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RESOLUTION 95 7/ 27 1 OF ' rim' M0REGAN TRIBE OF INDIANS OF CONNECTICUT WHEREAS, the Mohegan Tribe of Indians of Connecticut is an American Indian Tribe recognized by the United States ; and WHEREAS, the Tribe desires to renumber the ordinances of the Code to provide for a more logical and sequentially ordered system ; and WHEREAS, the Tribe is in the final stages of developing its first code;

NOW, THEREFORE, BE IT RESOLVED, that the Chief and Tribal Council direct the renumbpring, by calendar year, of the following ordinances: V' 94 1 Tribal ~' minir ( lr~ iinanrP dated 7tt htty 19g4 !   95 1 Election Ordinance dated 29 June 1995 95 2 Tribal Gaming Ordinance dated 15 July 1995 95 3 Personnel Policies dated 15 July 1995 95 4 Gaming Disputes Court dated 20 July 1995 ; . ro', c rt.~ Gl <: ht.~

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and the resolutions be consecutively numbered beginning with the calendar year so that the next resolution on the agenda be written with a sequentially chosen number for the record .

ADOPTED, this 27th day of July, 1995, at Uncasville, Connecticut.

MOHEGAN TRIBE OF INDIANS OF CONNECTICUT U ATTEST: C ERT~ IC ATION 1, the undersigned Chairman of Mohegan Tribal Council do hereby certify that the Mohegan Tribal Council is composed of nine ( 9) members of which 9 were present, thereby constituting a quorum, at a duly called meeting of the Mohegan Tribal Council held on the 28th ~ day of July , 199? , and the attached Ordinance Number 94 1 , An Ordinance concerning Gaming on Tribal Land was duly adopted by the affirmative vote of 9 members of the Council and that the attached Ordinance is a true and correct copy of Ordinance Number 94 1 ( previously enacted as 94 7/ 28 2)

ATTEST:

Shirley M. WaLsh Tribal Council Recording Secretary Seal ORDINANCE NO. 94 1 ORDINANCE OF THE MOHEGAN TRIBE OF OF CONNECTICUT FOR GAMING ON TRIBAL LANDS An Ordinance to Regulate and Provide for the Licensing of Class li and Class III Gaming on Tribal Lands of the Mohegan Tribe of Indians of Connecticut GENERAL PROVISIONS SECTION 1  SHORT TITLE This Ordinance may be cited as the " Mohegan Tribal Gaming Ordinance."

SECTION 2  DECLARATION OF TRIBAL POLICY § 2 1 . It is the policy of the Mohegan Tribe of Indians of Connecticut, hereinafter referred to as " Tribe":

( a) That the Tribe shall have the sole proprietary interest in any Gaming Operation ;

( b) That all Gaming Operations on Tribal Lands shall be conducted by the u Tribe, through employees of the Tribal Council or its Management ( Contractors only; ._ ( c) That it is the objective of this Ordinance to provide revenue to promote ( i) Tribal economic development and self sufficiency and ( ii) the health,

education, and welfare of Tribal members; and ( d) That the Gaming activities provided for by this Ordinance within lands of the Tribe shall be conducted in conformance with the requirements of this Ordinance, the Indian Gaming Regulatory Act, 102 Stat. 2467,

25 U . S. C. § 2701, gt sq., as implemented by the regulations promulgated by the National Indian Gaming Commission, and the provisions of any Tribal State Compact governing Class III Gaming on Mohegan Tribal Lands .

SECTION 3  FINDINGS § 3 1 . The Tribal Council finds that

( a) Class II Gaming may be conducted on Tribal Lands of the Tribe by reason of the fact that the State of Connecticut permits bingo; .

( b) Class III Gaming may be conducted on Tribal Lands of the Tribe by reason of the fact that the State of Connecticut permits

( i) lottery ( ii) jai alai or pelota ; ( iii) pari mutuel wagering on horse and dog racing ;

( iv) casino nights; r ~

( v) off track betting and/ or simulcasting horse and dog races.

SECTION 4  DEFINITIONS § 4 1 . For the purpose of this Ordinance, the following definitions shall apply:

( a) " Act" means the Indian Gaming Regulatory Act, Public Law 100 497, 102 Stat. 2466, codified at 25 U . S. C . § § 2701, el sea .

( b) " Applicant" means any person that completes an application with the Tribe for a Gaming License.

( c) " Assessable Gross Revenues" means the annual total amount of money wagered and admission fees, less any amounts paid out as prizes or paid for prizes awarded, and less an allowance for amortization of capital expenditures for structures .

( d) " Bingo" means that game of chance ( whether or not electronic, computer, or other technologic aids are used in connection therewith) : ( i) which is played for prizes, including* monetary prizes, with cards bearing numbers or other designations ; ,

( ii) in which the holder, of the cards covers such numbers or designations when objects, similarly numbered or designated, are drawn or electronically determined; and ( iii) in which the game is won by the first person covering a previously designated arrangement of numbers or . designations on such cards.

( e) " Chairman" means Chairman of the National Indian Gaming Commission or his or her designee.

( fl " Cheating" means operating or playing in a game in a manner in violation of the written or commonly understood rules of the game, with the intent to create for himself/ herself or someone in privity with him/ her an advantage over and above the chance of the game.

( g) " Class II Gaming" means that Gaming defined in 25 C. F . R. § 502.3.

( h) " Class III Gaming" means that Gaming defined in 25 C . F . R. § 502 .4.

( i) " Collateral Agreement" means any contract, whether or not in writing, that is related, either directly or indirectly, to a Management Contract,

 4 or to any rights, duties, or obligations created between the Tribe ( or any of its members, entities, or organizations) and a Management Contractor or subcontractor ( or any person or entity related to a Management Contractor or subcontractor) .

( j) " Commission" means the National Indian Gaming Commission .

( k) " Council" means the Tribal Council as described in the Constitution of the Mohegan Tribe.

