GAMING CODE

OF ThE

MAKAII INDIAN TRIBE

Enacted April 17, 1996

Resolution No. 98-96A
GAMING CODE

OF THE

MAKAH INDIAN TRIBE

Section 1. Findings, Purposes and Policy 1

1.1 Findings 1

1.2 Purposes 1

1.3 Tribal Policy of Self-Government 2

1.4 Tribal Gaming Policy 2

Section 2. Definitions 3

2.1 Applicant 3

2.2 Application 3

2.3 Bingo 3

2.4 Cheating 3

2.5 Code 3

2.6 Commission 3

2.7 Compensation 3

2.8 Council or Tribal Council 3

2.9 Distributor 3

2.10 Educational, charitable, patriotic, veterans, fraternal, religious, civic, or

public-spirited uses 3

2.11 Eligible organization 4

2.12 Enrolled Tribal Member 4

2.13 Game or game of chance 4

2.14 Gaming 4

2.15 Gaming activity 4

2.16 Gaming apparatus or gaming equipment 4

2.17 Gaming device or electronic game of chance 4

2.18 Gaming employee 4

2.19 Gaming facility 4

2.20 Gaming facility operator 5

2.21 Gaming services 5

2.22 Gaming ticket 5

2.23 Gross revenues 5

2.24 Immediate Family 5

2.25 Indian Gaming Regulatory Act or IGRA 5

2.26 Indian lands 5

2.27 Interactive terminal or video lottery terminal 5

2.28 IRS 5

2.29 Keno 5

2.30 Key employee 6

2.31 License 6

2.32 Licensee 6

2.33 Lotto 6

2.34 Management contract 7

2.35 Management contractor 7

2.36 Manufacturer 7

2.37 Net revenues 7

Enactcd April 17, 1996 Gaming Code of the Makah Indian Tribe

Resolution No. 98-96A Page -
2.38 Participate 7

2.39 Person 7

2.40 Player 7

2.41 Player activated lottery terminal 7

2.42 Primary management official 7

2.43 Principal 8

2.44 Progressive gaming 8

2.45 Pull-tabs, punchboards, and tip jars 8

2.46 Raffle 8

2.47 Reservation and Makah Indian Reservation 8

2.48 State 8

2.49 Tribe 8

2.50 Tribal Gaming Commission 8

2.51 Tribal police department 8

2.52 Wager 9

Section 3. General Provisions 10

3.1 Authority and Sovereign Powers and Responsibilities 10

3.2 Application of Federal Policy 10

3.3 Makah Tribal Policy of Self-Government 10

3.4 Title, Repeal of Prior Laws, and Effect of Repeal 10

3.5 Classes of Gaming 10

3.5.1 Class I Gaming 10

3.5.2 Class II Gaming 10

3.6 Construction 11

3.7 Savings Clause 11

Section 4. Tribal Gaming Commission 12

4.1 Establishment 12

4.2 Location and Place of Business 12

4.3 Duration 12

4.4 Attributes 12

4.5 Recognition as a Political Subdivision of the Tribe 12

4.6 Sovereign Immunity of the Tribal Gaming Commission 12

4.7 Sovereign Immunity of the Tribe 12

4.8 Waiver of Sovereign Immunity of the Tribal Gaming Commission 13

4.9 Credit of the Tribe or Tribal Gaming Commission 13

4.10 Assets of the Tribal Gaming Commission 13

4.11 Membership 13

4.11.1 Number of Commissioners 13

4.11.2 Qualification of Commissioners 13

4.12 Term of Office 14

4.13 Ex-Officio Members 14

4.14 Organization 14

4.15 Meetings 14

4.15.1 Regular Meetings 14

4.15.2 Special Meetings 14

4.15.3 Compensation of Commissioners 14

4.15.4 Quorum 14

4.15.5 Voting 14

4.16 Removal of Members or Vacancies 14

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4.16.1 Removal 14

4.16.2 Vacancies 15

4.17 Conflict of Interest 15

4.18 Powers of the Tribal Gaining Commission 15

4.19 Annual Budget 19

4.20 Tribal Gaming Commission Regulations 19

4.21 Right of Entrance; Monthly Inspection 20

4.22 Investigations 20

4.23 Hearings; Examiner 20

4.24 Appointment of Examiner; Power of Examiner 20

4.25 Bank Account for Tribally Owned or Tribally Managed Gaming Facility 20

4.26 Quarterly Report of Tribal General Manager Reports 20

Section 5. Gaming Licenses 21

5.1 Applicability 21

5.2 No License Requirement for Class I Gaming 21

5.3 Class II License Required 21

5.3.1 Tribally Owned or Tribally Operated Class II 21

5.4 Application Procedures 21

5.4.1 Application for Gaming License 21

5.4.2 Tribally Owned and Tribally Operated Class II 21

5.5 Criteria That a Potential Gaming Operator Must Meet 21

5.6 License Application Fees 22

5.7 License Tax 23

5.8 Form of Gaming License 23

5.9 Scope of Gaming License 23

5.10 Terms of License 23

5.11 Posting of Licenses 23

5.12 Gaming License Renewals 23

5.13 Annual Reports 23

5.14 Procedure to Remedy Gaming License Violation 24

Section 6. Gaming Employee Licenses 26

6.1 Current and Valid Gaming Employee License Required 26

6.2 Application for Gaming Employee License 26

6.3 Review Procedure for Gaming Employee License Application -

Compliance

With 25 C.F.R. § 558.3 28

6.4 Standards For Denial of a Key Employee or Primaiy Management Official

License 29

6.5 Scope of Gaming Employee License 30

6.6 Licensing Period 30

6.7 Renewals 30

6.8 Requirement to Produce License Upon Request 30

6.9 Permanent License Revocation of Employee Gaming License 30

6.9.1 Grounds for Permanent Revocation 30

6.9.2 Procedure for Permanent Revocation 31

6.10 Temporary Suspension of Employee Gaming License 32

6.10.1 Grounds for Temporary Suspension 32

6.10.2 Immediate Temporary Suspension 32

6.10.3 Procedure for Temporary Suspension 32

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Section 7. Licensing of Gaming Service Providers 34

7.1 Requirement for license 34

7.2 Procedure for licensing 34

7.3 Fee for license 34

7.4 Background Investigation of Applicants 34

7.5 Action by Tribal Gaining Commission 34

7.6 Duration of license and renewal 35

7.7 Revocation or suspension of license 35

7.8 Regulation of Nongaming Persons and Entities 35

Section 8. ProvisIons of General Applicability to All Gaming Operators 37

Section 9. Enforcement 42

9.1 Jurisdiction 42

9.2 Prohibited Acts 42

9.3 Criminal Violation 43

9.4 Civil Violation 43

9.5 Cumulative Fines 44

9.6 Purpose of Civil Penalties 44

9.7 Civil Action for Penalties 44

9.8 Seizure and Forfeiture of Property 44

9.9 Reporting of Offenders 44

Section 10. Operation of Tribally Owned or Tribally Operated Games 45

10.1 Management by a General Manager 45

10.2 Patron Disputes (25 CFR § 522.2(f)) 45

10.2.1 Applicability 45

10.2.2 Refusal to Pay Winnings 45

10.2.3 Notice to Patrons 45

10.2.4 Effective Date of Decision 46

10.2.5 Review of Decision 46

10.3 Use of Net Revenues of Tribally Owned or Tribally Operated Gaming

Activities 46

10.4 Maintenance of Records 46

10.5 Audit Requirements 47

10.6 Management Contracts 47

10.7 Additional Requirements for Operation of Tribally Owned or Tribally

Operated Games 48

Section 11. Authorized Games 50

Section 12. Severability 51

Section 13. Repealer 52

Section 14. Effective Date 53

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GAMING CODE

OF THE

MAKAH INDIAN TRIBE

A law to authorize, license and regulate certain forms of gaming within the jurisdiction of

the Makah Indian Tribe.

Section 1. Findings, Purposes and Policy.

1.1 Findings. The Makah Tribal Council on behalf of the Makah Tribe finds that:

1.1.1 Tribal regulation and control of gaming activity within the jurisdiction of the

Makah Indian Tribe is essential for the protection of public health and welfare, and the

interests of the Tribe and the residents of and visitors to the tribal community.

1.1.2 The Tribe has the legal authority to license and regulate all gaming activity

not specifically prohibited by federal law, within the jurisdiction of the Tribe.

1.1.3 Properly licensed and regulated gaming activities confonn with announced

federal policy promoting Indian self-government and Indian tribal economic self-sufficiency.

1.1.4 It is essential that the Tribe, through its Tribal Council, regulate gaming in

a manner commensurate with applicable federal and tribal law and policy.

1.1.5 The present needs of the Tribe include increased employment, job and skills

training, housing, quality health care, improved nutrition, educational opportunities, social

services, law and order, public safety and judiciary, and community and economic

development; needs that are not adequately addressed by present tribal, federal and state

programs.

1.1.6 Tribal operation and licensing of gaming activities on the Reservation are

appropriate means of generating revenue to address the needs of the Tribe.

1.1.7 The- Tribe is vigorously pursuing its goal of self-sufficiency and

self-determination through the development of tribal businesses and enterprises. Because

the Makah Indian Reservation lacks income-generating natural resources and because the

Tribes tax base is almost non-existent, the Tribe must rely on tribal business development

to raise the funds necessary to expand its social, health, and education programs, increase

employment and improve its on-reservation economy. This effort has recently become

increasingly important as a result of cutbacks in federal and state funding and the increased

costs of self-government. It is therefore essential that the Tribe develop new and expanded

sources of revenue to support its ever-increasing governmental needs and to provide much

needed employment and training for tribal members.

1.1.8 As a result, the adoption of this Code is in the best interest of the Makah

Indian Tribe.

1.2 Purposes. The purposes of this Code are to:

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1.2.1 Regulate, control, and license the operation of all gaming within the

jurisdiction of the Tribe.

1.2.2 Make clear and explicit that a tribal license to operate a gaming activity is

a revocable privilege, not a right or property interest.

1.2.3 Ensure that the operation of tribally regulated gaming will continue as a

means of generating tribal revenue.

1.2.4 Ensure that tribally regulated gaining is conducted fairly and honestly by both

gaming operators and players and that it remain free from corrupt, incompetent,

unconscionable and dishonest persons and practices.

1.2.5 Promote and strengthen tribal economic development and self-determination

and enhance employment opportunities for its members.

1.2.6 Generate revenue to strengthen and improve tribal self-government and the

provision of tribal governmental services.

1.2.7 Ensure that all gaming revenue is used for the benefit of the Tribe and the

Reservation community.

1.2.8 Ensure that tribal gaming laws are strictly and fairly enforced against all

persons involved in gaming activities within the jurisdiction of the Tribe.

1.2.9 Ensure that the Tribe provide a fair and impartial forum for the resolution

of gaming disputes.

13 TrIbal Policy of Self-Government. The Tribe is firmly committed to the principle of

tribal self-government. Consistent with federal policy, tribal government provides a wide range of

public services on the Reservation, including general governmental services, maintenance of peace

and good order, establishment of educational systems and programs, and promotion and regulation

of economic activities within the sovereign jurisdiction of the Tribe.

1.4 Tribal Gaming Policy. The establishment, promotion, and operation of gaming is

necessary and desirable, provided that such gaming is regulated and controlled by the Tribe pursuant

to tribal and federal law and any tribal-state gaming compact entered into pursuant to the Indian

Gaming Regulatory Act, and that all proceeds of such gaming are used for the benefit of the Tribe

as required by the Indian Gaming Regulatory Act and tribal law. When operated in accordance with

the provisions of this Code, such gaming will be conducive to the general welfare of all residents of

the Reservation.

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Resolution No. 98-96A Page - 2
Section 2. Definitions.

In this Code, except where otherwise specifically provided or where the context otherwise

requires, the following terms and expressions shall have the following meanings:

2.1 Applicant means any person who has applied for a license under the provisions of

this Code, or employment with a gaming facility operator, or approval of any act or transaction for

which approval is required or permitted under the provisions of this Code.

2.2 Application means a request for the issuance of a license or for employment by a

gaming facility operator, or for approval of any act or transaction for which approval is required or

permitted under the provisions of this Code.

2.3 Bingo means the game of chance commonly known as bingo (whether or not

electronic, computer, or other technologic aids are used in connection therewith) that 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.

2.4 Cheating means 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 oneself or someone

in privity with one an advantage over and above the chance of the game.

2.5 Code means this Code, the Makah Gaming Code, as now or hereafter amended.

2.6 Commission means the National Indian Gaming Commission established pursuant

to 25 U.S.C. § 2704.

2.7 Compensation means all wages, salaries, bonuses, and all other forms of

remuneration for services rendered.

2.8 Council or Tribal Council means the governing body of the Makah Indian Tribe.

2.9 Distributor means a person who distributes gaming devices and/or component parts

the reof.

2.10 Educational, charitable, patriotic, veterans, fraternal, religious, civic, or

public-spirited uses are:

2.10.1 Uses benefiting an indefinite number of people by bringing them under the

influence of educational or cultural programs.

2.10.2 Uses otherwise lessening the burden of tribal government.

2.10.3 Uses benefiting one or more persons suffering from a seriously disabling

disease or injury causing severe loss of income or incurring extraordinary medical expense

that is uncompensated by insurance.

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2.10.4 Uses for community service projects that promote the common good, enhance

the social and economic welfare of the community, and benefit an indefinite number of

people.

2.11 Eligible organization means any nonprofit organization operated for educational,

charitable, patriotic, veterans, fraternal, religious, civic, or public-spirited uses, or for the relief of

poverty, distress, or other condition on the Makah Indian Reservation.

