in addition to the
cost of any background investigation.

B. Video Lottery Operator. The fee for a license to operate
video lottery machines is $1,000 annually unless the
Tribal Gaming Commission by regulation establishes a
different fee. No person or entity that is not eligible
for a key employee or primary management license shall be
granted a license to operate video lottery machines.
This fee is in addition to the cost of any background
investigation.

c. Class III Card Game Operator. The fee for a license to
operate class III card games is $1,000 annually unless
the Tribal Gaming Commission by regulation establishes a
different fee. No person or entity that is not eligible
for a key employee or primary management license shall be
granted a license to operate class III card games. This
fee is in addition to the cost of any background
investigation.

D. Class II Gaming Operator. The fee for a license to
operate class II gaming is $1,000 annually unless the
Tribal Gaming Commission by regulation establishes a
different fee. No person or entity that is not eligible
for a key employee or primary management license shall be
granted a license to operate class III card games. This
fee is in addition to the cost of any background
investigation.

28


Section 7. Cooperation with Law Enforcement Agencies.

To cooperate, confer with and assist, as appropriate, the Tribal
and Bureau of Indian Affairs law enforcement agencies, Federal
Bureau of Investigation, National Indian Gaming Commission, and
other law enforcement agencies in enforcing federal and tribal
gaming laws and prosecuting gaming law violations.

Section 8. Reports.

To report to the General Council, the Business and Claims
Committee, and the National Indian Gaming Regulatory Committee as
necessary.

Section 9. Budget, Expenses and Accounting.

To approve a proposed annual budget for submission to the Business
and Claims Committee and after Business and Claims Committee
approval of its budget, to pay expenses, salaries, stipends and
miscellaneous costs as necessary in accordance with its budget;
provided, that complete and accurate records shall be maintained of
all Tribal Gaming Commission funds, expenses, salaries, stipends
and miscellaneous costs.

Section 10. Personnel.

To hire, supervise and discipline personnel necessary to.assist the
Tribal Gaming Commission in the fulfillment of its duties and
responsibilities.

Section 11. Necessary and Proper.

To exercise such other incidental powers as are necessary and
proper to carry out the above powers, including the issuance of
process and subpoenas, discovery requests, show cause orders, and
citations for contempt of Tribal Gaming Commission orders or
process.

15


(2) Any person who has authority:
(a) To hire and fire employees; or

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

(3) The chief financial officer or other person who has
financial management responsibility.

Section 2. Application Forms.

A. 1 I i an im
Management Official Licensees. The following notice shall be

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

In compliance with the Privacy Act of 1974, the following
information is provided: Solicitation of the information
on this form is authorized by 25 U.S.C. § 2701 et seq.
The purpose of the requested information is to determine
the eligibility of individuals to be employed in a gaming
operation. The information will be used by National
Indian Gaming Commission members and staff who have need
for the information in the performance of their official
duties. The information may be disclosed to appropriate
Federal, Tribal, State, local, or foreign law enforcement
and regulatory agencies when relevant to civil, criminal
or regulatory investigations or prosecutions or when
pursuant to a requirement by a tribe or the National
Indian Gaming Commission in connection with the hiring or
firing of an employee, the issuance or revocation of a
gaming license, or investigations of activities while
associated with a tribe or a gaming operation. Failure
to consent to the disclosures indicated in this notice
will result in the tribal gaming operation 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.

B. Existing key employees and primary management officials
shall be notified in writing that they shall either:

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

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

21


CHAPTER 9. HEARINGS BEFORE
THE TRIBAL GAMING COMMISSION.

The Tribal Gaming Commission shall schedule hearings whenever
necessary to ensure compliance with gaming laws, the integrity of
tribal gaming operations, or the accountability of gaming
operations for funds.

Section 1. Notice.

Except as provided below in section 2, the Tribal Gaming Commission
shall provide 15 days written notice of hearings to the interested
parties setting forth the nature of and reason for the hearing, any
allegations against those parties, and the time and place for the
hearing.

Section 2. Temporary Restraining Orders and Show Cause Orders.

When the Tribal Gaming Commission has reason to believe that there
has been a violation of tribal or federal gaming laws, or the
integrity of a gaming operation or its accountability for funds is
in jeopardy, the Tribal Gaming Commission may protect the Tribe and
the gaming public by issuing temporary restraining orders as may be
necessary to prevent irreparable harm or violation of the law and
may issue show cause orders to require interested parties to appear
on 24 hours notice for an emergency hearing. Service of a show
cause order shall be by hand delivery to interested parties or
their agents.

Section 3. Subpoenas.

