CA Compact With Viejas Band of Kumeyaay Tribe Amended

8/13/2019 CA Compact With Viejas Band of Kumeyaay Tribe Amended

http://slidepdf.com/reader/full/ca-compact-with-viejas-band-of-kumeyaay-tribe-amended 1/46

AMENDMENT TO

TRIBAL STATE COMPACT

BETWEEN THE STATE OF

CALIFORNIA AND THE VIEJAS

BAND OF KUMEYAAY INDIANS



MENDM ENT TO

TRIB L ST TE COM P CTBETWEEN THE ST TE OF

C LIFORNI ND THE VIEJ S

B ND OF KUM EY Y INDI NS



AMENDMENT T O TRIBAL STATE COMPACT BETWEEN THE

STATE OF CALIFORNIA AND THE VIEJAS BAND O F

KUMEYAAY INDIANS

WHER EAS, the State of California (hereinafter the State ) and the Viejas

Band of Kum eyaay Indians (hereinafter the Tribe ) en tered into a compact

in 1999 (hereinafter the 1999 Compact ); and

WH EREA S, the S tate and the Tribe have agreed to revise the 1999 Compact

to promote good relations between tribal, state, and local gove rnm ents and to

enhance tribal econom ic development and self-sufficiency; and

WH EREA S, the Tribe agrees to make a fair revenue contribution to the

State, to enter in to arrangem ents to m itigate to the ex tent practicable the off-

reservation env ironm ental and direct fiscal impacts on local communities

and local governm ents, and to offer additional consumer protections; and

WHER EAS , in recognition of the fair revenu e contribution and the measures

enhancing protections fo r local governm ents and the public and to provide a

sound basis for the Tr ibe's decisions with respect to investment in, and

operation of, its Gaming Activities, the State agrees to amend the 199 9

Com pact to enhan ce the Tribe's exclusive right to operate slot mach ines andbanked and percentage card gam es in California, to extend the term of the

Com pact, and to afford the opportunity to operate additional Gam ingDevices; and

WH EREA S, the T ribe wishes to reaffirm its pledge to sh are revenues with

Non-Compact Tribes; and

WH EREA S, the State and the Tribe have concluded that this amend ment to

the 1999 Compact provides for a fair contribution to the State from the

Tribe's Gaming O peration, enhances the Tribe's exclusivity over its Gaming

Activities, protects the interests o f the Tribe and the Californ ia public, and

will promote and secure long-term stability, mutual respect, and mutual

benefits; and



W HE REA S, the State and the Tribe recognize that this amendm ent is

authorized and negotiated and shall take effect pursuant to the Indian

Gam ing Regulatory Act ( IGRA ); and

W HER EAS, the State and the Tribe agree that all terms of this amendm ent

to the 1999Com pact (collectively the Amended Compact ) a re intended to

be binding and enforceable.

NOW, THEREFORE the Tribe and the State hereby am end the 1999

Com pact as follows:

I RE VENU E CONTRI UTION

A . Section 4.3.1 is repealed and replaced by the following:

ection 4 3 1

(a) The Tribe is entitled to operate the following number o f

Gam ing Device s pursuant to the conditions set forth in Section 4.3.3:

(i) 1132 Gam ing Devices, which we re operated on

September 1999; and

(ii) 868 Gam ing Devices operated pursuant to licen ses issuedin accordance with former Section 4.3.2.2 of the 1999

Compact which licenses shall be maintained du ring the

term o f this Amended Com pact pursuant to Section

4.3.2.2 herein.

(b) Th e Tribe may operate Gam ing Devices additional to those

specified in subp aragraphs (i) and (ii) of subdivision (a) only by paying, in

addition to the fe es specified in Section 4.3.3, subdivision (a), within 3 0

days of the end o f each calendar quarter to such age ncy, trust, fund or entity,as the State Director o f Finance, pursuant to law, from time to time, shall

specify to the Tribe in writing, the fees specified below for each additional

Gaming Device:



Additional Gam ing Devices in Op eration Annual Fee Per Gam ing Device

(i) 2,001 t o 2,500 12,000(ii) 2,501 to 3,000 13,200

(iii) 3,001 to 3,500 17,000(iv) 3,501 t o 4,000 20,000(v) 4,001 t o 4,500 22,500(vi) 4,500 and above 25,000

The num ber o f additional G aming Devices operated ea ch qu arter will becalculated based upon the maximum number of Gam ing Devices operatedduring that quarter. If this amendm ent becomes effective during a calendarquarter, payment shall be prorated for the number of the days remaining in

that quarter.

(c) Fee payments pursuant to subdivision (b) shall be accom paniedby a w ritten certification of the maximum num ber of G aming D evicesoperated during that calenda r quarter. Such certification shall confirm thenumber of Ga ming D evices operated pursuant to su bparagraphs (i) and (ii)of subdivision (a), shall specify the number op erated during that quarterpursuant to su bdivision (b), and shall show the co mputation for the quarterlyfees due for the additional Gam ing Devices operated pu rsuant to subdivision

(b), by add ing the annual fee due per each additional Gam ing Device

pursuant to the incremental level applicable to the Gam ing Device, a s setforth in subp aragrap hs (i)-(vi) of subdivision (b), and d ividing that sum by 4(to calculate the qua rterly amount).

(d) If any p ortion of the fee payments under subdivision (b) herein,Section 4.3.2.2, subdivision (a), or Section 4.3.3, subdivision (c) is overdue,the Tribe shall pay to the State Gam ing Agency for purposes of deposit intothe appropriate fi n d, the amount overdue plus interest accrued thereon at therate of 1.0% per m onth o r the maximu m rate permitted by state law fordelinquent paym ents ow ed to the State, whichever is less.

(e) If any portion of the fee payments under subdivision (b) herein

is overdue after the State Gam ing Agency h as provided w ritten notice to theTribe of the ov erdue amount w ith an oppo rtunity to cure o f at least 15business days, and if mo re than 6 0 days has passed from the du e date, thenthe Tribe shall cease o perating the additional Gam ing Devices undersubdivision (b) until full payment is made; provided fir th er that if any





contribution to be m ade on an annual basis without reduction for 18 years,

based upon market cond itions at the location of the Tribe's existing land

specified in Section 4 .3.5, as of year end 2003, in light of the obligations

undertaken in Section 4.3.3, and represents at least 1 0% of the Trib e's ne t

win in 2003.

(b) The Tribe and the State will use their reasonable efforts and

cooperate in good faith to a id the issuance of the bonds referenced in

subdivision (a) in accordance with Exhibit B. Comm encing January 1,

2005, the Tribe shall remit to such agency, trust, fund or entity, a s the S tate

Director of Finan ce, pursuant to law , from time to time, shall specify to the

Tribe in writing, its fixed annual payment referenced in subdivision (a) in

four equal quarterly pa yments due on the first business day o f each January,

April, July and October.

(c) Notwithstanding subdivision (b), if the S tate Director of

Finance determ ines that the bonds cannot be issued successfu lly, then after

providing notice of such determination to the Tribe, the Tribe 's payments

specified in subdivision (a) shall be made semian nually to such agency,

trust, fund or en tity, as the State Director of Finance, pursuant to law , from

time to time, sha ll specify to the Tribe in writing, in tw o equal sem iannual

payments, due January and July 1 of each year.

(d) Follow ing the conclusion of the Tribe's annual payments forthe 18-year period specified in subdivision (a) and for each year du ring the

remaining C omp act term a s defined in Section 11.2.1 herein, the Tribe shallremit to such agency, trust, fund or entity, as the State Director of Financ e,pursuant to law, from time to time, shall specify to the Tribe in w riting, the

annual payment set forth in subd ivision (a), or if it is less, 10% of the annual

net win attributable to the Gam ing Devices specified in Section 4.3.1,

subdivision (a)(i) and (ii). For purposes of this subdivision (d):

(i) The T ribe shall remit two equal semiannual paymen ts to

the State Gaming Agency within 30 days of January 1and July 1 of each year.

