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1 STATE OF OKLAHOMA
1
2 2nd Session of the 60th Legislature (2026)
2
3 SENATE BILL 1955 By: Coleman
3
4
4
5 AS INTRODUCED
5
6 An Act relating to the Oklahoma Horse Racing Act;
6 amending 3A O.S. 2021, Sections 200.1, 204, and 281,
7 which relate to definitions, powers and duties of the
7 Oklahoma Horse Racing Commission, and provisions of
8 the Model Tribal Gaming Compact; defining terms;
8 requiring Commission to promulgate rules; requiring
9 certain provider to obtain a certain license;
9 updating statutory language; updating statutory
10 references; providing for codification; and providing
10 an effective date.
11
11
12
12
13 BE IT ENACTED BY THE PEOPLE OF THE STATE OF OKLAHOMA:
13
14 SECTION 1. AMENDATORY 3A O.S. 2021, Section 200.1, is
14
15 amended to read as follows:
15
16 Section 200.1. A. As used in the Oklahoma Horse Racing Act:
16
17 1. "Advance deposit account wagering" means a form of pari-
17
18 mutuel system of wagering in which an individual has established an
18
19 account with an entity licensed by the Oklahoma Horse Racing
19
20 Commission;
20
21 2. "Advance deposit account wagering license" means a license
21
22 issued by the Oklahoma Horse Racing Commission to conduct advance
22
23 deposit account wagering and to accept deposits and wagers, issue a
23
24 receipt or other confirmation to the account holder evidencing such
24
Req. No. 2320 Page 1
1 deposits and wagers, and transfer credits and debits to and from
1
2 accounts;
2
3 3. "Commission" means the Oklahoma Horse Racing Commission;
3
4 2. 4. "Enclosure" means all buildings, structures, and grounds
4
5 utilized for the conduct of a race meeting and/or or gaming at the
5
6 race track and any additional areas designated by the Oklahoma Horse
6
7 Racing Commission;
7
8 3. 5. "Family" means husband, wife, and any dependent children;
8
9 4. 6. "Financial interest" means an interest that could result
9
10 in directly or indirectly receiving a pecuniary gain or sustaining a
10
11 pecuniary loss as a result of ownership or interest in a business
11
12 entity, or as a result of salary, gratuity, or other compensation or
12
13 remuneration from any person;
13
14 5. 7. "Horse racing" means any type of horse racing, including,
14
15 but not limited to, Arabian, Appaloosa, Paint, Pinto, Quarter Horse,
15
16 and Thoroughbred horse racing.
16
17 a. "Arabian horse racing" means the form of horse racing
17
18 in which each participating horse is an Arabian horse
18
19 registered with the Arabian Horse Club Registry of
19
20 America and approved by the Arabian Horse Racing
20
21 Association of America or any successor organization,
21
22 mounted by a jockey, and engaged in races on the flat
22
23 over a distance of not less than one-quarter (1/4)
23
24 mile or more than four (4) miles.
24
Req. No. 2320 Page 2
1 b. "Appaloosa horse racing" means the form of horse
1
2 racing in which each participating horse is an
2
3 Appaloosa horse registered with the Appaloosa Horse
3
4 Club or any successor organization and mounted by a
4
5 jockey.
5
6 c. "Quarter Horse racing" means the form of horse racing
6
7 where in which each participating horse is a Quarter
7
8 Horse registered with the American Quarter Horse
8
9 Association or any successor organization, mounted by
9
10 a jockey, and engaged in a race on the flat.
10
11 d. "Paint horse racing" means the form of horse racing in
11
12 which each participating horse is a Paint horse
12
13 registered with the American Paint Horse Association
13
14 or any successor organization and mounted by a jockey.
14
15 e. "Pinto horse racing" means the form of horse racing in
15
16 which each participating horse is a Pinto horse
16
17 registered with the Pinto Horse Association of
17
18 America, Inc. or any successor organization and
18
19 mounted by a jockey.
19
20 f. "Thoroughbred horse racing" means the form of horse
20
21 racing in which each participating horse is a
21
22 Thoroughbred horse registered with the Jockey Club or
22
23 any successor organization, mounted by a jockey, and
23
24 engaged in races on the flat.
24
Req. No. 2320 Page 3
1 "Horse racing" Horse racing shall not mean the racing of a cloned
1
2 horse or offspring of a cloned horse regardless of whether any breed
2
3 association has registered the horse;
3
4 6. 8. "Minor" means any individual under eighteen (18) years of
4
5 age;
5
6 7. 9. "Minus pool" means a pari-mutuel pool in which, after
6
7 deducting the take-out, not enough money remains in the pool to pay
7
8 the legally prescribed minimum return to those placing winning
8
9 wagers, and in which the organization licensee would be required to
9
10 pay the remaining amount due;
10
11 8. 10. "Occupation licensee" means any person who has obtained
11
12 an occupation license;
12
13 9. 11. "Organization licensee" means any person receiving an
13
14 organization license;
14
15 10. 12. "Pari-mutuel system of wagering" means a form of
15
16 wagering on the outcome of horse races in which those who wager
16
17 purchase wagers of various denominations on a horse or horses and
17
18 all wagers for each race are pooled and held by the organization
18
19 licensee for distribution. The pari-mutuel system of wagering uses
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20 an electric totalizator or similar equipment which automatically
20
21 registers the wagers made on each horse;
21
22 11. 13. "Pari-mutuel pool" means the total money wagered by
22
23 individuals on any horse or horses in a particular horse race to
23
24 win, place, or show and held by the organization licensee pursuant
24
Req. No. 2320 Page 4
1 to the pari-mutuel system of wagering. There is a separate pari-
1
2 mutuel pool for win, for place, for show, and for each multiple
2
3 combination of betting approved by the Oklahoma Horse Racing
3
4 Commission;
4
5 12. 14. "Person" means any individual, partnership,
5
6 corporation, or other association or entity; and
6
7 13. 15. "Race meeting" means the entire period of time not to
7
8 exceed twenty (20) calendar days separating any race days for which
8
9 an organization license has been granted to a person by the
9
10 Commission to hold horse races at which the pari-mutuel system of
10
11 wagering is conducted, to hold non-pari-mutuel horse races or to
11
12 conduct accredited work or training races.
12
13 B. The Commission may define by rule or regulation any term
13
14 which is not defined in the Oklahoma Horse Racing Act.
14
15 SECTION 2. AMENDATORY 3A O.S. 2021, Section 204, is
15
16 amended to read as follows:
16
17 Section 204. A. The Oklahoma Horse Racing Commission shall:
17
18 1. Have supervision of:
18
19 a. all race meetings held in this state; provided, for
19
20 non-pari-mutuel race meetings and training races held
20
21 at non-pari-mutuel tracks, jurisdiction of the
21
22 Commission shall be limited to a period of time
22
23 beginning twelve (12) hours before the commencement of
23
24
24
Req. No. 2320 Page 5
1 the first race on a race day and ending four (4) hours
1
2 after the finish of the last race on a race day,
2
3 b. all occupation and organization licensees in this
3
4 state, and
4
5 c. all persons on the property of an organization
5
6 licensee; provided, for non-pari-mutuel race meetings
6
7 and training races held at non-pari-mutuel tracks,
7
8 supervision of such persons shall be limited to the
8
9 period set out in subparagraph a of this paragraph;
9
10 2. Have the authority to promulgate rules for the purpose of
10
11 administering the provisions of the Oklahoma Horse Racing Act;
11
12 3. Administer and enforce the provisions of the Oklahoma Horse
12
13 Racing Act and the rules of the Commission;
13
14 4. Adjudicate controversies arising from the enforcement of the
14
15 provisions of the Oklahoma Horse Racing Act and the rules of the
15
16 Commission;
16
17 5. Allocate racing days of not to exceed six (6) days per
17
18 calendar week, dates, and hours which that are in the best interests
18
19 of the people of this state to organization licensees;
19
20 6. Promulgate rules for the granting or refusing and the
20
21 suspension or revoking of licenses;
21
22 7. Promulgate rules for the holding, conducting, and operating
22
23 of all race meetings held in this state; provided, the rules of the
23
24 American Quarter Horse Association for regulation of the holding,
24
Req. No. 2320 Page 6
1 conducting, and operating of non-pari-mutuel race meetings and
1
2 training races held at non-pari-mutuel tracks shall serve as the
2
3 rules for the holding, conducting, and operating of non-pari-mutuel
3
4 race meetings and training races held at non-pari-mutuel tracks,
4
5 except that appeals from decisions of the stewards shall be to the
5
6 Commission, until such time as the Commission has promulgated
6
7 substantially similar rules for regulation of the holding,
7
8 conducting, and operating of non-pari-mutuel race meetings and
8
9 training races held at non-pari-mutuel tracks;
9
10 8. Promulgate rules to establish the terms and requirements for
10
11 obtaining and maintaining an advance deposit account wagering
11
12 license;
12
13 9. Have supervision and control of the pari-mutuel machines and
13
14 all other equipment at all race meetings held in this state;
14
15 9. 10. Check the making of pari-mutuel pools and the
15
16 distribution of such pools and shall:
16
17 a. contract with the Office of the State Auditor and
17
18 Inspector to conduct an annual audit and inspection of
18
19 live race meets in this state, and
19
20 b. reimburse the Office of the State Auditor and
20
21 Inspector for the cost of these services;
21
22 10. 11. Promulgate rules governing:
22
23 a. bids on leases,
23
24
24
Req. No. 2320 Page 7
1 b. the rate charged by an organization licensee for
1
2 admission to races, and
2
3 c. the rate charged for the performance of any service or
3
4 for the sale of any article on the premises of an
4
5 organization licensee;
5
6 11. 12. Approve all contracts and agreements for the payment of
6
7 money and all salaries, fees, and compensations by any organization
7
8 licensee;
8
9 12. 13. Have the authority to exclude, or compel the exclusion,
9
10 from any race meeting:
10
11 a. any person who violates the provisions of any rule or
11
12 order of the Commission or any law of this state, any
12
13 other state, or the United States,
13
14 b. any person who has been previously convicted of
14
15 violating any law of this state, any other state, the
15
16 United States, or
16
17 c. any other person, licensed or unlicensed, whose
17
18 conduct or reputation is such that his or her presence
18
19 at the race meeting may, in the opinion of the
19
20 Commission, reflect on the honesty and integrity of
20
21 horse racing or interfere with the orderly conduct of
21
22 the race meeting. No person shall be excluded or
22
23 ejected from a race meeting solely on the grounds of
23
24 race, color, creed, sex, national origin, or ancestry;
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Req. No. 2320 Page 8
1 13. 14. Have investigatory powers and authority to place
1
2 attendants and such other persons as may be deemed necessary by the
2
3 Commission in the offices, on the tracks, or in places of business
3
4 of any organization licensee for the purpose of determining whether
4
5 an organization or occupation licensee is complying with the
5
6 provisions of the Oklahoma Horse Racing Act and the rules of the
6
7 Commission;
7
8 14. 15. Have authority to acquire or contract with, or
8
9 establish, maintain, and operate testing laboratories and related
9
10 facilities for the purpose of conducting:
10
11 a. human substance abuse testing on occupation licensees
11
12 who may affect the outcome of race results. Human
12
13 substance abuse tests and the laboratories performing
13
14 such tests must meet the nationally recognized
14
15 standards specified in the Mandatory Guidelines for
15
16 Federal Workplace Drug Testing Programs adopted by the
16
17 United States Department of Health and Human Services.
17
18 The Commission may require any occupation licensee to
18
19 submit to a human substance abuse test if the
19
20 Commission has probable cause to believe that such
20
21 licensee is possessing or using any controlled
21
22 dangerous substance or any other drug in violation of
22
23 any federal or state law. Provided, on and after July
23
24 1, 1994, such testing shall be in compliance with the
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Req. No. 2320 Page 9
1 provisions of the Standards for Workplace Drug and
1
2 Alcohol Testing Act, and
2
3 b. a saliva test, a blood test, a urine test, or other
3
4 tests or combinations of tests on the horses run or to
4
5 be run in any race meeting. Prior to the Commission
5
6 entering into any contract pursuant to this paragraph,
6
7 the Attorney General shall review and approve the
7
8 contract. Any contract entered into pursuant to this
8
9 paragraph shall contain the specifications that were
9
10 in the request for bid for the contract;
10
11 15. 16. Approve of all proposed construction on property owned
11
12 or leased by an organization licensee;
12
13 16. 17. Have authority to require that all financial,
13
14 employment, or other records of an organization licensee shall be
14
15 kept in such manner as prescribed by the Commission and shall be
15
16 subject to inspection by the Commission. The organization licensee
16
17 shall submit to the Commission an annual balance sheet, profit-and-
17
18 loss statement, and any other information the Commission deems
18
19 necessary in order to administer the provisions of the Oklahoma
19
20 Horse Racing Act;
20
21 17. 18. Have the authority to suspend or revoke a license or
21
22 impose fines in amounts not to exceed Ten Thousand Dollars
22
23 ($10,000.00) against individuals for each violation and in amounts
23
24 not to exceed Twenty Thousand Dollars ($20,000.00) against
24
Req. No. 2320 Page 10
1 organization licensees for each violation of any provision of the
1
2 Oklahoma Horse Racing Act, any rules adopted by the Commission, or
2
3 any order of the Commission, or for any other action which, in the
3
4 discretion of the Commission, is a detriment or impediment to horse
4
5 racing or both such suspension or revocation and fine. Each day
5
6 upon which such violation or other action by the organization
6
7 licensee occurs shall constitute a separate offense;
7
8 18. 19. Have authority to suspend a horse from participating in
8
9 races if the horse has been involved in any violation of the rules
9
10 promulgated by the Commission or the provisions of the Oklahoma
10
11 Horse Racing Act; and
11
12 19. 20. Prepare and electronically submit an annual report to
12
13 the Governor, the Speaker of the House of Representatives, and the
13
14 President Pro Tempore of the Senate. The report shall include an
14
15 account of the operations, actions, and orders of the Commission,
15
16 and an accounting of all revenue received by the Commission.
16
17 B. 1. The Commission may delegate to stewards or the Executive
17
18 Director of the Commission, those of its powers and duties as it
18
19 deems necessary to fully implement and effectuate the purposes of
19
20 the Oklahoma Horse Racing Act.
20
21 2. The Commission, upon appeal or due consideration, may
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22 overrule any decision of a steward except decisions regarding
22
23 disqualifications for interference during the running of a race if a
23
24 preponderance of evidence indicates:
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Req. No. 2320 Page 11
1 a. the stewards mistakenly interpreted the law,
1
2 b. new evidence of a convincing nature is produced, or
2
3 c. the best interests of racing and the state may be
3
4 better served.
4
5 3. Any decision pertaining to the finish of a race, as used for
5
6 purposes of pari-mutuel pool distribution to winning ticket holders,
6
7 may not be overruled. Any decision pertaining to the distribution
7
8 of purses may be changed only if a claim is made in writing to the
8
9 Commission by one of the involved owners or trainers, and a
9
10 preponderance of evidence clearly indicates to the Commission that
10
11 one or more of the grounds for protest, as provided for in the rules
11
12 prepared by the Commission, has been substantiated.
12
13 SECTION 3. NEW LAW A new section of law to be codified
13
14 in the Oklahoma Statutes as Section 205.9 of Title 3A, unless there
14
15 is created a duplication in numbering, reads as follows:
15
16 Any advanced deposit account wagering provider that accepts
16
17 funds from an Internet Protocol (IP) address within this state
17
18 pursuant to 15 U.S.C., Section 3001 et seq., shall obtain an advance
18
19 deposit account wagering license from the Oklahoma Horse Racing
19
20 Commission.
20
21 SECTION 4. AMENDATORY 3A O.S. 2021, Section 281, is
21
22 amended to read as follows:
22
23 Section 281. This section sets forth the provisions of the
23
24 Model Tribal Gaming Compact.
24
Req. No. 2320 Page 12
1 MODEL TRIBAL GAMING COMPACT
1
2 Between the [Name of Tribe]
2
3 and the STATE OF OKLAHOMA
3
4 This Compact is made and entered into by and between the [Name
4
5 of Tribe], a federally recognized Indian tribe ("tribe"), and the
5
6 State of Oklahoma ("state"), with respect to the operation of
6
7 covered games (as defined herein) on the tribe's Indian lands as
7
8 defined by the Indian Gaming Regulatory Act, 25 U.S.C., Section
8
9 2703(4).
9
10 Part 1. TITLE
10
11 This document shall be referred to as the "[Name of Tribe] and
11
12 State of Oklahoma Gaming Compact".
12
13 Part 2. RECITALS
13
14 1. The tribe is a federally recognized tribal government
14
15 possessing sovereign powers and rights of self-government.
15
16 2. The State of Oklahoma is a state of the United States of
16
17 America possessing the sovereign powers and rights of a state.
17
18 3. The state and the tribe maintain a government-to-government
18
19 relationship, and this Compact will help to foster mutual respect
19
20 and understanding among Indians and non-Indians.
20
21 4. The United States Supreme Court has long recognized the
21
22 right of an Indian tribe to regulate activity on lands within its
22
23 jurisdiction.
23
24
24
Req. No. 2320 Page 13
1 5. The tribe desires to offer the play of covered games, as
1
2 defined in paragraphs 5, 10, 11 and 12 of Part 3 of this Compact, as
2
3 a means of generating revenues for purposes authorized by the Indian
3
4 Gaming Regulatory Act, 25 U.S.C., Section 2701, et seq., including
4
5 without limitation the support of tribal governmental programs, such
5
6 as health care, housing, sewer and water projects, police,
6
7 corrections, fire, judicial services, highway and bridge
7
8 construction, general assistance for tribal elders, day care for the
8
9 children, economic development, educational opportunities and other
9
10 typical and valuable governmental services and programs for tribal
10
11 members.
11
12 6. The state recognizes that the positive effects of this
12
13 Compact will extend beyond the tribe's lands to the tribe's
13
14 neighbors and surrounding communities and will generally benefit all
14
15 of Oklahoma. These positive effects and benefits may include not
15
16 only those described in paragraph 5 of this Part, but also may
16
17 include increased tourism and related economic development
17
18 activities.
18
19 7. The tribe and the state jointly wish to protect their
19
20 citizens from any criminal involvement in the gaming operations
20
21 regulated under this Compact.
21
22 Part 3. DEFINITIONS
22
23 As used in this Compact:
23
24
24
Req. No. 2320 Page 14
1 1. "Adjusted gross revenues" means the total receipts received
1
2 from the play of all covered games minus all prize payouts;
2
3 2. "Annual oversight assessment" means the assessment described
3
4 in subsection B of Part 11 of this Compact;
4
5 3. "Central computer" means a computer to which player
5
6 terminals are linked to allow competition in electronic bonanza-
6
7 style bingo games;
7
8 4. "Compact" means this Model Tribal Gaming Compact between the
8
9 state and the tribe, entered into pursuant to Section 280 of this
9
10 title;
10
11 5. "Covered game" means the following games conducted in
11
12 accordance with the standards, as applicable, set forth in Sections
12
13 270 through 277 of this title: an electronic bonanza-style bingo
13
14 game, an electronic amusement game, an electronic instant bingo
14
15 game, nonhouse-banked card games; any other game, if the operation
15
16 of such game by a tribe would require a compact and if such game has
16
17 been: (i) approved by the Oklahoma Horse Racing Commission for use
17
18 by an organizational licensee, (ii) approved by state legislation
18
19 for use by any person or entity, or (iii) approved by amendment of
19
20 the State-Tribal Gaming Act; and upon election by the tribe by
20
21 written supplement to this Compact, any Class II game in use by the
21
22 tribe, provided that no exclusivity payments shall be required for
22
23 the operation of such Class II game;
23
24
24
Req. No. 2320 Page 15
1 6. "Covered game employee" means any individual employed by the
1
2 enterprise or a third party providing management services to the
2
3 enterprise, whose responsibilities include the rendering of services
3
4 with respect to the operation, maintenance or management of covered
4
5 games. The term "covered game employee" includes, but is not
5
6 limited to, the following: managers and assistant managers;
6
7 accounting personnel; surveillance and security personnel; cashiers,
7
8 supervisors, and floor personnel; cage personnel; and any other
8
9 person whose employment duties require or authorize access to areas
9
10 of the facility related to the conduct of covered games or the
10
11 maintenance or storage of covered game components. This shall not
11
12 include upper level tribal employees or tribe's elected officials so
12
13 long as such individuals are not directly involved in the operation,
13
14 maintenance, or management of covered game components. The
14
15 enterprise may, at its discretion, include other persons employed at
15
16 or in connection with the enterprise within the definition of
16
17 covered game employee;
17
18 7. "Documents" means books, records, electronic, magnetic and
18
19 computer media documents and other writings and materials, copies
19
20 thereof, and information contained therein;
20
21 8. "Effective date" means the date on which the last of the
21
22 conditions set forth in subsection A of Part 15 of this Compact have
22
23 been met;
23
24
24
Req. No. 2320 Page 16
1 9. "Electronic accounting system" means an electronic system
1
2 that provides a secure means to receive, store and access data and
2
3 record critical functions and activities, as set forth in the State-
3
4 Tribal Gaming Act;
4
5 10. "Electronic amusement game" means a game that is played in
5
6 an electronic environment in which a player's performance and
6
7 opportunity for success can be improved by skill that conforms to
7
8 the standards set forth in the State-Tribal Gaming Act;
8
9 11. "Electronic bonanza-style bingo game" means a game played
9
10 in an electronic environment in which some or all of the numbers or
10
11 symbols are drawn or electronically determined before the electronic
11
12 bingo cards for that game are sold that conforms to the standards
12
13 set forth in the State-Tribal Gaming Act;
13
14 12. "Electronic instant bingo game" means a game played in an
14
15 electronic environment in which a player wins if his or her
15
16 electronic instant bingo card contains a combination of numbers or
16
17 symbols that was designated in advance of the game as a winning
17
18 combination. There may be multiple winning combinations in each
18
19 game and multiple winning cards that conform to the standards set
19
20 forth in the State-Tribal Gaming Act;
20
21 13. "Enterprise" means the tribe or the tribal agency or
21
22 section of tribal management with direct responsibility for the
22
23 conduct of covered games, the tribal business enterprise that
23
24 conducts covered games, or a person, corporation or other entity
24
Req. No. 2320 Page 17
1 that has entered into a management contract with the tribe to
1
2 conduct covered games, in accordance with IGRA. The names,
2
3 addresses and identifying information of any covered game employees
3
4 shall be forwarded to the SCA at least annually. In any event, the
4
5 tribe shall have the ultimate responsibility for ensuring that the
5
6 tribe or enterprise fulfills the responsibilities under this
6
7 Compact. For purposes of enforcement, the tribe is deemed to have