The Tribal Gaming Commission may issue subpoenas for witnesses,
documents, and other tangible evidence as necessary to aid in
enforcement of this Ordinance and regulations promulgated
thereunder, the Class III Compact between the Tribe and the State,
and the Indian Gaming Regulatory Act, 25 U.S.C. § 2701 et seq. An
interested party may request in writing that the Tribal Gaming
Commission issue subpoenas to compel the attendance of witnesses or
production of other evidence favorable to that party.

Section 4. Procedure.

Hearings shall be conducted before the full Tribal Gaming
Commission, unless the Tribal Gaming Commission delegates to the
Chairman the authority to hear particular cases or claims.
Provided, however, that in any case where the Chairman is delegated
to conduct the hearing, interested parties may appeal any adverse
order by the Chairman to the full Tribal Gaming Commission.

A. Chairman Presides. Unless otherwise ordered by the Tribal
Gaming Commission, the Chairman shall regulate the proceedings at

17


The fee for a key employee or primary management official
license is $100 annually unless the Tribal Gaming
Commission by regulation establishes a different fee.
The procedure for granting Key Employee and Primary
Management Official Licenses is set forth in Chapter 11
above. This fee is in addition to the cost of any
background investigation.

E. Employee Licenses. The fee for an employee license to
work at a class II or class III gaming facility is $25
annually unless the Tribal Gaming Commission by regula-
tion establishes a different fee. This fee is in
addition to the cost of any background investigation.

Section 3. Licenses Subject to Restriction, Revocation, or
Termination.

Every gaming license issued by the Tribal Gaming Commission remain
subject to suspension, restriction, revocation, and/or termination
for failure to meet the requirements of this Ordinance and any
regulations promulgated hereunder, the Indian Gaming Regulatory Act
and the regulations promulgated thereunder, or other good cause
shown in accordance with the procedures set forth in this
Ordinance.

Section 4. Class III Gaming Standard.
No person or entity shall be granted a license to manage or work in
any class III gaming facility, unless that person or entity meets

or exceeds the qualifications and the requirements for obtaining a
comparable gaming license from the State of South Dakota.

29


removal, a right to answer that evidence and a right to
present evidence in his or her own behalf, including
testimony, affidavits, documents and other competent
materials.

(3) General Council Determination. The General Council shall
make a determination whether good cause exists for
removal after the close of evidence:

(a) If the General Council determines by majority
vote that a preponderance of evidence proves
that good cause exists to remove said Gaming
Commission member from office, he or she shall
be and is thereby removed from office.

(b) If the General Council determines that no good
cause exists to remove said Gaming Commission
member from office, he or she shall continue
in office and the hearing shall be at an end.

D. Procedure for Removal by Tribal Gaming Commission for
ngs. The Tribal
Gaming Commission may, after 3 or more consecutive unexcused

absences from regularly scheduled Commission meetings by any
member:

(1) Scheduling of Hearing; Notice to Commission Member.
Schedule a hearing and provide said member with no less than
15 days notice of the hearing and the allegations against him
or her.

(2) Removal Hearing Before Tribal Gaming Commission: Rights
of Commission Member. Conduct a hearing, which provides said
member with a right to hear all evidence that shows that he or
she was absent without excuse from 3 or more consecutive
Tribal Gaming Commission meetings, a right to answer said
evidence, and a right to present evidence in his or her own
behalf, including excuses for said absences.

(3) Tribal Gaming Commission Determination. Determine
whether said members was absent without excuse for 3 or more
consecutive Tribal Gaming Commission meetings after the close
of the evidence:

(a) If the Tribal Gaming Commission determines by
majority vote that a preponderance of evidence proves
that said member was absent without excuse for 3 or more
consecutive Tribal Gaming Commission meetings, he or she
is thereby immediately removed from office.

(b) If the Tribal Gaming Commission determines that said

12


CHAPTER 3. OWNERSHIP OF GAMING;
USE OF GAMING REVENUE; PER CAPITA PAYMENTS.

Section 1. Ownership of Gaming.

The Tribe, or its wholly owned tribal corporation, shall have the
sole proprietary interest in and responsibility for the conduct of
any gaming operation that is authorized by this ordinance.
Section 2. Use of Gaming Revenue.

Net revenues from class II and class III gaming shall be used only
for the following purposes:

(A) to fund tribal government operations and programs;

(B) to provide for the general welfare of the Tribe and its
members;

(C) to promote tribal economic development;
(D) to donate to charitable organizations; or
(EZ) to help fund operations of local government agencies.

Section 3. Per Capita Payments Permissible Only in Accordance With
Plan Authorized by the Secretary of Interior.

If the Tribe elects to make per capita payments to tribal members,
it shall authorize such payments only upon approval of a tribal
plan submitted to the Secretary of the Interior under 25 U.S.C. §
2710(b)(3).


(1) Steps taken in conducting a background investigation;
(2) Results obtained;

(3) Conclusions reached; and

(4) The bases for those conclusions.