( I ) " Employee Manager" is a manager other than a " Management Contractor" employed by the Tribe to manage a tribal Gaming Establishment.

( m) " Gaming" means risking any money or other thing of value for gain,

contingent, wholly or partially, upon lot, chance, the operation of Gaming apparatus, or the happening or outcome of an event over which the person taking the risk has no control.

( n) " Gaming Establishment" means any location or structure, wherein Gaming is licensed, promoted, performed, conducted, or operated.

( o) " Gaming License" means the permit granted by the Tribe to an applicant for employment with a Gaming Operation .

( P) " Gaming Operation" means each economic entity that is licensed by the Tribe, operates the games, receives the revenues, issues the  5 prizes, and pays the expenses . A Gaming Operation may be operated) by the Tribe directly or by a Management Contractor .

( q) " Gross Gaming Revenues" means the annual total amount of money wagered and admission fees .

( r) " Key Employee" means: ( i) A person who performs one or more of the following functions :

( 1) Bingo caller;

( 2) Counting room supervisor ;

( 3) Chief of security;

( 4) Custodian of Gaming supplies or cash ;

( 5) Floor manager;

( 6) Pit boss;

( 7) Dealer;

( 8) Croupier; ( 9) Approver of credit ; or ( 10) Custodian of gambling devices including persons with access to cash and accounting records within such devices ;

( ii) If not otherwise included, any other person whose total cash compensation is in excess of Fifty Thousand Dollars ($ 50,000) per year; or.

( iii) If not otherwise included, the four most highly compensated persons in the Gaming Operation.

( s) " Management Contract" means any contract, subcontract, or Collateral Agreement between the Tribe and a contractor or between a contractor and a subcontractor if such contract or agreement provides for the management of all or part of a Gaming Operation.

( t) " Management Contractor" means the person or entity holding a contract entered into pursuant to 25 U . S. C. § 2710( d)( 9) or § 2711 . N/ o M, c

_'

.01 ( u) " Minor" rr~ ns a person less than eighteen ( 18) years of age. ( v) " Net Revenues" means Gross Gaming Revenues of a Tribal Gaming Operation less

( i) Amounts paid out as, or paid for, prizes ; and ( W) ( ii) Total Gaming related Operating Expenses, excluding management fees.

" Operating Expenses" means total Gaming related expenses excluding management fees .' ~ f 6 ( A E V \

( x) " Person" means any individual, firm, partnership, corporation,

company, or association .

( Y) " Person Having a Direct or Indirect Financial Interest in a Management Contract" means:

\ At,

( i)

such Management Contract; When a person who is a party to a Management Contract, any person having a direct financial interest in ( ii) When a trust is a party to a Management Contract, any beneficiary or trustee;

( iii) When a partnership is a party to a Management Contract, any partner;

 8 til v c  ( iv) When a corporation is a party to a Management Contract, any person who is a director or who holds at least ten percent ( 10%) of the issued and outstanding stock alone or in combination with another stockholder who is a spouse, parent, child or sibling; or ( v) When an entity other than a natural person has an interest in a trust, partnership, or corporation that has an interest in a Management Contract, all parties of that entity are deemed to be persons having a direct financial interest in a Management Contract.

( z) " Tribal Land" means the person designated in the Management Contract as having engagement responsibility for the Gaming Operation, or a portion thereof.

( aa) " Player" means a person participating in a game with the hope of winning money or other benefit, but does not include a licensee, any assistant of a licensee, or their immediate family.

( ab) " Primary Management Official" means: ( i) The Person Having Management Responsibility for a Management Contract;

( ii) Any person who has authority;

( 1) To hire and fire employees; or ( 2) To set up working policy for the Gaming Operation ; or ( iii) The chief financial officer or other person who has financial management responsibility. ( ac) " Secretary" means the Secretary of the Interior.

( ad) " Tribal Lands" means all lands which are held in trust by the United States of America for the Tribe and all lands owned by the Tribe which are subject to restriction against alienation imposed by the United States.

( ae) " Tribal State Compact" means an agreement between the Tribe and the State of Connecticut about Class III Gaming under 25 U . S . C. § 2710( d) .

( af) " Tribe" means the Mohegan Tribe .

SECTION 5  AUTHORITY OF TRIBAL COUNCIL § 5 1 . The Council shall have the power and responsibility to:

( a) enforce and administer the provisions of this Ordinance;

( b) issue and renew Gaming Licenses as provided in this Ordinance and in any regulation which may be promulgated by the Council ;

( c) revoke, suspend, or condition a Gaming License or deny an application for a license for violation of applicable law or Ordinance regulating Gaming, or conviction of any offense involving a Gaming related crime or moral turpitude;

( d) collect fees and interest as provided for in this Ordinance ;

( e) assess and collect penalties provided for in this Ordinance;

( f)

( g) adjust the respective amounts of the annual license fees, provided that such fees shall not be increased retroactively;

audit or cause to be audited expenditures, receipts, and reports of a licensee responsible for managing a Tribal Gaming enterprise;

( h) review, on demand, such books and records and inspect the premises and operations of licensees as it deems necessary for the enforcement of this Ordinance; ( i) draw up such forms as it deems necessary;

U) institute such legal proceedings in the name of the Tribe in a court of competent jurisdiction as it deems necessary for the enforcement of this Ordinance;

( k) conduct hearings provided for in this Ordinance;

( 1) deposit all fees, penalties, and interest collected under authority of this Ordinance into an account to the credit of the Tribe;

( m) maintain a correct and full accounting of all fees, penalties, and interest received under authority of this Ordinance, and provide a monthly record of that accounting; and ( n) take such other actions and . issue such orders and promulgate such regulations as the Council may deem necessary to properly and fully perform its duties and responsibilities under this Ordinance.

§ 5 2 .

Tribal members to exercise any or all of the powers and responsibilities set out in § 5 1 of this Ordinance, above .