(ii) Net win means the gros s revenu e ( drop ) less all

prizes and payouts, fills, hopper adjustments and

participation fees, and each sem iannual paym ent shall be

calculated by multiplying the ave rage net win per



Gam ing Device for the preceding sem iannual period

specified in subparagraph (i) by the num ber o f Gam ing

Devices specified in Section 4.3.1, subdivision (a)(i) and

(ii). Participation fees shall be defined as payments mad e

to G aming R esource Suppliers on a periodic basis by theGam ing Operation for the right to lease or otherwise

offer for play Gaming Devices.

(iii) The semiannual payments based upon 10 of the net win

attributable to the number of G am ing Devices specified

in Section 4.3.1, subdivision (a)(i) and (ii) shall be

accompanied by a certification of the net win calculation

prepared by an independent certified public accountant

who is not employed by the Tribe, the Tribal Gam ing

Agency, or the Gaming Operation, is only otherwise

retained by any of these entities to conduct regulatory

audits, and has no financial interest in any of these

entities. The State Gam ing Agency m ay audit the net

win calculation, and if it determines that the net w in is

understated, will promptly notify the Tribe and provide acopy of the audit. The Tribe within twenty (2 0) days willeither accept the difference or provide a reconciliation

satisfactory to the State Gam ing Agency. If the Tribe

accepts the difference or does not provide areconciliation satisfactory to the State Gam ing Agency,

the Tribe must immediately pay the amount o f theresulting deficiency plus accrued interest thereon at the

rate of 1 O per month or the max imum rate permitted

by state law for delinquent payments ow ed to the State,

whiche ver is less. If the Tribe does not provide a

reconciliation satisfactory to the State Gaming Agency,

the Tribe, once payment is m ade, may comm ence dispute

resolution under Section 9.0. The parties expressly

acknowledge that the certifications and informationrelated to paym ents herein are su bject to subdivision (c)

of Section 7.4.3.

(e) Notw ithstanding anything to the contrary in Section 9.0, in the

event the bonds specified in subdivision (a) are issued, an y failure of the

Tribe to remit its fixed annual paym ent referenced in subdivision (a)



pursuant to subdivision (b) will entitle the State to immediately seek

injunctive relief in federal or state court, at the State's election, to compel

the payments, plus accrued interest thereon at the rate of 1.0 per month or

the maximum rate permitted by State law for delinquent payments owed to

the State, whichever is less; and further, the Tribe expressly consents to besued in either court and waives its right to assert sovereign imm unity against

the State in any such proceeding to en force said payment ob ligations.

Failure to make timely paym ent shall be deemed a material breach of this

Amended Compact.

F A new ection 4 3 4 is added as follows:

ection 4 3 4 For purposes of Sections 4.3.1 ,4.3.2.2 , and 4.3.3, the

State Gam ing Agency shall be the California Gambling ControlCom mission, unless the S tate provides otherwise by written notice pursuant

to Section 13 O.

G A new ection 4 3 5 is added as follows:

ection 4 3 5 Excep t pursuant to the express concu rrence o f the

Governor required by Section 20(b )(l)(A ) of IGRA, the Tribe may o perate

the Gam ing Devices specified in Section 4.3.1, subdivisions (a) and (b) only

on its Indian lands existing as of July 1,2 00 4, at the location o f the Tribe's

existing Gam ing Operation located in San Diego County. Notwithstanding

anything to the contrary in this Amended C ompact, how ever, anyindependent structures or other improvements ancillary to the aming

Activities, in w hich n o C lass 111 gam ing is conduc ted, including any road s,parking lots, or walkw ays, may be on contiguous land to the aforesaid Indian

lands (i) which is held by the Tribe in fee where the T ribe's a ctivities

thereon are subject to the jurisdiction of State law and the State courts, or (ii)

which is Indian lands within the mean ing of IGRA .



11 EX L USI W Y

Section 3 0 is repealed and replaced with the fo llowing:

Section 3 0 Authorization and Exclusivity o f Class 111 Gam ing.

Section 3 1 The Tribe is hereby authorized and permitted to engage

in only the G aming Activities expressly referred to in Section 4.0 and shall

not engage in Class I11 gam ing that is not expressly authorized in that

Section.

Section 3 2 In recognition of the Tribe s agreem ent to make the

paym ents specified in Section 4.3.1, subdivision (b), and Section 4.3.3,

subdivision s (a) and (d), the Tribe shall have the following rights:

(a) In the event the bonds referenced in Section 4.3.3, subdivision

(a) are issued securitized by the Tribe s annual paymen ts referenced therein,

during the life of said bonds and in order to protect the Tribe s ability to

make the payments underlying said bonds, the State shall not authorize any

person or entity other than an Indian tribe with a federally authorized

compact to engage in any Gam ing Activities specified in subd ivisions (a)

and (b) o f Section 4 1 of this Amended C ompact within the T ribe s core

geographic market, as defined below. Nothing herein is intended to preclude

the State Lottery from offering any lottery games or devices that areauthorized by the California C onstitution as it exists as of July 1, 2004.

(b) For p-urposes of this Section, the Tribe s core geograph ic

market, as specified in subdivision (a), comprises all of the C ounty o f San

Diego, where collectively ove r 60 of the patrons of the T ribe s Gam ing

Facility reside.

(c) In the event that the S tate authorizes any person o r entity other

than an Indian tribe with a federally authorized com pact to engage in

Gam ing Activities in violation of subdivision (a), the Tribe shall have the

right to enjoin such gam ing or the authorization of said gam ing a s a

substantial impairment o f the right specified in sub division (a), which is

necessary to assure the marketability of the bonds referenced in Section

4.3.3, subdivision (a), to protect the bondho lders of said bonds, and to afford

the Tribe the stability in its Gaming O peration bargained for in return for the

issuance of the bonds; provided, how ever, that no remedy other than an





111 TESTING O F GAMINGDEVl ES

A The following new Section is added after Section 7.4.5 of the

1999 Compact:

Section 7 5 Testing of G aming Devices.

(a) No Gam ing Device may be offered for play unless:

(i) Th e manufacturer or distributor which sells, leases, or

distributes such Gaming Device (A ) has applied for a

finding of suitability by the S tate Gaming A gency at least

15

days befo re it is offered for play, (B) has not beenfound to be unsuitable by the State Gaming Agency, and

(C) has been licensed by the Tribal Gaming A gency;

(ii) Th e softwa re for the game authorized for play on the

Gam ing Device has been tested, approved and certified

by an independent o r state governmental gaming testlaboratory (the Gam ing Test Laboratory ) a s operatingin accordance with either the standards of G aming

Laboratories International, Inc. known as G LI- 1 1 and

GLI-12, or the technical standards approved by the Stateof Nevada, or such other technical standards a s the State

Gam ing Agency and the Tribal Gam ing Agency shallagree upon, w hich agreement shall not be unreasonably

withheld, and a copy o f said certification is provided t o

the State Gaming Agency by electronic transmission or

by mail unless the State Gaming Agency waives receiptof copies o f certification;

(iii)Th e software for the gam e authorized for play on the

Gam ing Device is tested by the Tribal G aming Agency to

ensure that each game authorized for play on the Gaming

Device has the correct electronic signature prior to

insertion into the Gam ing Device; and

(iv) Th e hardware and associated equipment for the G aming

Device has been tested by the G aming Test Laboratory to



ensure o peration in accordance with the m anufacturer's

specifications.

(b) Th e Ga min g Test Laboratory shall be an independ ent or state

governmental gam ing test laboratory recognized in the gam ing industrywhich (i) is competen t and qualified to conduct scientific tests and

evaluations o f Gaming Devices, and (ii) is licensed or approved by an y of

the follow ing states: Arizona, California, Colorado, Illinois, Indiana, Iowa ,

Michigan, Missouri, Nevada, New Jersey, or Wisconsin. The T ribal Gaming

Agency shall submit to the State Gaming Agency docum entation that

dem onstrates the Gam ing Test Laboratory satisfies (i) and (ii) herein w ithin

thirty (30) day s of the effective date of this Amended Com pact, or if such

use follows such effec tive date, within fifteen (1 5) days prior to reliance

thereon. If, at any time, the Gaming Test Laboratory license and/or approvalrequired by (ii) herein is suspended or revoked by any of those s tates or the

Gam ing Test Laboratory is found unsuitable by the State Gam ing Agency,

then the State Gam ing Agency may reject the use of such Ga min g Test

Laboratory, and upon such rejection, the Tribal Gaming A gency shall ensure

that such Ga min g Test L aboratory discontinues its responsibilities under this

Section.