B. The Tribal Gaming Commission shall submit, with the
report, a copy of the eligibility determination made under section
4 of this chapter.

Cc. If a license is not issued to an applicant, the Tribal
Gaming Commission:

(1) Shall notify the National Indian Gaming Commission; and

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

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

Section 7. Granting a Gaming License.

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

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

Cc. If, within the thirty (30) day period described above, the
National Indian Gaming Commission provides the Tribal Gaming
Commission with a statement itemizing objections to the issuance of

26


Insert, after Chapter 11 § 3(A) (14) (a), page 23 of Ordinance.
Chapter 11 § 3(A)14(b)

Alternately, the Tribe’s Gaming Commission may enter into a
memorandum of understanding with a state law enforcement agency
pursuant to which the state agency will conduct fingerprinting of
prospective applicants for licenses and other persons required to
be fingerprinted hereunder. Provided, that the state law
enforcement agency selected by the YSTGC agrees to, and, in fact
does, meet all requirements set forth in this ordinance and any
applicable regulations of the National Indian Gaming Commission
regarding fingerprinting.


CHAPTER 1: TITLE, AUTHORITY, AND PURPOSES.
Section 1. Title.

This Ordinance shall be known as "The Yankton Sioux Tribe Gaming
Ordinance."

Section 2. Authority.

A. Inherent Authority. The Yankton Sioux Tribe is a
sovereign Indian tribe, whose authority pre-dates the the United
States of America. The Yankton Sioux Tribe has a long history of
sanctioning gaming within its territory. Prior to treaty-making
with the United States, the Yankton Sioux engaged in a variety of
traditional classes of gaming, including inter alia horse-racing.

B. Treaty Recognition. In the Treaty with the Yankton Sioux
Tribe, 1858, 11 Stat. 743, and the Treaty of Fort Laramie with the
Sioux Nation, 1851, 11 Stat. 749, the Yankton Sioux Tribe retained
its original, inherent right to self-government and corresponding
tribal jurisdiction over activities within Yankton Sioux territory,
including gaming. The United States recognized the sovereignty of
the Yankton Sioux Tribe by entering into those treaties.

Cc. Constitutional Authority. The General Council of the
Yankton Sioux Tribe, is vested, by and through the Constitution of
the Yankton Sioux Tribe, with the original, inherent and treaty
recognized authority of the Tribe to enact ordinances to provide
for the welfare of the Tribe, to maintain law and order, and to
establish justice. The General Council hereby enacts this Yankton
Sioux Tribe Gaming Ordinance to set the terms for the conduct of
class II and class III gaming the Yankton Sioux Tribe's territory.

D. ian ith the F ral

In accordance with the Indian Gaming Regulatory Act and National
Indian Gaming Commission Regulations, the Yankton Sioux Tribe
Gaming Ordinance sets forth the subjects required by the Indian
Gaming Regulatory Act in the form of the NIGC Model Tribal Gaming
Ordinance. The Tribe supplements the NIGC Model Tribal Gaming
Ordinance by establishing the Yankton Sioux Tribal Gaming
Commission for licensing of gaming operations, gaming management,
and employees, regulation of gaming operations, and enforcement of
gaming laws and regulations, and by vesting the Tribal Police with
responsibility for the required background investigations.

Section 3. Legislative Purposes.

A. The purposes of the Yankton Sioux Tribe Gaming Ordinance
are as follows:

(1) To provide a statutory basis for the conduct of class II
and class III gaming on tribal lands in a manner that is
equitable, honest, and in accordance with applicable law;


CHAPTER 13.
Section 1.
Section 2.
Section 3.
Section 4.

Section 5.

Section 6.

Section 7.

Section 8.

CHAPTER 14.

CHAPTER 15.

PROHIBITIONS AND PENALTIES

Prohibition on Unauthorized Gaming
Prohibition on Gaming by Minors

Prohibition on Gaming by Intoxicated Persons
Prohibition on Cheating

Mandatory Compliance with Federal and
Tribal Revenue Laws

No Credit Extended

Standards for Class III Gaming Devices
Penalties for Violations;

Forfeiture of Property

DISPUTE RESOLUTION

PRIOR GAMING LAWS REPEALED

30
30
30
30
30

30
30
30

31

32

33


member was not absent without excuse for 3 or more
consecutive Tribal Gaming Commission meetings, he or she
shall continue in office and the hearing shall be at an
end.

E. Filling Vacancies. When a Tribal Gaming Commission member
vacates or is removed from his or her office before the expiration
of the term of office, the General Council shall elect a qualified
individual for the remainder of that term of office in accordance
with the procedure and the requirements for regular elections to
the Tribal Gaming Commission.

13


CHAPTER 2. GAMING AUTHORIZED.
Section 1. Class II Gaming.