7
8 made all promises for the enterprise;
8
9 14. "Facility" means any building of the tribe in which the
9
10 covered games authorized by this Compact are conducted by the
10
11 enterprise, located on Indian lands as defined by IGRA. The tribe
11
12 shall have the ultimate responsibility for ensuring that a facility
12
13 conforms to the Compact as required herein;
13
14 15. "Game play credits" means a method of representing value
14
15 obtained from the exchange of cash or cash equivalents, or earned as
15
16 a prize, in connection with electronic gaming. Game play credits
16
17 may be redeemed for cash or a cash equivalent;
17
18 16. "Player terminals" means electronic or electromechanical
18
19 terminals housed in cabinets with input devices and video screens or
19
20 electromechanical displays on which players play electronic bonanza-
20
21 style bingo games, electronic instant bingo games or electronic
21
22 amusement games;
22
23 17. "Independent testing laboratory" means a laboratory of
23
24 national reputation that is demonstrably competent and qualified to
24
Req. No. 2320 Page 18
1 scientifically test and evaluate devices for compliance with this
1
2 Compact and to otherwise perform the functions assigned to it in
2
3 this Compact. An independent testing laboratory shall not be owned
3
4 or controlled by the tribe, the enterprise, an organizational
4
5 licensee as defined in the State-Tribal Gaming Act, the state, or
5
6 any manufacturer, supplier or operator of gaming devices. The
6
7 selection of an independent testing laboratory for any purpose under
7
8 this Compact shall be made from a list of one or more laboratories
8
9 mutually agreed upon by the parties; provided that the parties
9
10 hereby agree that any laboratory upon which the National Indian
10
11 Gaming Commission (NIGC) has relied for such testing may be utilized
11
12 for testing required by this Compact;
12
13 18. "IGRA" means the Indian Gaming Regulatory Act, Pub. L. 100-
13
14 497, Oct. October 17, 1988, 102 Stat. 2467, codified at 25 U.S.C.,
14
15 Section 2701 et seq. and 18 U.S.C., Sections 1166 to 1168;
15
16 19. "Nonhouse-banked card games" means any card game in which
16
17 the tribe has no interest in the outcome of the game, including
17
18 games played in tournament formats and games in which the tribe
18
19 collects a fee from the player for participating, and all bets are
19
20 placed in a common pool or pot from which all player winnings,
20
21 prizes and direct costs are paid. As provided herein,
21
22 administrative fees may be charged by the tribe against any common
22
23 pool in an amount equal to any fee paid the state; provided that the
23
24
24
Req. No. 2320 Page 19
1 tribe may seed the pool as it determines necessary from time to
1
2 time;
2
3 20. "Patron" means any person who is on the premises of a
3
4 gaming facility, for the purpose of playing covered games authorized
4
5 by this Compact;
5
6 21. "Principal" means, with respect to any entity, its sole
6
7 proprietor or any partner, trustee, beneficiary or shareholder
7
8 holding five percent (5%) or more of its beneficial or controlling
8
9 ownership, either directly or indirectly, or any officer, director,
9
10 principal management employee, or key employee thereof;
10
11 22. "Rules and regulations" means the rules and regulations
11
12 promulgated by the Tribal Compliance Agency for implementation of
12
13 this Compact;
13
14 23. "Standards" means the descriptions and specifications of
14
15 electronic amusement games, electronic bonanza-style bingo games and
15
16 electronic instant bingo games or components thereof as set forth in
16
17 Sections 270 through 277 of this title as enacted in 2004 or as
17
18 amended pursuant to paragraph 27 of this Part or subsection D of
18
19 Part 13 of this Compact, including technical specifications for
19
20 component parts, requirements for cashless transaction systems,
20
21 software tools for security and audit purposes, and procedures for
21
22 operation of such games;
22
23 24. "State" means the State of Oklahoma;
23
24
24
Req. No. 2320 Page 20
1 25. "State Compliance Agency" ("SCA") means the state agency
1
2 that has the authority to carry out the state's oversight
2
3 responsibilities under this Compact, which shall be the Office of
3
4 Management and Enterprise Services or its successor agency. Nothing
4
5 herein shall supplant the role or duties of the Oklahoma State
5
6 Bureau of Investigation under state law. The Oklahoma Horse Racing
6
7 Commission and the Oklahoma Tax Commission shall have no role in
7
8 regulating or oversight of any gaming conducted by a tribe;
8
9 26. "Tribal Compliance Agency" ("TCA") means the tribal
9
10 governmental agency that has the authority to carry out the tribe's
10
11 regulatory and oversight responsibilities under this Compact.
11
12 Unless and until otherwise designated by the tribe, the TCA shall be
12
13 the [Name of Tribe] Gaming Commission. No covered game employee may
13
14 be a member or employee of the TCA. The tribe shall have the
14
15 ultimate responsibility for ensuring that the TCA fulfills its
15
16 responsibilities under this Compact. The members of the TCA shall
16
17 be subject to background investigations and licensed to the extent
17
18 required by any tribal or federal law, and in accordance with
18
19 subsection B of Part 7 of this Compact. The tribe shall ensure that
19
20 all TCA officers and agents are qualified for such position and
20
21 receive ongoing training to obtain and maintain skills that are
21
22 sufficient to carry out their responsibilities in accordance with
22
23 industry standards;
23
24
24
Req. No. 2320 Page 21
1 27. "State-Tribal Gaming Act" means the legislation in which
1
2 this Model Tribal Gaming Compact is set forth and, at the tribe's
2
3 option, amendments or successor statutes thereto;
3
4 28. "Tribal law enforcement agency" means a police or security
4
5 force established and maintained by the tribe pursuant to the
5
6 tribe's powers of self-government to carry out law enforcement
6
7 duties at or in connection with a facility; and
7
8 29. "Tribe" means the [Name of Nation].
8
9 Part 4. AUTHORIZATION OF COVERED GAMES
9
10 A. The tribe and state agree that the tribe is authorized to
10
11 operate covered games only in accordance with this Compact.
11
12 However, nothing in this Compact shall limit the tribe's right to
12
13 operate any game that is Class II under IGRA and no Class II games
13
14 shall be subject to the exclusivity payments set forth in Part 11 of
14
15 this Compact. In the case of electronic bonanza-style bingo games,
15
16 there have been disagreements between tribes and federal regulators
16
17 as to whether or not such games are Class II. Without conceding
17
18 that such games are Class III, the tribe has agreed to compact with
18
19 the state to operate the specific type of electronic bonanza-style
19
20 bingo game described in this Compact to remove any legal uncertainty
20
21 as to the tribe's right to lawfully operate the game. Should the
21
22 electronic bonanza-style bingo game or the electronic instant bingo
22
23 game described in this act be determined to be Class II by the NIGC
23
24 or a federal court, then the tribe shall have the option to operate
24
Req. No. 2320 Page 22
1 such games outside of this Compact; provided, any obligations
1
2 pursuant to subsection F of Part 11 of this Compact shall not be
2
3 affected thereby.
3
4 B. A tribe shall not operate an electronic bonanza-style bingo
4
5 game, an electronic instant bingo game or an electronic amusement
5
6 game pursuant to this Compact until such game has been certified by
6
7 an independent testing laboratory and the TCA as meeting the
7
8 standards set out in the State-Tribal Gaming Act for electronic
8
9 bonanza-style bingo games, electronic instant bingo games or
9
10 electronic amusement games, as applicable or any standards contained
10
11 in the Oklahoma Horse Racing Commission rules issued pursuant to
11
12 subsection B of Section 268 of this title that modify the standards
12
13 for such games that may be conducted by organizational licensees.
13
14 Provided, the tribe may rely on any certification of an electronic
14
15 bonanza-style bingo game, an electronic instant bingo, or electronic
15
16 amusement games by the Oklahoma Horse Racing Commission which was
16
17 obtained by an organization licensee pursuant to the State-Tribal
17
18 Gaming Act to establish certification compliance under this Compact.
18
19 The tribe may also rely on any certification of an electronic
19
20 bonanza-style bingo game, electronic instant bingo or an electronic
20
21 amusement game by the TCA obtained by another tribe which has
21
22 entered into the model compact to establish certification compliance
22
23 under this Compact.
23
24
24
Req. No. 2320 Page 23
1 Part 5. RULES AND REGULATIONS; MINIMUM REQUIREMENTS FOR
1
2 OPERATIONS
2
3 A. Regulations. At all times during the Term of this Compact,
3
4 the tribe shall be responsible for all duties which are assigned to
4
5 it, the enterprise, the facility, and the TCA under this Compact.
5
6 The tribe shall promulgate any rules and regulations necessary to
6
7 implement this Compact, which at a minimum shall expressly include
7
8 or incorporate by reference all provisions of this Part 5 and the
8
9 procedural requirements of Part 6 of this Compact. Nothing in this
9
10 Compact shall be construed to affect the tribe's right to amend its
10
11 rules and regulations, provided that any such amendment shall be in
11
12 conformity with this Compact. The SCA may propose additional rules
12
13 and regulations related to implementation of this Compact to the TCA
13
14 at any time, and the TCA shall give good faith consideration to such
14
15 suggestions and shall notify the SCA of its response or action with
15
16 respect thereto.
16
17 B. Compliance; Internal Control Standards. All enterprises and
17
18 facilities shall comply with, and all covered games approved under
18
19 the procedures set forth in this Compact shall be operated in
19
20 accordance with the requirements set forth in this Compact,
20
21 including, but not limited to, those set forth in subsections C and
21
22 D of this Part. In addition, all enterprises and facilities shall
22
23 comply with tribal internal control standards that provide a level
23
24 of control that equals or exceeds those set forth in the National
24
Req. No. 2320 Page 24
1 Indian Gaming Commission's Minimum Internal Control Standards (25
1
2 C.F.R., Part 542).
2
3 C. Records. In addition to other records required to be
3
4 maintained herein, the enterprise or tribe shall maintain the
4
5 following records related to implementation of this Compact in
5
6 permanent form and as written or entered, whether manually or by
6
7 computer, and which shall be maintained by the enterprise and made
7
8 available for inspection by the SCA for no less than three (3) years
8
9 from the date generated:
9
10 1. A log recording all surveillance activities in the
10
11 monitoring room of the facility, including, but not limited to,
11
12 surveillance records kept in the normal course of enterprise
12
13 operations and in accordance with industry standards; provided,
13
14 notwithstanding anything to the contrary herein, surveillance
14
15 records may, at the discretion of the enterprise, be destroyed if no
15
16 incident has been reported within one (1) year following the date
16
17 such records were made. Records, as used in this Compact, shall
17
18 include video tapes and any other storage media;
18
19 2. Payout from the conduct of all covered games;
19
20 3. Maintenance logs for all covered games gaming equipment used
20
21 by the enterprise;
21
22 4. Security logs as kept in the normal course of conducting and
22
23 maintaining security at the facility, which at a minimum shall
23
24 conform to industry practices for such reports. The security logs
24
Req. No. 2320 Page 25
1 shall document any unusual or nonstandard activities, occurrences or
1
2 events at or related to the facility or in connection with the
2
3 enterprise. Each incident, without regard to materiality, shall be
3
4 assigned a sequential number for each such report. At a minimum,
4
5 the security logs shall consist of the following information, which
5
6 shall be recorded in a reasonable fashion noting:
6
7 a. the assigned number of the incident,
7
8 b. the date of the incident,
8
9 c. the time of the incident,
9
10 d. the location of the incident,
10
11 e. the nature of the incident,
11
12 f. the identity, including identification information, of
12
13 any persons involved in the incident and any known
13
14 witnesses to the incident, and
14
15 g. the tribal compliance officer making the report and
15
16 any other persons contributing to its preparation;
16
17 5. Books and records on all covered game activities of the
17
18 enterprise shall be maintained in accordance with generally accepted
18
19 accounting principles (GAAP); and
19
20 6. All documents generated in accordance with this Compact.