SECTION 6  GAMES AUTHORIZED r t The Council may appoint a committee of not more than three ( 3)

 12 § 6 1 . The Tribe shall have the sole proprietary interest in and responsibility for the conduct of any Gaming Operation . .

§ 6 2. Class II Games as follows may be licensed for conduct on Tribal Lands:

( a) bingo, pull tabs, lotto, punch boards, tip jars, instant bingo, and other games similar to bingo as defined under 25 C. F. R. § 502.9.

( b) non banking card games defined as Class II Gaming under 25 C . F . R.

§ 502 .3( c) .

( c) any game determined to be a Class II Game by Congressional amendment of the Act, by regulation, or by decision of the Commission or the federal courts .

§ 6 3. Class III Games as follows may be licensed for conduct on Tribal Lands:

( a) such Class I11 Games as may be authorized by a Tribal State Compact, and ( b) such Class III Games authorized under procedures specified in 25. U . S . C. § 2710( d)( 7)( B).

SECTION 7  GAMING LICENSES REQUIRED § 7 1 . A separate Gaming License is required for:

( a) ( i) each person having a Management Contract;~ Ffu C i ( ii) each Primary Management Official and each Key Employee whether employed by the Management Contractor or directly by the Tribe; and I \

( iii) all other employees.

( b) each place, facility, or location on Tribal Lands at which class II or Class III Gaming is conducted.

SECTION 8  APPLICATION FOR GAMING LICENSES C /

§ 8 1 . Each person having a Man ageme n) 4_ ontract, each Primary Management Official and each Key Employee whether employed by the Management Contractor o  r_ directly by the Tribe, and ' all other employees shall complete an <<. f /~~ application for an initial Gaming License or renewal of an existing Gaming  14 License for each Gaming Establishment on an application form prescribed by the Council . The form or forms prescribed by the Council for employees other than Primary Management Officials or Key Employees shall be less inclusive than the form prescribed for Primary Management Officials and Key Employees and shall be appropriate to the position held by the employee or for which the employee is applying. The application shall set forth:

( a) the name under which the applicant transacts or intends to transact business on Tribal Lands ; and ( b) the location of the Gaming Establishment for which the Gaming License is sought; and ( c) the application shall be signed by the applicant if a natural person, or,

in the case of an association or partnership, by a member or partner thereof, or, in the case of a corporation, by an executive officer thereof, or by some other person specifically authorized by the corporation to sign the application, in which case written evidence of the signator's authority shall be. attached. The applicant shall provide evidence of authority of the signator or any other representative to act for and bind the applicant . If any change is made in that authority, the Council shall be immediately informed in writing and, until that information is filed with the Council, any action of the representative shall be presumed to be that of the applicant . § 8 2 . Each application shall be accompanied by payment of the appropriate license fee . .

§ 8 3. The Management Contractor shall file along with the application an organizational chart of its management organization and job descriptions of the employees of the Gaming Operation. The chart shall identify which employees are or will be the Primary Management Officials and the Key Employees of the Gaming Operation .

§ 8 4. An application for a Gaming License shall include:

( a) a description of the place, facility, or location on Tribal Lands where the applicant will operate a Gaming Operation or where the applicant will be employed .

( b) the following privacy notice prescribed by 25 C. F. R. § 556.2:

In compliance with the Privacy Act of 1974, the following information is provided: Solicitation of the information on this form is authorized by 25 U . S. C. § 2701, et seq. The purpose of the requested information is to determine the eligibility of individuals to be employed in a Gaming Operation. The information will be used by National Indian Gaming Commission members and staff who have need for the information in the performance of their official duties .

 16 The information may be disclosed to appropriate Federal, Tribal, State, local, or foreign law enforcement and regulatory agencies , when relevant to civil, criminal or regulatory investigations or prosecutions or when pursuant to a requirement by a Tribe or the National Indian Gaming Commission in connection with the hiring or firing of an employee, the issuance or revocation of a Gaming License, or investigations of activities while associated with a Tribe or a Gaming Operation. Failure to consent to the disclosures indicated in this notice will result in a Tribe's being unable to hire you in a Primary Management Official or Key Employee position.

The disclosure of your Social Security Number ( SSN) is voluntary . However, failure to supply a SSN may result in errors in processing your application .

( c) the following notice regarding false statements is prescribed by 25 C . F. R. § 556.3:

A false statement on any part of your application may be grounds for not hiring you, or for firing you after you begin work. Also, you may be punished by fine or imprisonment ( U . S . Code, Title 18, Section 1001). ( d) the following background investigation information from each Primary Management Official and each Key Employee:

( i) full name, other names used ( oral or written), social security number( s), birth date, place of birth,

citizenship, gender, all languages ( spoken or written) ;

( ii) currently and for the previous five ( 5) years: business and employment positions held, ownership interests in those businesses, business and residence addresses, and drivers license numbers ;

( iii) the names and current addresses of at least three ( 3)

personal references, including one personal reference who was acquainted with the applicant during each period of residence listed under paragraph ( d)( ii) of this Section;

( iv) current business and residence telephone numbers;

( v) a description of any existing and previous business relationships with Indian tribes, including ownership interests in those businesses; ( vi) a description of any existing and previous business relationships with the gaming industry generally,

including ownership interests in those businesses;

( vii) the name and address of any licensing or regulatory agency with which the person has filed an application for a license or permit related to Gaming, whether or not such license or permit was granted;

( viii) for each felony for which there is an ongoing prosecution or a conviction, the charge the name and address of the court involved, and the date and disposition if any;

( ix) for each misdemeanor conviction or on going misdemeanor prosecution ( excluding minor traffic violations), within ten ( 10) years of the. date of the application, the name and address of the court involved and the date and disposition ;