(c) The T ribal Gaming Agency shall ensure that com pliance with

subdivisions (a) and (b) is audited annually by an inde penden t auditor and

shall provide the results of such aud its to the State Gam ing Ag ency withinfive (5) business days o f completion. r purposes of this subdivision, an

independent auditor shall be a certified public accountant and /or certifiedinternal auditor who is not employed by the Tribe, the Tribal G aming

Agency, o r the Ga ming Operation, has n o financial interest in an y o f theseentities, and i s only otherw ise retained by any o f these entities to conduct

regulatory au dits or aud its under S ection 8 1 8

(d) The State Gaming Agency may inspect the Gam ing Devices in

operation at the G am ing Facility on a random basis not to exceed four (4)

times annually to confirm that they operate and play properly pu rsuant to the

man ufacturer's technical standards. Said random inspections conducted

pursuant to this subdivision shall occur during normal business ho urs from 7

a.m. to 5 p.m . outside of Fridays, weekends, and holidays and shall not

remove from play more than 5 of the G aming Dev ices operating at the

Gam ing Facility. Th e State Gam ing Agency shall provide notice to the

Tribal Gaming Agenc y of such inspection prior to the comm encem ent o f the



random inspection, and the Tribal Gaming Agency m ay accom pany the State

Gaming Agency inspector(s). The State Gam ing Agency may co nduct

additional inspections only upon reasonable belief of any irregularity and

after informing the T ribal Gam ing Agency of the basis for such belief.

(e) The T ribal Gaming A gency shall provide to the State Gaming

Agency cop ies of its regulations for technical standards applicab le to the

Tribe's Ga ming Dev ices upon the effective date of this Amend men t and at

least thirty 30) days before the effective date of any revisions to the

regulations.

f) For purposes of this Section 7.5, the State Gam ing Agency shall

be the California Ga mbling C ontrol Comm ission, unless the State provides

otherwise by written notice pursuant to Section 13.0.

IV. UILDING ODES

Subdivision d) of Section 6.4.2 is repealed and subdivisions

6.4.2 d)- k) are added a s foIlows:

Section 6 4 2

(d) Section 6.4.2, subdivision (b), of the 1999 Compact sha ll apply

to any Gam ing Facility constructed prior to the e ffective date of thisamendm ent and subdivisions (e) through (k) herein shall apply to the

construction o f any Ga ming Facility after the effective da te of thisAmendment, and to any reconstruction, alteration of, or addition to, any

existing Gam ing Facility occurring after said effective date ( Covered

Gaming Facility Construction ).

(e) In ord er to assure the protection of the health and safety of all

Gaming Facility patrons, g uests, and employees, the Tribe shall adop t or has

already adopted, and shall maintain throughout the term o f this Com pact, an

ordinance that requires any C overed G aming Fac ility Con struction to m eet

or exceed the C alifornia Building Code and the Public S afety Code

applicable to the city or county in which the G am ing Facility is located as

set forth in Titles 19 and 24 of the C alifornia C ode o f Regulations, as those

regulations may b e am ended during the term o f this Com pact, including but

not limited to, codes for building, electrical, energy, mechanical, plumbing,

fire, and safety ( the Applicab le Codes ). No twithstanding the foregoing,



the Tribe need not comply with any standard that specifically app lies in

name or in fact only to tribal facilities. Without limiting the rights of the

State under this Section, reference to Applicable Codes is not intended to

confer jurisdiction upon the State or its political subdivisions. For purposes

of this Section, the terms building official and code enforcem ent agencyas used in Title 9 and 24 of the C alifornia Code o f Regulations mean the

Tribal Gam ing Agency or such other Tribal government agency o r official as

may b e designated by the Tribe 's law.

f) In order to assure com pliance with the App licable Codes, in all

cases where said codes would otherwise require a permit, the T ribe shall

employ for any Covered G aming Facility Construction approp riate plan

checkers or review firms that either are California licensed architects or

engineers with relevant experience or are on the list, if any, of approved plan

checke rs or review firms provided by the city or county in which the

Gam ing Facility is located, and em ploy project inspectors that have been

either approved as Class 1 certified inspectors by the Division of the State

Architect or approved as Class A certified inspectors by the Office of

Statewide Health Planning and Development or their successors. The Tribe

shall require said inspectors to report in writing any failure to comply w ith

the Applicable Codes to the Tribal Gam ing Agency and an agency

designated by the State (the State Designated Agency ). Th e plan

checkers, review firms, and project inspectors shall hereinafter be referred to

as Inspector(s).

(g) In all cases where the Applicable Codes would otherwiserequire plan check, the Tribe shall require those responsible for any Covered

Gam ing Facility Construction to provide the documentation set forth below:

(i) The Tribe shall cause the design and construction

calculations, and plans and specifications that form the

basis for the planned Covered Gaming Facility

Construction (the Design and Building Plans ) to be

provided to the State Design ated Agency within fifteen

(1 5) days o f their com pletion;

(ii) In the event that m aterial changes t o a structural detail of

the Design and Bu ilding Plans w ill result from contract

change orders or any other chan ges in the Design and

Building Plans, the Tribe shall provide such change



orders o r other changes to the S tate Designated Agency

within five (5) days of the change's execution or

approval;

(iii) The Tribe shall maintain during construction all othercontract change orders for inspection and copying by the

State Designated Agency upon its request;

(iv) Th e Tribe shall maintain the Design and Building Plans

for the term of this Amended C omp act.

(h) The State Designated Agency may designate an agent o r agents

to be given reasonable notice o f each inspection by an Inspec tor required by

Section 108 of the California Building Code, and said State agents mayaccompany the Inspector on any such inspection. The Tribe agrees to

correct any Gam ing Facility condition noted in said inspection required by

Section 108 that do es not m eet the Applicable Codes (hereinafter

deficiency ). Upon not fewer than three (3) business days ' notice to the

Tribal Gaming Ag ency, excep t in circumstances posing an imm ediate threat

to the life or safety of any person , in which case no ad vance notice isrequired, the State Designated Agency shall also have the right to conduct an

independent inspection of the Gaming Facility to v er if j compliance with theApplicable C odes before public occupancy and shall report to the Tribal

Gaming Agency any alleged deficiency; provided, howev er that prior toany exercise by the State of its right to inspect without notice based upon

alleged circumstances posing a n immediate threat to the life or safety o f anyperson, the State Designated Agency shall provide to the T ribal Gam ing

Agency notice in w riting specifying in reasonable d etail those alleged

circumstances.

(i) Upon final certification by the Inspector that a Gam ing Facility

meets Applicable Co des, the Tribal Gam ing Agency shall forward the

Inspector's certification to the S tate Designated Agency within ten (10) daysof issuance. If the S tate Designated Agency o bjects to that certification, the

Tribe shall make a go od faith effort to address the S tate's c oncerns, but if the

State Designated Age ncy does not withdraw its objection, th e m atter w ill be

resolved in acco rdance with the dispute resolution provisions of S ection 9.0.

