GAMING CODE OF THE SKOKOMISH INDIAN TRIBE

SKOKOMISH GAMING CODE

A law to authorize, license and regulate Gaming within the jurisdiction of the Skokomish Indian Tribe of Washington.

Adopted by Resolution No. 95-103 (October 18, 1995)

Amended by Resolution No. 96-12 (February 28, 1996)

Amended by Resolution No. 00-51 (May 18, 2000)

Amended by Resolution No. 01-63 (May 16, 2001)

Amended by Resolution No. 01-64 (May 16, 2001)

Amended by Resolution No. 01-132 (October 18, 2001)

Amended by Resolution No. 02-153 (December 11, 2002)

Amended by Resolution No. 04-96 (July 28, 2004)

Amended by Resolution No. 05-20 (February 16, 2005)

Amended by Resolution No. 06-63 (June 7, 2006)

Revised and Restated by Resolution No. 07-144 (October 31, 2007)

Amended by Resolution No. 07-153 (November 7, 2007)

Revised and Restated by Resolution No. 08-004 (January 14, 2008)

TABLE OF CONTENTS

FINDINGS, PURPOSES AND POLICY

4.02.001 Findings

4.02.002 Purposes

4.02.003 Tribal Policy of Self-Government

4.02.004 Tribal Gaming Policy

GENERAL PROVISIONS

4.02.005 Definitions

4.02.006 Authority and Sovereign Powers and Responsibilities

4.02.007 Application of Federal Policy

4.02.008 Skokomish Tribal Policy of Self-Government

4.02.009 Title, Repeal of Prior Laws, and Effect of Repeal

4.02.010 Classes of Gaming

4.02.011 Construction

4.02.012 Severability

TRIBAL GAMING COMMISSION

4.02.013 Establishment

4.02.014 Purpose

4.02.015 Location and Place of Business

4.02.016 Duration

4.02.017 Attributes

4.02.018 Recognition as a Political Subdivision of the Tribe

4.02.019 Sovereign Immunity of the Commission

4.02.020 Sovereign Immunity of the Tribe

4.02.021 Waiver of Sovereign Immunity of the Commission

4.02.022 Credit of the Tribe or Commission

4.02.023 Assets of the Commission

4.02.024 Membership

4.02.025 Commissioner Prohibitions

4.02.026 Commissioner Required to Display Badge

4.02.027 Term of Office

4.02.028 Meetings

4.02.029 Organization

4.02.030 Removal of Members or Vacancies

4.02.031 Ethics

4.02.032 Powers of the Commission

4.02.033 Tribal Gaming Agency Director

4.02.034 Annual Budget

4.02.035 Commission Regulations

4.02.036 Right of Entrance; Monthly Inspection

4.02.037 Investigations

4.02.038 Bank Account for Gaming Facility

4.02.039 Quarterly Report of Gaming Manager Reports

ADJUDICATIVE HEARINGS AND PROCEDURES

4.02.040 Hearings

4.02.041 Appearance and Practice Before the Commission

4.02.042 Notice of Hearing-Requirements

4.02.043 Service of Process

4.02.044 Informal Proceedings-Discovery Limitations

4.02.045 Official Notice

4.02.046 Initial or Final Order

4.02.047 Judicial Review

4.02.048 Computation of Time

RULEMAKING

4.02.049 Notice of Rulemaking

4.02.050 Public Hearing

4.02.051 Review and Consideration of All Submitted Comments

4.02.052 Housekeeping Rulemaking

4.02.053 Emergency Rulemaking Criteria

4.02.054 Emergency Rulemaking Procedure

4.02.055 Petition for Rulemaking

4.02.056 Rulemaking-Commission Discharge of Duties

4.02.057 Computation of Time

LICENSES

4.02.058 Applicability

4.02.059 Gaming Prohibited

4.02.060 License Required

4.02.061 Types of Licenses

4.02.062 No License Required for Class I Gaming

4.02.063 Application Procedures

Class II & III Gaming Licenses

4.02.064 Current and Valid License Required

4.02.065 Application for Class II & III Gaming License

4.02.066 Review Procedure for Class II & III Gaming License

4.02.067 Standards of Denial of a Class II & III Gaming License

4.02.068 Scope of Class II & III Gaming License

4.02.069 Requirement to Produce License Upon Request

4.02.070 Permanent License Revocation of Class II & III Gaming License

4.02.071 Temporary Suspension of Class II & III Gaming Licenses

4.02.072 Tribal Non-Gambling Related Offenses

Non-Gaming Employee Licenses

4.02.073 Current and Valid License Required

4.02.074 Application for Non-Gaming Employee License

4.02.075 Review Procedure for Non-Gaming Employee License

4.02.076 Scope of Non-Gaming Employee License

4.02.077 Requirement to Produce License Upon Request

4.02.078 Permanent License Revocation of Non-Gaming Employee License

4.02.079 Temporary Suspension of Non-Gaming Employee License

4.02.080 Tribal Non-Gambling Related Offenses

Facility and Operations Licenses