2.12 Enrolled Tribal Member means a person who has been enrolled in the Makab

Indian Tribe and whose name appears in the tribal membership roll and who meets the written

criteria for membership.

2.13 Game or game of chance means any activity which falls within the broad definition

of gaining or gaming activity.

2.14 Gamingt means an activity in which valuable consideration is wagered upon the

outcome determined in whole or in part by chance, skill, speed, strength, or endurance or any

combination of strength or endurance, and in which something of value is awarded to a person or

persons so wagering.

2.15 Gaming activity means all forms of Class II gaming owned and operated by the

Tribe and conducted within the Indian lands of the Tribe, and any activity in furtherance thereof,

including owning, financing, managing, participating in, conducting, or assisting in any way in any

such activity at the site where gaming is conducted, directly or indirectly, whether at the site in

person or off-site.

2.16 Gaming apparatus or gaming equipment means any device, machine,

paraphernalia, or equipment that is used or usable in the playing phases of any gaming activity,

whether or not specifically designed for the purpose, but excluding tables and chairs normally used

in the occupancy of any gaming facility.

2.17 Gaming device or electronic game of chance means a microprocessor-controlled

electronic device which allows a player to play games of chance, some of which are affected by skill,

which device is activated by the insertion of a coin, currency, tokens or by the use of a credit, and

which awards game credits, cash, tokens, replays or a receipt that can be redeemed by the player for

any of the foregoing. Game play may be displayed by:

2.17.1 Video facsimile; or

2.17.2 Mechanical rotating reels whereby the software of the device predetermines

the stop positions and the presence, or lack thereof, of a winning combination and pay out,

if any.

2.18 Gaming employee means any natural person employed or contracted as a primary

management official or key employee of a gaming operation of the Tribe and any person employed

or contracted in the operation or management of a gaming operation, including, but not limited to,

any person whose employment or contractual duties require or authorize access to restricted areas

of a gaming facility not otherwise open to the public.

2.19 Gaming facility means the buildings or structures in which gaming or gaming

activities are conducted or operated.

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2.20 Gaming facility operator means the Tribe, an enterprise owned by the Tribe, or such

other entity of the Tribe as the Tribe may from time to time designate as the wholly-owned tribal

entity having full authority and responsibility for the operation and management of aass II gaming

activities and a person who is otherwise permitted by this Code to perform, promote, conduct or

operate a gaming activity on Indian lands under this Code.

2.21 Gaming services means the providing of any goods or services, except for legal

services, to the Tribe in connection with the operation of gaming activities in a gaming facility,

including but not limited to equipment, transportation, food, linens, janitorial supplies, maintenance,

or security services for the gaming facility, in an amount in excess of $10,000 in any single month.

2.22 Gaming ticket means any game piece used in the play of a paper pull tab game, or

jar ticket game, or raffle.

2.23 Gross revenues means any money collected or received from any gaming activity.

2.24 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.

2.25 Indian Gaming Regulatory Act or IGRA means Public Law 100-497, 102 Stat.

2426, 25 U.S.C. §~ 2701-2721 and 18 U.S.C. §~ 1166-1168, as amended.

2.26 Indian lands means:

2.26.1 all lands within the limits of the Makah Indian Reservation; and

2.26.2 all lands title to which is either held in trust by the United States for the

benefit of the Tribe or individual member of the Tribe or held by the Tribe or individual

member of the Tribe subject to restriction by the United States against alienation and over

which the Tribe exercises governmental powers; and

2.26.3 all lands within the State of Washington that may be acquired by the Tribe

and that meet the requirements of section 20 of the Indian Gaming Regulatory Act

(IGRA), 25 U.S.C. § 2719.

2.27 Interactive terminal or video lottery terminal means on-line computer or dataprocessing terminal capable of providing a source of both input and video display output for the

computer system to which it is connected, in which a player is playing against the algorithm of the

terminal so that the player is playing directly against the terminal for immediate payment and is

immediately rewarded or penalized based on the outcome, and which dispenses a paper receipt which

can be redeemed by the player for the players winnings.

2.28 IRS means the United States Internal Revenue Service.

2.29 Keno means a house banking game in which a player selects from one to twenty

numbers on a card that contains the numbers one through eighty; the house randomly draws twenty

numbers; players win if the numbers they select correspond to the numbers drawn by the house, and

the house pays all winners, if any, and collects from all losers.

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2.30 Key employee means:

2.30.1 A gaming employee under this Code and who performs one or more of the

following functions:

2.30.1.1 Bingo caller;

2.30.1.2 Counting room supervisor;

2.30.1.3 Chief of security;

2.30.1.4 Custodian of gaming supplies or cash;

2.30.1.5 Floor manager;

2.30.1.6 Pit boss;

2.30.1.7 Dealer;

2.30.1.8 Croupier;

2.30.1.9 Approver of credit;

2.30.1.10 Custodian of gambling devices including persons with access

to cash and accounting records within such devices.

2.30.2 If not otherwise included:

2.30.2.1 a person with access to gaming finance or accounting offices;

or

2.30.2.2 a person authorized to make on-site repairs, adjustments or

alterations to any piece of gaming equipment; or

2.30.2.3 a person whose total cash compensation derived from a

gaming activity subject to this Code is in excess of $50,000 per year; or

2.30.2.4 the four most highly compensated persons in any gaming

activity subject to this Code; or

2.30.2.5 an employee whom the Tribal Gaming Commission may by

written notice classify as a key employee.

2.31 License means a revocable approval granted by the Tribal Gaming Commission

pursuant to this Code to an applicant to be involved in a gaming activity or in providing gaming

services pursuant to this Code.

2.32 Licensee means any natural person or entity who has a license.

2.33 Lotto is the generic name for a type of on-line lottery game operated by the State

of Washington in which a player selects a group of numbers from a larger field of numbers and wins

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by matching specific numbers subsequently drawn.

2.34 Management contract means a contract within the meaning of 25 U.s.c.

§~ 2710(d)(9) and 2711.

2.35 Management contractor means a natural person or entity that has entered into a

management contract with the Tribe or a gaming facility operator which has been approved pursuant

to 25 U.S.C. §~ 2710(d)(9) and 2711.

2.36 Manufacturer means a natural person or entity that manufactures gaming devices

and/or component parts thereof for use or play in the gaming facilities.

2.37 Net revenues means gross revenues less amounts paid out as, or paid for, prizes; and

less total gaming-related operating expenses, excluding management fees.

2.38 Participate in any gaming activity means to operate, direct, finance, or in any way

assist in the establishment or operation of any gaming activity or any site where gaming is conducted,

directly or indirectly, whether at the site in person or off-site.

2.39 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 or any

agency thereof.

2.40 Player means a person participating in any game, but does not include a gaming

operator.

2.41 Player activated lottery terminal means an on-line computer system that is playeractivated, but does not provide the player with interactive gaming, and utilizes the terminal for

dispensing purposes only in which (i) the terminal algorithm is used for the random generation of

numbers, (ii) the tickets dispensed by the terminal do not allow the player the means to play directly

against the terminal, (iii) the player uses the dispensed ticket to participate in an off-site random

drawing, and (iv) the players ability to play against the terminal for immediate payment or reward

is eliminated.

2.42 Primary management official means

2.42.1 The person having management responsibility under a management contract

approved by the National Indian Gaming Commission; or

2.42.2 Any person who has authority:

2.42.2.1 To hire and fire gaming employees; or

2.42.2.2 To set up working policy for a gaming operation; or

2.42.3 The chief financial officer or other person who has financial management

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responsibility for a gaming operation.

2.43 Principal means with respect to any person:

2.43.1 Each of its officers and directors;

2.43.2 Each of its principal management employees, including any chief executive

officer, chief financial officer, chief operating officer or general management;

2.43.3 Each of its owners or partners, if an unincorporated business;

2.43.4 Each of its shareholders who own more than ten (10) percent of the shares

of the corporation, if a corporation;

2.43.5 Each person other than a banking institution who has provided financing for

the entity constituting more than ten (10) percent of the total financing of the entity; and

2.43.6 Each of the beneficiaries, or trustees of a trust.

2.44 Progressive gaming means any game in which a cash prize not being won by any

player during any game is retained and further monetarily enhanced by the gaming operator or

eligible organization, and offered as a prize to players in the next game.

2.45 Pull-tabs, punchboards, and tip jars means any disposable card, board, ticket, or

display which accords the player an opportunity to win something of value by opening, pulling,

detaching, or otherwise removing or uncovering tabs or covers from the card, board, ticket, or display

to reveal a set of numbers, letters, symbols, configurations, or combinations thereof which have been

previously specified as a winning combination.

2.46 Raffle means any 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 slot machines or

gaming devices or electronic games of chance.

2.47 Reservation and Makah Indian Reservation means the Reservation established

pursuant to the Treaty of January 31, 1855, and all other lands added thereto by executive order, act

of Congress, or otherwise under federal law, notwithstanding the issuance of any patent and

including rights-of-way running ~through such lands. -

2.48 State means the State of Washington.

2.49 Tribe means and tribal refers to the Makah Indian Tribe, a federally recognized

Indian tribe acting through the duly elected Tribal Council pursuant to the tribal constitution and

bylaws, unless the context clearly indicates a general meaning. The term shall also include all

authorized officials, agents and representatives of the Tribe.

2.50 Tribal Gaming Commission means the Makah Tribal Gaming Commission

established under Section 4 of this Code, that exercises all regulatory authority of the Tribe over

gaming activities on Indian lands.

2.51 Tribal police department means the police force of the Makah Tribe established and

maintained, contracted for, or otherwise provided by the Tribe pursuant to the Tribes powers of self

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government to carry out law enforcement on Indian lands.

2.52 Wager~ means the bet made or consideration or value given by a player in any game.

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Section 3. General Provisions.

3.1 Authority and Sovereign Powers and Responsibilities. This Code is enacted pursuant

to the inherent sovereign powers of the Tribe and the powers expressly delegated to the Tribal

Council by Article VI of the Tribal Constitution.

3.2 Application of Federal Policy. In 1970 President Nixon announced the policy of the

United States government to promote self-determination for Indian tribes. At the heart of this

policy is a commitment by the federal government to foster and encourage tribal self-government,

economic development, and self-sufficiency. That commitment was signed into law in 1975 as the

Indian Self-Determination and Education Assistance Act, Public Law 93-638, 88 Stat. 2203,25 U.S.C.

§~450-450n. In 1983 President Reagan reaffirmed that commitment in his Indian policy statement,

encouraged tribes to reduce their dependence on federal funds by generating more of their own

revenues, and pledged to assist tribes in that endeavor.

In 1988 the federal commitment to promote tribal economic development, tribal

self-sufficiency, and strong tribal government was expressly legislated in the Indian Gaming

Regulatory Act (IGRA), Public Law 100-497, 102 Stat. 2426, 25 U.S.C. §~ 2701-2721 (1988), which

recognized the inherent sovereign right of tribes to operate and their exclusive right to regulate on

Indian lands gaming which is not specifically prohibited by federal law and is conducted within a

state which does not, as a matter of criminal law and public policy, prohibit such gaming, and

provided a federal statutory basis for operation and regulation of Indian gaming.

3.3 Makah Tribal Policy of Self-Government. The Tribe is firmly committed to the

principle of tribal self-government. Consistent with federal policy, tribal government provides a wide

range of public services on the Reservation, including 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.

3.4 Title, Repeal of Prior Laws, and Effect of Repeal. This Code may be cited as the

Makah Gaming Code. The Code shall be appropriately inserted in the Makah Tribal Code.

All ordinances of the Tribe and all titles, chapters, and sections of the Tribal Code that

pertain to gaming and are in effect as of the effective date of this Code are hereby repealed, and all

other tribal laws or parts thereof inconsistent with the provisions of this Code are hereby repealed.

Repeal of this Code or any portion thereof shall not have the effect of reviving any prior

tribal law theretofore repealed or suspended.

3.5 Classes of Gaming. There are two classes of gaming on Indian lands under this

Code:

3.5.1 Class I Gaming means social gaming solely for prizes of minimal value or

traditional forms of Indian gaming engaged in by individuals as a part of or in connection

with tribal ceremonies or celebration.

3.5.2 Class II Gaming means

3.5.2.1 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

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Resolution No. 98-96A Page - 10
other designations, in which the holder of the 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 at the same location) pull-tabs, lotto, punch boards, tip jars,

instant bingo, and other games similar to bingo; and

3.5.2.2 All card games operated by the Tribe prior to May 1, 1988, but only

to the extent of the nature and scope of the card games that were actually operated

by the Tribe on or before this date, as determined by the Chairman of the National

Indian Gaming Commission; and

3.5.2.3 Nonbanking card games explicitly authorized or not explicitly

prohibited by the laws of the State and which are played at any location in the State,

if played in conformity with State laws and regulations regarding hours or periods of

operation of such card games or limitations on wagers or pot size in such card games.

3.5.3 Class III Gaming means all forms of gaming that are not Class I or Class II

gaming.

3.6 Construction. In construing the provisions of this Code, unless the context otherwise

requires, the following rules shall apply:

3.6.1 This Code shall be liberally construed to effect its purpose and to promote

substantial justice.

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

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

number include the singular.

3.6.4 Words of the masculine gender or neuter include masculine and feminine

genders and the neuter.

3.7 Savings Clause. If any section of this Code is invalidated by a court of competent

jurisdiction, the remaining sections shall not be affected thereby.

Enacted April 17, 1996 Gaming Code of the Makah Indian Tribe

Resolution No. 98-96A Page - 11
SectIon 4. Tribal Gaming Commission.

4.1 Establishment. The Tribe hereby charters, creates and establishes the Makah Tribal

Gaming Commission as a governmental subdivision of the Tribe.