( x) for each criminal charge ( excluding minor traffic charges) whether or not there is a conviction, if such criminal charge is within ten ( 10) years of the date of the application and is not otherwise listed pursuant to paragraph ( d)( viii) or ( d)( ix) of this Section, the criminal charge, the name and address of the court involved, and the date and disposition ;

 19 ( xi) the name and address of any licensing or regulatory agency with which the applicant has filed an application for an occupational license or permit,

whether or not such license or permit was granted ;

( xii) a current photograph;

( xiii) a complete history of the applicant's educational background, including the names of any colleges,

universities, trade or vocational schools, and high schools attended ;

( xiv) a description of the applicant's family including an explanation of the relationships described ( e. g .,

parents, guardians, etc.);

( xvi) any financial statement from the applicant's accountant or other financial information specifically requested on the application form, for example,

income sources, assets owned, insurance policies,

mortgages, and other information relating to the filing of bankruptcy or other obligations ;

( xvii) a description of the applicant's spousal status including, if applicable, the existence of any previous marriages ;

 20 ( xviii) fingerprints of the applicant to be taken by the Connecticut State Police ( or other law enforcement agency approved by the Tribe) and forwarded to the NIGC for a criminal history check. A criminal history check will include a check of criminal history records information maintained by the Federal Bureau of Investigation ;

( xix) a statement authorizing law enforcement agencies and prior employers to release information and respond to questions relating to the applicant's records, habits, reputation, and associations ;

( xx) all applicants are required to submit to a drug screening test and, if employed, random screening tests thereafter; and ( xxi) any other information the Council deems relevant.

§ 8 5. Each applicant for a Gaming License who has o'r will have a contract with the Tribe to manage a Tribal Gaming Operation shall state whether or not he/ she already has a Management Contract to operate any Indian or non Indian Gaming Operation and, if so, a doscription of the location of each such operation. § 8 6 . A Management Contractor's application shall include information required by 25 U . S . C . § 2711 and 25 C. F. R. § 537 .1 .

§ 8 7. When a Key Employee or a Primary Management Official begins work at a Gaming Operation the Council shall forward a copy of the person's completed application for a Gaming License to the Commission .

SECTION 9  QUALIFICATIONS FOR GAMING LICENSES § 9 1 . The Council may issue or renew a Gaming License to an applicant who submits a proper and completed application and pays the appropriate license fee, provided that the Council determines that the applicant:

( a) is not a minor;

( b) is a person of good character, honesty, and integrity;

( c) has no prior activities, criminal record, reputation, habits, and associations which pose a threat to the public interest or the interest of the Tribe or to the effective regulation and control of Gaming, or create or enhance the dangers of unsuitable, unfair, or illegal practices,

methods, and activities in the conduct of Gaming or the carrying on of the business and financial arrangements incidental to the conduct of .

Gaming ; ( d) has not supplied false and/ or misleading information or who has riot omitted material information required under this Ordinance, the Act,

and 25 C. F. R. Chapter III ; ,

( e) has not had, or is not in privity with anyone who has had, a Gaming License revoked for cause in any jurisdiction since the effective date of the Act;

( f) has complied with this Ordinance or any resolution adopted by the Council;

( g) does not occupy a competing position in the employ of another Tribe within a five hundred ( 500) mile radius of any Tribal Gaming Operation; and ( h) does not violate any of the requirements set forth in 25 U . S . C . § 2711( a) and ( e).

§ 9 2 . Subject to the requirement of payment of annual license fees, each Gaming License shall be valid for three ( 3) years provided that, in the discretion of the Council, a Gaming License may be granted for a term to run concurrently with the term of a Management Contract. 00 § 9 3. A Gaming License may not be assigned or transferred and is valid only for use by the person in whose name it is issued and at the Gaming Establishment for which it is issued . A Gaming License shall be conspicuously displayed at all times at the Gaming Establishment for which issued .

§ 9 4 . The Council shall make the final decision as to whether a Gaming License shall be issued, suspended, or revoked, subject to the dispute resolution procedures agreed to by the Tribe in a management agreement.

§ 9 5 . Until authorized by a Tribal State Compact, no Gaming License shall be issued by the Council for Class III Gaming .

SECTION 10  GAMING LICENSE FEES § 10 1 . The fees for Gaming Licenses issued pursuant to this Ordinance shall be determined by the Tribal Council. Such fees shall, be set at an amount determined to be sufficient to cover tribal administrative costs plus the cost of conducting the background investigations of the license applicant,,, provided that the investigation fee for persons having a Management Contract shall not I exceed the reasonable cost of such fees agreed to by the Tribe in aa Management Contract.) It is estimated that the costs of conducting background checks of Primary Management Officials and Key Employees will not exceed Five Thousand Dollars ($ 5,000) per individual and Twenty Thousand Dollars ($ 20,000) per domestic entity, with an additional cost of Twenty Thousand Dollars ($ 20,000) for each foreign country in which an entity does business. License fees for all other employees shall be One Hundred Dollars ($ 100). The Council may waive the annual fee on a case by case basis.

§ 10 2 . The Council may adjust the license fee at any time on a prospective basis .

§ 10 3. The license fee shall be paid with the submission of the applicant's completed application, and shall be non refundable.

§ 10 4. All moneys collected or received at a Gaming Establishment, except any individual winnings or prizes of Ten Thousand Dollars ($ 10,000) or less paid in cash immediately, shall be deposited by the licensee in bank accounts approved by the Council, which accounts shall contain only such moneys . Other cash prizes, the purchase prices of non cash prizes, and all expenses for such Gaming activities shall be withdrawn from such accounts approved by the Council by consecutively numbered checks duly signed by a specified officer or officers of the licensee and payable to a specific person or organization . There shall also be documentation for each check designating the nature of the expense or prize for which the check is drawn. No check shall be drawn to " cash" or a fictitious payee. Wire transfers shall be allowed with proper supporting documentation .