4.02.081 Criteria Which a Gaming Facility Must Meet

4.02.082 License Application Fees

4.02.083 License Tax

4.02.084 Form of Gaming License

4.02.085 Scope of Gaming License

4.02.086 Posting of Licenses

4.02.087 Annual Reports

4.02.088 Procedure to Remedy Gaming License Violation

Vendor Licenses

4.02.089 Current and Valid Gaming or Non-Gaming Vendor License Required

4.02.090 Application for Vendor License

4.02.091 Review Procedure for Vendor License Application

4.02.092 Standards of Denial of a Vendor License

4.02.093 Revocation or Suspension of a Vendor License and Other Penalties

Provisions of General Applicability to Gaming Licensees

4.02.094 Provisions of General Applicability to All Gaming Operators

4.02.095 Licensing Period

4.02.096 Renewals

4.02.097 License Application Fees

4.02.098 License Tax

4.02.099 Form of License

ENFORCEMENT

4.02.100 Jurisdiction

4.02.101 Prohibited Acts

4.02.102 Table of Penalties

4.02.103 Criminal Violation

4.02.104 Civil Violation

4.02.105 Cumulative Fines

4.02.106 Purpose of Civil Penalties

4.02.107 Civil Action for Penalties

4.02.108 Seizure and Forfeiture of Property

4.02.109 Reporting Offenders

OPERATION OF TRIBALLY OWNED OR TRIBALLY OPERATED GAMES

4.02.110 Management by a General Manager

4.02.111 Use of Net Revenues of Tribally Owned or Tribally Operated

Gaming Activities

4.02.112 Maintenance of Records

4.02.113 Audit Requirements

4.02.114 Management Contracts

4.02.115 Additional Requirements for Operation of Tribally Owned or Tribally operated games

AUTHORIZED GAMES AND INTERNAL CONTROL STANDARDS

4.02.116 Authorized Games

4.02.117 Internal Control Standards

PATRON DISPUTE RESOLUTION

4.02.118 Patron Dispute Resolution

FINDINGS, PURPOSES AND POLICY

4.02.001 Findings

The Skokomish Tribal Council on behalf of the Skokomish Tribe finds that:

(a) Tribal regulation and control of Gaming Activity within the jurisdiction of the Skokomish 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.

(b) 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.

(c) Properly licensed and regulated Gaming Activities conform to announced federal policy promoting Indian self-government and Indian tribal economic self-sufficiency.

(d) It is essential that the Tribe, through its Tribal Council, regulate Gaming in a manner commensurate with applicable federal and tribal law and policy.

(e) 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.

(f) Tribal operation and licensing of Gaming Activities on the Reservation are appropriate means of generating revenue to address the needs of the Tribe.

(g) The Tribe is vigorously pursuing its goal of self-sufficiency and self-determination through the development of tribal businesses and enterprises. Because the Skokomish Reservation lacks income-generating natural resources and because the Tribe's 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.

(h) As a result, the following new and expanded Gaming law is in the best interest of the Skokomish Indian Tribe.

4.02.002 Purposes

The purposes of this Code are to:

(a) Regulate, control, and license the operation of all Gaming within the jurisdiction of the Tribe.

(b) Make clear and explicit that a tribal license to operate a Gaming Activity is a revocable privilege, not a right or property interest.

(d) Ensure that tribally regulated Gaming 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.

(e) Promote and strengthen tribal economic development and self-determination and enhance employment opportunities for its members.

(f) Generate revenue to strengthen and improve tribal self-government and the provision of tribal governmental services.

(g) Ensure that all Gaming revenue is used for the benefit of the Tribe and the Reservation community.

(h) Ensure that tribal Gaming laws are strictly and fairly enforced against all persons involved in Gaming Activities within the jurisdiction of the Tribe.

(i) Ensure that the Tribe provides a fair and impartial forum for the resolution of Gaming disputes.

4.02.003 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.

4.02.004 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.

4.02.005 Definitions

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

(a) “Adoption” means the date listed on the rulemaking order of Adoption.