Class II gaming as defined in the Indian Gaming Regulatory Act, 25
U.S.C. § 2703 and regulations promulgated thereunder is hereby
authorized by tribal law, provided such class II gaming is
conducted consistent with the Indian Gaming Regulatory Act,
regulations promulgated thereunder, this Ordinance, and other
tribal laws and regulations.

Section 2. Class III Gaming.

Class III gaming as defined by the Indian Gaming Regulatory Act,
including, blackjack, poker, slot machines, video games, parimutuel
wagering, horse and dog-racing, and such other class III gaming as
is authorized by the State of South Dakota is hereby authorized by
tribal law, provided such class III gaming is authorized by, and
conducted consistent with, the Indian Gaming Regulatory Act, the
Tribal-State Class III Gaming Compact entered into between the
Yankton Sioux Tribe and the State of South Dakota, and the Yankton
Sioux Tribe Gaming Ordinance.


CHAPTER 10. CONFLICTS OF INTEREST.

All Tribal Gaming Commission members shall avoid conflicts of
interest generally. No Tribal Gaming Commission member, attorney,
or employee, or immediate family member thereof, shall have a
financial interest (other than a generalized interest shared by all
members of the Tribe as tribal members) in a gaming operation or a
business which contracts with or provides services to a gaming
operation.

19


NATIONAL a
INDIAN FILE fi ;
GamING JUN 21 1995

Commission .

Stephen Cournoyer, Jr., Chairperson
Yankton Sioux Tribe

Box 248

Marty, South Dakota 57361

Dear Chairperson Cournoyer:

This letter responds to your request to review and approve
the tribal gaming ordinance adopted on May 22, 1995, by the
Yankton Sioux Tribe (Tribe). This letter constitutes such
approval under the Indian Gaming Regulatory Act (IGRA).

Under the IGRA and the regulations of the National Indian
Gaming Commission (NIGC), the Chairman is directed to review
ordinances with respect to the requirements of the IGRA and the
implementing regulations. Thus, the scope of the Chairman’s
review and approval is limited to the requirements of the IGRA
and the NIGC regulations. Provisions other than those required
under the IGRA or the NIGC regulations that may be included in a
tribal ordinance are not subject’ to review and approval. Also,
such approval does not constitute approval of specific games. It
is important to note that the gaming ordinance is approved for
gaming only on Indian lands as defined in the IGRA.

With the Chairman’s approval of the Tribe’s gaming
ordinance, the Tribe is now required to conduct background
investigations on its key employees and primary management
officials. The NIGC expects to receive a completed application
for each key employee and primary management official pursuant to
25 C.F.R. § 556.5(a) and an investigative report on each
background investigation before issuing a license to a key
employee or primary management official pursuant to 25 C.F.R.

§ 556.5(b). :

Thank you for submitting the ordinance of the Yankton Sioux

Tribe for review and approval. The NIGC staff and I look forward
to working with you and the Tribe in implementing the IGRA.

Sincerely yours,

Chairman

TUL 202-632-7003 __ FAX: 202-632-7066



CHAPTER 5. PROTECTION OF THE ENVIRONMENT
AND PUBLIC HEALTH AND SAFETY.

Gaming facilities shall be constructed, maintained and operated in
a manner that adequately protects the environment and the public
health and safety.


CHAPTER 4. MANDATORY AUDITS.
Section 1. Audit of Gaming Operations.

The Yankton Sioux Tribe Gaming Commission, as established in
Chapter 6 below, shall require annual audits of gaming operations
to be conducted by an independent certified public accountant, and
the Tribal Gaming Commission shall submit the resulting audit
reports to both the Yankton Sioux Tribe and the National Indian
Gaming Commission.

Section 2. Contracts Over $25,000.

Gaming related contracts that result in the purchase of supplies,
services, or concessions in excess of $25,000.00 annually, except
contracts for professional legal and accounting services, shall be
specifically included in the scope of the audit that is described
above in section 1 above.


Section 4. Eligibility Determination.

Based upon the applicant's submission of required information, a
thorough review of the background investigation and investigative
reports developed by Tribal Police, the Tribal Gaming Commission
shall review a person's prior activities, criminal record, if any,
and reputation, habits and associations to make a finding regarding
the eligibility of a key employee or primary management official
for employment in a gaming operation. If the Tribal Gaming
Commission determines that employment of a 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, methods or activities in the conduct of gaming, a tribal
gaming operation shall not employ that person in a key employee or
primary management official position.

Section 5. Procedures for Forwarding Applications and Reports for
Key Employees and Primary Management Officials to the National
Indian Gaming Commission

A. When a key employee or primary management official begins
work at a gaming operation authorized by this ordinance, the Tribal
Gaming Commission shall forward to the National Indian Gaming
Commission a completed application for employment and:

1. the Tribal Police shall conduct the background
investigation referred to in section 3 of this
chapter; and

2. the Tribal Gaming Commission shall make the
determination referred to in subsection D of this
section.