SECTION 11  BACKGROUND INVESTIGATIONS § 11 1 . The Council shall conduct, or cause to be conducted, a background investigation of each applicant for a position which is designated as a Key Employee or Primary Management Official sufficient to make a qualification determination under Section 9 above, provided that the Tribe shall, to the extent permitted by law, utilize state investigative processes set forth in the Tribal State Compact. In conducting the investigation, the Council shall keep confidential the identity of each person interviewed in the course of the investigation.

§ 11 2. Investigative Reports.

( a) The Council shall prepare and forward to the Commission an investigative report summarizing each background investigation of a Key Employee or Primary Management Official that the Council intends to employ.

( b) The Council shall forward an investigative report to the Commission within sixty ( 60) days after a Key Employee or Primary Management Official begins work or within sixty ( 60) days of the approval of this Ordinance by the Commission .

( c) Each investigative report shall include the following:

( i) the steps taken in conducting the background investigation ; ( ii) the results obtained;

( iii) the conclusions reached; and ( iv) the basis for those conclusions .

( d) The Council shall submit to the Commission, along with the investigative report, a summary of the Council's qualification determination made under Section 9 above.

( e) If a Gaming License is not issued to an applicant, the Council :

( i) shall notify the Commission; and ( fl ( ii) may forward copies of its qualification determination and investigative report ( if any) to the Commission for inclusion in the Indian Gaming Individuals Records System.

With respect to Key Employees and Primary Management Officials, the Council shall retain applications for Gaming Licenses and reports ( if any) of background investigations for inspection by the Chairman or his or her designee for no less than three ( 3) years from the date of termination of employment. ( g) A Gaming Operation shall not employ as a Key Employee or Primary Management Official a person who does not have a Gaming License ninety ( 90) days after a license application has been submitted.

§ 11 3 . Granting a Gaming License.

( a) If, within a thirty ( 30) day period after the Commission receives an investigative report, the Commission notifies the Council that it has no objection to the issuance of a Gaming License pursuant to a license application filed by a Key Employee or a Primary Management Official, the Council may issue a license to such applicant.

( b) The Council shall respond to a request for additional information from the Chairman concerning a Key Employee or a Primary Management Official who is the subject of an investigative report. Such a request shall suspend the thirty ( 30) day period under Subsection ( a) above until the Chairman receives the additional information .

( c) If, within the thirty ( 30) day period described in Subsection ( a) above,

the Commission provides the Council with a statement itemizing . objections to the issuance of a Gaming License to a Key Employee or to a Primary Management Official application, the Council shall reconsider the application, taking into account the objections itemized by the Commission. The Council shall make the final decision whether to issue a Gaming License to such applicant .

§ 11 4 . Gaming License Suspension .

 28 If, after the issuance of a Gaming License, the Tribe receives from the Commission reliable information indicating that a Key Employee or a Primary Management Official is not eligible for employment under Section 9 of this Ordinance, the Tribe shall suspend such license and shall notify in writing the licensee of the suspension and the proposed eevocation . SECTION 12  MAINTENANCE OF GAMING FACILITY § 12 1 . The Council shall establish standards and procedures for inspection and enforcement by which a Gaming facility licensed under this Ordinance shall be maintained in a manner which adequately protects the environment and the public health and safety.

SECTION 13  USE OF NET REVENUES § 13 1 . Net Revenues from Gaming permitted under this Ordinance shall only be expended for one or more of the following purposes:

( a) to fund Tribal government operations or programs;

( b) to provide for the general welfare of the Tribe and its members;

( c) to promote Tribal economic development;

( d) to donate to charitable organizations ; or ( e) to support operations of local governmental agencies .

§ 13 2. If the Council elects to make per capita payments to tribal members, it shall authorize such payments only upon approval of a plan submitted to the Secretary pursuant to 25 U . S. C . § 2710( b)( 3) . SECTION 14  RECORDS AND REPORTS § 14 1 . A Gaming Operation shall keep permanent books of account or records, including inventory records of Gaming supplies, sufficient to establish the amount of gross and net income, deductions and expenses, receipts and disbursements, and other information required in any financial statement, report, or other accounting prepared pursuant to the Act or Chapter III in Title 25 C . F. R.

§ 14 2 . No later than the twenty fifth ( 25th) day of each month, each Gaming Operator shall provide, in a report form prescribed by the Council, a statement of gross revenues, Assessable Gross Revenue and Net Revenues received or collected at each Gaming Establishment during the immediate preceding month . § 14 3 . All papers, books, and records including computer records of the Gaming Operation relating to licensed Gaming activities shall be subject to inspection, examination, photocopying, and auditing by the Council and the Commission's authorized representatives at any time during reasonable hours. All such papers, books, and records shall be retained not less than six ( 6) years . SECTION 15  ANNUAL AUDIT § 15 1 . ( a) The Council shall cause to be conducted, at least . annually, an independent audit of the books and records of each Gaming Operation .

( b) Audit Standards. The Tribe shall engage an independent certified public accountant, licensed in Connecticut, to provide an annual audit of the financial statements of each Gaming Operation on Tribal Lands . Such financial statements shall be prepared in accordance with generally accepted accounting principles and the audit( s) shall be conducted in accordance with generally accepted auditing standards . Audit( s) of the Gaming Operation required under this Section may be conducted in conjunction with any other independent audit of the Tribe, provided that the requirements of Chapter III in Title 25 C. F. R. are met.

( c) Copies of Audit Reports. The Tribe shall submit to the Commission a copy of the audit report( s) and management letter( s) setting forth the results of each annual audit within one hundred twenty ( 120) days after the end of each fiscal year of the Gaming Operation( s) resulting from the audit( s) conducted pursuant to Subsection ( a) above.

( d) Relationship of Audited Financial Statements to Fee Assessment Reports . The Tribe shall reconcile its quarterly fee assessment reports, submitted under  32 25 C. F. R. Part 514, with its audited financial statements and make available such reconciliation upon request by the Commission's authorized representative.