6 Any failure to remedy within a reasonable period of time any

material and timely raised deficiency shall be deemed a v iolation o f the



Compact unless the State has acted unreasonably in reporting the deficiency

to the Tribe, and furthermore, any deficiency that poses a serious o rsignificant risk to the health or safety of any occupants shall be grounds for

the State Designated A gency to prohibit occupancy of the affected portion

of the Gam ing Facility pursuant to a court order until the deficiency iscorrected.

k) The Tribe shall a lso take all necessary steps to (i) reasonably

ensure the on going availability of sufficient and qualified fire suppression

services to the G aming Facility and (ii) reasonably ensure that the Gam ing

Facility satisfies all requirem ents of Title 19 of the California Code o f

Regulations applicable to sim ilar facilities in the city or coun ty in which the

Gam ing Facility is located. Not m ore than sixty (60) days after the effective

date of the Amendment, and not less than biennially thereafter, and upon atleast ten (10) days notice to the State Designated Agency, the GamingFacility shall be inspected, at the Tribe s expense, by a Tribal official, if any,who is responsible for fire protection on the Tribe s lands, or by an

independent expe rt, for purposes o f certifying that the Gam ing Facility

meets a reasonable standard of fire safety and life safety. Th e State

Designated Agency shall be entitled to designate and have a qualified

representative or representatives present during the inspection . Du ring such

inspection, the State s representative(s) shall specify to the Tribal official or

independent expert, as the case may be, any condition which the

representative(s) reasonab ly believes would preclude certification of theGaming Facility a s meeting a reasonable standard of fire safety and life

safety. Within fifteen (1 5) days of the inspection, the T ribal official orindependent expert shall issue a report on the inspection, iden tifying any

deficiency in fire safety o r life safety at the Gaming Facility or in the abilityof the Tribe to meet reasonably expected fire suppression needs of the

Gaming Facility. Within fifteen (1 5) days after the issuance o f the report,the Tribal official or independent expert shall also require and approve aspecific plan fo r correcting deficiencies, whether in fire safety at the Gam ing

Facility or in the T ribe s ability to meet the reasonably expected fire

suppression needs of the Gam ing Facility, including those identified by the

State s representative(s). A copy o f the report shall be served on the State

Designated Agency, upon delivery of the report to the Tribe. Immediately

upon correction o f all deficiencies identified in the report, the Tribal official

or independent expert shall certifL in writing to the State Design ated A gency

that all previously identified deficiencies have been corrected. Any failure

to correct all deficiencies identified in the report within a reasonable period



of time shall be deemed a violation of the Compact, and an y failure to

promptly correc t those de ficiencies that pose a serious or significant risk to

the health or safety of any occupants shall be a violation o f the Com pact and

grounds for the State Gam ing Agency or other State Designated Agency to

prohibit o ccupancy o f the affected portion o f the Gam ing Facility pursuantto a court ord er until the deficiency is corrected.

V P TRON DISPUTES

A Section 8.1.10 d) of the 1999 Comp act is repealed and

replaced by the following:

Section 8.1.10 d). The Tribal Gaming Agency shall promulgate

regulations governing patron disputes over the play o r operation of anygame, including any re h s a l to pay a patron any alleged winnings from any

Gam ing Activities, wh ich regulations mu st meet the following minimum

standards:

(i) A patron who m akes a complaint to personnel of the

Gam ing Operation over the play or operation of any

game within seven 7) days o f said play or operation

shall be advised in writing o f his or her right to request,within fifteen 15) days of the date o f said dispute,

resolution of the complaint by the Tribal G amingAgenc y, and if dissatisfied with the resolution, to seek

binding arbitration of the dispute before a retired judgepursuant to the terms and provisions in subparagrap h

(iii).

(ii) Upon request by the patron for a resolution o f his or her

comp laint, the Tribal Gam ing Agency shall conduct an

investigation, shall provide to the patron a copy o f its

regulations co ncerning patron com plaints, and shallrender a decision consistent with federal gam ing

standards. Th e decision shall be issued within sixty 60)

days o f the patron s request, shall be in writing, shall be

based on the facts surrounding the dispute, and shall set

forth the reason s for the decision.



(iii) If the patron is dissatisfied with the decision of the TribalGam ing Agency, or no decision is issued within the sixty

60) day period, the patron may request that any such

complaint over any claimed prizes or winnings and the

amount thereof, be settled by binding arbitration before asingle arbitrator, who shall be a retired judge, in

accordance with the streamlined arbitration rules and

procedures of JAM S (or if those rules no longer exist, the

closest equivalent). Upon such request, the Tribe shall

consent to such arbitration and agree to abide by the

decision of the arbitrator; provided, however, that if any

alleged winnings are found to be a result o f a mechanical,

electronic or electromechanical fa ilure, wh ich is not due

to the intentional acts or gross negligence o f the Tribe or

its agents, the arbitrator shall deny the pa tron s claim for

the winnings but shall award reimbursem ent of the

amounts wagered by the patron which w ere lost as a

result of any said failure. To effectuate such consent, the

Tribe shall, in the exercise of its sovereignty, waive its

right to assert sovereign immunity in connec tion with the

arbitrator s jurisdiction and in any action to A) enforce

the parties obligation to arbitrate, (B) confirm, c orrect,modify, or vacate the arbitral award rendered in the

arbitration, or (C) enforce or execute a judgment basedupon said award. The cost and expenses of such

arbitration shall be initially borne by the T ribe but thearbitrator shall award to the prevailing party its costs and

expenses (but not attorney fees). Any party dissatisfied

with the award of the arbitrator may at the party s

election invoke the JAMS Optional Arbitration Appeal

Procedure (and if those rules no longer exist, the closestequivalent); provided tha t the party m aking such election

must bear all costs and expenses of JAMS and thearbitrators associated with the Appeal Procedure

regardless of the outcome.





otherwise limit the Tribe s sovereign imm unity beyond

the policy limits.

(ii) Prior to the effective date of this Am endm ent, the Tribe

shall adop t, and at all times hereafter shall maintain incontinuous force, an ordinance that provides for the

following:

(A) The ordinance shall provide that California tort law

shall govern all claim s of bodily injury, property

damag e, or personal injury arising out of, connected

with, or relating to the operation o f the G aming

Facility or the Gam ing Activities, including , but not

limited to, injuries resulting from en try on to theTribe s land for purposes of patronizing the G aming

Facility or providing goods o r services to theGam ing Facility, provided that California law

governing punitive dam ages need not b e a part o

the ordinance.

(B) Said ordinance shall also expressly provide for

waiver o f the Tribe s right to assert sovereign

immunity with respect to the arbitration of such

claims but only up to the limits of the Policy;provided, however, such endorsement o r

acknowledgement shall not be deemed to waive orotherwise limit the Tribe s sovereign imm unitybeyond the policy limits.

(C) Said ordinance shall provide for the Tribe s consent

to binding arbitration before a single arbitrator who

shall be a retired judge in accordance w ith the

comp rehensive arbitration rules and procedures ofJAM S (or if those rules no longer exist, the closest

equivalent) to the extent of the limits of the P olicy,

that discovery in the arbitration proceedings shall be

governed by Section 1283.05 of the California Code

of C ivil Procedure, that the Trib e shall initially bear

the co st of JAMS and the arbitrator, but the

arbitrator may award costs to the prevailing party



not to exceed those allowable in a suit in California

Superior Court, and that any party dissatisfied with

the aw ard of the arbitrator may at the party's

election invoke the JAMS Optional Arbitration

Appeal Procedure (or if those rules no longer exist,the closest equivalent), provided that the party

making such election must bear all cos ts and

expenses of JAM S and the arbitrators associated

with the Appeal Procedure regardless o f the

outcome. To effectuate its consent to the foregoing

arbitration procedure, the Tribe shall, in the exercise

of its sovereignty, waive its right to assert its

sovereign immunity in connection with the

arbitrator's jurisdiction and in any action to ( I )

enforce the parties' obligation to arbitrate, 2)

confirm, correct, modify, or vacate the arbitral

award rendered in the arbitration, or 3) enforce or

execute a judgment based upon said award.

(D) The ordinance may also require that the claimant

first exhaust the Tribe's adm inistrative remedies for

resolving the claim (hereinafter the Tribal Dispute

Process ) in accordance the following standards:

The claimant must bring his or her claim within 180days of receipt of written notice of the Tribal

Dispute Proces s as long as notice thereof is servedpersonzlly or, the claimant o r by certified mail w ith

an executed return receipt by the claim ant and the

180-day limitation period is prominen tly displayed

on the front page of said notice. The ordinance may

provide that any arbitration shall be stayed until the

completion o f the Tribal Dispute Process or 180

day s from the date the claim is filed, whichever first

occurs, unless the parties mutually ag ree to a longer

period.

(iii) Upon notice that a claimant claims to have suffered an

injury or damage covered by this Section, the T ribe shall

provide notice by personal service or certified m ail,

return receipt requested, that the claiman t is required



within the specified limitation period to first exhaust the

Tribal Dispute Resolution Process, if any, and if

dissatisfied w ith the resolution, entitled to a rbitrate his or

her claim.

iv) Failure to comply with this Section 10.2, subdivision d),

shall be deemed a material breach of the Com pact.