4.2 Location and Place of Business. The Tribal Gaming Commission shall be a resident

of and maintain its headquarters, principal place of business, and offices on the Makah Indian

Reservation. The Tribal Gaming Commission may, however, establish other places of business in

such other locations as the Tribal Gaming Commission may from time to time determine to be in

the best interest of the Tribe.

4.3 Duration. The Tribal Gaming Commission shall have perpetual existence and

succession in its own name, unless dissolved by the Tribe pursuant to tribal law.

4.4 Attributes. As a governmental subdivision of the Tribe, the Tribal Gaming

Commission has been delegated the right to exercise one or more of the substantial governmental

functions of the Tribe, including regulation of tribal gaming pursuant to the IGRA and tribal law.

It is the purpose arid intent of the Tribe in creating the Tribal Gaming Commission 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 Reservation. In carrying Out

its purposes under this Code, the Tribal Gaming Commission shall function as an arm of the Tribe.

Notwithstanding any authority delegated to the Tribal Gaming Commission under this Code, 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.

4.5 RecognItion as a Political Subdivision of the Tribe. The Tribal Council shall take

all necessary steps to acquire recognition 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.

4.6 Sovereign Immunity of the Tribal Gaming Commission. The Tribal Gaming

Commission is hereby clothed with all the privileges and immunities of the Tribe, except as

specifically limited by this Title or other tribal law, including sovereign immunity from suit in any

tribal, federal, or state court. Except as provided in this section, nothing in this Code nor any action

of the Tribe or the Tribal Gaming Commission shall be deemed or construed to be a waiver of

sovereign immunity from suit of the Tribal Gaming Commission, or to be a consent of the Tribe or

the Tribal Gaming Commission to the jurisdiction of the United States or of any state or any other

tribe with regard to the business or affairs of the Tribe or the Tribal Gaming Commission to any

cause of action, case, or controversy, or to the levy of any judgment, lien or attachment upon any

property of the Tribe of the Tribal Gaming Commission, or to be a consent of the Tribe or the

Tribal Gaming Commission to suit in respect to any Indian land, or to be a consent of the Tribe or

the Tribal Gaming Commission to the alienation, attachment, or encumbrance of any such land.

4.7 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 Gaming

Commission are hereby expressly reserved, including sovereign immunity from suit in any tribal,

federal or state court. Except as provided in section 4.8 below, nothing in this Code nor any action

of the Tribal Gaming Commission shall be deemed or construed to be a waiver of sovereign

immunity from suit of the Tribe, or to be a consent of the Tribe 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

Enacted April 17, 1996 Gaming Code of the Makah Indian Tribe

Resolution No. 98-96A Page - 12
Gaming Commission or the Tribe, or to be a consent of the Tribe to any cause of action, case, or

controversy, or to the levy of any judgment, lien, or attachment upon any property of the Tribe, or

to be a consent to suit in respect to any Indian land, or to be a consent to the alienation, attachment,

or encumbrance of any such land.

4.8 Waiver of Sovereign Immunity of the Tribal Gaming Commission. Sovereign

immunity of the Tribal Gaming Commission may be waived only by express resolutions of both the

Tribal Gaming Commission and the Tribal Council after consultation with the Tribes attorneys. All

waivers of sovereign immunity must be preserved by resolution of the Tribal Gaming Commission

and the Tribal Council to be of continuing force and effect. Waivers of sovereign immunity are

disfavored and shall be granted only when necessaiy to secure a substantial advantage or benefit to

the Tribal Gaming Commission. 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. Neither the power to sue and be sued provided in subsection 4.18.22 nor any express waiver

of sovereign immunity by resolution of the Tribal Gaming Commission 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 Reservation or a consent to the alienation, attachment, or

encumbrance of any such land.

4.9 Credit of the Tribe or Tribal Gaming Commission. Nothing in this Code nor any

activity of the Tribal Gaming Commission shall implicate or any way involve the credit of the Tribe

or the Tribal Gaming Commission.

4.10 Assets of the Tribal Gaming Commission. The Tribal Gaming Commission shall have

only those assets specifically assigned to it by the Council or acquired in its name by the Tribe or

by the Tribal Gaming Commission on its own behalf. No activity of the Tribal Gaming Commission

nor any indebtedness incurred by it shall implicate or in any way involve or effect any assets of tribal

members or the Tribe not assigned in writing to the Tribal Gaming Commission.

4.11 Membership.

4.11.1 Number of Commissioners. The Tribal Gaming Commission shall consist of

three Commissioners, who shall be appointed by the Tribal Council.

4.11.2 Qualification of Commissioners. A Commissioner must be a member of the

Tribe. No person shall serve as a Commissioner if:

4.11.2.1 The persons prior activities, criminal record, if any, or

reputation, habits or associations:

4.11.2.1.1 Pose a threat to the public interest; or

4.11.2.1.2 Threaten the effective regulation and control of

gaming; or

4.11.2.1.3 Enhance the dangers of unsuitable, unfair, or illegal

practices, methods, or activities in the conduct of gaming; or

4.11.2.2 The person has been convicted or entered a please of nob

Enacted April 17, 1996 Gaming Code of the Makab Indian Tribe

Resolution No. 98-96A Page - 13
contendere to a felony or any gaming offense in any jurisdiction or to a misdemeanor

involving dishonesty or moral turpitude; or

4.11.2.3 The person or any member of the persons immediate family

has a direct financial interest in any gaming activity or facility; or

4.11.2.4 A member of the persons immediate family is an employee

of any tribal gaming activity.

4.12 Term of Office. Each Commissioner shall serve a term of three years.

4.13 Ex-Officlo Members. At the direction of the Tribal Council, any member of the

Tribal Council, any tribal employee or any other person may be designated to participate, without

vote, in Tribal Gaming Commission meetings.

4.14 OrganIzation. The Tribal Gaming Commission shall develop its own operating

procedures and shall elect from within itself a Chairman to direct meetings, a reporter to be

responsible for keeping Tribal Gaming Commission minutes and transmitting to the Tribal Council

a copy of those minutes, handling correspondence and reporting Tribal Gaming Commission

decisions, and such other officers as the Tribal Council deems advisable.

4.15 Meetings.

4.15.1 Regular Meetings. The Tribal Gaming Commission shall hold at least one

regular monthly meeting which shall take place on the first Monday of each month, or as

otherwise determined by the Tribal Gaming Commission.

4.15.2 Special Meetings. Special meetings may be called at the request of the Tribal

Council, the Chairman of the Tribal Gaming Commission, or two or more members of the

Tribal Gaming Commission.

4.153 Compensation of Commissioners. An honorarium may be paid for attendance

at each meeting.

4.15.4 Quorum. A quorum for all meetings shall consist of three members.

-

4.15.5 Voting. All questions arising in connection with the action of the Tribal

Gaming Commission shall be decided by majority vote. The Chairman of the Tribal Gaming

Commission shall be entitled to vote on any issue presented.

4.16 Removal of Members or Vacancies.

4.16.1 Removal. A Commissioner may be removed by the Council for serious

inefficiency, neglect of duty, malfeasance, misfeasance, nonfeasance, misconduct in office, or

for any conduct which threatens the honesty or integrity of the Tribal Gaming Commission

or otherwise violates the letter or intent of this Code. Except as provided below, no

Commissioner may be removed without notice and an opportunity for a hearing before the

Council, and then only after the Commissioner has been given written notice of the specific

charges at least ten 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 the

Commissioners behalf. If the Council determines that immediate removal of a

Enacted April 17, 1996 Gaming Code of the Makah Indian Tribe

Resolution No. 98-96A Page - 14
Commissioner is necessary to protect the interests of the Tribe, the Council may immediately

remove the Commissioner temporarily, and the question of permanent removal shall be

determined thereafter pursuant to Tribal Gaming Commission hearing procedures. A written

record of all removal proceedings together with the charges and findings thereon shall be

kept by the Tribal Secretary. The decision of the Council upon the removal of a

Commissioner shall be final.

4.16.2 VacancIes. If any Commissioner shall die, resign, be removed, or for any

reason be unable to serve as a Commissioner, the Council shall declare the Commissioners

position vacant and shall appoint another person to fill the position. The terms of office of

each person appointed to replace an initial Commissioner shall be for the balance of any

unexpired term for such position, provided, however, that any prospective appointee must

meet the qualifications established by this Code.

4.17 Conflict of Interest. No person shall be appointed or continue serving as a

Commissioner if that person has any personal, business, or legal relationship that creates a conflict

of interest with the Commissioners duties and responsibilities as a Commissioner. No member or

employee of the Commission shall participate as a player in any tribal gaming activity.

4.18 Powers of the Tribal Gaming Commission. In furtherance, but not in limitation, of

the Tribal Gaming Commissions purposes and responsibilities, and subject to any restrictions

contained in this Code or other applicable law, the Tribal Gaming Commission shall have and is

authorized to exercise by majority vote the following powers in addition to all powers already

conferred by this Code:

4.18.1 To oversee the day-to-day operation of and to supervise, inspect and regulate

all gaming activities within the jurisdiction of the Tribe.

4.18.2 To promote the full and proper enforcement of this Code and other

applicable law regarding gaming activities within the jurisdiction of the Tribe.

4.18.3 To enact and enforce such rules and regulations regarding its activities and

governing its internal affairs as the Tribal Gaming Commission may deem necessary and

proper to effectuate the powers granted by this Code and the powers granted and duties

imposed by applicable law.

4.18.4 To publish and distribute copies of this Code and Tribal Gaming Commission

rules and any Council, Tribal Gaming Commission, or Tribal Court decisions regarding

gaming matters.

4.18.5 To prepare and submit for Council approval proposals, including budget and

monetary proposals, which could enable the Tribe to better carry forth the policies and intent

of this Code.

4.18.6 To work with the staff of any tribal department, program, project, or

operation and to cooperate with the Tribal Council or any Council Committee in regard to

gaming issues.

4.18.7 To make or cause to be made by its agents or employees, an examination or

investigation of the place of business, equipment, facilities, tangible personal property, and

the books, records papers, vouchers, accounts, documents, and financial statements of any

Enacted April 17, 1996 Gaming Code of the Makah Indian Tribe

Resolution No. 98-96A Page - 15
game or gaming activity operating, or suspected of operating, within the jurisdiction of the

Tribe. In undertaking such examination or investigation, the Tribal Gaming Commission may

request the assistance of tribal gaming staff, federal and local law officials, legal counsel, and

other third parties.

4.18.8 To maintain and keep current a record of new developments in the area of

Indian gaming.

4.18.9 To request the assistance of the Tribal Court in conducting gaming hearings,

defining terms used in this Code or other tribal laws, or in any other matter in which the

Tribal Gaming Commission deems such assistance to be necessary or proper.

4.18.10 To consider any gaming matter brought before it by any person,

organization or business, and all matters referred to it by the Tribal Council.

4.18.11 To obtain and publish a summary of federal revenue laws relating to

gaming and to insure compliance with the same.

4.18.12 To arrange for training of Tribal Gaming Commission members, tribal

employees and others in areas relating to the regulation or operation of gaming.

4.18.13 Upon prior explicit written approval of the Council, to employ such

advisors as it may deem necessary. Advisors may include, but shall not be limited to, law

enforcement specialists and gaming professionals, the Tribes general or special counsel, and

the Tribes accountants.

4.18.14 To make recommendations to the Council on the hiring of all

supervisory gaming employees.

4.18.15 To promulgate rules and regulations to implement and further the

provisions of this Code.

4.18.16 To approve or disapprove any application for a tribal gaming license.

4.18.17 To consult with and make recommendations to the Tribal Council

regarding changes in tribal gaming laws and policies.

4.18.18 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 Code, 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.

4.18.19 When necessary or appropriate, to request the assistance and utilize

the services of the courts, law enforcement and government officials and agencies, and

private parties in exercising its powers and carrying out its responsibilities.

4.18.20 To delegate to an individual member or members of the Tribal

Gaming Commission, or, with the approval of the Tribal Council, to Tribal Gaming

Commission staff, such of its functions as may be necessary to administer this Code

efficiently; provided that the Tribal Gaming Commission may not re-delegate its power to

Enacted April 17, 1996 Gaming Code of the Makah Indian Tribe

Resolution No. 98-96A Page - 16
exercise any substantial governmental function of the Tribe or its power to promulgate rules

and regulations; and provided further that the Tribal Gaming Commission may not delegate

to anyone the power to permanently revoke a tribal gaming license.

4.18.21 To permanently close, after notice and hearing, any game or games

which are operating in violation of tribal law.

4.18.22 To sue or be sued in courts of competent jurisdiction within the

United States and Canada1 subject to the provisions of this Code and other tribal laws

relating to sovereign immunity; provided that no suit shall be brought by the Tribal Gaming

Commission without the prior explicit written approval of the Tribal Council.

4.18.23 To use the seal of the Tribe with the approval of the Tribal Council.

4.18.24 To purchase, lease, take by gift, devise or bequest, or otherwise

acquire, own, hold, improve, and use property and assets of every description, real and

personal, tangible or intangible, including money, securities, or any interests therein, rights

and services of any kind and description or any interest therein; provided that the Tribal

Gaming Commission shall have authority to purchase any interest in real property, whether

located on or off the Reservation, only with the express, prior written consent of the Tribal

Council as to each such action, and that title to such real property and property which is to

become a fixture or permanent improvement or part of the real property shall be taken in

the name of the Tribe or in the name of the United States in trust for the Tribe, and title

to all trust and restricted real property shall remain in trust or restricted status.

4.18.25 To sell, convey, mortgage, pledge, lease, exchange, transfer, and

otherwise dispose of all or any part of its personal property and assets.