20
21 D. Use of Net Revenues. Net revenues that the tribe receives
21
22 from covered games are to be used for any one or more of those
22
23 purposes permitted under IGRA:
23
24 1. To fund tribal government operations or programs;
24
Req. No. 2320 Page 26
1 2. To provide for the general welfare of the tribe and its
1
2 members;
2
3 3. To promote tribal economic development;
3
4 4. To donate to charitable organizations; or
4
5 5. To help fund operations of local government agencies.
5
6 E. 1. The tribe's rules and regulations shall require the
6
7 enterprise at a minimum to bar persons based on their prior conduct
7
8 at the facility or who, because of their criminal history or
8
9 association with criminal offenders, pose a threat to the integrity
9
10 of the conduct of covered games.
10
11 2. The TCA shall establish a list of the persons barred from
11
12 the facility.
12
13 3. The enterprise shall employ its best efforts to exclude
13
14 persons on such list from entry into its facility; provided, neither
14
15 persons who are barred but gain access to the facility, nor any
15
16 other person, shall have any claim against the state, the tribe or
16
17 the enterprise or any other person for failing to enforce such bar.
17
18 4. Patrons who believe they may be playing covered games on a
18
19 compulsive basis may request that their names be placed on the list.
19
20 All covered game employees shall receive training on identifying
20
21 players who have a problem with compulsive playing and shall be
21
22 instructed to ask them to leave. Signs and other materials shall be
22
23 readily available to direct such compulsive players to agencies
23
24 where they may receive counseling.
24
Req. No. 2320 Page 27
1 F. Audits. 1. Consistent with 25 C.F.R., Section 571.12,
1
2 Audit Standards, the TCA shall ensure that an annual independent
2
3 financial audit of the enterprise's conduct of covered games subject
3
4 to this Compact is secured. The audit shall, at a minimum, examine
4
5 revenues and expenses in connection with the conduct of covered
5
6 games in accordance with generally accepted auditing standards and
6
7 shall include, but not be limited to, those matters necessary to
7
8 verify the determination of adjusted gross revenues and the basis of
8
9 the payments made to the state pursuant to Part 11 of this Compact.
9
10 2. The auditor selected by the TCA shall be a firm of known and
10
11 demonstrable experience, expertise and stature in conducting audits
11
12 of this kind and scope.
12
13 3. The audit shall be concluded within five (5) months
13
14 following the close of each calendar year, provided that extensions
14
15 may be requested by the tribe and shall not be refused by the state
15
16 where the circumstances justifying the extension request are beyond
16
17 the tribe's control.
17
18 4. The audit of the conduct of covered games may be conducted
18
19 as part of or in conjunction with the audit of the enterprise, but
19
20 if so conducted shall be separately stated for the reporting
20
21 purposes required herein.
21
22 5. The audit shall conform to generally accepted auditing
22
23 standards. As part of the audit report, the auditor shall certify
23
24 to the TCA that, in the course of the audit, the auditor discovered
24
Req. No. 2320 Page 28
1 no matters within the scope of the audit which were determined or
1
2 believed to be in violation of any provision of this Compact.
2
3 6. The enterprise shall assume all costs in connection with the
3
4 audit.
4
5 7. The audit report for the conduct of covered games shall be
5
6 submitted to the SCA within thirty (30) days of completion. The
6
7 auditor's work papers concerning covered games shall be made
7
8 available to the SCA upon request.
8
9 8. Representatives of the SCA may, upon request, meet with the
9
10 auditors to discuss the work papers, the audit or any matters in
10
11 connection therewith; provided, such discussions are limited to
11
12 covered games information and pursue legitimate state covered games
12
13 interests.
13
14 G. Rules for Play of and Prizes for Covered Games. Summaries
14
15 of the rules for playing covered games and winning prizes shall be
15
16 visibly displayed in the facility. Complete sets of rules shall be
16
17 available in pamphlet form in the facility.
17
18 H. Supervisory Line of Authority. The enterprise shall provide
18
19 the TCA and SCA with a chart of the supervisory lines of authority
19
20 with respect to those directly responsible for the conduct of
20
21 covered games, and shall promptly notify those agencies of any
21
22 material changes thereto.
22
23 I. Sale of Alcoholic Beverages. The sale and service of
23
24 alcoholic beverages in a facility shall be in compliance with state,
24
Req. No. 2320 Page 29
1 federal and tribal law in regard to the licensing and sale of such
1
2 beverages.
2
3 J. Age Restrictions. No person who would not be eligible to be
3
4 a patron of a pari-mutuel system of wagering pursuant to the
4
5 provisions of subsection B of Section 208.4 of this title shall be
5
6 admitted into any area in a facility where covered games are played,
6
7 nor be permitted to operate, or obtain a prize from or in connection
7
8 with the operation of, any covered game, directly or indirectly.
8
9 K. Destruction of Documents. Enterprise books, records and
9
10 other materials documenting the conduct of covered games shall be
10
11 destroyed only in accordance with rules and regulations adopted by
11
12 the TCA, which at a minimum shall provide as follows:
12
13 1. Material that might be utilized in connection with a
13
14 potential tort claim pursuant to Part 6 of this Compact, including,
14
15 but not limited to, incident reports, surveillance records,
15
16 statements, and the like, shall be maintained at least one (1) year
16
17 beyond the time which a claim can be made under Part 6 of this
17
18 Compact or, if a tort claim is made, beyond the final disposition of
18
19 such claim;
19
20 2. Material that might be utilized in connection with a prize
20
21 claim, including but not limited to incident reports, surveillance
21
22 records, statements, and the like, shall be maintained at least one
22
23 hundred eighty (180) days beyond the time which a claim can be made
23
24
24
Req. No. 2320 Page 30
1 under Part 6 of this Compact or, if a prize claim is made, beyond
1
2 the final disposition of such claim; and
2
3 3. Notwithstanding anything herein to the contrary, all
3
4 enterprise books and records with respect to the conduct of covered
4
5 games or the operation of the enterprise, including, but not limited
5
6 to, all interim and final financial and audit reports and materials
6
7 related thereto which have been generated in the ordinary course of
7
8 business, shall be maintained for the minimum period of three (3)
8
9 years.
9
10 L. Location. The tribe may establish and operate enterprises
10
11 and facilities that operate covered games only on its Indian lands
11
12 as defined by IGRA. The tribe shall notify the SCA of the operation
12
13 of any new facility following the effective date of this Compact.
13
14 Nothing herein shall be construed as expanding or otherwise altering
14
15 the term "Indian lands", as that term is defined in the IGRA, nor
15
16 shall anything herein be construed as altering the federal process
16
17 governing the tribal acquisition of "Indian lands" for gaming
17
18 purposes.
18
19 M. Records of Covered Games. The TCA shall keep a record of,
19
20 and shall report at least quarterly to the SCA, the number of
20
21 covered games in each facility, by the name or type of each and its
21
22 identifying number.
22
23 PART Part 6. TORT CLAIMS; PRIZE CLAIMS; LIMITED CONSENT TO SUIT
23
24
24
Req. No. 2320 Page 31
1 A. Tort Claims. The enterprise shall ensure that patrons of a
1
2 facility are afforded due process in seeking and receiving just and
2
3 reasonable compensation for a tort claim for personal injury or
3
4 property damage against the enterprise arising out of incidents
4
5 occurring at a facility, hereinafter "tort claim", as follows:
5
6 1. During the term of this Compact, the enterprise shall
6
7 maintain public liability insurance for the express purposes of
7
8 covering and satisfying tort claims. The insurance shall have
8
9 liability limits of not less than Two Hundred Fifty Thousand Dollars
9
10 ($250,000.00) for any one person and Two Million Dollars
10
11 ($2,000,000.00) for any one occurrence for personal injury, and One
11
12 Million Dollars ($1,000,000.00) for any one occurrence for property
12
13 damage, hereinafter the "limit of liability", or the corresponding
13
14 limits under the The Governmental Tort Claims Act, whichever is
14
15 greater. No tort claim shall be paid, or be the subject of any
15
16 award, in excess of the limit of liability;
16
17 2. The tribe consents to suit on a limited basis with respect
17
18 to tort claims subject to the limitations set forth in this
18
19 subsection and subsection C of this Part. No consents to suit with
19
20 respect to tort claims, or as to any other claims against the tribe
20
21 shall be deemed to have been made under this Compact, except as
21
22 provided in subsections B and C of this Part;
22
23 3. The enterprise's insurance policy shall include an
23
24 endorsement providing that the insurer may not invoke tribal
24
Req. No. 2320 Page 32
1 sovereign immunity in connection with any claim made within the
1
2 limit of liability if the claim complies with the limited consent
2
3 provisions of subsection C of this Part. Copies of all such
3
4 insurance policies shall be forwarded to the SCA;
4
5 4. Any patron having a tort claim shall file a written tort
5
6 claim notice by delivery to the enterprise or the TCA. The date the
6
7 tort claim notice is filed with the enterprise or the TCA shall be
7
8 deemed the official date of filing the tort claim notice. The tort
8
9 claim notice shall be filed within one (1) year of the date of the
9
10 event which allegedly caused the claimed loss. Failure to file the
10
11 tort claim notice during such period of time shall forever bar such
11
12 tort claim; provided that a tort claim notice filed with the
12
13 enterprise or the TCA more than ninety (90) days, but within one (1)
13
14 year, after the event shall be deemed to be timely filed, but any
14
15 judgment thereon shall be reduced by ten percent (10%).;
15
16 5. If the tort claim notice is filed with the TCA, the TCA
16
17 shall forward a copy of the tort claim to the enterprise and the SCA
17
18 within forty-eight (48) hours of filing, and if the tort claim
18
19 notice is filed with the enterprise, the enterprise shall forward a
19
20 copy of the tort claim to the TCA and the SCA within forty-eight
20
21 (48) hours of filing;
21
22 6. The tort claim notice shall state the date, time, place and
22
23 circumstances of the incident upon which the tort claim is based,
23
24 the identity of any persons known to have information regarding the
24
Req. No. 2320 Page 33
1 incident, including employees or others involved in or who witnessed
1
2 the incident, the amount of compensation and the basis for said
2
3 relief; the name, address and telephone number of the claimant, and
3
4 the name, address and telephone number of any representative
4
5 authorized to act or settle the claim on behalf of the claimant;
5
6 7. All tort claim notices shall be signed by the claimant. The
6
7 rules and regulations may additionally require that the tort claim
7
8 notices be signed under oath. The rules and regulations may also
8
9 require that as a condition of prosecuting tort claims, the claimant
9
10 shall appear to be interviewed or deposed at least once under
10
11 reasonable circumstances, which shall include the attendance of the
11
12 claimant's legal counsel if requested; provided that the enterprise
12
13 shall afford claimant at least thirty (30) days' written notice of
13
14 the interview or deposition; and provided further that the
14
15 claimant's failure to appear without cause for any interview or
15
16 deposition properly noticed pursuant to this paragraph shall be
16
17 deemed a voluntary withdrawal of the tort claim;
17
18 8. The enterprise shall promptly review, investigate, and make
18
19 a determination regarding the tort claim. Any portion of a tort
19
20 claim which is unresolved shall be deemed denied if the enterprise
20
21 fails to notify the claimant in writing of its approval within
21
22 ninety (90) days of the filing date, unless the parties by written
22
23 agreement extend the date by which a denial shall be deemed issued
23
24 if no other action is taken. Each extension shall be for no more
24
Req. No. 2320 Page 34
1 than ninety (90) days, but there shall be no limit on the number of
1
2 written agreements for extensions; provided, that no written
2
3 agreement for extension shall be valid unless signed by the claimant
3
4 and an authorized representative of the enterprise. The claimant
4
5 and the enterprise may continue attempts to settle a claim beyond an
5
6 extended date; provided, settlement negotiations shall not extend
6
7 the date of denial in the absence of a written agreement for
7
8 extension as required by this paragraph;
8
9 9. A judicial proceeding for any cause arising from a tort
9
10 claim may be maintained in accordance with and subject to the
10
11 limitations of subsection C of this Part only if the following
11
12 requirements have been met:
12
13 a. the claimant has followed all procedures required by
13
14 this Part, including, without limitation, the delivery
14
15 of a valid and timely written tort claim notice to the
15
16 enterprise,
16
17 b. the enterprise has denied the tort claim, and
17
18 c. the claimant has filed the judicial proceeding no
18
19 later than the one-hundred-eightieth day after denial
19
20 of the claim by the enterprise; provided, that neither
20
21 the claimant nor the enterprise may agree to extend
21
22 the time to commence a judicial proceeding; and
22
23 10. Notices explaining the procedure and time limitations with
23
24 respect to making a tort claim shall be prominently posted in the
24
Req. No. 2320 Page 35
1 facility. Such notices shall explain the method and places for
1
2 making a tort claim, that this procedure is the exclusive method of
2
3 making a tort claim, and that claims that do not follow these
3
4 procedures shall be forever barred. The enterprise shall make
4
5 pamphlets containing the requirements in this subsection readily
5
6 available to all patrons of the facility and shall provide such
6
7 pamphlets to a claimant within five (5) days of the filing of a
7
8 claim.