V MITIGATION OF OFF RESER VATION IMPACTS

Section 10.8 is repealed and replaced by the following:

A Section 10.8. Off-Reservation Impact s).

Section 10.8.1. Tribal Environmental Impact Report. a) Before the

comm encement o f the Project as defined in Section 10.8.7 herein, the Tribe

shall cause to be prepared a tribal environmental impact report, which is

hereinafter referred to as a TEIR , analyzing the potentially significant off-

reservation environmental impacts of the Project pursuant to the process set

forth in this Section 10.8; provided, however, that information or data which

is relevant to such a TEIR and is a matter of public record or is generally

available to the public need not be repeated in its entirety in such TEIR, but

may be specifically cited as the source for conclusions stated therein; and

provided further that such information or data shall be briefly described , thatits relationship to the TEIR shall be indicated, and that the so urce thereof

shall be reasonably available for inspection at a public place r publicbuilding. The TEIR shall provide detailed information about the Significant

Effect s) on the Off-Reservation Environment w hich the Project is likely tohave, including each of the matters set forth in Exhibit A shall list ways in

which the Significant Effects on the Environmen t might be min imized , and

shall include a detailed statement setting forth all of the fo llowing:

i)All Significant Effects on th e Environm ent o f the

proposed Project;

ii) In a separate Section:

A) Any Significant Effect on the Environment that

cannot be avoided if the Project is implem ented;



B) Any S ignificant Effect on the Environment that

would be irreversible if the Project is implem ented;

iii) Mitigation m easures proposed to minimize S ignificant

Effects on the Environment, including, but not limited to,measures to reduce the wasteful, inefficient, and

unnecessary consumption of energy;

iv) Alterna tives to the Project; provided that the Tribe need

not address alternatives that would cause it to forgo its

right to engage in the Gam ing Activities authorized by

this Compact on its Indian lands;

v)Whether any proposed mitigation would be feasible;

vi) Any d irect growth-inducing impacts of the Project; and

vii) W hether the proposed mitigation would be effective tosubstan tially reduce the potential Significant Effects on

the Environment.

b) In addition to the information required pursuant to subdivision

a), the TEIR shall also contain a statement briefly indicating the reasons for

determining that various effec ts of the Project on the off-reservationenvironment are not sign ificant and consequently have not been discussed in

detail in the TEIR. In the TEIR , the direct and indirect S ignificant Effectson the Off-Reservation Environment, including each of the items on xhibit

A shall be clearly identified and described, giving d ue consideration to both

the short-term and long-term effects. The discussion of mitigation measures

shall describe feasible measu res which could minim ize significan t adverse

effects, and shall distinguish between the measures that are proposed by the

Tribe and other measures proposed by others. W here several measures are

available to mitigate an effect, each should be discussed and the basis for

selecting a particular me asu re should be identified. Form ulation of

mitigation measures should not be deferred until som e future time; The

TEIR shall also describe a range o f reasonable a lternatives to the Project or

to the location of the Project, which would feasibly attain most of the basic

objectives of the Project and which would avoid or substantially lessen any

of the Significant Effects on the Environm ent, and evaluate the com parative

merits of the alternatives; provided that the Tribe need not addres s



alternatives that would cause it to forgo its right to engage in the Gaming

Activities authorized by this Compact on its Indian lands. The TEIR m ustinclude sufficient information about each alternative to allow m ea nin gh l

evaluation, analysis, and comparison. The TEIR shall also contain an index

or table of contents and a summ ary, which shall identify each SignificantEffect on the Environment w ith proposed measures and alternatives that

would redu ce or avoid that effect, and issues to be resolved, including the

choice am ong alternatives and whether and how to mitigate the Significant

Effects on the Environm ent. Previously approved land use documents,

including, but not limited to, general plans, specific plans, and local coastal

plans, may be used in cumulative impact analysis. The Tribe shall consider

any recomm endations from the Board o f Supervisors of the San Diego

County ( County ) concerning the person or entity to prepare the TEIR.

ection 10 8 2 Notice of Preparation o f Draft TEIR .

(a) Upon commencing the preparation of the draft TEIR, the Tribe

shall issue a Notice of Preparation to the State Clearinghouse in the StateOffice of Planning and Research ( State Clearinghouse ) and to the Countyfor distribution to the public. The Notice shall provide all Interested Persons

with information d escribing the Project and its potential Significant Effects

on the Environment sufficient to enable Interested Persons to m ake a

m ea ni ng hl response or comm ent. At a minimum, the Notice shall include

all of the following information:

(i) A description o f the Project;

(ii) The location of the Project shown on a detailed map,preferably topographical, and on a regional m ap; and

(iii) The probable off-reservation environmental effects of theProject.

(b) The Notice sha ll also inform Interested Persons of thepreparation of the draft TEIR and sha ll inform them o f the opportunity to

provide comm ents to the Tribe within thirty 30) days of the date of the

receipt of the Notice by the State Clearinghouse and the County. The Notice

shall also request Inte rested Persons to identifL in their com ments the off-

reservation environmental issu es and reasonable mitigation measures that

the Tribe will need to have explored in the draft TEIR.



Section 10 8 3 Notice of Com pletion of the Draft TEIR.

a) Within no less than thirty 30) days following the receipt o f the

Notice of Preparation by the State Clearinghouse and the C ounty, the Tribe

shall file a copy of the draft TEIR and a Notice of Com pletion w ith the StateClearinghouse, the County, and the California Departm ent of Justice. The

Notice of Completion shall include all of the following information:

i) A brief description of the Project;

ii) Th e proposed location of the Project;

iii)An address where copies of the draft TEIR are available;

and

iv) Notice o f a period of forty-five 45) days during which

the T ribe may receive comm ents on the draft TEIR .

b) The T ribe will submit forty-five 45) copies of the draft TEIR

and Notice of Com pletion to the County, which will be asked to serve in atimely mann er the Notice of C ompletion to all Interested Pe rsons and asked

to post public notice of the draft TEIR at the office of the C ounty Board of

Supervisors and to h rn is h the pub lic notice at the public libraries serving theCounty. In addition , the Tribe will provide public notice by at least one of

the procedures specified below:

i) Publication at least one time by the Tribe in a newspaper

o f general circulation in the area affected by the Project.

If more than one area is affected, the notice sh all be

published in the newspaper of largest circulation from

am ong the newspapers of general circulation in those

areas;

ii) Posting o f notice by the T ribe in the area adjacent to, but

outside, the Indian lands on which the P roject is to be

located; or

iii) Direct mailing by the Tribe to the own ers and occu pants

of property adjacent to, but outside, the Indian lands on



which the Project is to be located. Ow ners of such

property shall be identified as shown on the latest

equalization assessment roll.

Section 10 8 4 Issuance of Final TEIR. The Tribe shall prepare, certifL andmake available to the C ounty at least fifty-five (55) days b efore the

completion of negotiations pursuant to S ection 10.8.8 a Final T EIR, w hich

shall consist of:

(i) Th e draft TEIR o r a revision of the draft;

(ii) Com ments and recommendations received on the draft

TE IR either verbatim or in summary;

(iii) list of persons, organizations, and public agencies

comm enting on the draft TEIR ;

(iv) Th e responses of the Tribe to significant environmental

points raised in the review and consultation process; and

(v) An y other information added by the Tribe.

Section 10 8 5 The T ribe shall reimburse the Coun ty for copying and

mailing costs resulting from making the Notice o f Preparation, Notice ofCom pletion, and Draft TEIR available to the public under this Section 10.8.

Section 10 8 6 The T ribe's failure to prepare a TE IR when required m aywarrant an injunction where appropriate.

Section 10 8 7 Definitions. For purposes of this Section 10.8, the

following terms shall be defined as set forth in this sub division.

(a) Project is defined as any activity occurring on Indian landsafter the effective date of this Amen dmen t, a principal purp ose of which is to

serve the Tribe's Gam ing Activities or Gaming Operation and which may

cause either a direct physical change in the off-reservation environm ent, or a

reasonably foreseeable indirect physical change in the off-reservation

environm ent. Th is definition shall be understood to include, but not be

limited to, the construction or planned expansion o f any Gam ing Facility and

any construction or planned expansion, a principal purpose of which is to



serve a Gam ing Facility, including, but not limited to, access roads, parking

lots, a hotel, utility or waste disposal systems, or water supply, as long as

such construction or expans ion causes a direct or indirect physical change in

the off-reservation environment.