4.18.26 To deal in inventions, copyrights, and trademarks; to acquire by

application, assignment, purchase, exchange, lease, hire, or otherwise; and to hold, own, use,

license, lease and sell, either alone or in conjunction with others, the absolute or any partial

or qualified interest in and to inventions, improvement, letters patent and applications

therefor, licenses, formulas, privileges, processes, copyrights and applications therefor,

trademarks and applications therefor, and trade names, provided that title to all such

interests shall be taken in the name of the Tribe.

4.18.27 With the prior permission of the Tribal Council, to borrow money and

to make, accept, endorse, execute and issue bonds, debentures, promissory notes, guarantees,

and other obligations of the Tribal Gaming Commission for moneys borrowed, or in payment

for property acquired or for any of the purposes of the Tribal Gaming Commission and to

secure payment of any obligations by secured interest, mortgage, pledge, deed, indenture,

agreement, or other instrument of trust or by other lien upon, assignment of, or agreement

in regard to all or any part of the property, rights, or privileges of the Tribal Gaming

Commission.

4.18.28 To arbitrate, compromise, negotiate, or settle any dispute to which it

is a party relating to the Tribal Gaming Commissions authorized activities.

4.18.29 To enter into, make, perform, and carry out any agreement,

partnership, joint venture contract, or other undertaking with any federal, state, or local

governmental agency, tribe, person, partnership, corporation, or other association or entity

Enacted April 17, 1996 Gaming Code of the Makah Indian Tribe

Resolution No. 98-96A Page - 17
for any lawful purpose pertaining to the business of the Tribal Gaming Commission or which

is necessary or incidental to the accomplishment of the purposes of the Tribal Gaming

Commission.

4.18.30 To exercise the tribal power to tax authorized by the Makah Tribal

Constitution in accordance with a Council resolution delegating such power to the Tribal

Gaming Commission and in accordance with this Code and other applicable law.

4.18.31 To purchase insurance from any stock or mutual company for any

property, or against any risk or hazard.

4.18.32 To engage in any and all activities which directly or indirectly carry

out the purposes of the Tribe as set forth in this Code.

4.18.33 With prior approval of the Tribal Council, to make application and

accept grants and other awards from private and governmental sources in carrying out or

furthering the purposes of the Tribal Gaming Commission or the Tribe.

4.18.34 To exercise all authority delegated to it or conferred upon it by law

and to take all action which shall be reasonably necessary and proper for cariying into

execution the foregoing powers and all of the powers vested in this Code as permitted by the

purposes and powers herein stated and which are deemed to be in the best interests of the

Tribe, exercising prudent management and good business judgment, all in compliance with

applicable law.

4.18.35 To establish and maintain such bank accounts as may be necessary or

convenient.

4.18.36 To require by regulation the filing of any records, forms, and reports

and all other information desired by the Council for implementation of this Code relating

to any gaming activity or operation or any investigation as required by tribal law and the

IGRA.

4.18.37 To provide for an internal system of recordkeeping with adequate

safeguards for preserving confidentiality as deemed necessary by the Tribal Gaming

Commission. All applications, background investigations and Tribal Gaming Commission

decisions shall be retained in Tribal Gaming Commission files for a period of at least 10

years.

4.18.38 To adopt a schedule of fees to be charged for gaming licenses issued

pursuant to this Code.

4.18.39 To adopt a schedule of fees and charges for services rendered relating

to transcripts and the furnishing or certiL~ring of copies of proceedings, files, and records.

4.18.40 To conduct background investigations of all persons who propose to

participate in any gaming activity or operation.

4.18.4 1 To compel obedience of its lawful orders by proceedings of mandamus

or injunction or other proper proceedings in the name of the Tribe in Tribal Court or in any

other court having jurisdiction of the parties and of the subject matter; provided that no suit

Enacted April 17, 1996 Gaming Code of the Makah Indian Tribe

Resolution No. 98-96A Page - 18
shall be brought by the Tribal Gaming Commission without the prior explicit written

approval of the Tribal Council after consultation with the tribal attorneys.

4.18.42 To discipline any licensee or other person participating in any gaming

activity by ordering immediate compliance with this Code or Tribal Gaming Commission

regulations and to issue an order of temporary suspension of any license issued under this

Code, whenever the Tribal Gaming Commission is notified of a violation by any such person

of this Code or any other applicable law.

4.18.43 To issue an order of temporary closure of any gaming activity or

operation in the event the Tribal Gaming Commission determines that immediate closure is

necessary to protect assets or interests of the Tribe, pursuant to Tribal Gaming Commission

regulations, or whenever the Tribal Gaming Commission shall receive information from the

National Indian Gaming Commission that a primary management official or key employee

of an licensee does not meet the standards for being licensed under the IGRA.

4.18.44 To become self-regulating whenever the Tribe becomes eligible for a

certificate of self-regulation under the IGRA.

4.19 Annual Budget. The Tribal Gaming Commission shall prepare an annual operating

budget for all Tribal Gaming Commission activities and present it to the Council by August 15th of

each year.

4.20 Tribal Gaming Commission Regulations.

4.20.1 Tribal Gaming Commission regulations necessary to carry out the orderly

performance of its duties and powers shall include, but shall not be limited to:

4.20.1.1 Internal operational procedures of the Tribal Gaming

Commission and its staff;

4.20.1.2 Interpretation and application of this Code as may be

necessary to carry out the Tribal Gaming Commissions duties and exercise its

powers;

4.20.1.3 A regulatory system for all gaming activity, including

accounting, contracting, management, and supervision;

4.20.1.4 The findings of any reports or other information required by

or necessary to implement this Code; and

4.20.1.5 The conduct of inspections, investigations, hearings,

enforcement actions, and other powers of the Tribal Gaming Commission authorized

by this Code.

4.20.2 No regulation of the Tribal Gaming Commission shall be of any force or

effect unless it is adopted by the Tribal Gaming Commission by written resolution and

subsequently approved by a resolution of the Tribal Council and filed for record both in the

office of the Tribal Secretary and in the Office of the Clerk of the Tribal Court.

4.20.3 The Tribal Court and any other court of competent jurisdiction shall take

Enacted April 17, 1996 Gaming Code of the Makah Indian Tribe

Resolution No. 98-96A Page - 19
judicial notice of all Tribal Gaming Commission regulations adopted pursuant to this Code.

4.21 Right of Entrance; Monthly Inspection. The Tribal Gaming Commission and duly

authorized officers and employees of the Tribal Gaming Commission may enter upon any premises

of any gaming operator or gaming facility, during regular business hours, for the purpose of making

inspections and examining the accounts, books, papers, and documents of any such gaming operator

or gaming facility. Such gaming operator shall facilitate such inspection or examinations by giving

every reasonable aid to the Tribal Gaming Commission and to any properly authorized officer or

employee.

A Commissioner or a member of the Tribal Gaming Commissions staff shall visit each

tribally owned or tribally operated gaming facility at least once every two weeks during normal

business hours for the purpose of monitoring its operation. Such visits shall be unannounced.

4.22 Investigations. 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 who is subject to

the provisions of this Code. In conducting such investigation, the Tribal Gaming Commission may

proceed either with or without a hearing as it may deem best, but it shall make no order without

affording any affected party notice and an opportunity for a hearing pursuant to Tribal Gaming

Commission regulations.

4.23 Hearings; Examiner. Pursuant to regulations, the Tribal Gaming Commission may

hold any hearing it deems to be reasonably required in administration of its powers and duties under

this Code. Whenever it shall appear to the satisfaction of the Tribal Gaming Commission that all

of the interested parties involved in any proposed hearing have agreed concerning the matter at

hand, the Tribal Gaming Commission may issue its order without a hearing.

The Tribal Gaming Commission may designate one of its members to act as examiner for the

purpose of holding any such hearing or the Tribal Gaming Commission may appoint another person

to act as examiner under subsection 4.24 below. The Tribal Gaming Commission shall provide

reasonable notice and the right to present oral or written testimony to all people interested therein

as determined by the Tribal Gaming Commission.

4.24 Appointment of Examiner, Power of Examiner. The Tribal Gaming Commission may

appoint any 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 which the Tribal Gaming

Commission or any member thereof has power or authority to hold. Any such appointment shall

constitute a delegation to such examiner of all powers of a Commissioner under this Code with

respect to any such hearing.

4.25 Bank Account for Tribally Owned or Tribally Managed Gaming Facility. The Tribal

Gaming Commission shall ensure that the Tribe opens a separate bank account for each tribally

owned or tribally managed gaming activity, and all money of such facility shall be deposited in that

account. The Tribal Gaming Commission shall determine who shall have check writing authority

from such account.

4.26 Quarterly Report of Tribal General Manager Reports. The Tribal Gaming

Commission shall file a quarterly report with the Council summarizing reports received from each

manager of any tribally owned or managed gaming activity and make such comments as it deems

necessary to keep the Council fully informed as to the status of various tribal gaming activities.

Enacted April 17, 1996 Gaming Code of the Makah Indian Tribe

Resolution No. 98-96A Page - 20
Section 5. Gaming Licenses.

5.1 Applicability. This Code applies to all persons engaged in gaming within the

jurisdiction of the Tribe. Any application for license pursuant to this Code and participation in any

gaming activity within the jurisdiction of the Tribe shall be deemed to be a consent to the jurisdiction

of the Tribe and the Tribal Court in all matters arising from the conduct of such gaming and all

matters arising under any of the provisions of this Code or other tribal laws; provided, that this

section is not and shall not be deemed or construed to be a waiver of the Tribes sovereign immunity

from Suit in any federal, state or tribal court.

5.2 No License Requirement for Class I Gaming. A tribal license shall not be required

for any Class I gaming activity or operation provided, however, that each Cl~ I gaming activity or

operation must have written permission of the Tribal Gaming Commission, and such permission must

be on file with the Tribal Secretary before any such Class I gaming is conducted.

5.3 Class II License Required. No person shall operate Class II gaming within the

jurisdiction of the Tribe unless such gaming is licensed by the Tribe.

53.1 Tribally Owned or Tribally Operated Class II. The Tribe shall issue Class

II licenses which shall be required of all tribally owned or tribally operated gaming activity

operating one or more Class II games of chance. A separate license shall be obtained for

each place, facility or location where Class II gaming is authorized by this ordinance and an

approved Tribal/State Compact.

5.4 ApplIcation Procedures.

5.4.1 Application for Gaming License. For any proposed Class II gaming activity,

the Council shall file with the Tribal Gaming Commission an application for a tribally owned

or tribally operated Class II gaming license, which shall contain the name of the proposed

enterprise, its location, and all other pertinent information required by this Code and Tribal

Gaming Commission regulations.

5.4.2 Tribally Owned and Tribally Operated Class II. Before issuing a license to

a tribally owned or operated Class II gaming activity the Tribal Gaming Commission shall:

5.4.2.1 Review the proposed gaming activity to ensure that all criteria

required by this Code shall be met.

5.4.2.2 Perform the necessary background checks on management contractors,

primary management officials, and key employees required by this Code.

5.4.2.3 Review and approve the accounting procedures to be used in such

gaming activity.

5.4.2.4 Take any additional steps necessary to ensure the integrity of such

gaming activity.

5.5 Criteria That a Potential Gaming Operator Must Meet. The Tribal Gaming

Commission shall issue the above license to any tribally owned or tribally operated Class II proposed

gaming activity only if all of the following criteria are met:

Enacted April 17, 1996 Gaming Code of the Makah Indian Tribe

Resolution No. 98-96A Page - 21
5.5.1 The proposed gaming activity or facility is to be located on land that was held

in trust for the Tribe prior to October 17, 1988 or on trust lands that were located within or

contiguous to the boundaries of the Reservation on October 17, 1988 or on lands taken into

trust after October 17, 1988 as a settlement of a claim.

5.5.2 The proposed gaming activity is to be played as Class II gaming as defined

by the IGRA.

5.5.3 The proposed gaming activity is authorized by a Tribal Council resolution.

5.5.4 The Tribe will have the sole proprietary interest and the exclusive

responsibility for the conduct of the proposed gaming activity, Any management contract

entered into by the Tribe must comply fuily with tribal and federal and law and be properly

approved by the National Indian Gaming Commission.

5.5.5 The resolution authorizing the proposed gaming activity provides that:

5.5.5.1 The revenues of the proposed gaming activity shall be audited

annually and copies of those audits will be provided to the Tribal Gaming

Commission and the National Indian Gaming Commission.

5.5.5.2 The proposed gaming activity shall comply with all IRS reporting and

filing requirements.

5.5.5.3 All of the net revenues of the proposed gaming activity shall be used

for the purposes stated in subsection 10.3.

5.5.5.4 All contracts for supplies, services, or concessions for an amount in

excess of $25,000 annually (except contracts for legal and consulting services) shall

be subject to an annual independent audit.

5.5.5.5 The construction or maintenance of the gaming facility and the

operation of the proposed gaming activity shall be conducted in a manner which the

Tribal Gaming Commission fmds will adequately protect the environment and the

public health and safety.

5.5.5.6 The general manager, all primaty management officials, and all key

employees have passed the background investigations and obtained the tribal gaming

employee licenses required by this Code. Each application must state in writing that

all future management officials and key employees will be required to pass

background investigations and obtain tribal gaming employee licenses before they are

hired.

5.5.5.7 The Tribal Gaming Commission shall have the authority to regulate

the proposed gaming activity.

5.5.5.8 The proposed gaming activity shall pay to the National Indian Gaming

Commission such fees as federal law may require to be paid.

5.6 License Application Fees. No application fee shall be required for a tribally owned

or tribally operated Class II gaming activity.