8
9 B. Prize Claims. The enterprise shall ensure that patrons of a
9
10 facility are afforded due process in seeking and receiving just and
10
11 reasonable compensation arising from a patron's dispute, in
11
12 connection with his or her play of any covered game, the amount of
12
13 any prize which has been awarded, the failure to be awarded a prize,
13
14 or the right to receive a refund or other compensation, hereafter
14
15 hereinafter "prize claim", as follows:
15
16 1. The tribe consents to suit on a limited basis with respect
16
17 to prize claims against the enterprise only as set forth in
17
18 subsection C of this Part; no consents to suit with respect to prize
18
19 claims, or as to any other claims against the tribe shall be deemed
19
20 to have been made under this Compact, except as provided in
20
21 subsections A and C of this Part;
21
22 2. The maximum amount of any prize claim shall be the amount of
22
23 the prize which the claimant establishes he or she was entitled to
23
24 be awarded, hereafter hereinafter "prize limit";
24
Req. No. 2320 Page 36
1 3. Any patron having a prize claim shall file a written prize
1
2 claim notice by delivery to the enterprise or the TCA. The date the
2
3 prize claim is filed with the enterprise or the TCA shall be deemed
3
4 the official date of filing the prize claim notice. The prize claim
4
5 notice shall be filed within ten (10) days of the event which is the
5
6 basis of the claim. Failure to file the prize claim notice during
6
7 such period of time shall forever bar such prize claim;
7
8 4. If the prize claim notice is filed with the TCA, the TCA
8
9 shall forward a copy of the prize claim to the enterprise and the
9
10 SCA within forty-eight (48) hours of its filing; and if the prize
10
11 claim notice is filed with the enterprise, the enterprise shall
11
12 forward a copy of the tort claim to the TCA and the SCA within
12
13 forty-eight (48) hours of filing;
13
14 5. The written prize claim notice shall state the date, time,
14
15 place and circumstances of the incident upon which the prize claim
15
16 is based, the identity of any persons known to have information
16
17 regarding the incident, including employees or others involved in or
17
18 who witnessed the incident, the amount demanded and the basis for
18
19 said amount, the name, address and telephone number of the claimant,
19
20 and the name, address and telephone number of any representative
20
21 authorized to act or settle the claim on behalf of the claimant;
21
22 6. All notices of prize claims shall be signed by the claimant.
22
23 The rules and regulations may additionally require that the prize
23
24 claim notices be signed under oath;
24
Req. No. 2320 Page 37
1 7. The enterprise shall promptly review, investigate and make a
1
2 determination regarding the prize claim. Claimants shall cooperate
2
3 in providing information, including personal sworn statements and
3
4 agreeing to be interviewed, as the enterprise shall reasonably
4
5 request. The claimant is permitted to have counsel present during
5
6 any such interview;
6
7 8. If the prize claim is not resolved within seventy-two (72)
7
8 hours from the time of filing the claim in accordance with paragraph
8
9 5 of this subsection, the TCA shall immediately notify the SCA in
9
10 writing that the claim has not been resolved;
10
11 9. In the event the claim is resolved, the TCA shall not be
11
12 obligated to report that fact to the SCA, but shall make TCA reports
12
13 available for review;
13
14 10. Any portion of a prize claim which is unresolved shall be
14
15 deemed denied if the enterprise fails to notify the claimant in
15
16 writing of its approval within thirty (30) days of the filing date,
16
17 unless the parties agree by written agreement to extend the date.
17
18 Each extension shall be for no more than thirty (30) days, but there
18
19 shall be no limit on the number of written agreements for
19
20 extensions; provided, that no written agreements for extension shall
20
21 be valid unless signed by the claimant and an authorized
21
22 representative of the TCA. The claimant and the enterprise may
22
23 continue attempts to settle a claim beyond an extended date;
23
24 provided, settlement negotiations shall not extend the date of
24
Req. No. 2320 Page 38
1 denial in the absence of a written extension required by this
1
2 paragraph;
2
3 11. A judicial proceeding for any cause arising from a prize
3
4 claim may be maintained in accordance with and subject to the
4
5 limitations of subsection C of this Part only if the following
5
6 requirements have been met:
6
7 a. the claimant has followed all procedures required by
7
8 this Part, including without limitation, the delivery
8
9 of a valid and timely written prize claim notice to
9
10 the enterprise,
10
11 b. the enterprise has denied the prize claim, and
11
12 c. the claimant has filed the judicial proceeding no
12
13 later than one hundred eighty (180) days after denial
13
14 of the claim by the enterprise; provided that neither
14
15 the claimant nor the enterprise may extend the time to
15
16 commence a judicial proceeding; and
16
17 12. Notices explaining the procedure and time limitations with
17
18 respect to making a prize claim shall be prominently posted in the
18
19 facility. Such notices shall explain the method and places for
19
20 making claims, that this procedure is the exclusive method of making
20
21 a prize claim, and that claims that do not follow this procedure
21
22 shall be forever barred. The enterprise shall make pamphlets
22
23 containing the requirements in this subsection readily available to
23
24 all patrons of the facility and shall provide such pamphlets to a
24
Req. No. 2320 Page 39
1 claimant by the TCA within five (5) days of the filing date of a
1
2 claim.
2
3 C. Limited Consent to Suit for Tort Claims and Prize Claims.
3
4 The tribe consents to suit against the enterprise in a court of
4
5 competent jurisdiction with respect to a tort claim or prize claim
5
6 if all requirements of paragraph 9 of subsection A of this Part or
6
7 all requirements of paragraph 11 of subsection B of this Part have
7
8 been met; provided that such consent shall be subject to the
8
9 following additional conditions and limitations:
9
10 1. For tort claims, consent to suit is granted only to the
10
11 extent such claim or any award or judgment rendered thereon does not
11
12 exceed the limit of liability. Under no circumstances shall any
12
13 consent to suit be effective as to any award which exceeds such
13
14 applicable amounts. This consent shall only extend to the patron
14
15 actually claiming to have been injured. A tort claim shall not be
15
16 assignable. In the event any assignment of the tort claim is made
16
17 in violation of this Compact, or any person other than the patron
17
18 claiming the injury becomes a party to any action hereunder, this
18
19 consent shall be deemed revoked for all purposes. Notwithstanding
19
20 the foregoing, consent to suit shall not be revoked if an action on
20
21 a tort claim is filed by (i) a court appointed representative of a
21
22 claimant's estate, (ii) an indispensable party, or (iii) a health
22
23 provider or other party subrogated to the claimant's rights by
23
24 virtue of any insurance policy; provided, that nothing herein is
24
Req. No. 2320 Page 40
1 intended to, or shall constitute a consent to suit against the
1
2 enterprise as to such party except to the extent such party's claim
2
3 is:
3
4 a. in lieu of and identical to the claim that would have
4
5 been made by the claimant directly but for the
5
6 appointment of said representative or indispensable
6
7 party, and participation of such other party is in
7
8 lieu of and not in addition to pursuit of the claim by
8
9 the patron, and
9
10 b. the claim of such other party would have been subject
10
11 to a consent to suit hereunder if it had been made by
11
12 the claimant directly; and
12
13 2. For prize claims, consent is granted only to the extent such
13
14 claim does not exceed the prize limit. Under no circumstances shall
14
15 any award exceed the prize limit. This consent shall only extend to
15
16 the patron actually claiming to have engaged in the play of a
16
17 covered game on which the claim is based. Prize claims shall not be
17
18 assignable. In the event any assignment of the prize claim is made,
18
19 or any person other than the claimant entitled to make the claim
19
20 becomes a party to any action hereunder, this consent shall be
20
21 deemed revoked for all purposes. Notwithstanding the foregoing,
21
22 consent to suit shall not be revoked if an action on a prize claim
22
23 is filed by (i) a court-appointed representative of a claimant's
23
24 estate, or (ii) an indispensable party, provided that nothing herein
24
Req. No. 2320 Page 41
1 is intended to, or shall constitute a consent to suit against the
1
2 enterprise as to such party except to the extent such party's claim
2
3 is:
3
4 a. in lieu of and identical to the claim that would have
4
5 been made by the claimant directly but for the
5
6 appointment of said representative or indispensable
6
7 party, and participation of such other party is in
7
8 lieu of and not in addition to pursuit of the claim by
8
9 the patron, and
9
10 b. the claim of such other party would have been subject
10
11 to a consent to suit hereunder if it had been made by
11
12 the claimant directly.