§ 15 2 . All Gaming related contracts that result in purchases of supplies,

services, or concessions for more than Twenty Five Thousand Dollars ($ 25,000)

in any year ( except contracts for professional legal or accounting services) shall be specifically included within the scope of the audit conducted pursuant to this Section. .

SECTION 16  GROSS GAMING REVENUES § 16 1 . The Gross Gaming Revenues derived from Gaming Operations are Tribal funds and may be expended by a licensee whose authority is either , delegated or provided for by the Council in an approved Management Contract.)

SECTION 17  VIOLATIONS § 17 1 . No person shall operate or conduct any Gaming activity in a Gaming Operation within the exterior boundaries of Tribal Lands without a Gaming License issued by the Council as required by this Ordinance.

§ 17 2. No person shall knowingly submit false or misleading information to the Commission or the Tribe in response to any provision of the Act, Chapter III in Title 25 C . F . R ., or a Tribal Ordinance or Resolution that the Chairman has approved under Parts 522 or 523 in Title 25 C. F. R .

§ 17 3. ( a) No Management Contractor shall fail to account  33 fully for all moneys received or collected in connection with Gaming activities or to file any report required by the Management Contract .

( b) A Gaming Operation shall not refuse to allow an authorized representative of the Commission or an authorized Tribal official to enter or inspect a Gaming Operation in violation of 25 C. F. R . § 571 .5 or § 571 .6, or of a Tribal Ordinance or resolution approved by the Chairman under Parts 522 or 523 in Title 25 C. F. R. '

§ 17 4. No person under the age of eighteen ( 18) years shall be employed by a Gaming Operation or shall otherwise be permitted to participate in any Gaming activities.

§ 17 5. No person shall engage in cheating ( as that term is defined in § 4 1( f) of this Ordinance) in any Gaming activity or engage in any fraudulent conduct affecting either the Tribe or a customer of a Gaming Operation .

§ 17 6 . No person, other than an officer of the Mohegan Department of Law Enforcement, may enter or remain in a Gaming Establishment licensed under this Ordinance while in the possession of a firearm or other weapon .

§ 17 7. Any person who knowingly acts in concert with a person who violates this Ordinance shall be deemed to be in violation of this Ordinance to the same extent as the violator, and shall be treated accordingly.

§ 17 8. The Management Contractor is responsible for ensuring that all Primary Management Officials and Key Employees assisting in the operation of any  34 Gaming activity on the Management Contractor's behalf comply with this Ordinance . A violation by any such officials or employees, unless otherwise provided in an approved Management Contract, shall, subject to the contractual opportunity to cure, be deemed a violation by the Management Contractor and shall subject the contractor to civil enforcement action . It shall not be a defense that the Management Contractor was unaware of the violation .

§ 17 9. No person, whether playing in or conducting any Gaming activity authorized under this Ordinance, shall:

( a) use bogus or counterfeit cards, or substitute or use any game cards that have been tampered with;

( b) employ or have on one's person any cheating device to facilitate cheating in any Gaming activity; or ( c) knowingly cause, aid, abet, or conspire with another person or cause any person to violate any provision of this Ordinance or any rule adopted under this Ordinance.

§ 17 10 . A Gaming Operation's facility shall be constructed, maintained, and operated in a manner that does not threaten the environment or the public health and safety.

§ 17 11 . Alcohol not sold by the licensee to customers, and/ or controlled substances ( as defined by federal, state, or tribal laws) are not to be brought into  35 the Gaming Establishment. All retail alcohol sales must comply with applicable tribal law.

§ 17 12 . If the Management Contractor fails to correct violations within the time permitted in a notice of violation issued by the Chairman or within fifteen ( 15)

calendar days after the Tribe provides notice of a violation, such failure shall be deemed a further violation by the Management Contractor.

SECTION 18  NOTICE OF VIOLATION § _ 18 1 . The Council may issue a notice of violation to any person for violation of any provision of this Ordinance.

§ 18 2 . A notice of violation shall contain:

( a) a citation to the Ordinance provision that has been or is being violated ;

( b) a description of the circumstances surrounding the violation, set forth in common and concise language;

( c) measures required to correct the violation;

( d) a statement that the violation must be corrected within five ( 5) calendar days from the date the notice was issued, providing that a violation which threatens the public health or safety or the integrity of the Gaming process may require correction in a shorter period ;

( e) a statement of the alleged violator's rights of appeal; and ( f) the amount of civil penalties, if any, that the alleged violator must pay pursuant to Section 19, below.

SECTION 19  CIVIL PENALTIES § 19 1 . In issuing a notice of violation under Section 18 of this Ordinance, the Council may:

( a) impose a penalty not to exceed Five Hundred Dollars ($ 500) for each violation and, if such violation is a continuing one, for each day, that the violation occurs; and/ or ( b) impose a penalty of One Hundred Dollars ($ 100) per day for failure to submit to the Council any report required under this Ordinance when it is due, and One Thousand Dollars ($ 1,000) per day for failure to file any such report after three day notice and demand, provided that if the person to whom the notice of violation is issued appeals the notice, the Council may stay the imposition of such penalties pending the resolution of the appeal. § 19 2 . How assessments are made. .

The Council shall review each notice of violation to determine whether a civil fine will be assessed, the amount of the fine, and, in the case of a continuing violation, whether such daily violation will be deemed a separate violation for purposes of the total civil fine assessed.

§ 19 3 . Procedures for assessment of a civil fine:

( a) within five ( 5) calendar days after service of a notice of violation, the alleged violator shall submit written information about the violation and any corrective measures undertaken to Council. The Council shall consider any information so submitted in determining the facts surrounding the violation and the amount of the civil fine ;

( b) the Council shall serve a copy of the proposed assessment on the alleged violator within ten ( 10) calendar days after the notice of violation was issued, when practicable ; and ( c) the Council may review and reassess any civil fine if necessary to consider facts that were not reasonably available on the date of issuance of the proposed assessment.