Enacted April 17, 1996 Gaming Code of the Makah Indian Tribe

Resolution No. 98-96A Page - 22
5.7 License Tax. No annual license tax shall be required for a tribally owned or tribally

operated Class II gaming operation.

5.8 Form of Gaming License. Every gaming license issued by the Tribal Gaming

Commission shall include the name and address of the authorized licensee and the signature of an

authorized officer of the Tribal Gaming Commission.

5.9 Scope of Gaming License. A gaming license issued by the Tribal Gaming Commission

shall be effective only for the gaming activity and location specified in the application. Such license

may be transferred only upon prior approval of the Tribal Gaming Commission upon written request

that details the proposed new gaming activity, its location, and proposed gaming operator.

5.10 Terms of License. A tribally owned and tribally operated Class II gaming license shall

be valid for a period of one year from the date of issuance.

5.11 PostIng of Licenses. Each gaming operator shall post its tribal gaming license in a

conspicuous location at the gaming operators gaming facility. If a gaming operator has more than

one gaming facility, the gaming operator must obtain and post a separate license for each gaming

facility. A gaming operator licensed to sell raffle tickets outside a gaming facility shall carry a copy

of the gaming license under which such person is employed.

5.12 Gaming License Renewals. Each tribal gaming license must be renewed annually.

No renewal fee shall be required for a tribally owned or tribally operated Class II license. In order

to obtain a renewal of a license, the gaming operator shall submit a written renewal application to

the Tribal Gaming Commission on the form provided by the Tribal Gaming Commission. No

renewal application shall be approved until the annual report required by subsection 5.13 has been

properly filed. All renewal applications submitted by a tribally owned Class II gaming activity shall

be approved within a reasonable time unless the Commission determines, based on reasonable

grounds, that the enterprise has been or will be operated in violation of tribal, federal, or other

applicable law or the terms of the tribal-state gaming compact.

5.13 Annual Reports. Each gaming operator who possesses a Class II tribal gaming license

must file an annual reportwith the Tribal Gaming Commission and the Tribal Council between the

15th day and the last day of the 12th month of the duration of each such license. The report shall

be submitted to the Tribal Gaming Commission on the annual report form provided by the Tribal

Gaming Commission and shall include the following information:

5.13.1 The name, address, and telephone number of the gaming operator;

5.13.2 The names, addresses, and titles of its current general manager and all

submanagers;

5.13.3 A description of each gaming activity that it is operated and the total gross

proceeds of each;

5.13.4 A written copy of any changes the gaming operator proposes to initiate in its

rules;

5.13.5 A statement of the specific dates and times during which the gaming activity

will be operated during the next license period;

Enacted April 17, 1996 Gaming Code of the Makal~ Indian Tribe

Resolution No. 98-96A Page - 23
5.13.6 The name and address of the person who will be the general manager and the

names and addresses of all persons who will be the primary management officials during the

next license period;

5.13.7 A statement of any changes in the general manager or in the primary

management officials or key employees who will operate the gaming activity over the next

license period;

5.13.8 The names and addresses of any employees who the Tribal Gaming

Commission may determine to be key employees during review of the application;

5.13.9 Written proof that the gaming operator has paid to the National Indian

Gaming Commission such fees as federal and tribal law may require it to pay, and will

continue to do so;

5.13.10 A sworn statement that the gaming operator has complied with the

Internal Revenue Code and regulations, including written notice of customer winnings, and

a statement that the gaming operator shall continue to obey all tribal and federal laws and

shall hold the Tribal Gaming Commission and the Tribe harmless for failure to do so;

5.13.11 The description of any location at which the gaming activity has been

conducted and any new location which is expected to be established during the next license

period;

5.13.12 The number of full-time equivalent persons, on an annualized basis,

employed by the operation during the past 12 months, together with a projection of the

number of full-time equivalent persons who are expected to be employed during the next

license period;

5.13.13 The total gross proceeds of the gaming operator attributable directly

or indirectly to tribally licensed gaming activity over the proceeding 12 months;

5.13.14 A sworn statement that the gaming operator will continue to comply

with all tribal and federal laws applicable to the gaming operators gaming operation;

5.13.15 A sworn statement that the gaming operator and all of its key

employees and management contractors continue to consent to Tribal Court jurisdiction and

service of process in all matters arising from the conduct of tribally licensed gaming activity;

5.13.16 The name, address, and signature of the agent who will accept service

of process on behalf of the gaming operator, who must reside on the Reservation; and

5.13.17 If the gaming operator 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.

5.14 Procedure to Remedy Gaming License Violation. If the Tribal Gaming Commission

finds that a tribally owned or operated gaming activity is being operated in violation of this Code

or otherwise presents a threat to the Tribe or to the public, the Tribal Gaming Commission shall

immediately take all necessary steps to bring such activity into compliance, including, but not limited

to, closing down such activity temporarily or permanently pursuant to enforcement procedures and

Enacted April 17, 1996 Gaming Code of the Makah Indian Tribe

Resolution No. 98-96A Page - 24
regulations duly promulgated by the Tribal Gaming Commission under this Code. Nothing contained

in this Section or in this Code shall be construed as limiting, restraining or effecting a waiver of the

Tribe or the Tribal Councils right and authority to take appropriate action to remedy any gaming

violation pursuant to tribal and federal law.

Enacted April 17, 1996 Gaining Code of the Makah Indian Tribe

Resolution No. 98-96A Page - 25
Section 6. Gaming Employee Licenses.

6.1 Current and Valid Gaming Employee License Required. Every primary management

official and every key employee of any Class II gaining activity subject to this Code shall possess a

current, valid gaming employee license.

6.2 Application for Gaming Employee License.

6.2.1 A person seeking a tribal gaming employee license must be at least 18 years

of age. All applicants shall submit an application to the Tribal Gaming Commission on such

form and in such manner as the Tribal Gaming Commission may require.

6.2.2 Such application shall include the following information (25 CFR § 556.4):

6.2.2.1 Full name, including all other names used (oral or written), social

security number(s), birth date, place of birth, citizenship, gender, all languages spoken

or written.

6.2.2.2 Currently and for the previous 5 years: business and employment

positions held, ownership interest in those businesses, business and residence

addresses, and drivers license numbers.

6.2.2.3 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 above.

6.2.2.4 Current business and residence telephone numbers.

6.2.2.5 A description of any existing and previous business relationships with

Indian tribes, including ownership interests in those businesses.

6.2.2.6 A description of any existing and previous business relationships with

the gaming industry generally, including ownership interest in those businesses.

6.2.2.7 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.

6.2.2.8 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.

6.2.2.9 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.

6.2.2.10 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 the above stated requirements

of this section, the criminal charge, the name and address of the court involved and

the date and disposition.

Enacted April 17, 1996 Gaming Code of the Makab Indian Tribe

Resolution No. 98-96A Page - 26
6.2.2.11 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.

6.2.2.12 The names and addresses of the applicants living parents,

grandparents, spouse, children, brothers, and sisters.

6.2.2.13 A sworn statement that neither the applicant nor any member of the

applicants immediate family has a past or current financial interest, other than a

salary interest, in any gaming-related enterprise anywhere. if the applicant has any

relative who has such a relationship, the applicant shall fully disclose that relatives

name and the nature of the relationship.

6.2.2.14 A disclosure of any civil or criminal judgments rendered against the

applicant, including the case number, a description of the judgment, and the name

and address of the court involved.

6.2.2.15 Any other information which might bring into question the

applicants fitness to serve as a primary management official or key employee of a

licensed gaming operation.

6.2.2.16 A photograph taken in the last 12 months.

6.2.2.17 A set of fingerprints taken by the Makah Tribal Police which shall

be forwarded directly to the National Indian Gaming Commission which shall in turn

forward them to the FBI for a National Criminal Information records search in

compliance with the requirements of the IGRA.

6.2.2.18 The name, address, and telephone number of the gaming facility and

of the gaming operator for whom the applicant intends to work and the specific

location in which the applicant will be employed.

6.2.2.19 Written permission giving the Tribal Gaming Commission or its

designee the right to investigate the applicants background, including the applicants

criminal record, civil and criminal judgments, and credit history.

6.2.2.20 Each application shall be accompanied by a sworn statement that if

the license is issued, the applicant will submit to the jurisdiction of the Tribe and the

Tribal Court.

6.2.2.21 Each application shall be accompanied by a sworn statement that the

applicant will abide by this Code and all other applicable laws.

6.2.2.22 Each application shall be accompanied by a written statement that

the applicant has read, understands and approves of the following Privacy Act notice:

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 ~q. The purpose of the requested

infor,nation is to determine the eligibility of individuals to be employed

in gaming activities. The infonnation will be used by National Indian

Enacted April 17, 1996 Gaming Code of the Makah Indian Tribe

Resolution No. 98-96A Page - 27
Gaming Conunission members and staff who have need for the

information in the perfor,nance of their official duties. The infor,na:ion

may be disclosed to appropriate federal, tribal, state, local, orforeign law

enforcement and regulatory agencies when relevant to civil, criminal, or

regulatory investigations orprosecutions orpursuant to a requirement by

a tribe or the National Indian Gaming Commission in connection with

the hiring or firing of an employee, the issuance or revocation of a

gaming license, or investigations of activities while associated with a tribe

or a gaming operation. Failure to consent to the disclosures indicated

in this notice will result in a tribes being unable to hire you in aprimaiy

management official or key employee position.

6.2.2.23 Each application for a gaming employee license shall be

accompanied by a non-refundable application fee, the amount of which shall be set

by the Tribal Gaming Commission.

6.2.2.24 Each application shall state that the disclosure of an applicants

social security number (SSN) is voluntary. However, failure to supply a SSN may

result in errors in processing the application.

6.2.2.25 Each application shall contain the following Notice of False

Statements (25 CFR § 556.3):

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).

63 Review Procedure for Gaming Employee License Application -

Compliance With 25

C.F.R § 5583. Before issuing a gaming employee license, the Tribal Gaming Commission shall:

6.3.1 Obtain a copy of the application and insure that it has been reviewed for

completeness.

6.3.2 Insure that the applicant has been fingerprinted by the Makah Tribal Police or

other properly designated law enforcement entity and that those fingerprints have been sent

by that law enforcement body to the NIGC which will in turn forward them on to the FBI

for a National Criminal Information records search in compliance with the 1GRA.

6.3.3 Forward a copy of the completed application to the National Indian Gaming

Commission for review.

6.3.4 Perform or designate another person or entity to performed the necessary

background investigation of the applicant. Such investigation shall consist of verif~ring all of

the information contained in the application. This process shall include contacting all of the

applicants references and previous employers who are identified in the application or of

whom the investigator learns during the background check. In conducting a background

investigation, the interviewer shall promise to keep confidential the identity of each person

interviewed. Such investigation and interviews shall focus on obtaining information on the

applicants prior activities, criminal record, if any, and reputation, habits and associations.

Enacted April 17, 1996 Gaining Code of the Makab Indian Tribe

Resolution No. 98-96A Page - 28
6.3.5 The findings of all background investigations shall be compiled into a written

report. This report shall detail the steps taken in conducting the investigation, the results

obtained, the conclusions reached and the basis for those conclusions. A copy of which shall

be sent to the National Indian Gaming Regulatory Commission and a copy of which shall be

given to each member of the Commission.

6.3.6 When the results of the FBIs criminal records information search and the

Tribal background check are completed, the Commission shall review the results and

detennine whether or not to issue a temporary license to the applicant. The Commission

shall record its decision and the reasons for it in writing. A copy of this written decision

shall be kept in the Commissions files.

6.3.7 Within 60 days after a gaming employee holding a temporary license begins

work or within 60 days of the Chairmans approval of this Code, the Tribal Gaming

Commission shall forward to the National Indian Gaming Commission a copy of the

completed application, the results of the background check performed and the written report

of the Tribal Gaming Commissions findings and decision. A class II gaming activity subject

to this Code shall not employee a key employee or primary management official who does

not have a license after ninety days.

6.3.8 During a 30-day period beginning when the National Indian Gaming

Commission receives the information described above, the Chairman of the National Indian

Gaming Commission may request additional information from the Tribal Gaming

Commission concerning a key employee or primary management official who is the subject

of such information. The Tribal Gaming Commission shall comply fully with such request.

Any such request shall suspend the 30-day review period until the Chairman of the National

Indian Gaming Commission receives the additional information, If, within such 30-day

period, the National Indian Gaming Commission notifies the Tribe that it has no objection

to the issuance of a license to the applicant, the Tribal Gaming Commission may issue a

permanent license, to the applicant. If, however, the Tribal Gaming Commission determines

not to license the applicant, it shall notify the National Indian Gaming Commission of its

decision and the reasons for it. Additionally, if, within the 30-day period described above,

the National Indian Gaming Commission provides the Tribe with a statement itemizing

objections to the issuance of a license to the applicant, the Tribal Gaming Commission shall

reconsider the application, taking into account the objections of the National Indian Gaming

Commission. The Tribal Gaming Commission shall then make the final decision as to

whether or not to issue a permanent license to such applicant, and the Tribal Gaming

Commission shall notify the National Indian Gaming Commission of its final decision.

6.3.9 All applications, background checks, and Tribal Gaming Commission decisions

shall be retained in the Tribal Gaming Commission files for a period of at least 10 years.

