NATIONAL INDIAN GAMING COMMISSION

SETTLEMENT AGREEMENT

SA-19-01

This settlement agreement (Agreement) is entered into by and between the Soboba Band of
Luisefio Indians (Tribe) and the Chairman of the National Indian Gaming Commission (NIGC)
to resolve issues related to Notice of Violation 19-01 (NOV-19-01).

I, RECITALS

1. The Indian Gaming Regulatory Act (IGRA), 25 U.S.C. § 2701 et seq., and NIGC
regulations, 25 C.F.R. § 575.4 authorize the Chairman to issue civil fines not to exceed
$52,596 per violation against a tribe for violations of IGRA, NIGC regulations, or tribal
gaming ordinances approved by the Chairman.

2. Pursuant to 25 C.F.R. § $75.4(a)(2), if a violation continues for more than one day, the
Chairman may treat each daily illegal act or omission as a separate violation.

3. IGRA requires tribes to issue a separate license for each place, facility, or location on
Indian lands at which gaming is conducted. 25 U.S.C. § 2710(6)(1).

4. NIGC regulations define “facility license” as the license issued by a tribe to each place,
facility, or location on Indian lands where the tribe elects to allow class II or II] gaming.
25 C.F.R. § 502.23.

5. NIGC regulations require tribes to submit to the Chairman notice (Facility License
Notice) that a facility license is under consideration for issuance at 120 days before
opening any new place, facility, or location on Indian lands where class II or I! gaming
will occur. 25 C.F.R. § 559.2(a).

6. On January 28, 2019, the Tribe submitted a Facility License Notice for the Soboba
Casino Resort, a new gaming facility located in San Jacinto, California.

7. On February 20, 2019, twenty-three days after submitting the Facility License Notice, the
Tribe opened the Soboba Casino Resort and conducted gaming within the facility.

8. On April 9, 2019, the Chairman issued NOV-19-01 to the Tribe for failure to provide the
Facility License Notice at least 120 days before opening the Soboba Casino Resort.

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9. On April 22, 2019, pursuant to 25 C.F.R. § 575.5(a), the Tribe submitted written
information about the violation to the Chairman.

10. The Chairman and the Tribe desire to resolve the issues related to NOV-19-01.

11. Therefore, the Chairman and the Tribe have agreed to execute this Agreement and
perform in accordance with its terms.

IL. STIPULATIONS

1, Although the Tribe neither operates nor intends to operate class II gaming in the Soboba
Casino Resort, for the purpose of resolving the issues related to NOV-19-01, the Tribe
does not contest the NIGC’s jurisdiction to issue a civil fine assessment pursuant to 25
C.F.R. part 575,

2. The Tribe admits that it opened the Soboba Casino Resort and conducted gaming within
the facility 23 days after submitting the Facility License Notice.

3. The Tribe acknowledges that NIGC regulations required the Tribe to submit the Facility
License Notice at least 97 days earlier.

4, The Tribe acknowledges that the total civil fine that could potentially be assessed against
the Tribe for the violations described in NOV-19-01 is $5,101,812 (97 days multiplied by
the daily maximum fine amount of $52,596).

III. TERMS OF SETTLEMENT

1. Having carefully reviewed all information about the violation, the Chairman agrees to
accept, and the Tribe agrees to pay, a civil fine in the amount of $26,298.

2. The Tribe shall pay the civil fine within 30 days of receipt ofa fully executed copy of
this Agreement from the Chairman, or the Chairman's designee. The civil fine must be
payable to the U.S. Treasury, and shall be delivered to the NIGC at 1849 C Street, N.W.,
Mail Stop #1621, Washington, D.C. 20240.

3. The Chairman waives the right to impose any further civil fine against the Tribe relating
to the violation described in NOV-19-01.

4, The Tribe waives all rights to pursue an appeal of NOV-19-01 before the Commission,
waives all rights to pursue an appeal to a presiding official, and waives all rights to

judicial review of such proceedings.

5. The Tribe waives all rights to pursue administrative or judicial review of this Agreement.

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IV. TERM OF THE AGREEMENT
This Agreement shall terminate upon the fulfillment of all terms listed in Article [.
V. ADDITIONAL COVENANTS
|. This Agreement shall become effective on the date it is signed by all parties.

2. This Agreement shall be deemed a final order of the Commission and a final agency
action pursuant to 25 C.F.R. § 573.5(b).

3. This Agreement does not prevent the Chairman from issuing notices of violation and
other enforcement actions for other violations of IGRA, NIGC regulations, and/or the
Tribe’s gaming ordinance.

4, This Agreement constitutes the entire agreement between the Chairman and the Tribe
relating to NOV-19-01, Any modification or waiver of any term of this Agreement,
including modification or waiver of term, must be in writing and signed by the parties.

5. The Chairman and the Tribe expressly agree and acknowledge that time is of the essence
in this Agreement. The recitals herein and set above shall be binding upon the parties,
their agents, heirs, personal representatives, successors and assigns.

6. This Agreement may be executed in one more counterparts and each shall constitute an
original. A signature produced by facsimile shall be deemed to be an original signature
and shall be effective and binding for purpose of the Agreement.

For the Soboba Band of Luiseito Indians:

By: Ses, G fat . Date: B/ NG.
Scott Cozart

Chairman, Soboba Band of Luisefio Indians

For the National Indian Gaming Commission:

By: : Date: 5/ b / 17
nodev O. Chaudintti

“hairman, National Indian Gaming Commission

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