12
13 D. Remedies in the Event of No or Inadequate Insurance for Tort
13
14 Claim. In the event a tort claim is made and there is no, or
14
15 inadequate, insurance in effect as required under this Compact, the
15
16 enterprise shall be deemed to be in default hereunder unless, within
16
17 ten (10) days of a demand by the SCA or a claimant to do so, the
17
18 enterprise has posted in an irrevocable escrow account at a state or
18
19 federally chartered bank which is not owned or controlled by the
19
20 tribe, sufficient cash, a bond or other security sufficient to cover
20
21 any award that might be made within the limits set forth in
21
22 paragraph 1 of subsection A of this Part, and informs the claimant
22
23 and the state of:
23
24 1. The posting of the cash or bond;
24
Req. No. 2320 Page 42
1 2. The means by which the deposit can be independently verified
1
2 as to the amount and the fact that it is irrevocable until the
2
3 matter is finally resolved;
3
4 3. The right of the claimant to have this claim satisfied from
4
5 the deposit if the claimant is successful on the claim; and
5
6 4. The notice and hearing opportunities in accordance with the
6
7 tribe's tort law, if any, otherwise in accordance with principles of
7
8 due process, which will be afforded to the claimant so that the
8
9 intent of this Compact to provide claimants with a meaningful
9
10 opportunity to seek a just remedy under fair conditions will be
10
11 fulfilled.
11
12 Part 7. ENFORCEMENT OF COMPACT PROVISIONS
12
13 A. The tribe and TCA shall be responsible for regulating
13
14 activities pursuant to this Compact. As part of its
14
15 responsibilities, the tribe shall require the enterprise do the
15
16 following:
16
17 1. Operate the conduct of covered games in compliance with this
17
18 Compact, including, but not limited to, the standards and the
18
19 tribe's rules and regulations;
19
20 2. Take reasonable measures to assure the physical safety of
20
21 enterprise patrons and personnel, prevent illegal activity at the
21
22 facility, and protect any rights of patrons under the Indian Civil
22
23 Rights Act of 1968, 25 U.S.C., Sec. 1302-1303 Sections 1302 through
23
24 1303;
24
Req. No. 2320 Page 43
1 3. Promptly notify appropriate law enforcement authorities of
1
2 persons who may be involved in illegal acts in accordance with
2
3 applicable law;
3
4 4. Assure that the construction and maintenance of the facility
4
5 meets or exceeds federal and tribal standards for comparable
5
6 buildings; and
6
7 5. Prepare adequate emergency access plans to ensure the health
7
8 and safety of all covered game patrons. Upon the finalization of
8
9 emergency access plans, the TCA or enterprise shall forward copies
9
10 of such plans to the SCA.
10
11 B. All licenses for members and employees of the TCA shall be
11
12 issued according to the same standards and terms applicable to
12
13 facility employees. The TCA shall employ qualified compliance
13
14 officers under the authority of the TCA. The compliance officers
14
15 shall be independent of the enterprise, and shall be supervised and
15
16 accountable only to the TCA. A TCA compliance officer shall be
16
17 available to the facility during all hours of operation upon
17
18 reasonable notice, and shall have immediate access to any and all
18
19 areas of the facility for the purpose of ensuring compliance with
19
20 the provisions of this Compact. The TCA shall investigate any such
20
21 suspected or reported violation of this Compact and shall require
21
22 the enterprise to correct such violations. The TCA shall officially
22
23 enter into its files timely written reports of investigations and
23
24 any action taken thereon, and shall forward copies of such reports
24
Req. No. 2320 Page 44
1 to the SCA within fifteen (15) days of such filing. Any such
1
2 violations shall be reported immediately to the TCA, and the TCA
2
3 shall immediately forward the same to the SCA. In addition, the TCA
3
4 shall promptly report to the SCA any such violations which it
4
5 independently discovers.
5
6 C. In order to develop and foster a positive and effective
6
7 relationship in the enforcement of the provisions of this Compact,
7
8 representatives of the TCA and the SCA shall meet, not less than on
8
9 an annual basis, to review past practices and examine methods to
9
10 improve the regulatory scheme created by this Compact. The meetings
10
11 shall take place at a location mutually agreed to by the TCA and the
11
12 SCA. The SCA, prior to or during such meetings, shall disclose to
12
13 the TCA any concerns, suspected activities, or pending matters
13
14 reasonably believed to possibly constitute violations of this
14
15 Compact by any person, organization or entity, if such disclosure
15
16 will not compromise the interest sought to be protected.
16
17 Part 8. STATE MONITORING OF COMPACT
17
18 A. The SCA shall, pursuant to the provisions of this Compact,
18
19 have the authority to monitor the conduct of covered games to ensure
19
20 that the covered games are conducted in compliance with the
20
21 provisions of this Compact. In order to properly monitor the
21
22 conduct of covered games, agents of the SCA shall have reasonable
22
23 access to all areas of the facility related to the conduct of
23
24 covered games as provided herein:
24
Req. No. 2320 Page 45
1 1. Access to the facility by the SCA shall be during the
1
2 facility's normal operating hours only; provided that to the extent
2
3 such inspections are limited to areas of the facility where the
3
4 public is normally permitted, SCA agents may inspect the facility
4
5 without giving prior notice to the enterprise;
5
6 2. Any suspected or claimed violations of this Compact or of
6
7 law shall be directed in writing to the TCA; SCA agents shall not
7
8 interfere with the functioning of the enterprise; and
8
9 3. Before SCA agents enter any nonpublic area of the facility,
9
10 they shall provide proper photographic identification to the TCA.
10
11 SCA agents shall be accompanied in nonpublic areas of the facility
11
12 by a TCA agent. A one-hour notice by SCA to the TCA may be required
12
13 to assure that a TCA officer is available to accompany SCA agents at
13
14 all times.
14
15 B. Subject to the provisions herein, agents of the SCA shall
15
16 have the right to review and copy documents of the enterprise
16
17 related to its conduct of covered games. The review and copying of
17
18 such documents shall be during normal business hours or hours
18
19 otherwise at tribe's discretion. However, the SCA shall not be
19
20 permitted to copy those portions of any documents of the enterprise
20
21 related to its conduct of covered games that contain business or
21
22 marketing strategies or other proprietary and confidential
22
23 information of the enterprise, including, but not limited to,
23
24 customer lists, business plans, advertising programs, marketing
24
Req. No. 2320 Page 46
1 studies, and customer demographics or profiles. No documents of the
1
2 enterprise related to its conduct of covered games or copies thereof
2
3 shall be released to the public by the state under any
3
4 circumstances. All such documents shall be deemed confidential
4
5 documents owned by the tribe and shall not be subject to public
5
6 release by the state.
6
7 C. At the completion of any SCA inspection or investigation,
7
8 the SCA shall forward a written report thereof to the TCA. The TCA
8
9 shall be apprised on a timely basis of all pertinent,
9
10 nonconfidential information regarding any violation of federal,
10
11 state, or tribal laws, the rules or regulations, or this Compact.
11
12 Nothing herein prevents the SCA from contacting tribal or federal
12
13 law enforcement authorities for suspected criminal wrongdoing
13
14 involving the TCA. TCA may interview SCA inspectors upon reasonable
14
15 notice and examine work papers and SCA in the same fashion that SCA
15
16 inspectors may examine auditors' notes and make auditor inquiry
16
17 unless providing such information to the TCA will compromise the
17
18 interests sought to be protected. If the SCA determines that
18
19 providing the information to the TCA will compromise the interests
19
20 sought to be protected, then the SCA shall provide such information
20
21 to the tribe in accordance with Part 13 14 of this Compact.
21
22 D. Nothing in this Compact shall be deemed to authorize the
22
23 state to regulate the tribe's government, including the TCA, or to
23
24 interfere in any way with the tribe's selection of its governmental
24
Req. No. 2320 Page 47
1 officers, including members of the TCA; provided, however, the SCA
1
2 and the tribe, upon request of the tribe, shall jointly employ, at
2
3 the tribe's expense, an independent firm to perform on behalf of the
3
4 SCA the duties set forth in subsections A and B of this Part.
4
5 Part 9. JURISDICTION
5
6 This Compact shall not alter tribal, federal or state civil
6
7 adjudicatory or criminal jurisdiction.
7
8 Part 10. LICENSING
8
9 A. 1. Except as provided in paragraph 6 of Part 3 of this
9
10 Compact, no covered game employee shall be employed at a facility or
10
11 by an enterprise unless such person is licensed in accordance with
11
12 this Compact. In addition to the provisions of this Part which are
12
13 applicable to the licensing of all covered game employees, the
13
14 requirements of 25 C.F.R., Part 556, Background Investigations for
14
15 Primary Management Officials and Key Employees, and 25 C.F.R., Part
15
16 558, Gaming Licenses for Key Employees and Primary Management
16
17 Officials, apply to Key Employees and Primary Management Officials
17
18 of the facility and enterprise.
18
19 2. All prospective covered game employees shall apply to the
19
20 TCA for a license. Licenses shall be issued for periods of no more
20
21 than two (2) years, after which they may be renewed only following
21
22 review and update of the information upon which the license was
22
23 based; provided, the TCA may extend the period in which the license
23
24 is valid for a reasonable time pending the outcome of any
24
Req. No. 2320 Page 48
1 investigation being conducted in connection with the renewal of such
1
2 license. In the event the SCA contends that any such extension is
2
3 unreasonable, it may seek resolution of that issue pursuant to Part
3
4 11 12 of this Compact.
4
5 3. The application process shall require the TCA to obtain
5
6 sufficient information and identification from the applicant to
6
7 permit a background investigation to determine if a license should
7
8 be issued in accordance with this Part and the rules and
8
9 regulations. The TCA shall obtain information about a prospective
9
10 covered game employee that includes:
10
11 a. full name, including any aliases by which applicant
11
12 has ever been known,
12
13 b. social security number,
13
14 c. date and place of birth,
14
15 d. residential addresses for the past five (5) years,
15
16 e. employment history for the past five (5) years,
16
17 f. driver license number,
17
18 g. all licenses issued and disciplinary charges filed,
18
19 whether or not discipline was imposed, by any state or
19
20 tribal regulatory authority,
20
21 h. all criminal arrests and proceedings, except for minor
21
22 traffic offenses, to which the applicant has been a
22
23 party,
23
24 i. a set of fingerprints,
24
Req. No. 2320 Page 49
1 j. a current photograph,
1
2 k. military service history, and
2
3 l. any other information the TCA determines is necessary
3
4 to conduct a thorough background investigation.
4
5 4. Upon obtaining the required initial information from a
5
6 prospective covered game employee, the TCA shall forward a copy of
6
7 such information to the SCA, along with any determinations made with
7
8 respect to the issuance or denial of a temporary or permanent
8
9 license. The SCA may conduct its own background investigation of
9
10 the applicant at SCA expense, shall notify the TCA of such
10
11 investigation within a reasonable time from initiation of the
11
12 investigation, and shall provide a written report to the TCA of the
12
13 outcome of such investigation within a reasonable time from the
13
14 receipt of a request from the TCA for such information. SCA
14
15 inspector field notes and the SCA inspector shall be available upon
15
16 reasonable notice for TCA review and inquiry.