6.4 Standards For Denial of a Key Employee or Primary Management Official License.

The Commission shall not license, hire, or employ as a key employee or primary management official

in connection with Class H gaming, any person who:

6.4.1 Is under the age of 18.

6.4.2 Has been convicted of or entered a plea of no contest to a gambling offense,

fraud or misrepresentation; or

Enacted April 17, 1996 Gaming Code of the Makah Indian Tribe

Resolution No. 98-96A Page - 29
6.4.3 Has been convicted of or entered a plea of guilty or no contest to any offense

in subparagraph (2) within the immediately preceding five years; this provision shall not apply

if that person has been pardoned by the Governor of the State where the conviction occurred

or, if a tribal member, has been determined by the Tribe to be a person who is not likely

again to engage in any offensive or criminal course of conduct and the public good does not

require that the applicant be denied a license as a key employee or primary management

official; or

6.4.4 If the Tribal Gaming Commission determines, alter notice and hearing, that

the person has participated in organized crime or unlawful gambling or is a person whose

prior activities criminal record, reputation, habits, and/or associations pose a threat to the

public interest or to the effective regulation and control of gaming, or create or enhance the

dangers of unsuitable, unfair, or illegal practices and methods and activities in the conduct

of gaming or to the carrying on of the business and financial arrangements incidental to the

conduct of gaming.

6.4.5 If the applicant is found to have supplied false or misleading information or

has omitted material information on the applicants license application.

6.4.6 Provided further that the Tribal Gaming Commission may, by regulations, add

additional limitations and conditions for denial of said license.

6.5 Scope of Gaming Employee License. A gaming employee license shall be effective

only for the person to whom it is issued and only with respect to the gaming facility specified in the

application. Any such license may be transferred to a new gaming facility only upon prior approval

of the Tribal Gaming Commission, upon written request of the licensee identifying the proposed new

gaming facility, its location, and the proposed gaming operator thereof.

6.6 LIcensing Period. An employee gaming license issued pursuant to this Code shall be

effective for a period of one year from the date of issuance and shall state on its face the date that

the license became effective and the date that it expires.

6.7 Renewals. A holder of an employee gaming license shall apply to the Tribal Gaming

Commission for a renewal before the employees original license has expired, updating all

information contained in the original application.

6.8 Requirement to Produce License Upon Request. Any person receiving a employee

gaming license must carry that license upon his person during all working hours and must produce

that license upon the request of any law enforcement official with jurisdiction over the gaming

activity or any agent of the Tribe, the Tribal Gaming Commission, or the National Indian Gaming

Commission.

6.9 Permanent License Revocation of Employee Gaming License.

6.9.1 Grounds for Permanent Revocation. The Tribal Gaming Commission may

permanently revoke an employee gaming license, after notice and an opportunity for a

hearing, for any of the following reasons:

6.9.1.1 The employee has withheld pertinent information on the employees

application;

Enacted April 17, 1996 Gaming Code of the Makah Indian Tribe

Resolution No. 98..96A Page - 30
6.9.1.2 The employee has made false statements on the application;

6.9.1.3 The employee has participated in gaining activity which was not

authorized by any tribal gaming license;

6.9.1.4 The employee has attempted to bribe a tribal council member, Tribal

Gaming Commissioner, or other person in an attempt to avoid or circumvent this

Code or any other applicable law;

6.9.1.5 The employee has offered something of value or accepted a loan,

financing, or other thing of value from a Tribal Gaming Commission member a

subordinate employee or any person participating in any gaming activity;

6.9.1.6 The employee has knowingly promoted, played, or participated in any

gaming activity operated in violation of this Code or any other applicable law;

6.9.1.7 The employee has been knowingly involved in the falsification of

books or records which relate to a transaction connected with the operation of

gaming activity;

6.9.1.8 The employee has violated any provision of this Code or the rules and

regulations of the Tribal Gaming Commission;

6.9.1.9 The employee has been convicted of, or has entered a plea of nob

contendere to, any crime involving gaming, fraud, theft, embezzlement, or other

activity which, if perpetrated at his gaming operators place of employment, would

injure or pose a threat to the public interest, or the integrity of the gaming activity,

or the effective regulation of gaming or enhance the dangers of unfair, unsuitable,

or illegal gaming practices;

6.9.1.10 The employee has been convicted of, or entered a plea of nob

contendere to, a crime involving the sale of illegal narcotics or controlled substances;

6.9.1.11 The employee has failed to comply with any lawful order,

inquiiy or directive of the Tribal Gaming Commission, the Tribal Council, or any

administrative or judicial body of competent jurisdiction, arising from any gaming

activity whether or not subject to this Code; or

6.9.1.12 The employee is determined to have present or prior activities,

including criminal record, or reputation, habits or associations which pose a threat

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

the dangers of unsuitable, unfair, or illegal practices and methods and activities in the

conduct of gaming.

6.9.2 Procedure for Permanent Revocation. Whenever the Tribal Gaming

Commission has reasonable cause to believe that an employee has violated any of the

conditions in section 6.9.1, or has failed to comply with any condition of the employees tribal

gaming license, or has failed to obtain a license, the Tribal Gaming Commission or its

designee may either undertake an investigation, or serve upon such employee an order to

show cause why the employees license should not be revoked, or why the employee should

not be enjoined from conducting gaming activities within the jurisdiction of the Tribe. The

Enacted April 17, 1996 Gaming Code of the Makah Indian Tribe

Resolution No. 98-96A Page - 31
order shall state the grounds for which such revocation or injunction is sought and that the

employee shall have an opportunity to present testimony and to cross examine opposing

witnesses, and to present any other evidence as to why revocation or injunction should not

issued. The hearing shall be set for not less than ten days nor more than 14 days from the

date of notice. The hearing shall be governed in all respects in accordance with tribal law

and Tribal Gaming Commission regulations.

6.10 Temporary Suspension of Employee Gaming License.

6.10.1 Grounds for Temporary Suspension. The Tribal Gaming Commission may

temporarily suspend an employee gaming license for not more than thirty days for any of the

following reasons:

6.10.1.1 The employee has been charged with a violation of any gaming

law;

6.10.1.2 The employees continued employment as a primary

management official or key employee of a game or gaming activity poses a threat to

the general public;

6.10.1.3 The employee has made a material false statement in the

employees license application;

6.10.1.4 The employee has participated in gaming activity unauthorized

by the employees tribal gaming license;

6.10.1.5 The employee has refused to comply with any lawful order of

the Tribal Gaming Commission, the Tribal Council, the Tribal Court, or the National

indian Gaming Commission arising from or relating to gaming.

6.10.2 Immediate Temporary Suspension. The Tribal Gaming Commission shall

immediately temporarily suspend an employee gaming license for not more than thirty days

upon receipt of notification from the National Indian Gaming Commission pursuant to 25

C.F.R. § 558.5 that reliable information exists that such gaming employee is not eligible for

employment. Upon receipt of such notification, the Commission shall notify the gaming

employee of the suspension and proposed revocation and the time and place for hearing

under section 6.10.3 below.

6.103 Procedure for Temporary Suspension. Whenever the Tribal Gaming

Commission has reasonable cause to believe that a person has violated any of the conditions

in subsections 6.10.1, or has failed to comply with any condition of that persons employee

gaming license or of this Code constituting a direct and immediate threat to the peace,

safety, morals, or health or welfare of the community, or whenever the Tribal Gaming

Commission receives the notification referred to in section 6.10.2, the Tribal Gaming

Commission or its designee shall issue a notice of temporary suspension of such persons

employee gaming license, which shall be served upon the employee. The notice shall state

the grounds upon which such temporary suspension is ordered and that the employee shall

have an opportunity to present testimony and to cross-examine opposing witnesses, and to

present any other evidence as to why suspension should not issue. The employee shall

immediately cease and desist operating in the employees management position or in the

employees capacity as a key employee upon receipt of the order, but such person may file

Enacted April 17, 1996 Gaming Code of the Makah Indian Tribe

Resolution No. 98-96A Page - 32
a notice of appeal with the Tribal Gaming Commission within five days of such receipt.

Upon receipt of such notice of appeal, the Tribal Gaming Commission shall hold a hearing

on the order within fourteen calendar days of its receipt of the appeal. At the hearing, the

employee shall have the opportunity to present testimony and cross-examine witnesses, and

present any other evidence as to why temporary suspension order should not be issued. Such

hearing shall be governed in all respects by tribal law and Tribal Gaming Commission

regulations. After said revocation hearing, the Tribe shall notify the National Indian Gaming

Commission of its decision in writing.

Enacted April 17, 1996 Gaming Code of the Makah Indian Tribe

Resolution No. 98-96A Page - 33
Section 7. LIcensing of Gaming Service Providers

7.1 Requirement for license. No person or entity may provide gaming services, gaming

apparatus or gaming equipment to any gaming facility or gaming operator unless such person or

entity is the holder of a valid and current gaming services vendors license issued by the Tribal

Gaming Commission; provided, however, that such vendor Will automatically be granted said license

if:

7.1.1 the person or entity has a current valid license to provide the same type of

gaming services, apparatus or equipment from the State of Washington; or

7.1.2 the person or entity has a current valid license to provide the same type of

gaming services equipment from the gaming regulatoiy agency of the State of New Jersey or

the State of Nevada and provides its consent for the disclosure to the Tribe of all

information regarding such person or entity held by the appropriate state gaming regulatory

agency and the Tribal Gaming Commission is able to secure disclosure of such information.

7.1.3 any license granted under either subsection 7.1.1 or 7.1.2 may be revoked or

suspended by the Tribal Gaming Commission in the same manner and for the same reasons

as provided in subsection 7.7 below.

7.2 Procedure for licensing. Each applicant for a gaming services vendors license shall

submit a completed application to the Tribal Gaming Commission on forms provided by the

Commission. The gaming application shall contain such information, documentation and assurances

as may be required by the Commission and shall identify all of the applicants principals and the

applicants and each such principals personal and family history, personal and business references,

criminal conviction record, business activities, financial affairs, prior gaming industry experience and

general education background. Each application shall be accompanied by a fingerprint card(s) and

photograph(s) of the applicant and of each principal of the applicant in such form as required by the

Commission upon receipt of a completed application, the Tribal Gaming Commission shall forward

a copy thereof to the National Indian Gaming Regulatory Commission for a Federal Bureau of

Investigation criminal information check through the Federal Bureau of Investigation National

Criminal Information Center.

73 Fee for license. Any person or entity filing an application for a gaming services

vendors license pursuant to this section shall pay to the Commission a fee, set by the Commission,

sufficient to compensate the Commission for the cost of review of the license applications.

7.4 Background Investigation of Applicants. Upon receipt of an application for a gaming

services vendors license the Tribal Gaming Commission shall conduct an investigation of the

applicant and each of its principals and shall verify the information contained in the application.

Such investigation shall include a criminal records check on the applicant and on each of the

applicants principals. The Commission shall conduct such other investigation of applicant and its

principals as may be deemed appropriate by the Commission.

7.5 Action by Tribal Gaming Commission. Except as provided in subsection 7.1.1 and

7.1.2, the Commission shall, as soon as practicable after completion of the background investigation

under subsection 7.4, either grant or deny the license. The Commission may deny license to any

applicant upon a determination that the applicant, or any principal identified with such applicant:

7.5.1 is a person or entity whose prior activities, criminal record, if any, or

Enacted April 17, 1996 Gaming Code of the Makah Indian Tribe

Resolution No. 98-96A Page - 34
reputation, habits and associations pose a threat to the effective regulation of gaming or

create or enhance the changes of unfair or illegal practices, methods, and activities in the

conduct of the gaming activities permitted hereunder; or

7.5.2 has failed to provide information reasonably required to investigate the

applicants suitability for a license or has failed to reveal any fact material to such application

or has furnished any information which is untrue or misleading in connection with such

application.

7.6 DuratIon of license and renewal. Any gaming services vendors license issued by the

Tribal Gaming Commission shall be effective for not more than one year and shall expire on the

thirtieth day of September of each year; provided, that a license that has applied for renewal prior

to expiration may continue to provide services under the expired license until fmal action is taken

on the renewal application by the Commission. Previously licensed applicants or applicants for

renewal shall provide currently updated application material but will not be required to resubmit

historical data already available to the Commission. No additional background investigation of an

applicant for license renewal shall be required unless new information concerning the renewal

applicants continuing suitability or eligibility for a license has been presented to the Commission.

7.7 Revocation or suspension of license. The Commission may investigate any licensed

person or entity or any principal of any entity at any time and the Commission may suspend or

revoke any license issued under this section if new information concerning any facts not available

to the Commission at the time a license was issued or any renewal thereof, is presented to the

Conimission and such information would justify denial of an original license or any renewal thereof

pursuant to this section. No license shall be revoked or suspended except after notice and hearing

under the procedures described below. A licensed person or entity shall be entitled to any payment

due for services provided or goods delivered prior to the effective date of suspension or revocation

of its license.

Whenever the Tribal Gaming Commission has reasonable cause to believe that a person or

entity holding a valid gaming services vendors license did not qualify for said license or that the

person or entity or any principal of the entity has engaged in activities which would justify denial of

the renewal of said license the Tribal Gaming Commission or its designee shall issue a notice of

suspension of such person or entitys license, which shall be served upon the licensee at its principal

place of business. The notice shall state the grounds upon which such temporary suspension is

ordered and provide that the person or entity shall have an opportunity to present testimony and to

cross-examine opposing witnesses, and to present any other evidence as to why a permanent

suspension should not be issued. Such hearing shall be governed in all respects by tribal law and

Tribal Gaming Commission regulations.

Whenever the Commission suspends a license under this subsection, the licenses shall

immediately cease and desist all gaming services to tribally licensed gaming operators and facilities.

Decisions of the Commission pursuant to this section, following any administrative review or appeal

allowed under this section or otherwise permitted by the Commission, constitutes final Commission

action for purposes of judicial review under tribal law.