(b) "Adjusted Gross Proceeds" means gross proceeds less all cash prizes or the aggregate price of merchandise prizes, except in the case of the games of draw poker and stud poker. Regarding games of draw poker and stud poker, "Adjusted Gross Proceeds" means the time buy-ins or tournament fees collected by the Gaming Operator.

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

(e) "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.

(f) "Code" means this Code, the Skokomish Gaming Code, as now or hereafter amended.

(g) "Compact" means the Class III Gaming Compact between the Tribe and the State of Washington, entered into May 25, 1995 as authorized by the Indian Gaming Regulatory Act (IGRA), and its amendments.

(h) "Compensation" means all wages, salaries, bonuses, and all other forms of remuneration for services rendered.

(i) “Continuance” means an extension of a hearing date or a rule’s Adoption date.

(j) “Council" or "Tribal Council" means the governing body of the Skokomish Indian Tribe.

(k) “Days” means calendar days.

(l) “Director” means the Director of the Tribal Gaming Agency.

(m) "Educational, charitable, patriotic, veteran's, fraternal, religious, civic, or public-spirited uses" are:

(i) Uses benefiting an indefinite number of people by bringing them under the influence of educational or cultural programs.

(ii) Uses otherwise lessening the burden of tribal government.

(iii) 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.

(iv) 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.

(n) “Effective date” means the date a rule goes into operation.

(o) "Electronic Games of Chance" means electronic games featuring coin drop and payout as well as printed tabulations, whereby the software of the device predetermined the presence or lack of a wining combination and payout. Electronic Games of Chance are microprocessor controlled electronic devices which allow a player to play games of chance, which may be affected by an element of skill, activated by the insertion of a coin or currency, or by the use of a credit, and awards game credits, cash, tokens, or replays, or a written statement of the player's accumulated credits, which written statements are redeemable for cash.

(p) "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 Skokomish Reservation.

(q) “Emergency rule” means a rule passed in an expedited manner in accordance with this Code.

(r) "Equipment for games of chance." See "Gaming Apparatus."

(s) “Filing” means the process of submitting documents to the Skokomish Tribal Gaming Commission.

(t) “Final rule” means the final version of a Rule crafted after a Public hearing and consideration of all submitted comments.

(u) "Game" or "game of chance" means any activity which falls within the broad definition of Gaming or Gaming Activity.

(v) "Gaming Employee" means any natural person employed in the operation or management of each Gaming Activity or Operation, whether employed by or contracted to the Tribe or by any person or enterprise providing on or off-site services to the Tribe within or without the Gaming Facility regarding any Gaming Activity or Operation, including, but not limited to, Gaming Operation managers and assistant managers; accounting personnel; cashier supervisors; dealers or croupiers; box men; floormen; pit bosses; shift bosses; cage personnel; collection personnel; Gaming consultants, management companies and their principals; and any other natural person whose employment duties require or authorize access to restricted areas of each Gaming Activity or Operation not otherwise open to the public.

(w) "Gaming" or "Gaming Activity" means any activity, operation or game 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, 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 at which it is being conducted, directly or indirectly, whether at the site in person or off the Reservation.

(x) "Gaming Apparatus" or "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.

(y) "Gaming Facility" means any location or structure, stationary or movable, where Gaming is permitted, promoted, performed, conducted, or operated. Gaming Facility does not include the site of a fair, carnival, exposition, or similar occasion.

(z) "Gaming Operator" means a person who has obtained a Gaming License under this Code or who is otherwise permitted by this Code to perform, promote, conduct, or operate any Gaming Activity on Indian Lands.

(aa) "Gross proceeds" means any money collected or received from any Gaming Activity.

(bb) “Housekeeping rule” means a rule that corrects typographical, grammatical, gender, or spelling errors, or changes the format of a rule.

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

(dd) "Immediate Family" means, with respect to the person under consideration, a spouse, father, mother, son, daughter, brother, or sister.

(ee) "Indian Lands" means lands as defined by 25 U.S.C. §2703(4) “Skokomish Tribal Lands” has the same meaning as Indian Lands under this Code.

(ff) "IRS" means the United States Internal Revenue Service.

(gg) "Key employee" means a person who performs one or more of the following functions:

(i) Bingo caller;

(ii) Counting room supervisor;

(iii) Chief of security;

(iv) Custodian of Gaming supplies or cash;

(v) Floor manager;

(vi) Pit boss;

(vii) Dealer;

(viii) Croupier;

(ix) Approver of credit;

(x) Custodian of Gaming Apparatus or Equipment including persons with access to cash and accounting records within such devices;

If not otherwise included, any other person whose total cash compensation derived from Gaming subject to this Code is in excess of $50,000 per year; or, If not otherwise included, the four most highly compensated persons in the Gaming Operation.