16
17 5. The TCA may issue a temporary license for a period not to
17
18 exceed ninety (90) days, and the enterprise may employ on a
18
19 probationary basis, any prospective covered game employee who
19
20 represents in writing that he or she meets the standards set forth
20
21 in this Part, provided the TCA or enterprise is not in possession of
21
22 information to the contrary. The temporary license shall expire at
22
23 the end of the ninety-day period or upon issuance or denial of a
23
24 permanent license, whichever event occurs first. Provided that the
24
Req. No. 2320 Page 50
1 temporary license period may be extended at the discretion of the
1
2 TCA so long as good faith efforts are being made by the applicant to
2
3 provide required information, or the TCA is continuing to conduct
3
4 its investigation or is waiting on information from others, and
4
5 provided further that in the course of such temporary or extended
5
6 temporary licensing period, no information has come to the attention
6
7 of the TCA which, in the absence of countervailing information then
7
8 in the record, would otherwise require denial of license. A
8
9 permanent license shall be issued or denied within a reasonable time
9
10 following the completion of the applicant's background
10
11 investigation.
11
12 6. In covered gaming the tribe shall not employ and shall
12
13 terminate, and the TCA shall not license and shall revoke a license
13
14 previously issued to, any covered game employee who:
14
15 a. has been convicted of any felony or an offense related
15
16 to any covered games or other gaming activity,
16
17 b. has knowingly and willfully provided false material,
17
18 statements or information on his or her employment
18
19 application, or
19
20 c. is a person whose prior activities, criminal record,
20
21 or reputation, habits, and associations pose a threat
21
22 to the public interest or to the effective regulation
22
23 and control of the conduct of covered games, or create
23
24 or enhance the dangers of unsuitable, unfair, or
24
Req. No. 2320 Page 51
1 illegal practices, methods, and activities in the
1
2 conduct of covered games or the carrying on of the
2
3 business and financial arrangements incidental
3
4 thereto.
4
5 7. The SCA may object to the employment of any individual by
5
6 the enterprise based upon the criteria set forth in paragraph 6 of
6
7 this subsection A of this Part. Such objection shall be in writing
7
8 setting forth the basis of the objection. The SCA inspector's work
8
9 papers, notes and exhibits which formed the SCA conclusion shall be
9
10 available upon reasonable notice for TCA review. The enterprise
10
11 shall have discretion to employ an individual over the objection of
11
12 the SCA.
12
13 8. The TCA shall have the discretion to initiate or continue a
13
14 background investigation of any licensee or license applicant and to
14
15 take appropriate action with respect to the issuance or continued
15
16 validity of any license at any time, including suspending or
16
17 revoking such license.
17
18 9. The TCA shall require all covered game employees to wear, in
18
19 plain view, identification cards issued by the TCA which include a
19
20 photograph of the employee, his or her first name, a four-digit
20
21 identification number unique to the license issued to the employee,
21
22 a tribal seal or signature verifying official issuance of the card,
22
23 and a date of expiration, which shall not extend beyond such
23
24 employee's license expiration date.
24
Req. No. 2320 Page 52
1 B. 1. Any person or entity who, directly or indirectly,
1
2 provides or is likely to provide at least Twenty-five Thousand
2
3 Dollars ($25,000.00) in goods or services to the enterprise in any
3
4 twelve-month period, or who has received at least Twenty-five
4
5 Thousand Dollars ($25,000.00) for goods or services provided to the
5
6 enterprise in any consecutive twelve-month period within the
6
7 immediately preceding twenty-four-month period, or any person or
7
8 entity who provides through sale, lease, rental or otherwise covered
8
9 games, or parts, maintenance or service in connection therewith to
9
10 the tribe or the enterprise at any time and in any amount, shall be
10
11 licensed by the TCA prior to the provision thereof. Provided, that
11
12 attorneys or certified public accountants and their firms shall be
12
13 exempt from the licensing requirement herein to the extent that they
13
14 are providing services covered by their professional licenses.
14
15 2. Background investigations and licensing shall follow the
15
16 same process and apply the same criteria as for covered game
16
17 employees set forth in paragraph 6 of subsection A of this Part.
17
18 3. In the case of a license application of any entity, all
18
19 principals thereof shall be subjected to the same background
19
20 investigation required for the licensing of a covered game employee,
20
21 but no license as such need be issued; provided, no license shall be
21
22 issued to the entity if the TCA determines that one or more of its
22
23 principals will be persons who would not be qualified to receive a
23
24 license if they applied as covered game employees.
24
Req. No. 2320 Page 53
1 4. Nothing herein shall prohibit the TCA from processing and
1
2 issuing a license to a principal in his or her own name.
2
3 5. Licenses issued under this subsection shall be reviewed at
3
4 least every two (2) years for continuing compliance, and shall be
4
5 promptly revoked if the licensee is determined to be in violation of
5
6 the standards set forth in paragraph 6 of subsection A of this Part.
6
7 In connection with such a review, the TCA shall require the person
7
8 or entity to update all information provided in the previous
8
9 application.
9
10 6. The enterprise shall not enter into, or continue to make
10
11 payments pursuant to, any contract or agreement for the provision of
11
12 goods or services with any person or entity who does not meet the
12
13 requirements of this Part including, but not limited to, any person
13
14 or entity whose application to the TCA for a license has been
14
15 denied, or whose license has expired or been suspended or revoked.
15
16 7. Pursuant to 25 C.F.R., Part 533, all management contracts
16
17 must be approved by the Chair of the National Indian Gaming
17
18 Commission. The SCA shall be notified promptly after any such
18
19 approval.
19
20 8. In addition to any licensing criteria set forth above, if
20
21 any person or entity seeking licensing under this subsection is to
21
22 receive any fee or other payment based on the revenues or profits of
22
23 the enterprise, the TCA may take into account whether or not such
23
24
24
Req. No. 2320 Page 54
1 fee or other payment is fair in light of market conditions and
1
2 practices.
2
3 C. 1. Subject to the exceptions set forth in paragraph 4 of
3
4 this subsection, any person or entity extending financing, directly
4
5 or indirectly, to the facility or enterprise in excess of Fifty
5
6 Thousand Dollars ($50,000.00) in any twelve-month period shall be
6
7 licensed prior to providing such financing. Principals thereof
7
8 shall be subjected to background investigations and determinations
8
9 in accordance with the procedures and standards set forth in
9
10 subsection A of this Part. Licenses issued under this section shall
10
11 be reviewed at least every two (2) years for continuing compliance,
11
12 and shall be promptly revoked if the licensee is determined to be in
12
13 violation of the standards set forth in paragraph 6 of subsection A
13
14 of this Part. In connection with such a review, the TCA shall
14
15 require the person or entity to update all information provided in
15
16 the previous application.
16
17 2. The SCA shall be notified of all financing and loan
17
18 transactions with respect to covered games or supplies in which the
18
19 amount exceeds Fifty Thousand Dollars ($50,000.00) in any twelve-
19
20 month period, and shall be entitled to review copies of all
20
21 agreements and documents in connection therewith.
21
22 3. A supplier of goods or services who provides financing
22
23 exclusively in connection with the sale or lease of covered games
23
24 equipment or supplies shall be licensed solely in accordance with
24
Req. No. 2320 Page 55
1 licensing procedures applicable, if at all, to such suppliers
1
2 herein.
2
3 4. Financing provided by a federally regulated or state-
3
4 regulated bank, savings and loan, or trust, or other federally or
4
5 state-regulated lending institution; any agency of the federal,
5
6 state, tribal or local government; or any person or entity,
6
7 including, but not limited to, an institutional investor who, alone
7
8 or in conjunction with others, lends money through publicly or
8
9 commercially traded bonds or other commercially traded instruments,
9
10 including but not limited to the holders of such bonds or
10
11 instruments or their assignees or transferees, or which bonds or
11
12 commercially traded instruments are underwritten by any entity whose
12
13 shares are publicly traded or which underwriter, at the time of the
13
14 underwriting, has assets in excess of One Hundred Million Dollars
14
15 ($100,000,000.00), shall be exempt from the licensing and background
15
16 investigation requirements in subsection B of this Part or this
16
17 subsection.
17
18 D. In the event the SCA objects to a lender, vendor or any
18
19 other person or entity within subsection B or C of this Part seeking
19
20 to do business with the enterprise, or to the continued holding of a
20
21 license by such person or entity, it may notify the TCA of its
21
22 objection. The notice shall set forth the basis of the objection
22
23 with sufficient particularity to enable the TCA to investigate the
23
24 basis of the objection. The SCA inspector and SCA inspector field
24
Req. No. 2320 Page 56
1 notes shall be available for TCA review and inquiry. Within a
1
2 reasonable time after such notification, the TCA shall report to the
2
3 SCA on the outcome of its investigation and of any action taken or
3
4 decision not to take action.
4
5 Part 11. EXCLUSIVITY AND FEES
5
6 A. The parties acknowledge and recognize that this Compact
6
7 provides tribes with substantial exclusivity and, consistent with
7
8 the goals of IGRA, special opportunities for tribal economic
8
9 opportunity through gaming within the external boundaries of
9
10 Oklahoma in respect to the covered games. In consideration thereof,
10
11 so long as the state does not change its laws after the effective
11
12 date of this Compact to permit the operation of any additional form
12
13 of gaming by any such organization licensee, or change its laws to
13
14 permit any additional electronic or machine gaming within Oklahoma,
14
15 the tribe agrees to pay the following fees:
15
16 1. The tribe covenants and agrees to pay to the state a fee
16
17 derived from covered game revenues calculated as set forth in
17
18 paragraph 2 of this subsection. Such fee shall be paid no later
18
19 than the twentieth day of the month for revenues received by the
19
20 tribe in the preceding month; and
20
21 2. The fee shall be:
21
22 a. four percent (4%) of the first Ten Million Dollars
22
23 ($10,000,000.00) of adjusted gross revenues received
23
24 by a tribe in a calendar year from the play of
24
Req. No. 2320 Page 57
1 electronic amusement games, electronic bonanza-style
1
2 bingo games and electronic instant bingo games,
2
3 b. five percent (5%) of the next Ten Million Dollars
3
4 ($10,000,000.00) of adjusted gross revenues received
4
5 by a tribe in a calendar year from the play of
5
6 electronic amusement games, electronic bonanza-style
6
7 bingo games and electronic instant bingo games,
7
8 c. six percent (6%) of all subsequent adjusted gross
8
9 revenues received by a tribe in a calendar year from
9
10 the play of electronic amusement games, electronic
10
11 bonanza-style bingo games and electronic instant bingo
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12 games, and
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13 d. ten percent (10%) of the monthly net win of the common
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14 pool(s) or pot(s) from which prizes are paid for
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15 nonhouse-banked card games. The tribe is entitled to
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16 keep an amount equal to state payments from the common
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17 pool(s) or pot(s) as part of its cost of operating the
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18 games.
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19 Payments of such fees shall be made to the Treasurer of the
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20 State of Oklahoma. Nothing herein shall require the allocation of
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21 such fees to particular state purposes, including, but not limited
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22 to, the actual costs of performing the state's regulatory
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23 responsibilities hereunder.
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1 B. Annual oversight assessment. In addition to the fee
1
2 provided for in subsection A of this Part, the state shall be
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3 entitled to payment for its costs incurred in connection with the
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4 oversight of covered games to the extent provided herein, "annual
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5 oversight assessment". The annual oversight assessment, which shall
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6 be Thirty-five Thousand Dollars ($35,000.00), shall be determined
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7 and paid in advance on a fiscal year basis for each twelve (12)
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8 months ending on June 30 of each year.