(b) Significant Effect(s) on the Environment is the same asSignificant Effect(s) on the Off-Reservation Environment and occur(s ) if

any of the following conditions exist:

(i) A proposed Project has the potential to degrade the

quality of the off-reservation environme nt, curtail the

range o f the environment, or to achieve short-term, to the

disadvantage of long-term, environmental goals.

(ii) The possible effects on the off-reservation env ironment

of a Projec t are individually limited but cum ulatively

considerable. As used herein, cumulatively

considerable means that the incremental effects of an

individual Project are considerable when viewed inconnection with the effects of past projects, the effects of

other curren t projects, and the effect o f probable future

projects.

(iii) The off-reservation environmental e ffects of a Projectwill cause substantial adverse effects on human beings,

either directly or indirectly.

For purposes o f this definition, reservation refe rs to Indian lands within the

meaning of IGRA or lands otherwise held for the Tribe in trust by the United

States.

(c) Interested Persons means (i) all local, state, and federal

agencies, which, if a Project were not taking place on Indian lands, wouldhave responsibility for approving the project or would exercise authority

over the natural resources that may be affected by the p roject, o r (ii) persons,

groups, or agencies that request in writing a notice of preparation of a draft

TEIR or have com mented on the Project in writing to the Tribe o r the

County.



Section 10 8 8 Intergovernmental Agreement. Before thecomm encement of a Project, and no later than the issuance of the Final TEIR

to the C oun ty, the Tribe shall offer to comm ence negotiations with theCoun ty, and upon the Co un ty's acceptance of the Tribe's offer, shall

negotiate with the County and shall enter into an enforceable w rittenagreement with the C ounty with respect to the matters set forth below:

(i) Prov isions providing for the timely mitigation of any

Significant Effect on the Off-Reservation Environm ent

(which effects may include, but are not limited to,

aesthe tics, agricultural resources, air quality, biological

resources, cultural resources, geology and soils, hazards

and hazardou s materials, water resources, land use,

mine ral resources, traffic, noise, utilities and serv ice

systems, and cumulative effects), where such effect is

attributable, in whole or in part, to the Pro ject unless the

parties agree that the particular mitigation is infeasible,

taking into account economic, environmental, social,

techno logical, or other considerations.

(ii) Provisions relating to compensation for law enforcement,

fire protection, emergency medical services and any

other public services to be provided by the C ounty to the

Tribe for the purposes of the Tribe's Gam ing Operationas a consequence of the Project.

(iii) Provisions providing for reasonable compen sation for

programs designed to address gamb ling addiction.

(iv) Provisions providing for mitigation of any effect on

public safety attributable to the Project, including any

compen sation to the County as a c onsequence thereof.

Section 10 8 9 Arbitration . In order to foster good governm ent-to-

government relationships and to assure that the Tribe is no t unreasonably

prevented from com mencing a P roject and benefiting therefrom, if an

agreement with the County is not entered w ithin fifty-five (5 5) days of the

submission of the Final TEIR, or such further time as the Tribe or the

Coun ty (for purposes of this Section the parties ) may mutually agree in

writing, any party ma y dem and binding arbitration before single arbitrator



pursuant to the Comm ercial Arbitration Rules of the Am erican Arbitration

Association a s set forth herein with respect to any rema ining disputes arisingfrom, connec ted with, or related to the negotiation. The arbitration sha ll be

conducted as follows: Each party shall exchange with each other within five

(5) days of the demand for arbitration its last, best written offer made duringthe nego tiation pursuant to Section 10.8.8. The arbitrator shall schedule a

hearing to be heard w ithin thirty (30) days of his or her appoin tmen t. The

arbitrator sha ll be limited to awarding only one o r the other of the tw o offers

subm itted, without modification , based upon that proposal wh ich best

provides feasible mitigation of Significant Effects on the Off-Reservation

Environment and on public services pursuant to Section 10.8.8, without

unduly interfering with the principal objectives of the Project or imposing

environmental m itigation m easures which are different in nature or scale

from the type o f measures that have been required to m itigate im pacts of a

similar scale of other projects in the surrounding area, to the exten t there are

such other projects. Th e arbitrator shall take into consideration w hether the

final TEIR provides the data and information necessary to enable the County

to determine both whethe r the Project may result in a Significant Effect on

the Off-Reservation Environment and whether the proposed measures inmitigation are sufficient to mitigate any such effect. If the respondent does

not participate in the arbitration, the arbitrator shall nonetheless conduct thearbitration and issue an aw ard, and the claimant shall submit such evidence

as the arbitrator may require therefor. Rev iew o f the resulting arbitration

award is waived. In order to effectuate this provision, and in the exercise ofits sovereignty, the T ribe agrees to waive its right to assert sovereign

immunity in conn ection with the arbitrator s jurisdiction o r in any action to(i) enforce the othe r party s obligation to arbitrate, (ii) enforce or confirm

any arbitral award rendered in the arbitration, or (iii) enforce o r execu te a

judgment based upon said award.



VIII LICENSURE O F FINANCIAL SOURCES

Section 6 4 6 is repealed and replaced y the following:

Section 6 4 6 Financial Sources

(a) Sub ject to subdivision (e) of this Section 6.4.6, any person orentity extend ing financing, directly or indirectly, to a Tribe fo r a Gam ing

Facility or a Gam ing Operation (a Financial Source ) shall be licensed by

the Tribal Gam ing Agency prior to extending that financing.

(b) A license issued under this Section shall be review ed a t leastevery two years for continuing compliance. In connection w ith such a

review, the Tribal G aming Agency shall require the Financial Source to

update all information provided in the previous application. For purposes ofSection 6.5.2, such a review shall be deemed to constitute an application for

renewal.

(c) Any agreemen t between the Tribe and a Financial Source shallbe deemed t o include a provision for its termination without further liability

on the part of the T ribe, except for the bona fide repayment o f all

outstanding su ms (exclusive o f interest) owed as o f the date o f termination,

upon revocation or non-renewal of the Financial Source's license by the

Tribal Gam ing Agency based on a determination of unsuitability by the State

Gam ing Agen cy. The Tribe shall not enter into, or continue to makepayments pursuant to, any contract or agreement for the provision of

financing with any person w hose application to the State Gam ing Agencyfor a determination of suitability has been denied or has exp ired without

renewal.

(d) A G aming Resou rce Supplier who provides financing

exclusively in connection w ith the provision, sale or lease o f Gam ing

Resources obtained from that Supp lier may be licensed solely in accordance

with licensing procedures applicable, if at all, to Gam ing Reso urce

Suppliers, and need not be separately licensed as a Financial S ource under

this section.

(e) (1) The Tribal Gaming Agency may, at its discretion, excludefrom the licensing requirements of this section, the following Financial

Sources under the circum stances stated.



(A) A federally-regulated or state-regulated bank, savings and

loan association, or other federally- or state-regulated

lending institution.

B) An entity identified by Regu lation CGC C-2, subd ivision(f) (as in effect on July 1, 2004), of the California

Gambling Control Commission, when that entity is a

Financial S ource solely by reason o f being (i) a purchaser

or a holder of deb t securities issued directly or indirectly

by the Tribe for a Gaming Facility o r by the Gam ing

Operation or ( ii) the own er of a participation interest in any

amount of indebtedness for which a Financial Source

described in subdivision (e)(l)(A ) is the creditor.

(C) An investor who, alone or together with any personcontrolling, controlled by or under com mon control with

such investor, holds less than 10 of all outstand ing debt

securities issued d irectly or indirectly by the T ribe for a

Gam ing Facility or by the Gaming O peration.

D) An agency of the federal, state or local government

providing financing, together with any person purchasing

any debt secu rities of the agency to provide such financing.

(2) The following are not Financial S ources for purposes of this Section.

A) An entity identified by Regulation CGCC-2, subdivision(h) (as in effect on July 1, 2004), of the C alifornia

Gambling Control Comm ission.