B. The Tribal Gaming Commission shall forward the report
referred to in section 6 of this chapter to the National Indian
Gaming Commission within 60 days after an employee begins work or
within 60 days of the approval of this ordinance by the Chairman of
the National Indian Gaming Commission.

C. No gaming operation shall employ as a key employee or
primary management official a person who does not have a license
after 90 days.

Section 6. Report to the National Indian Gaming Commission

A. Pursuant to the procedure set out in section 5 of this
chapter, the Tribal Gaming Commission shall prepare, or cause to be
prepared under its oversight, an investigative report on each back-
ground investigation, and forward said investigative report to the
National Indian Gaming Commission. Said investigative report shall
include all of the following:

25


(1)

(2)

(3)

(4)

(5)

Fingerprinting. In accord with standard law enforcement
procedures, the Tribal Police shall fingerprint any and
all applicants for key employee and primary management
official positions after verifying the identity of each
applicant by a review of at least two forms of picture
identification issued by the federal, state or tribal
government.

Verifying Applicant Information. The Tribal Police shall
verify the required information provided by applicants by
written or oral communication with former employers and
business associates, neighbors, personal references, and
as appropriate government regulatory agencies and courts.

In: - The Tribal
Police shall conduct inquiries regarding each applicant's
criminal records, past business and personal activities,
reputation, and character, through:

(a) the review of required information;

(b) standard law enforcement search of National
Crime Information Center (NCIC) data;

(c) personal and telephonic interviews of prior
employers for at least ten years, prior business
associates, neighbors, personal references; and

(d) as appropriate, review of records held by
government agency records and court records.

Documenting Potential Problem Areas and Disqualifying
Information. The Tribal Police shall document potential
problem areas and disqualifying information revealed by
the background investigation.

I ing Backgr 11 igation R to Tribal Gami
Commission. In concluding every background investigation
the Tribal Police shall issue an investigative report to
the Tribal Gaming Commission, including the following:

(a) Steps taken in conducting the background
investigation;

(db) A List of Results Obtained;
(c) Description of Conclusions Reached; and

(d) The Bases for Those Conclusions.

24


(2)

(3)

(4)

To protect the Tribe and the gaming public from any form
of dishonesty in the conduct of class II and class III
gaming on the Yankton Sioux Tribe's Indian lands;

To ensure that the Tribe and its members are the primary
beneficiaries of any gaming activities; and

To establish an independent Tribal Gaming Commission to
ensure that the foregoing purposes are accomplished.


CHAPTER 8. MEETINGS OF THE TRIBAL GAMING COMMISSION.

The Tribal Gaming Commission shall meet in regular meetings to
conduct the ordinary business of the Tribal Gaming Commission. The
Tribal Gaming Commission shall meet in special meetings as
necessary to resolve urgent matters or to conclude unfinished
business from regular meetings.

Section 1. Regular Meetings.

Regular meetings of the Tribal Gaming Commission shall be held once
per month and said meetings shall convene on the first Monday of
each month, unless the Tribal Gaming Commission sets a different
date at its prior Regular meeting.

Section 2. Special Meetings.

Special Meetings shall convene at the call of the Chairman or any
three Tribal Gaming Commission members upon not less than 3 days
written notice to all Tribal Gaming Commission members, specifying

the time and place of, and subjects to be considered at, the
meeting.

Section 3. Quorum; Voting; Meeting Procedure; and Records.

A. Quorum. The quorum of the Tribal Gaming Commission shall
be 3 members at any regular or special meeting.

B. Voting. Each member of the Tribal Gaming Commission shall
be entitled to one vote. Tribal Gaming Commission regulatory and
business matters shall be decided by a majority vote unless
otherwise required by tribal law.

Cc. Procedure. The Tribal Gaming Commission may establish
written procedures for the conduct of meetings. Unless and until
such written procedures are adopted, the procedures for the conduct
of meetings shall be governed by this Ordinance as supplemented by
Roberts Rules of Order.

D. Verbatim Records of Proceedings. The Tribal Gaming
Commission shall maintain verbatim records of all Tribal Gaming
Commission meetings, hearings, and proceedings.

E. Records of Finances. The Tribal Gaming Commission shall
maintain complete and accurate records of Commission finances in
accordance with standard accounting principles and in consultation
with an independent certified public accountant.

16


CHAPTER 14. DISPUTE RESOLUTION

Any dispute arising between the gaming public and the tribal gaming
corporation or the Tribe may be resolved in the tribal courts of
the Yankton Sioux Tribe in accordance with tribal law, except to
the extent the Class III Gaming Compact entered into between the
State and the Tribe require different procedures.