§ 19 4. Final assessment: ( a) if the alleged violator fails to request a hearing as provided in § 21 of this Ordinance, the proposed civil fine assessment shall become a final order of the Council;

( b) civil fines assessed under this Section shall be paid by the person assessed and shall not be treated as an Operating Expense of the Gaming Operation; and ( c) the Council shall transfer civil fines paid under this Ordinance to the Secretary Treasurer of the Tribe for deposit into the Tribal Treasury.

SECTION 20  ENFORCEMENT § 20 1 . The Council shall take any one or a combination of the following actions with respect to any person who violates any provision of this Ordinance:

( a) suspend or revoke any Gaming License issued by Council;

( b) bring an action in a court of competent jurisdiction for imposition of one or more of the following sanctions :

( i) seizure of any Gaming apparatus, . proceeds, or other property of a licensee connected with the Gaming activities engaged in by the licensee ; ( ii) collection of any unpaid fees, interest, penalties, and of any civil fines unpaid after thirty ( 30) calendar days; or .

execution on any nonexempt property of a violator located within the exterior boundaries of Tribal Lands, or ( c) refer the matter to arbitration under the procedures set forth in a governing Gaming management agreement.

§ 20 2. Civil actions may be brought by the Council pursuant to this Ordinance in any court of competent jurisdiction to enforce the imposition of any and all sanctions provided for under this ordinance.

§ 20 3. Before taking any action authorized in § 19 and § 20 1 of this Ordinance, the Council shall use its best efforts to notify the alleged violator, in person or by letter delivered to his/ her last known address, of the charges against him/ her, and allow the alleged violator an opportunity for a prompt hearing. If the alleged violator fails to respond, or cannot be found, the Council may proceed with a hearing notwithstanding, and take such action as it deems appropriate. Said notice of the alleged violation shall be served at least three ( 3) business days prior to the hearing.

§ 20 4 . Every person who applies for a Gaming License and accepts such license thereby acknowledges the civil enforcement jurisdiction and authority of the Council under this Ordinance to order an execution on his/ her nonexempt  40 property, the suspension or termination of his/ her further conduct of Gaming activities and the seizure of his/ her Gaming equipment or proceeds or other , property, upon a proper finding of the Council or the court that the person has violated a provision of this Ordinance, despite lack of actual notice, provided that the Council has used its best efforts to notify the person, in person or by letter delivered to his/ her last known address .

SECTION 21  HEARINGS AND APPEALS § 21 1 . This Section provides procedures for appeals to the Council regarding :

( a) a violation alleged in a notice of violation; and ( b) civil fines assessed by the Council in this Ordinance .

§ 21 2 The Council shall hold a hearing on the proposed revocation of a Gaming License held by a Primary Management Official or Key Employee after it has suspended such license pursuant to 25 C. F. R. § 558.5. The licensee shall be notified by the Council of the time and place for hearing. After the hearing, the Council shall decide to revoke or reinstate the Gaming License. The Tribe shall notify the Commission of its decision .

§ 21 3. Any licensee paying a civil fine or penalty for any violation enumerated in this Ordinance because of excusable neglect may petition the Council for a partial or full waiver of suit, fine, or penalty . The petition shall be filed within thirty ( 30) business days after the payment was made .

§ 21 4 . Any person aggrieved by a decision made or action taken by the Council without notice and opportunity for hearing to the aggrieved person, may petition the Council for a hearing and reconsideration. The petition shall be filed within thirty ( 30) business days after the petitioner knew or should have known of the decision or action . The Council shall grant a prompt hearing upon receiving such a petition, and shall reconsider its decision or action, affirm, modify, reverse and/ or vacate the Council's order in light of what is presented at a hearing.

§ 21 5. Any person aggrieved by a decision made or action taken by the Council after notice and opportunity for hearing may petition the Council for review. Such petition shall specifically set forth the reasons for aggrievement and be filed with the Council no later than thirty ( 30) business days after the Council's decision or action . The Council shall set the matter for hearing no later than thirty ( 30)

business days and no sooner than three ( 3) business days after receipt of the petition, and may, upon establishing that it has jurisdiction, affirm, modify,

reverse and/ or vacate the Council's order.

§ 21 6 . Upon the Council's finding of a violation by a party to a federally approved Gaming Management Contract, that person may invoke the dispute resolution procedures of that contract before any liabilities are effective . SECTION 22  SERVICE § 22 1 . The Chairman of the Mohegan Tribe, 27 Church Lane, Uncasville,

Connecticut 06382, is hereby designated as the Tribe's agent for service of any official determination, order, or notice of violation by the Commission ; proyided that the Council may change such designation by resolution provided to the Commission with copies to the Tribe's Management Contractor .

§ 22 2 . A Management Contractor or a Tribal operator shall designate by written notification to the Commission an agent for service of any official determination,

order, or notice of violation .

SECTION ~ 23  RESOLUTION OF DISPUTES BETWEEN MANAGEMENT CONTRACTOR OR TRIBE AND CUSTOMERS § 23 1 . Notice of warning regarding the improper conduct set out in § 23 2 of this Ordinance or other Gaming rules established and enforced by the Gaming Operation shall be posted at the entrance of each Gaming Establishment and/ or given to the customer upon entering the premises. ,

§ 23 2. The following improper conduct shall result in ejection of a customer from any Gaming Establishment: ( a) cheating ;

( b) possession of weapons in the Gaming Establishment ;

( c) possession of alcohol that has been brought by a customer into the Gaming Establishment;

( d) possession of a controlled substance in the Gaming Establishment ;

( e) disorderly conduct, including the willful, or wanton disregard for the rights of others; and ( f) any other act which is disruptive to the Gaming Operation .

§ 23 3. Failure by a customer to provide proof of age when requested by Gaming Operation personnel shall result in ejection of the customer from the premises but the admission fee shall be refunded .