(B) A person or entity whose sole connection w ith a provision

or extension of financing to the Tribe is to provide loan

brokerage o r debt se rvicing for a Financial Source at no

cost to the T ribe or the Gam ing Operation, provided that

no portion of any financing provided is an extension ofcredit to the Tribe or the Gam ing O peration by that person

or en tity.

f) In recognition of changing financial circumstances, this Section

shall be subject to good faith renegotiation by both pa rties in or after five (5)

years from the effective date of this Amended Com pact upon request o f

either party; provided such renegotiation shall not retroactively affect



transactions that have a lready taken place where the Financial Source has

been excluded o r exempted from licensing requirements.

IX L BOR

Section 10 7 is repealed and replaced by:

Section 10 7 Labor Relations In light of the fact that the Trib e entered

into a collective bargaining agreemen t with a labor organization be fore the

enactment of its Tribal Labor Relations Ordinance ( TLRO ), which

governs the orga nizational and representational rights of the em ployees at

the Tribal C asin o and Related Facility, and in light of the fac t that the Tribe

has renewed said c ollective bargaining agreement, the parties agree that no

change in the TRLO is necessary to address employee rights.

X UTHORITY ND OPTION TO TERMIN TE

A A new Section 15 7 is hereby added as follows:

Section 15 7 Th e Tribe expressly represents that, as of the date of the

Tribe's execution of this Amended Compact, the undersigned h as theauthority to execute this Am endm ent on behalf of the Tribe, including any

waivers of the right to immunity therein, and will provide written proof of

such authority and of the ratification of this Amendment by th e tribalgoverning body to the G overnor no later than July 1, 2004. In entering intothis Amendm ent, the State expressly relies upon the foregoingrepresentations by the T ribe and the S tate's entry into this Am endm ent is

expressly made contingent upon the truth of those representations. If the

Tribe fails to provide written pro of o f authority to execu te this Amendm ent

or written proof o f ratification by the Tribe's governing body by July 1,

2004, the Governor may declare this Compact null and void by written

notice filed with the California S ecretary o f State by Ju ly 15, 2004.

B A new Section 15 8 is hereby added as follows:

Section 15 8 If any initiative is adopted in C alifornia at the general election

in November 20 04 that becom es effective and binding and that authorizes

anyone other than an Indian tribe with a federally authorized comp act to

conduct the Gam ing Activities specified in subdivisions (a) and (b ) of

Section 4.1 of this Am ended Com pact anywhere in this S tate, the Tribe shall



have the right within ninety 90) days of the initiative taking effect andbecoming binding to declare this Amendm ent null and void by written notice

filed with the California Secretary of State.

XI. T RM

A. Section 11.1 is amended to read in its entirety as follows:

Section 11.1. Effective Date. Th is Am ended Compact shall not be effectiveunless and until all of the following have occurred: a) The amendmen t

herein is ratified by statute in accordance with state law; and b) Notice of

approval or constructive approval is published in the Federal Register asprovided in 25 U.S.C. Section 271 0 d) 3) B).

B. Section 11.2.1 is repealed and replaced by the follow ing:

Section 11.2.1. Term . Once effective, this Amended C ompact shall be in

full force and effective until December 3 1,2030.

Subdivision b) is repealed.

IN WITNESS WHEREOF the undersigned sign this Amendm ent onbehalf o f the State of California and the Viejas Band o f Kumeyaay Indians.

VIEJ S B ND OF

KUMEYAAY INDI NS

-1. \

/

By Anthony R Pico

Chairperson of the V ieias Bandof Kum eyaay Indians

Executed this 21 t day o f June, Executed this 2 1 t day o f June,

2004, at Sacramento, California 2004, at S acramento, California



DEPARTMENT OF THE INTERIOR

Consistent with 5 U.S.C. 2710 d) 8) this Amendment to the Tribal State

Gaming Compact between the State of California and the Viejas Band of

By:

~ e o fe T. Skibine

Dire r, Office of Indian Gaming Management

State of California and the Viejas Band of Kumeyaay ndians Amen dment to Tribal State Com pactPage 33





EXHIBIT

Would the project:

a) Have a substantial adverse effect on a scenic vista?

b) Substantially damage off-reservation scenic resources,including, but not limited to, trees, rock outcroppings, and

historic buildings within a state scenic highway?

c) Create a new source of substantial light or glare, whichwould adversely affect day or nighttime views of historic

buildings or views in the area?

Potentially Less Than Less than NoSignificant Significant Significant lmpact

mpact With mpactMitigation

lncorporation

Would the project:

Potentially Less Than Less than NoSignifican t Significant Significant lmpact

mpact WiN, mpactMitigation

lncorporation

a) Involve changes in the existing environment, which, due totheir location or nature, could result in conversion of

off-reservation farmland to non-agricultural use?

Would the project:

Potentially Less Than Less than NoSignifican t Significant Significant lmp act

mpact WiN mpactMitigation

ncorporation

a) Conflict with or obstruct implementation of the applicable airquality plan?

b Violate any air quality standard or contribute to an existing orprojected air quality violation? [

c Result in a cumulatively considerable net increase of anycriteria pollutant for which the project region is non-

attainment under an applicable federal or state ambient air

quality standard including releasing emissions, which

exceed quantitative thresholds for ozone precursors)?



Would the project:

Potentially Less Than ess than No

Significant Significant Significant lmpact

mpact With mpact

Mitigation

ncorporation

d Expose off-reservation sensitive receptors to substantialpollutant concentrations?

e Create objectionable odors affecting a substantial number ofpeople off-reservation?

IV BIOLOGICALESOUR ES

Potentially Less Than Less than No

Significant Significant Significant mpact

Would the project: mpact With mpactMitigation

ncorporation

a Have a substantial adverse impact, either directly or throughhabitat modifications, on any species in local or regional

plans, policies, or regulations, or by the California

Department of Fish and Game or U S Fish and Wildlife

Service?

b Have a substantial adverse effect on any off-reservationriparian habitat or other sensitive natural community

identified in local or regional plans, policies, and regulations

or by the California Department of Fish and Game or U S

Fish and Wildlife Service?

c Have a substantial adverse effect on federally protected off-reservation wetlands as defined by Section 4 4 of the CleanWater Act?

d Interfere substantially with the movement of any nativeresident or migratory fish or wildlife species or with

established native resident or migratory wildlife corridors, or

impede the use of native wildlife nursery sites?

e Conflict with the provisions of an adopted HabitatConservation Plan, Natural Community Conservation Plan,

or other approved local, regional, or state habitat

conservation plan?



Impact Analysis Check ist



Would the project: Impact With ImpactMitigation

lncorporat~on

a Cause a substantial adverse change in the significance ofan off-reservation historical or archeological resource?

b Directly or indirectly destroy a unique off-reservationpaleontological resource or site or un ique off-reservationgeologic feature?

c Disturb any off-reservation huma n remains, including thoseinterred outside of formal cemeteries?

VI GEOLOGYND SOILS

Would the project:



Impact With ImpactMitigation

Incorporation

a Expose off-reservation people or structures to potentialsubsta ntial adverse effects, including the risk of loss, injury,or dea th involving:

i Rupture of a known earthquake fault, as delineated on themost recent Alquist-Priolo Earthquake Fault Zoning Map

issued by the S tate Geologist for the area or based onother substantial evidence of a known fault? Refer to lDivision of Mines and Geology Special Publication42

ii Strong seismic ground shaking?

iii Seism ic-related ground failure, including liquefaction?

iv Landslides?

b Result in substantial off-reservation soil erosion or the lossof topsoil?

VII HAZARDSND HAZARDOUS ATERIALS

Would the p roject:Potentially

Significant

lmpact

a Create a significant hazard to the off-reservation public orthe off-reservation environment through the routine

transport, use, or disposal o f hazardous materials?

Less Than

Significant Less than o

With Significant

Mitigation lmpact

Incorporation



Impacf nalysis Checklist

b Create a significan t hazard to the off-reservation public orthe off-reservation environment through reasonablyforeseeable upse t and accident conditions involving therelease of hazardous m aterials into the environment?

c) Emit hazardous emissions or handle hazardous or acutelyhaza rdous ma terials, substances, or waste within one-

quarter m ile of an existing or prop osed off-reservationschool?

d) Expose off-reservation people or structures to a significant

risk of loss, injury or dea th involving wildland fires.