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9 C. Upon the effective date of this Compact, the tribe shall
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10 deposit with the SCA the sum of Fifty Thousand Dollars ($50,000.00)
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11 ("start-up assessment"). The purpose of the start-up assessment
11
12 shall be to assist the state in initiating its administrative and
12
13 oversight responsibilities hereunder and shall be a one-time payment
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14 to the state for such purposes.
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15 D. Nothing in this Compact shall be deemed to authorize the
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16 state to impose any tax, fee, charge or assessment upon the tribe or
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17 enterprise except as expressly authorized pursuant to this Compact;
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18 provided that, to the extent that the tribe is required under
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19 federal law to report prizes awarded, the tribe agrees to copy such
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20 reports to the SCA.
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21 E. In consideration for the covenants and agreements contained
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22 herein, the state agrees that it will not, during the term of this
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23 Compact, permit the nontribal operation of any machines or devices
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24 to play covered games or electronic or mechanical gaming devices
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Req. No. 2320 Page 59
1 otherwise presently prohibited by law within the state in excess of
1
2 the number and outside of the designated locations authorized by the
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3 State-Tribal Gaming Act. The state recognizes the importance of
3
4 this provision to the tribe and agrees, in the event of a breach of
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5 this provision by the state, to require any nontribal entity which
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6 operates any such devices or machines in excess of such number or
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7 outside of the designated location to remit to the state at least
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8 quarterly no less than fifty percent (50%) of any increase in the
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9 entities' adjusted gross revenues following the addition of such
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10 excess machines. The state further agrees to remit at least
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11 quarterly to eligible tribes, as liquidated damages, a sum equal to
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12 fifty percent (50%) of any increase in the entities' adjusted gross
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13 revenues following the addition of such excess machines. For
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14 purposes of this Part, "eligible tribes" means those tribes which
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15 have entered into this Compact and are operating gaming pursuant to
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16 this Compact within forty-five (45) miles of an entity which is
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17 operating covered game machines in excess of the number authorized
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18 by, or outside of the location designated by, the State-Tribal
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19 Gaming Act. Such liquidated damages shall be allocated pro rata to
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20 eligible tribes based on the number of covered game machines
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21 operated by each Eligible Tribe in the time period when such
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22 adjusted gross revenues were generated.
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23 F. In consideration for the covenants and agreements contained
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24 herein, the tribe agrees that in the event it has currently or
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Req. No. 2320 Page 60
1 locates in the future a facility within a radius of twenty (20)
1
2 miles from a recipient licensee as that term is defined in
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3 subsection K of Section 263 of this title that it shall comply with
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4 the requirements of subsection K of Section 263 of this title.
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5 Part 12. DISPUTE RESOLUTION
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6 In the event that either party to this Compact believes that the
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7 other party has failed to comply with any requirement of this
7
8 Compact, or in the event of any dispute hereunder, including, but
8
9 not limited to, a dispute over the proper interpretation of the
9
10 terms and conditions of this Compact, the following procedures may
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11 be invoked:
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12 1. The goal of the parties shall be to resolve all disputes
12
13 amicably and voluntarily whenever possible. A party asserting
13
14 noncompliance or seeking an interpretation of this Compact first
14
15 shall serve written notice on the other party. The notice shall
15
16 identify the specific Compact provision alleged to have been
16
17 violated or in dispute and shall specify in detail the asserting
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18 party's contention and any factual basis for the claim.
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19 Representatives of the tribe and state shall meet within thirty (30)
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20 days of receipt of notice in an effort to resolve the dispute;
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21 2. Subject to the limitation set forth in paragraph 3 of this
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22 Part, either party may refer a dispute arising under this Compact to
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23 arbitration under the rules of the American Arbitration Association
23
24 (AAA), subject to enforcement or pursuant to review as provided by
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Req. No. 2320 Page 61
1 paragraph 3 of this Part by a federal district court. The remedies
1
2 available through arbitration are limited to enforcement of the
2
3 provisions of this Compact. The parties consent to the jurisdiction
3
4 of such arbitration forum and court for such limited purposes and no
4
5 other, and each waives immunity with respect thereto. One
5
6 arbitrator shall be chosen by the parties from a list of qualified
6
7 arbitrators to be provided by the AAA. If the parties cannot agree
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8 on an arbitrator, then the arbitrator shall be named by the AAA.
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9 The expenses of arbitration shall be borne equally by the parties.
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10 A party asserting noncompliance or seeking an interpretation of
10
11 this Compact under this section shall be deemed to have certified
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12 that to the best of the party's knowledge, information, and belief
12
13 formed after reasonable inquiry, the claim of noncompliance or the
13
14 request for interpretation of this Compact is warranted and made in
14
15 good faith and not for any improper purpose, such as to harass or to
15
16 cause unnecessary delay or the needless incurring of the cost of
16
17 resolving the dispute. If the dispute is found to have been
17
18 initiated in violation of this Part, the Arbitrator, upon request or
18
19 upon his or her own initiative, shall impose upon the violating
19
20 party an appropriate sanction, which may include an award to the
20
21 other party of its reasonable expenses incurred in having to
21
22 participate in the arbitration; and
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23 3. Notwithstanding any provision of law, either party to the
23
24 Compact may bring an action against the other in a federal district
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Req. No. 2320 Page 62
1 court for the de novo review of any arbitration award under
1
2 paragraph 2 of this Part. The decision of the court shall be
2
3 subject to appeal. Each of the parties hereto waives immunity and
3
4 consents to suit therein for such limited purposes, and agrees not
4
5 to raise the Eleventh Amendment to the United States Constitution or
5
6 comparable defense to the validity of such waiver.
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7 Nothing herein shall be construed to authorize a money judgment
7
8 other than for damages for failure to comply with an arbitration
8
9 decision requiring the payment of monies.
9
10 Part 13. CONSTRUCTION OF COMPACT; FEDERAL APPROVAL
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11 A. Each provision, section, and subsection of this Compact
11
12 shall stand separate and independent of every other provision,
12
13 section, or subsection. In the event that a federal district court
13
14 shall find any provision, section, or subsection of this Compact to
14
15 be invalid, the remaining provisions, sections, and subsections of
15
16 this Compact shall remain in full force and effect, unless the
16
17 invalidated provision, section or subsection is material.
17
18 B. Each party hereto agrees to defend the validity of this
18
19 Compact and the legislation in which it is embodied. This Compact
19
20 shall constitute a binding agreement between the parties and shall
20
21 survive any repeal or amendment of the State-Tribal Gaming Act.
21
22 C. The parties shall cooperate in seeking approval of this
22
23 Compact from an appropriate federal agency as a tribal-state compact
23
24 under the Indian Gaming Regulatory Act.
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Req. No. 2320 Page 63
1 D. The standards for electronic bonanza-style bingo games,
1
2 electronic instant bingo games and electronic amusement games
2
3 established in the State-Tribal Gaming Act as enacted in 2004, and,
3
4 at the election of the tribe, any standards contained in the
4
5 Oklahoma Horse Racing Commission rules issued pursuant to subsection
5
6 B of Section 268 of this title are hereby incorporated in this
6
7 Compact and shall survive any repeal of the State-Tribal Gaming Act,
7
8 or any games authorized thereunder. In the event that any of said
8
9 standards are changed by amendment of the State-Tribal Gaming Act,
9
10 the tribe shall have the option to incorporate said changes into
10
11 this Compact by delivery of written notice of said changes to the
11
12 Governor and the SCA.
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13 Part 14. NOTICES
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14 All notices required under this Compact shall be given by
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15 certified mail, return receipt requested, commercial overnight
15
16 courier service, or personal delivery, to the following persons:
16
17 Governor
17
18 Chair, State-Tribal Relations Committee
18
19 Attorney General
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20 [Principal Chief, Governor or Chair]
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21 [Name of Tribe]
21
22 [Address]
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23 With copies to:
23
24 _______________________
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Req. No. 2320 Page 64
1 _______________________
1
2 Part 15. DURATION AND NEGOTIATION
2
3 A. This Compact shall become effective upon the last date of
3
4 the satisfaction of the following requirements:
4
5 1. Due execution on behalf of the tribe, including obtaining
5
6 all tribal resolutions and completing other tribal procedures as may
6
7 be necessary to render the tribe's execution effective;
7
8 2. Approval of this Compact by the Secretary of the Interior as
8
9 a tribal-state compact within the meaning of IGRA and publication in
9
10 the Federal Register or satisfaction of any other requirement of
10
11 federal law; and
11
12 3. Payment of the start-up assessment provided for in
12
13 subsection C of Part 11 of this Compact.
13
14 B. This Compact shall have a term which will expire on January
14
15 1, 2020, and at that time, if organization licensees or others are
15
16 authorized to conduct electronic gaming in any form other than pari-
16
17 mutuel wagering on live horse racing pursuant to any governmental
17
18 action of the state or court order following the effective date of
18
19 this Compact, the Compact shall automatically renew for successive
19
20 additional fifteen-year terms; provided that, within one hundred
20
21 eighty (180) days of the expiration of this Compact or any renewal
21
22 thereof, either the tribe or the state, acting through its Governor,
22
23 may request to renegotiate the terms of subsections A and E of Part
23
24 11 of this Compact.
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Req. No. 2320 Page 65
1 C. This Compact shall remain in full force and effect until the
1
2 sooner of expiration of the term or until the Compact is terminated
2
3 by mutual consent of the parties.
3
4 D. This Compact may be terminated by state upon thirty (30)
4
5 days' prior written notice to the tribe in the event of either (1) a
5
6 material breach by the tribe of the terms of a tobacco Compact with
6
7 the state as evidenced by a final determination of material breach
7
8 from the dispute resolution forum agreed upon therein, including
8
9 exhaustion of all available appellate remedies therefrom, or (2) the
9
10 tribe's failure to comply with the provisions of Section 346 et seq.
10
11 of Title 68 of the Oklahoma Statutes, provided that the tribe may
11
12 cure either default within the thirty-day notice period, or within
12
13 such additional period as may be reasonably required to cure the
13
14 default, in order to preserve continuation of this Compact.
14
15 The state hereby agrees that this subsection is severable from
15
16 this Compact and shall automatically be severed from this Compact in
16
17 the event that the United States Department of the Interior
17
18 determines that these provisions exceed the state's authority under
18
19 IGRA.
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20 Part 16. AUTHORITY TO EXECUTE
20
21 This Compact, as an enactment of the people of Oklahoma, is
21
22 deemed approved by the State of Oklahoma. No further action by the
22
23 state or any state official is necessary for this Compact to take
23
24 effect upon approval by the Secretary of the Interior and
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Req. No. 2320 Page 66
1 publication in the Federal Register. The undersigned tribal
1
2 official(s) represents that he or she is duly authorized and has the
2
3 authority to execute this Compact on behalf of the tribe for whom he
3
4 or she is signing.
4
5 APPROVED:
5
6 [Name of Tribe]
6
7 ____________________________ Date _________________
7
8 [CHIEF EXECUTIVE OFFICER]
8
9 SECTION 5. This act shall become effective November 1, 2026.
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Req. No. 2320 Page 67Every fact on this page links to its source, starting with the official bill record.