7.8 Regulation of Nongaming Persons and Entities. Any person or entity that provides

goods or services to a tribally licensed gaming operation or facility, other than gaming services or

gaming equipment, in an amount in excess of $50,000 in any twelve month period, and any labor

organization seeking to represent employees of a tribally licensed gaming operation or facility, shall

agree to cooperate with the Commission and Tribal and federal law enforcement in any investigation

Enacted April 17, 1996 Gaming Code of the Makah Indian Tribe

Resolution No. 98-96A Page - 35
deemed necessary by either the Commission or the federal government relative to the fitness of such

enterprise or labor organization to engage in business with a gaming operation or facility, or relative

to the conduct of a gaming operation or facility, or labor organization in connection with such

activity. The Commission may bar such person or entity from providing goods or services to a

tribally licensed gaming operation or facility, or such labor organization from receiving dues from

licensed employees of any gaming operation or facility, or may bar such labor organization from

representing gaming employees, upon a determination that such person, entity or labor organization

or principal thereof is a person or entity whose prior activities, criminal record, if any, or reputation,

habits and associations pose a threat to the effective regulation of gaming or create or enhance the

dangers of unfair or illegal practices, methods and activities in the conduct of gaming. Any person,

entity or labor organization affected by a bar under this subsection shall have a right to notice and

hearing as provided for licensees under section 7.7.

Enacted April 17, 1996 Gaming Code of the Makah Indian Tribe

Resolution No. 98-96A Page - 36
Section 8. Provisions of General Applicability to All Gaming Operators.

8.1 Each Class LI gaming activity within the jurisdiction of the Tribe shall be conducted

only by a gaming operator who possesses a current and valid tribal gaming license.

8.2 Each tribal gaming license shall be applicable only to one gaming site and the gaming

operator named on such license.

8.3 No tribal gaming license shall be sold, lent, assigned or otherwise transferred.

8.4 Each management and key employee of a licensed gaming activity shall possess a

current and valid tribal gaming employee license.

8.5 A tribal gaming license shall be issued only to a person who qualifies therefor under

this Code, or to the Tribe or a tribal subdivision.

8.6 Each gaming operator shall have a copy of this Code and regulations readily available

for inspection by any person at each authorized gaming facility or activity.

8.7 Each gaming facility shall post the following in a prominent place in each room where

gaming is conducted a sign stating the following:

This facility is regulated by one or more of the following: The National Indian Gaming

Commission, the Bureau of Indian Affairs of the United States Department of the Interior

and the Government of the Makah Indian Tribe.

This facility is not regulated by the State of Washington.

8.8 Each facility that houses one or more card games shall post, in a prominent place in

each card room, the rules of each card game played. These rules shall notify the public of the

following:

8.8.1 The maximum rake-off percentage, time buy-in and other fees charged;

8.8.2 The number of raises allowed;

8.8.3 The monetary limit of each raise

8.8.4 The amount of ante; and

8.8.5 Other rules as may be necessary.

8.9 All accounting records of each tribally licensed gaming facility shall be kept on a

double entry system of accounting, maintaining detailed, supporting, subsidiary records. The

operator and the Tribe shall maintain the following records for not less than three (3) years:

8.9.1 Revenues, expenses, assets, liabilities and equity for each location at which

Class II gaming is conducted;

8.9.2 Daily cash transactions for each Class II game at each location at which

gaming is conducted, including but not limited to transactions relating to each gaming table

Enacted April 17, 1996 Gaming Code of the Makah Indian Tribe

Resolution No. 98-96A Page - 37
bank, game drop box, and gaming room bank;

8.9.3 All markers, IOUs, returned checks, hold checks or other similar credit

instruments;

8.9.4 Individual and statistical game records (except card games) to reflect statistical

drop and statistical win; for electronic, computer, or other technologically assisted games,

analytic reports which show the total amount of cash wagered and the total amount of prizes

won;

8.9.5 Contracts, correspondence and other transaction documents relating to all

vendors and contractors;

8.9.6 Records of all tribal gaming enforcement activities;

8.9.7 All gaming related audits prepared by or on behalf of the Tribe or one of its

subdivisions.

8.9.8 Personnel information on all Class II gaming employees or agents including

rotation sheets, hours worked, employee profiles and background checks.

8.10 No person under the age of 18 shall be employed as a key employee or primary

management official of any gaming activity.

8.11 No person under the age of 14 years shall be permitted to enter the area of any

building in which a gaming activity is being conducted.

8.12 A person under the age of 14 years may participate in gaming activity in private

homes, purchase raffle tickets, attend sporting contests or ticket drawings, stick game, and other

traditional gaming tournaments.

8.13 Each gaming operator shall post in a conspicuous location near where each gaming

activity is being played or shall otherwise provide the public with an explanation of the rules of play

of every game the gaming operator operates.

8.14 A gaming operator is prohibited from renting or lending gaming equipment to any

person without the prior written approval of the Tribal Gaming Commission.

8.15 A gaming operator is prohibited from exchanging pull-tabs, punch-boards, sports

pools, and twenty-one boxes (shoes) without the approval of the Tribal Gaming Commission. All

other gaming equipment may be exchanged without prior approval. Any request for approval shall

be made to the Tribal Gaming Commission at least 5 days prior to the exchange.

8.16 Each gaming operator who anticipates the printing, manufacture, or construction of

any equipment for gaming activity shall first notify the Tribal Gaming Commission of the gaming

operators intention and shall have the finished product approved by the Tribal Gaming Commission

before it is placed in service.

8.17 Gaming chips and other tokens of value may be sold and redeemed only by the

gaming operator and only for full value.

Enacted April 17, 1996 Gaming Code of the Makah Indian Tribe

Resolution No. 98-96A Page - 38
8.18 Every licensed gaming operation shall maintain and keep for not less than 10 years

permanent books of accounts and records, including inventory records of gaming supplies, sufficient

to establish the gross and net income, deductions, expenses, receipts, and disbursements of the

enterprise.

8.19 A gaming operator who conducts a gaming activity at a site in which the operator

does not have a legal ownership interest shall file with the Tribal Gaming Commission, prior to

conducting any gaming activity at such site, a written agreement, attested to by both the gaming

operator and the owner of such site, setting forth the terms under which the operator is permitted

the use of such site.

8.19.1 Such agreement shall contain all of the following information:

8.19.1.1 The name of the legal owner of the site. if the gaming operator is

to be a sub-lessee, then the name of the lessee must also be included.

8.19.1.2 The name and gaming license number of the gaming operator.

8.19.1.3 The term of such use of the site.

8.19.1.4 The monetary consideration to be paid for such use of the site, if

any.

8.19.1.5 A precise description of the location or premises.

8.19.1.6 A prohibition of advertising of the gaming activity by the owner.

8.19.1.7 The following provision:

The (grantor/lessor) hereby agrees that neither (he), (his)

spouse, nor any employee or agent of the (grantor/lessor)

shall participate in the selling, distributing, conducting,

assisting, or participating in gaming activity at the site herein

(granted/leased) without the prior written approval of the

Tribal Gaming Commission.

8.19.2 Any rent or lease provision of such agreement shall include a fixed monthly

rental dollar amount, unless otherwise approved in writing by the Tribal Gaming

Commission.

8.19.3 A graduated lease rate for use of the site is prohibited unless approved in

writing by the Tribal Gaming Commission.

8.19.4 Other remuneration in lieu of money for use of the site is prohibited unless

approved in writing by the Tribal Gaming Commission.

8.19.5 A percentage lease rate for use of the site is prohibited unless approved in

writing by the Tribal Gaming Commission.

8.19.6 No game of chance shall be operated in conjunction with the conduct of the

grantors business operation unless approved in writing by the Tribal Gaming Commission.

Enacted April 17, 1996 Gaming Code of the Makah Indian Tribe

Resoution No. 98-96A Page - 39
8.19.7 Any renegotiated agreement shall be submitted to the Tribal Gaming

Commission for approval prior to its effective date.

8.20 There shall be no sale of liquor at any gaming site.

8.21 Consideration for the chance to play in any gaming activity shall only be cash or, if

allowed by the gaming operator, personal check and shall be presented at the time the game is

played. No other form of consideration shall be allowed unless the Tribal Gaming Commission gives

prior written approval.

8.22 Evidence of any win or loss incurred by a player must, upon request, be provided to

such player in such form as will be acceptable to the IRS.

8.23 Each gaming operator shall pay all fees and file all reports required by law within the

time prescribed.

8.24 Each gaming operator shall respond immediately to and obey all inquiries, subpoenas,

or orders of the Tribal Gaming Commission, the Tribal Council, the Tribal Court, or the National

Indian Gaming Commission.

8.25 Each gaming operator shall prominently display at each gaming site a current, valid

tribal gaming license.

8.26 Each gaming operator shall at all times maintain an orderly, clean, and neat gaming

facility, inside and out.

8.27 Each gaming operator shall provide adequate security to protect the public before,

during, and after any gaming activity.

8.28 Each licensed gaming activity shall be subject to patrol by the tribal police force for

the purpose of enforcing tribal law, and each gaming operator shall cooperate at all times with the

tribal police force.

8.29 Each gaming operator shall make its premises and books and records available for

inspection during normal business hours by the Tribal Gaming Commission and members of the

Tribal Council or their designee.

8.30 No gaming shall be conducted on tribal election days, or on any day on which any

tribal referendum is held, or on special days of observance designated by the Tribal Council or by

the Tribal Gaming Commission.

8.31 No gaming operator may discriminate on the basis of sex, race, color, or creed in the

conduct of any licensed gaming activity.

8.32 Each gaming operator shall keep accurate books and records of all moneys received

and paid out and provide the Tribal Gaming Commission or its designee with copies of or access to

the same upon request.

8.33 All net revenues of any gaming activity shall be used only in a manner prescribed by

this Code.

Enacted April 17, 1996 Gaming Code of the Makah Indian Tribe

Resolution No. 98-96A Page - 40
8.34 Every gaming operator shall comply with all applicable tribal and federal revenue

reporting laws.

8.35 Each gaming operator shall immediately suspend any employee who is charged with

a crime of theft, embezzlement, fraud or other gaming crime, or any offense related to the sale,

possession, manufacture, or transport of illegal drugs. The gaming operator shall also immediately

notify the Tribal Gaming Commission in writing of the name of the person and the pending charge

and advise the Tribal Gaming Commission of the outcome of the case. If the employee is convicted

or pleads nob contendere to the charge, the employees employment shall be terminated.

Enacted April 17, 1996 Gaming Code of the Makah Indian Tribe

Resolution No. 98-96A Page - 41
Section 9. Enforcement.

9.1 Jurisdiction. Except as provided in this Code or in any tribal-state gaming compact

under the IGRA, the Tribal Court shall have jurisdiction over all violations of this Code.

9.2 Prohibited Acts. In addition to other civil and criminal offenses provided for in this

Code or under other applicable law, the following acts are prohibited and subject any violator to the

civil or criminal penalties specified herein:

9.2.1 Knowingly making a false statement in an application for employment with

any gaming operator or with the Tribal Gaming Commission.

9.2.2 Knowingly making a false statement in connection with any contract to

participate in any gaming activity.

9.2.3 Attempting to bribe any person participating in any gaming activity.

9.2.4 Offering or accepting a loan, financing, or other thing of value between a

Tribal Gaming Commission member or employee and any person participating in any gaming

activity.

9.2.5 Failing to keep sufficient books and records to substantiate receipts,

disbursements, and expenses incurred or paid from any gaming activity authorized pursuant

to this Code.

9.2.6 Falsifying any books or records which relate to any transaction connected with

any gaming activity pursuant to this Code.

9.2.7 Conducting or participating in any gaming activity which in any manner results

in cheating or misrepresentation or which allows any other disreputable tactics that detract

from the fair nature and equal chance of participation between gaming players, or which

otherwise creates an advantage over and above the chance of such gaming activity and which

affects its outcome.

9.2.8 To conduct a gaming activity with or to allow participation in a gaming

activity by an intoxicated or disorderly player.

9.2.9 To allow or participate in the sale of liquor at gaming sites when such sale

is prohibited by tribal law.

9.2.10 To accept consideration other than money, personal checks, or other approved

consideration for the chance to play or participate in any gaming activity.

9.2.11 To solicit, directly or indirectly, or to use inside information on the nature or

status of any gaming activity for the benefit of any person.

9.2.12 To alter or counterfeit a gaming license.

9.2.13 To aid, abet, or conspire with another person knowingly or knowingly to cause

any person to violate any provision of this Code or any rules and regulations adopted

hereunder.

Enacted April 17, 1996 Gaming Code of the Makah Indian Tribe

Resolution No. 98-96A Page - 42
9.2.14 To operate, use, or make available to the public any illegal gaming device,

apparatus, material, or equipment.

9.2.15 To sell or hold out for sale or transport into or out of the jurisdiction of the

Tribe any illegal gaming device, apparatus, material, or equipment.

9.2.16 To assist or allow a person who is under age to participate in any gaming

activity.

9.2.17 To possess any illegal narcotics or controlled substances on any licensed

gaming site.

9.2.18 To steal or attempt to steal funds or other items of value from any gaming

facility or from the Tribal Gaming Commission.

9.2.19 To employ any person at a licensed gaming facility whom the gaming operator

knows has been convicted of a gaming crime or a crime of fraud.

9.2.20 To conspire with or induce any person to violate any of the provisions of this

Code or any tribal or federal law.

9.2.2 1 No gaming operator or any of the gaming operators employees or agents shall

engage in any act, practice, or course of operation which could result in a fraud or deceit

upon any person.

9.2.22 To use bogus or counterfeit chips or gaming tickets, or to substitute or use

any game, cards, gaming tickets, or gaming equipment that have been marked or tampered

with.

9.2.23 To employ or have on the Reservation any device to facilitate cheating in any

game of chance.