32


CHAPTER 15. PRIOR GAMING LAWS REPEALED
Upon approval of this Ordinance by the Chairman of the National

Indian Gaming Commission, all prior tribal gaming ordinances and
regulations shall be and are immediately repealed.

33


C. The following notice shall be placed on the application
form for a key employee or a primary official before that form is
filled out by an applicant:

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

D. Existing key employees and primary management officials
shall be notified in writing that they shall either:

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

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

Section 3. Background Investigations

A. Information Required. The Tribal Gaming Commission shall
require each primary management official and each key employee to
furnish all of the following information:

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

(2) 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;

(3) The names and current addresses of at least three
personal references, including one personal reference who
was acquainted with the applicant during each period of
residence listed under paragraph 2 of this section;

(4) Current business and residence telephone numbers;

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

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

(7) The name and address of any licensing or regulatory
agency with which the person has filed an application for

22


Section

Section

Section

CHAPTER
Section
Section

Section

Section
Section
Section
Section
Section
Section
Section

Section

CHAPTER

Section
Section

Section

CHAPTER

Section

5.

6.

7.
1.
2.
3.

4.

6.
7.
8.
9.
10.

11.

Additional Factors to Be Considered
Commission Member Background
Investigations, Eligibility
Determinations, and Election

to the Tribal Gaming Commission

Removal of Members; Good Cause; Unexcused
Absence -- Vacancies

POWERS OF THE TRIBAL GAMING COMMISSION
Regulations
Background Investigations

Licensing Gaming Operators, Primary
Management Officials and All Employees
of Gaming Operations

Licensing Gaming Facilities
Monitoring Compliance and Accountability
Enforcement

Cooperation with Law Enforcement Agencies
Reports
Budget, Expenses and Accounting
Personnel

Necessary and Proper
MEETINGS OF THE TRIBAL

GAMING COMMISSION

Regular Meetings

Special Meetings

Quorum; Voting; Meeting

Procedure; and Records

HEARINGS BEFORE THE TRIBAL

GAMING COMMISSION

Notice

10

10

11

14
14

14

14
14
14
14
15
15
15
15
15

16
16

16

16

17

17


terms this Ordinance shall be made as follows:

(1) The Chairperson shall be elected for a term of five
years;

(2) The Vice-Chairperson shall be elected for a term of four
years;

(3) One member, who having received the third highest number
of votes, shall be elected for three years;

(4) One member, who having received the fourth highest number
of votes, shall be elected for two years; and

(5) One member, who having received the fourth highest number
of votes, shall be elected for one year.

Cc. Commission Member Elections. Prior to the expiration of
a Commission member's term, the Business and Claims Committee shall
call a meeting of the General Council to elect a person to serve as
Commission member for the next term.

D. Limitation. No member shall serve for more than 2 terms
of 5 years each.

Section 4. Requirements of Members.
No member of the Tribal Gaming Commission may-

A. be actively engage in or have any direct financial
interest in gaming activities;

B. have any financial interest (other than a general
financial interest shared by all members of the Tribe as
tribal members) in any business or organization that does
business with a gaming operation of the Yankton Sioux
Tribe;

c. have been convicted of any felony or gaming offense;

D. have any financial interest in, or management
responsibility for, any gaming-related contract or any
other contract to supply goods or services to a gaming
operation of the Yankton Sioux Tribe; or

E. be less than twenty-five years of age.

Section 5. Additional Factors to Be Considered.

As far as possible, the Yankton Sioux Tribe shall seek to ensure
that:


Section 7. Removal of Members; Good Cause; Unexcused Absence -—
Vacancies.

A. Removal from Office. The General Council may only remove
Tribal Gaming Commission members prior to the expiration of his or
her term of office for good cause. The Tribal Gaming Commission
may only remove one of its members before expiration of the term of
office after he or she has been absent without excuse for 3 or more
consecutive meetings.

B. Good Cause for Removal. The following shall be and are
cause for removal from the Tribal Gaming Commission:

(1) Abuse of office, including the acceptance of any bribe or
inducement to influence the official decision making of
the Tribal Gaming Commission;

(2) Malfeasance or misfeasance in the performance of official
duties;

(3) Neglect of duty;
(4) Conviction of a felony or a gaming related offense;

(5) Failure to comply with federal or tribal gaming laws and
regulations, including failure to comply with the
requirements for members of the Tribal Gaming Commission,
set forth in section 4 above.

Cc. Pr re for Rem 1 f - When
the Yankton Sioux Tribe receives evidence that good cause exists to
remove a Tribal Gaming Commission member from office prior to the

expiration of his or her term, the following procedure shall be
followed:

(1) inati

Committee: Call for General Council Meeting: Notice to
Commissioner. The Tribe's Business and Claims Committee
shall review the evidence, and if the Business and Claims
Committee determines said evidence shows the existence of
probable cause for removal, shall call a General Council
Meeting to conduct a hearing to consider removal of the
member from the Tribal Gaming Commission. The Business
and Claims Committee shall provide said Tribal Gaming
Commission member with no less than 15 days written
notice of the hearing before the General Council and the
allegations against him or her.