VIII WATERRESOURCES

Wou ld the project:

Potentially Less Than Less than NoSignificant Significant Significant mpact

mpact Wirh mpact

Mitigationncorporation

a) Violate any water quality standa rds or waste dischargerequirements?

b) Substantially deplete off-reservation groundwater supplies orinterfere substan tially with groundw ater recharge such thatthere should be a net deficit in aquifer volume or a loweringof the loca l groundw ater table level e.g., the production rateof pre-existing nearby wells would drop to a level whichwould no t support existing land uses or p lanned uses forwhich permits have been granted)?

c) Substantially alter the existing drainage pattern of the site orarea, including through the altera tion of the course of astream or river, in a manner which wo uld result in substantialerosion of siltation off-site?

d) Substantially alter the existing drainage pattern of the site orarea, including through the altera tion of the course of astream or river, or substan tially increase the rate or amountof surface runoff in a manner which would result in floodingoff-site?

e) Create or contribute runoff water which would exceed thecapacity of existing o r plann ed storm water drainagesystems or provide substantial additional sources of polluted

runoff off-reservation?

f) Place within a 100-year flood h azard area structures, whichwould impede or redirect off-reservation flood flows?

g) Expose off-reserva tion people or structures to a significan trisk of loss, injury or dea th involving flooding, includingflooding as a result of the failure of a levee or dam?

7



aImpact nalysis Checklist

IX L ANDUSE

Would the project



mpact With mpact

Mitigation

lncorporation

a Conflict with any off-reservation and use plan, policy, orregulation of an agency adopted for the purpose of avoiding [7or mitigating an environmental effect?

b Conflict with any applicable habitat conservation plan ornatural communities conservation plan covering off-

reservation lands?


Significant Significant Significant lmpactWould the project mpact With mpact

Mitigation

lncorporation

a Result in the loss of availability of a known off-reservationmineral resource classified MRZ 2 by the State Geologist

that would be of value to the region and the residents of the Elstate?

b Result in the loss of availability of an off-reservation ocally

important mineral resource recovery site delineated on alocal general plan, specific plan, or other land use plan?

XI NOISE


Significant Significant Significant lmpactWould the project result in mpact With mpact

Mitigation

lncorporation

a Exposure of off-reservation persons to noise levels in excessof standards established in the local general plan or noise

ordinance, or applicable standards of other agencies?

b Exposure of off-reservation persons to excessivegroundborne vibration or groundborne noise levels?

c A substantial permanent increase in ambient noise levels inthe off-reservation vicinity of the project?



Impact nalysis Checklist


Would the project result in significant Significant Significant lmpact

mpact With mpact

Mitigation

ncorporation

d substantial temporary or periodic increase in ambient

noise levels in the off-reservation vicinitv of the oroiect?

XII POPULATIONNDHOUSING

Would the project:



mpact With mpact

Mitigation

ncorporation

a Induce substantial off-reservation population growth?

b Displace substantial numbers of existing housing,

necessitating the construction of replacement housingelsewhere off-reservation? El

XIII PUBLIC ERVICES

Would the project:

a Result in substantial adverse physical mpacts associated

with the provision of new or physically altered off-reservationgovernmental facilities, the construction of which could

cause significant environmental impacts, in order to maintain

acceptable service ratios, response times, or other

performance objectives for any of the off-reservation public

services:

Fire protection?

Police protection?

Schools?

Parks?

Other public facilities?


Significant Significant Significant lmpactmpact With mpact

Mitigation

lncorporation



Imvacr nalvsis Ch eckli s~

XIV RECRE TION

Would the project:



lncorporation

a) Increase the use of existing off-reservation neighborhoodand regional parks or other recreational facilities such that

substantial physical deterioration of the facility would occur [or be accelerated?

XV TR NSPORT TIONTR FFIC

Potentiallv Less Than Less than NoI Would the project:significant Significant Significant lmpact


lncorporation

a) Cause an increase in off-reservation traffic, which issubstantial in relation to the existing traffic load and capacity

of the street system i.e., result in a substantial increase in

either the number of vehicle trips, the volume-to-capacity

ratio on roads, or congestion at intersections)?

b) Exceed, either individually or cumulatively, a level of servicestandard established by the county congestion management [agency for designated off-reservation roads or highways?

7 7

c) Substantially increase hazards to an off-reservation designfeature e.g.,sharp curves or dangerous intersections) or

incompatible uses e.g., farm equipment)?[

d) Result in inadequate emergency access for off-reservationresponders?

XVI UTILITIESND SERVICEYSTEMS

Would the project:



lncorporation

a) Exceed off-reservation wastewater treatment requirementsof the applicable Regional Water Quality Control Board?

b) Require or result in the construction of new water orwastewater treatment facilities or expansion of existing

facilities, the construction of which could cause significant

off-reservation environmental effects?

c) Require or result in the construction of new storm water

drainage facilities or expansion of existing facilities, the

construction of which could cause significant off-reservation

environmental effects?



mpacr Analysrs Checklrsr

Would the project

Potentially ess Than ess than No


mpact ith mpact

Mitigation

ncorporation

d) Result in a determination by an off-reservation wastewatertreatmen t provider (if applicable), which serves or may serve

l

the project that it ha s inadequ ate capacity to serve theproject's projected dema nd in addition to the provider'sexisting com mitments?

XVII CUMULATIVEFFECTS

Would the project:

Pofentially ess Than ess than No



lncorporation

a) Have impa cts that are individually limited, but cumulativelyconsiderab le off-reservation? Cum ulatively considerablenmeans that the incremental effects of a project areconsiderable whe n viewed in connection with the effects ofpast, current, or probable future projects.



EXHI IT



EXHI ITThe following provisions are included in this agreement in order to facilitate the

securitization of the annual paym ents to be received by the State pursuant to Section 4.3.3.

1 Th e Tribe and the State agree that the intended form o f the financing will include

a structu re that d oes not require public disclosure o f tribal o r tribal businessenterprise financial information or business information not currently in the public

domain.

In order to assist the State in the securitization of the annual payments described

herein, the Tribe agrees to consider in good faith all arrangements designed to

comply with requests by insurers, letter of credit providers or other financial

institutions in connection w ith the provision of credit enhancem ent by such

parties on any such securitization. In connection therewith, the Tribe w ill provide

relevant requested information to the rating agencies, credit enhancers, and

involved investm ent bankers (subject to confidentiality agreements), including

information relating to its financial and operating data (including any m arketstudies or managemen t analysis), its legal organization, any service or

managem ent contracts, and any outstanding indebtedness; p rovided, however, that

the Tribe is not required to consider any agreement in wh ich the Tribe guarantees

the ob ligations of any other Tribe or entity.

3 . The Tribe agrees to use its reasonable best efforts to o btain such approvals as are

necessary to provide that payments required to be mad e pursuant to this Amended

Comp act shall constitute a n operating ex pense of the Tribe and shall be senior in

priority to an y payment of any bank loans or other obligations for borrowed

money currently existing or incurred hereafter during the term of this Am ended

Compact.

4. Th e Tribe will provide a limited waiver of sovereign immunity as necessary to

provide for the enforcement of any arrangements agreed to in Section 2 above.

5 The Tribe will provide custom ary legal opinions affirming the validity andenforceability of this Amended Com pact and any arrangemen ts agreed to in

Section above, the priority of the paymen t of the amou nts required to be paid by

the Tribe hereunder, and the Tribe s waiver of sovereign im munity.

6 The co venant o f the Sta te to maintain the exclusivity set forth in Section 3.2,

subdivision (a), in the eve nt that bonds are issued co nstitutes an important

inducement to the Tribe to make the payments d escribed in Section 4.3.3

subdivision (a), of this Am ended Com pact, and granting such exclusivity in return

for such paym ents is purely a financial matter, and has been negotiated by theparties pursuant to articulated federal policy pursuant to the IGRA. Nothing

herein shall preclude the State from exercising the p olice power in the event that

the health, welfare or well-being of the citizens of the State shall require such

exercise; provided, ho wever, that the S tate acknow ledges and recognizes that

Documents

CA Compact With Viejas Band of Kumeyaay Tribe Amended