9.2.24 To knowingly use any fraudulent scheme or technique, or to solicit, provide,

or receive inside information about any gaming activity with the intent of benefiting any

person.

9.2.25 To take, solicit, or encourage any action which undermines the integrity of any

game of chance.

9.2.26 No gaming operator shall knowingly employ any person who has been

convicted of or entered a plea of nob contendere to a crime of theft, embezzlement, fraud,

or other gaming crime.

9.3 Criminal Violation. Any Indian who violates or fails to comply with any provision

of this Code, or who fails to comply with any order or decision of the Tribal Gaming Commission,

shall be guilty of a crime~ and shall be required to pay a maximum fine of $5,000 or one year

imprisonment, or both. Each day during which such violation or failure to comply continues, with

or without notice, shall constitute a separate violation of this Code.

9.4 Civil Violation. Any person who violates or fails to comply with any provision of this

Code, or who fails or neglects to comply with any order of the Tribal Gaming Commission, shall be

Enacted April 17, 1996 Gaming Code of the Makah Indian Tribe

Resolution No. 98-96A Page - 43
liable for a civil fine not to exceed $5,000 for each violation thereof. Each day during which such

violation or failure to comply continues, with or without notice, shall constitute a separate violation

of this Code. The amount of any such civil fine may be recovered in a civil action in the Tribal

Court.

9.5 CumulatIve Fines. All civil fines accruing under this Code shall be cumulative and

a suit for the recovery of one fine shall not bar or affect the recovery of any other fine, judgment,

penalty, forfeiture, or damages, nor bar the power of the Tribal Court to punish for contempt, nor

bar any criminal prosecution.

9.6 Purpose of Civil Penalties. The civil fines imposed under this Code 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 Reservation, and to compensate

the Tribe for costs incurred by the Tribe in enforcing this Code. The civil fines under this Code are

also intended to coerce persons into complying with this Code and Tribal Gaming Commission

regulations and not to punish such persons for violation of such laws and regulations.

9.7 Civil Action for Penalties. In enforcing the civil infraction provisions of this Code,

the Tribal Gaming Commission shall proceed, in the name of the Tribe, by civil complaint pursuant

to the provisions of this Code. 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 Code.

9.8 Seizure and Forfeiture of Property. All property utilized in violation of this Code

shall be subject to seizure and forfeiture by order of the Tribal Court pursuant to Title I of the

Tribal Code.

9.9 Reporting of Offenders. Upon final order of the Tribal Court in any action for

criminal or civil violation under this Section, the Clerk of the Tribal Court shall notify the Tribal

Gaming Commission in writing of the final court disposition.

Enacted April 17, 1996 Gaming Code of the Makah Indian Tribe

Resolution No. 98-96A Page - 44
Section 10. Operation of Tribally Owned or Tribally Operated Games.

10.1 Management by a General Manager.

10.1.1 The Tribal Council may appoint one person to serve as General Manager of

each tribally owned or tribally operated gaming facility. Each General Manager shall

undergo a background check by the Tribal Gaming Commission and shall obtain an employee

gaming license before commencing work. The Tribal Gaming Commission shall be the direct

supervisor of the General Manager. However, the Tribal Council shall retain the authority

to suspend or dismiss the General Manager as it deems necessaly.

10.1.2 The General Manager shall be responsible for managing and overseeing the

day-to-day operations of the gaming operation. The General Manager shall have such

authority as the Tribal Gaming Commission may delegate.

10.1.3 The General Manager shall provide a written monthly report to the Tribal

Gaming Commission which details the number of patrons served, the amount of income

generated, the numbers of employees working at the facility, a detailed description of any

patron complaints and other problems experienced at the facility, and a written statement

of any changes in key employees or primary management officials and all bills which are 30

days or more past due.

10.1.4 The General Manager shall be personally responsible for seeing that all

gaming activities are managed in accordance with tribal and federal law and that all gaming

activities comply with all IRS reporting requirements.

10.2 Patron Disputes (25 CFR § 522.2(fl).

10.2.1 ApplicabilIty. These dispute resolution procedures shall apply to all tribally

licensed gaming on Makah Indian lands and shall be used to resolve patron disputes between

the gaming public and the Tribe or the management contractor.

10.2.2 Refusal to Pay Winnings. Whenever a tribally licensed gaming enterprise

refuses payment of alleged winnings to a patron, and the manager of that facility and the

patron are unable to resolve the dispute to the satisfaction of the patron, and the dispute

involves:

10.2.2.1 At least $500, the manager shall immediately notify the Tribal

Gaming Commission. The Commission shall conduct whatever investigation it deems

necessary and shall determine within ten days of notification whether payment should

be made; or

10.2.2.2 Less than $500, the manager shall inform the patron of the

patrons right to request that the Tribal Gaming Commission conduct an investigation

and the fact that the patron must request an investigation within five days of the

payment refusal. Upon receipt of such a request, the Tribal Gaming Commission

shall conduct whatever investigation it deems necessary and shall determine within

seven days whether payment should be made.

10.23 NotIce to Patrons. The Tribal Gaming Commission shall mail written notice

by certified mail, return receipt requested, to the general manager and the patron of the

Enacted April 17, 1996 Gaming Code of the MakaI~ Indian Tribe

Resolution No. 98-96A Page - 45
decision resolving the dispute. If the dispute results from an equipment malfunction or

violation of an operations procedure, the general manager shall immediately correct the

problem or disable the equipment. In addition, the general manager shall notify the Tribal

Gaming Commission within five working days of the steps that have been taken to ensure

that a similar problem does not occur in the future.

10.2.4 Effective Date of Decision. The decision of the Tribal Gaming Commission

is effective on the date it is received by the aggrieved party, as reflected on the return

receipt.

10.2.5 Review of Decision. Within 20 days after the date of receipt of the written

decision, the aggrieved party may file a petition with the Tribal Gaming Commission

requesting a review of the decision. The Tribal Gaming Commission may set a hearing on

the matter or may make a decision based upon the prior decision and the other

documentation provided to it by the patron and the general manager as part of the request

for review. The Commission shall then issue a written decision and mail it to the parties

pursuant to the procedures set forth in section 10.2.3 above. The decision of the Commission

shall be fmal and binding upon the patron and general manager and shall not be subject to

judicial review, dispute resolution, or other legal action.

103 Use of Net Revenues of Tribally Owned or Tribally Operated Gaming Activities.

10.3.1 All net revenues of a tribally owned or tribally operated gaming activity shall

be held in the name of the Tribe. Such net revenues may only be expended by the Tribal

Council by resolution and only for the following purposes:

10.3.1.1 To fund tribal government operations or programs.

10.3.1.2 To provide for the general welfare of the Tribe and its

members.

10.3.1.3 To promote tribal economic development.

10.3.1.4 To donate to charitable organizations.

10.3.1.5 To help to fund operations of local government agencies.

10.4 Maintenance of Records. The Tribal Gaming Commission shall insure that all

accounting records of each tribally licensed gaming facility is kept on a double entry system of

accounting, maintaining detailed, supporting, subsidiary records. The Tribal Gaming Commission

shall also insure that both the operator and the Tribal Gaming Commission maintain the following

records for not less than three (3) years:

10.4.1 Revenues, expenses, assets, liabilities and equity for each location at which

Class II gaming is conducted;

10.4.2 Daily cash transactions for each Class II game at each location at which

gaming is conducted, including but not limited to transactions relating to each gaming table

bank, game drop box, and gaming room bank;

10.4.3 All markers, IOUs, returned checks, hold checks or other similar credit

Enacted April 17, 1996 Gaming Code of the Makah Indian Tribe

Resolution No. 98-96A Page - 46
instruments;

10.4.4 Individual and statistical game records (except card games) to reflect statistical

drop and statistical win; for electronic, computer, or other technologically assisted games,

analytic reports which show the total amount of cash wagered and the total amount of prizes

won;

10.4.5 Contracts, correspondence and other transaction documents relating to all

vendors and contractors;

10.4.6 Records of all tribal gaming enforcement activities;

10.4.7 All gaming related audits prepared by or on behalf of the Tribe or one of its

subdivisions.

10.4.8 Personnel information on all aass LI gaming employees or agents including

rotation sheets, hours worked, employee profiles and background checks.

10.5 Audit Requirements.

10.5.1 The Tribal Gaming Commission and the General Manager of each tribally

owned or tribally operated gaming activity shall obtain an annual independent audit of such

gaming activity. A copy of such audit shall be provided to the Tribal Gaming Commission,

the Tribal Council, and the National Indian Gaming Commission.

10.5.2 Each contract for supplies, services (other than legal and accounting services)

or concessions for a contract amount in excess of $25,000 annually shall be subject to an

independent audit. A copy of such audit will be provided to the Tribal Gaming Commission,

the Tribal Council, and the National Indian Gaming Commission.

10.6 Management Contracts.

10.6.1 Each management contract shall fully comply with and is subject to the prior

approval of the National Indian Gaming Commission.

10.6.2 Before submission to the National Indian Gaming Commission, each

management contract shall be approved by the Council with the advice and comment of the

Tribal Gaming Commission. Before giving final consideration to any proposed management

contract, the Council shall direct the Tribal Gaming Commission to conduct a complete

background investigation of persons and entities with a financial interest in, or having

management responsibility for, the management contract, including requiring the submission

of all information required under 25 C.F.R. § 537.1, as amended, incorporated herein by this

reference.

10.6.2.1 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 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 10 percent or more of its issued or outstanding stock.

Enacted April 17, 1996 Gaming Code of the Makah Indian Tribe

Resolution No. 98-96A Page - 47
10.6.2.2 A description of any previous experience that each person

listed in subsection 10.6.2.1 above has had with other gaming contracts with Indian

tribes or with any gaming activity or operation wherever located, including the name

and address of any tribal government or licensing agency with which such person has

had a contract, license, or other agreement or permit relating to gaming.

10.6.2.3 A complete financial statement of each person listed in

subsection 10.6.2.1 above.

10.6.2.4 The Tribal Gaming Commission shall contact each of the tribal

government and licensing agencies in subsection 10.6.2.2 to determine the

performance history of the proposed management contractor.

10.6.2.5 The Tribal Gaming Commission shall arrange to have each

proposed management contractor investigated to learn of the proposed management

contractors personal attributes and to determine whether the proposed management

contractor has a prior criminal record or any pending criminal charges.

10.6.2.6 The Tribal Gaming Commission shall obtain an independent

verification of the completed financial statements of the proposed management

contractor.

10.6.2.7 The Tribal Gaming Commission shall undertake any additional

steps it can to determine the character and reputation of the proposed management

contractor and each person listed in subsection 10.6.2.1.

10.6.2.8 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 made in writing and

submitted to the Tribes attorneys for review.

10.6.3 Any management contract approved by the Council must include at a

minimum with respect to the gaming activity to which the contract is applicable, all of the

required provisions contained in 25 C.F.R. § 531.1, as amended, incorporated herein by this

reference.

10.6.4 All persons who possess an ownership interest or management position in the

proposed management contract shall apply for a gaming employee license under this Code.

No management contract shall be approved by the Council until all gaming employee license

applications have been reviewed and the Tribal Gaming Commission has submitted written

findings on such application to the Council.

10.6.5 If the Council is satisfied with the information it receives it shall submit the

proposed contract along with all of the above described information to the Chairman of the

National Indian Gaming Commission for approval.

10.7 Additional Requirements for Operation of Tribally Owned or Tribally Operated

Games.

10.7.1 Any cash winning of an amount under $500 shall be paid in cash or check and

shall be paid on the date it is won. Each patrons winnings of an amount over $500 shall be

Enacted April 17, 1996 Gaming Code of the Makahi Indian Tribe

Resolution No. 98-96A Page - 48
paid by check and shall be paid within 72 hours after it is won.

10.7.2 Each tribally owned or tribally operated gaming facility shall carry sufficient

liability insurance to protect the public in the event of an accident. The Tribal Gaming

Commission shall determine the amount of liability insurance required for each gaming

facility.

10.7.3 Each tribally owned or tribally operated gaming activity shall post the rules

of play of each game in a conspicuous place where gaming is conducted and shall make

written copies of such rules available to any member of the general public upon request.

Enacted April 17, 1996 Gaming Code of the Makah Indian Tribe

Resolution No. 98-96A Page - 49
Section 11. Authorized Games.

Consistent with applicable law, the Tribe authorizes the licensing of any game of chance

defined as or determined to be Class II gaming under section 4 of the Indian Gaming Regulatory

Act of 1988, as amended, and regulations duly promulgated thereunder, including, but not limited

to, the game of chance commonly known as bingo, pull tabs, lotto and card games that are explicitly

authorized by the State of Washington, or are not explicitly prohibited by such laws and are played

at any location in the State.

Enacted April 17, 1996 Gaming Code of the Makah Indian Tribe

Resolution No. 98-96A Page - 50
Section 12. Severability.

In the event that any section or provision of this Code is held invalid, it is the intent of the

Tribal Council that the remaining sections or provisions of this Code shall continue in full force and

effect.

Enacted April 17, 1996 Gaming Code of the Makah Indian Tribe

Resolution No. 98-96A Page - 51
Section 13. Repealer.

All prior gaming codes, ordinances, and resolutions of the Tribe are hereby repealed.

Enacted April 17, 1996 Gaming Code of the Makah Indian Tribe

Resolution No. 98-96A Page - 52
Section 14. Effective Date.

This Code shall be effective upon the date of approval by the Chairman of the National

Indian Gaming Commission.

sapApril V. 1996

C\FRJ\MAKAH~964s\ORD-cu4.PAM

Enacted April 17, 1996 Gaming Code of the Makah Indian Tribe

Resolution No. 9896A Page - 53