(2) Removal Hearing Before the General Council: Rights of
Commission Member. The General Council shall conduct the
hearing on removal, which provides said member with a
right to hear all evidence that good cause exists for

11


CHAPTER
Section
Section

Section

CHAPTER
Section

Section

CHAPTER

Section
Section

Section

CHAPTER
Section

Section

CHAPTER

CHAPTER

Section

Section

Section

Section

1.
2.
3.

TABLE OF CONTENTS

TITLE, AUTHORITY, AND PURPOSES
Title
Authority

Legislative Purposes

GAMING AUTHORIZED

Class II Gaming

Class III Gaming

OWNERSHIP OF GAMING; USE OF

GAMING REVENUE; PER CAPITA PAYMENTS
Ownership of Gaming

Use of Gaming Revenue

Per Capita Payments Permissible Only in
Accordance With Plan Authorized by the
Secretary of Interior

MANDATORY AUDITS

Audit of Gaming Operations

Contracts Over $25,000

PROTECTION OF THE ENVIRONMENT AND PUBLIC
HEALTH AND SAFETY

THE YANKTON SIOUX TRIBE

GAMING COMMISSION

Tribal Gaming Commission Established
Tribal Gaming Commission Membership;
Chairman, Vice-Chairman; Treasurer;
and Secretary

Terms of Office

Requirements of Members


and software established by state law.
Section 8. Penalties for Violations; Forfeiture of Property.

In addition to any civil or criminal penalty, the Tribal Gaming
Commission may impose a civil fine of up to $5,000 per day for any
violation of this Ordinance, regulations thereunder, or any order
of the Commission. Property used in violation of this Ordinance,
regulations promulgated thereunder, or any order of the Commission
is subject to immediate seizure and forfeiture in accordance with
tribal law.

31


CHAPTER 11. LICENSES FOR KEY EMPLOYEES
AND PRIMARY MANAGEMENT OFFICIALS.

The Tribal Gaming Commission shall ensure that the policies and
procedures set out in this section are implemented with respect to
key employees, and primary management officials employed at any
class II gaming or class III gaming enterprises operated on the
Yankton Sioux Tribe's Indian lands:

Section 1. Definitions.

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

A. Key employee means

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

(a) Bingo caller;
(b) Counting room supervisor;
(c) Chief of security;

(d) Custodian of gaming supplies or
cash;

(e) Floor manager;

(£) Pit boss;

(g) Dealer;

(h) Croupier;

(i) Approver of credit; or

(j) Custodian of gambling devices including persons
with access to cash and accounting records within

such devices.

(2) If not otherwise included, any other person whose total
cash compensation is in excess of $50,000.00 per year; or

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

B. mar: n i me

(1) The person having management responsibility for a
management contract;

20


YANKTON SIOUX TRIBE
GAMING ORDINANCE

Enacted J-WO- _, 1995

Introductory Note:

The Yankton Sioux Tribe Gaming Ordinance Complies with the Indian
Gaming Regulatory Act, 25 U.S.C. § 2701 et seq., and the National
Indian Gaming Commission (NIGC) Regulations by Adoption of Standard
Provisions of the NIGC Model Tribal Gaming Ordinance; Establishment
of Tribal Gaming Commission for Gaming Licensing, Regulation and
Enforcement; Designation of Tribal Police as Agency for Background
Investigation


a license to a key employee or primary management official for whom
the Tribal Gaming Commission has provided an application and
investigative report to the National Indian Gaming Commission, the
Tribal Gaming Commission shall reconsider the application, taking
into account objections itemized by the National Indian Gaming
Commission. The Tribal Gaming Commission shall make the final
decision whether to issue a license to such applicant.

Section 8. License Suspension.

A. If, after the issuance of a gaming license, the Tribal
Gaming Commission receives from the National Indian Gaming
Commission reliable information indicating that a key employee or
a primary management official is not eligible for employment under
section 4 above, the Tribal Gaming Commission shall suspend such
license and shall notify in writing the licensee of the suspension
and proposed revocation.

B. If, after the issuance of a gaming license, the Tribal
Gaming Commission receives from a another reliable source reliable
information indicating that a key employee or a primary management
official is not eligible for employment under section 4 above, the
Tribal Gaming Commission may suspend such license and shall notify
in writing the licensee of the suspension and proposed revocation.

C. The Tribal Gaming Commission shall notify the licensee of
a time and a place for a hearing on the proposed revocation of a
license and shall conduct the hearing accordingly.