(hh) “Law” or “Statute” means a statement by a legislative body or court that must be obeyed and followed, specifically the laws of the Tribe and, only to the extent they are binding and applicable, the laws of the State of Washington and the United States.

(ii) "License" means any official, legal, and revocable permission granted by the Commission pursuant to this Code to an applicant to conduct any Gaming Activity on Indian Lands.

(jj) “Licensee” means the holder of, or applicant for, a License.

(kk) "Lotto" means a form of Gaming in which all or a part of the proceeds derived from the sale of tickets or chances are pooled and such proceeds are allotted by chance to one or more chance takers or ticket purchasers. The amount of cash prizes or winnings is determined by the Gaming Operator conducting the "lottery" and a progressive pool is permitted.

(ll) “NIGC” means the National Indian Gaming Commission.

(mm) "Net revenues" means Gross Gaming Revenue of the tribal Gaming Operation less amounts paid out as, or paid for prizes and total Gaming related operating expenses, excluding management fees.

(nn) “Notice of Proposed Rulemaking” means a published notice that informs the public of the specific purpose of the proposed rule, the language of the proposed rule, and notice of the public hearing and comment period.

(oo) "Participate" in any Gaming Activity means to operate, direct, finance, or in any way assist in the establishment or operation of any class of Gaming or any site at which such Gaming is being conducted, directly or indirectly, whether at the site in person or off the Reservation.

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

(qq) “Petition” means the process that an interested party follows when requesting the Adoption, Amendment, or abrogation of a Rule.

(rr) "Player" means a person participating in any game, but does not include a Gaming Operator.

(ss) "Primary Management Official" means

(i) The person having management responsibility for a management contract approved by the National Indian Gaming Commission; or

(ii) Any person who has authority:

(1) To hire and fire Gaming Employees; or

(2) To set up working policy for a Gaming Operation; or

(iii) The chief financial officer or other person who has financial management responsibility for a Gaming Activity.

(tt) "Principal" means with respect to any management contractor:

(i) each of its officers and directors;

(ii) each of its principal management employees, including any chief executive officer, chief financial officer, chief operating officer, or general manager;

(iii) each of its owners or partners, if it is an unincorporated business;

(iv) each of its shareholders who owns more than ten percent of the shares of the corporation, if a corporation; and

(v) each person other than a banking institution who has provided financing for the enterprise constituting more than ten percent of the total financing of the enterprise.

(uu) "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.

(vv) “Public Hearing and Comment Period” means the time period during which the public may comment on the Proposed Rule, and participate in the Rulemaking process.

(ww) “Publish” means posting the notice or other document at the offices of the Tribal Gaming Commission, and providing a copy of the notice or other document to the Office of the Tribal Attorney. An item shall not be considered published until it has been posted and received by the Office of the Tribal Attorney.

(xx) “Rule” means an agency order, directive or regulation that: (1) imposes a penalty on those who violate the Rule; or (2) establishes or revokes requirements or standards relating to a matter under the Skokomish Tribal Gaming Commission’s jurisdiction.

(yy) “Rulemaking” means the process used to develop, adopt, amend, or repeal a rule.

(zz) “Rulemaking Order of Adoption” means the notice that indicates the Skokomish Tribal Gaming Commission has Adopted a Rule, and provides the Rule’s language.

(aaa) “Skokomish Tribal Lands” see Indian Lands.

(bbb) “Supplemental notice” means a notice that informs interested parties that significant changes are being made to a Proposed Rule. It reopens the Rulemaking proceedings for additional Public comment on the substantive changes.

(ccc) "State" means the State of Washington.

(ddd) "Commission" means the Skokomish Tribal Gaming Commission described in this Code.

(eee) "Tribe" and "Tribal" refers to the Skokomish Indian Tribe of Washington, 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.

(fff) “Vendor” means any Person or enterprise that sells goods or services under this Code, and the employees and agents of that Person or enterprise.

(ggg) "Wager" means the bet made or consideration or value given by a player in any game.

(hhh) “WSGC” means the Washington State Gambling Commission

GENERAL PROVISIONS

4.02.006 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 V of the Tribal Constitution.

4.02.007 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, et seq. (1988), which recognized the inherent sovereign right of tribes to operate and 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.

4.02.008 Skokomish 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.

4.02.009 Title, Repeal of Prior Laws, and Effect of Repeal

This Code may be cited as the Skokomish Gaming Code. The Code shall be appropriately inserted in the Skokomish 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.