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

27


a license or permit related to gaming, whether or not
such license or permit was granted;

(8) 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;

(9) For each misdemeanor conviction or an 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;

(10) For each criminal charge (excluding minor traffic
charges), whether or not there is a conviction, if such
criminal charge is within 10 years of the date of the
application and is not otherwise listed pursuant to
paragraph 1(h) or 1(i) of this subsection, the criminal
charge, the name and the address of the court involved
and the date and disposition;

(11) 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;

(12) A current photograph;

(13) Any other information the Tribal Gaming Commission deems
relevant;

(14) Fingerprints; and

(15) For Class III applicants, a written release authorizing
the State of South Dakota to conduct a concurrent back-
ground investigation.

Upon receipt of the information required of each key employee and
primary management official applicant, the Tribal Gaming Commission
shall forward a certified copy of each applicant's information to
the Tribal Police Department.

B. Investigation. The Tribal Police Department shall conduct
a background investigation sufficient to make a determination under
section 4 below, and to comply with the terms of the Class III
Tribal-State Gaming Compact entered into by the Tribe and the State
of South Dakota, where applicable.

In conducting such investigations, the Tribal Police shall
perform the following functions:

23


CHAPTER 6. THE YANKTON SIOUX TRIBE GAMING COMMISSION.
Section 1. fribal Gaming Commission Established.

The Yankton Sioux Tribe Gaming Commission (hereafter Tribal Gaming
Commission) is hereby established as an independent agency of
tribal government to regulate Class II and Class III Gaming, see 25
U.S.C. § 2701 et seq., throughout the territory of the Yankton
Sioux Tribe.

Section 2. Tribal Gaming Commission Membership; Chairman, Vice-
Chairman; Treasurer; and Secretary.

A. Tribal A ission Membership. The Tribal Gaming
Commission shall be composed of five members elected by the General
Council, as set forth in Section 3 below.

B. Commission Chairman. The Commissioner who receives the
highest number of votes shall serve as the Chairman of the Tribal
Gaming Commission. Subject to the oversight of the Commission, the
Commission Chairman shall be vested with the following powers and
duties:

(1) to preside at all Commission meetings and hearings;

(2) to call special meetings of the Commission as necessary;

(3) to cause Commission process, subpoenas, orders and other
Papers to be served on interested parties in accordance
with tribal law;

(4) to access books and records of the Commission;

(5) to cause reports to be made to the Business and Claims
Committee, the General Council, and the National Indian
Gaming Commission as may be required by law or otherwise
deemed necessary;

(6) to prepare a proposed annual budget for submission to the
Commission; and

(7) to carry out such other powers as may be delegated by the
Commission.

Cc. Commission Vice-Chairman. The Commissioner who receives
the second highest number of votes shall serve as Vice-Chairman of

the Tribal Gaming Commission. In the absence of the Chairman, the
Vice-Chairman shall serve as Chairman.

D. Commission Treasurer. The Commission shall select from
7


A. at least one member of the Tribal Gaming Commission has
a background in financial accounting, record keeping, and
finance; and

B. at least one member of the Tribal Gaming Commission has
a background in law enforcement, with experience in the
field of investigation or regulatory enforcement.

Section 6. Commission Member Background Investigations,
Eligibility Determinations, and Election to the Tribal Gaming
Commission.

Prior to an election of a person to the Tribal Gaming Commission,
the Tribe's Business and Claims Committee shall cause a background
check to be conducted and shall make an eligibility determination
as set forth below:

A. The Tribal Police Department shall conduct a background
investigation concerning any person who has petitioned or has been
nominated for election to the Commission with particular regard to
the requirements for members of the Tribal Gaming Commission, set
forth above in section 4 above, the financial stability, integrity,
responsibility, and reputation good character of the prospective
Gaming Commission Member.

B. The Tribe's Business and Claims Committee shall review the
nominee's prior activities, including criminal record, if any, and
reputation, habits, and associations to make a finding regarding
eligibility for election to the Tribal Gaming Commission.

C. If a prospective Tribal Gaming Commission member fails to
meet the requirements for members of the Tribal Gaming Commission,
set forth in section 4 above, or the Business and Claims Committee
determines that appointment of the nominee poses a threat to the
public interest, or effective regulation of gaming, or creates or
enhances dangers of unsuitable, unfair, or illegal practices and
methods or activities in the conduct of gaming, then he or she
shall not be eligible to stand for election by the General Council
to the Tribal Gaming Commission.

D. No individual who is not eligible for employment as a
primary management official or key employee shall be elected to the
Tribal Gaming Commission.

E. If the Tribe's Business and Claims Committee determines
that a prospective Gaming Commission member has met all of the
requirements for members of the Tribal Gaming Commission, set forth
in section 4 above, and is eligible for election as set forth in
this sub-section, then the General Council may consider that person
for election to the Tribal Gaming Commission.

10