§ 23 4 . Ejection of a customer shall be accomplished by the Mohegan Department of Law Enforcement, upon request of the Gaming Operation.

§ 23 5 . ( a) Either the Employee Manager or management contractor of the Gaming Operation or an alternate designated by either shall be present at all times to resolve complaints by customers involving the operation of bingo and other Class II Games at the establishment .

( b) If the Employee Manager or Management Contractor or their alternates are unable to resolve any dispute, as provided in ( a) the matter may, upon request of the customer, be referred to the Council for resolution . Action by the Council may be initiated by making a written request to the Legal Department of the Mohegan Tribe, 27 Church Lane, Uncasville, Connecticut 06382 . The decision of the Council on any dispute so referred to it for resolution shall be final.

SECTION 24  APPLICABLE LAW § 24 1 . All controversies involving contracts relating to Gaming entered into under the authority of the Council on Tribal Lands shall. be resolved, as appropriate, in accordance with :  ( a) the Indian Gaming Regulatory Act;

( b) National Indian Gaming Commission Regulations ;

( c) the laws of the Tribe; and ( d) if no Tribal laws exist, the laws of the State of Connecticut, which are incorporated herein by reference. § 24 1 . To the extent that the provisions of any Tribal State Compact entered into by the Mohegan Tribe and the State of Connecticut are inconsistent with; any provisions of this Ordinance, the provisions of the compact shall govern Class III Gaming on Mohegan Tribal Lands.

SECTION 25  SAVINGS PROVISION § 25 1 . If any provision of this Ordinance or the application thereof to any person or circumstance is held invalid, the invalidity shall not affect other provisions or applications of the Ordinance which can be given effect without the invalid provisions or application, and, to this end, the provisions of this Ordinance are severable.

SECTION 26  EFFECTIVE DATE § 26 1 . This Ordinance shall be effective immediately upon approval by appropriate governmental authority . FROM HOBBS STRAUS DEAN & WALKER ( 9C0) ~? 8. G'  95 09 : 34/ ST. 09 : 33/ N0. 3560719346 P ORDINANCE NO. _ * of the MObEG& TRIBE OF VDLA14S OF CONNECTICUT AN ORDINANCE F. 3' Y'ABLI6WJG TM MOBEGAN'TZiIBAL GAMING AUTHORITY § L Establishment The Mohegan Tribal Gaming Authority is hereby established by the Mohegan 1995, pursuant to and consistent with Article )= of Tribal Council on 1 .5"

the Mohegan Constitution, and authorized to exercise aU governmental and proprietary powers of the Mohegan Tribe over development, construction,

operation, promotion, financing, regulation and licensing of gaming, and any associated hotel, associated resort or associated entertainment facilities; on tribal lands . The authority hereby assumes all obligations, responsibilities and duties of the Mohegan Tribe under Gaming law existing at the date of enactment of this Ordinance.

§ 2. Name, location and place of business ( a) Mohegan Tribal Gaming Authority.

( b) The principal place of business and the office of the Authority shall be in Montville, Connecticut. hKUY tlMS S7IAU5 UC. M I WALLtK PFage z IKUP1 UK U l 0 Uy : sVs'c. Uy : J3/ nU. 4 ~~ bU 1 I DO r ( c) The Authority may also have offim at such other place or places as the Manage, m. ent Board may from time to time direct, or as the operation of the Audrority may require.

§ 3. Definit3oas " Associated development" means any and all development associated with or relating to the Enterprise in furtherance of the purposes and policies enunciated in the Mohegan Constitution Artide XIII, the Tribal Gaming Ordinance, Ordinance No, 941, and Tribal Resolution No. 94?/ 282.

" Collateral Documents" means the documents defined as Collateral Documents in the Financing Agreements.

" Enterprise" means the " Enterprise" as defined in the Management Agreement, and any and all other gaming related development operated pursuant to the Indian Gaming Regulatory Act, including but not limited to related retail sales, associated hotel, resort or entertainment facilities.

" Gaming" means Gaming as that term is defined in Article XIII, section 1 of . _ the Constitution of the Mohegan Tribe of Indians of Connecticut " Gaming Disputes Court" means the Gaming Msputes Court created pursuant to Article XIII of the Mohegan, Constitution. rKUJj nvOab MAW Ur. rn I nnLticn ' psgt 3 " Management Company" shall be that company selected pursuant to the " Financing Agreements" shall mean the F'uuancing Agreements as defined in the Mana~ ement Agreement.

Manageutient Agreement between the Tribe and Trading Cove Associates.

the Hotel/ Resort Management Agreement between the Tribe and Trading Cove Associates as executed on July 28, 1994, and as amended June 1995, and as may be amended and restated from fame to time. "  ended J~ e Ir, 1995 and as may be amended and restated from time to time, or 0101 U0. UI too U'J : JJ/ 0 1 . Uy : JJ/ nV. OJUUt IyJ40 r q l'l 4

" Mutag, ement Agreements" is the Gaming Facility Management Agreement etween the Tribe and Trading Cove Associates, as executed on july 28, 1994, and as ' Maznager" shall be the Manager as defined in the Management Agreement I " Regulatory staff of the Director of Regulation" is the group of persons selected by the Director of Regulation of conduct background investigations of applicants for gaming licenses, issue or revoke gaming licenses, and enforce such regulations as the Director of Regulations may from time to time promulgate.

§ 4. Purposes ( a) Gencral. The purposes for which the Mohegan Tribal Gaming Authority is organized are as follows: l .01 FROM HOBBS STflAOS DEAN & RALLER ( ifON) 08. U ( 0 U9 : 35/ S1'. Uy : Js/ nu. 3JOU I I VJqU r d /

( 1) To developt operate, maintain, proamote, construct, and regulate the Enterprise and associated developanent on the MQhe. gan Reservation, and to have custody of, inventory, and b ° hold all assets of that Enterprise and associated development on beltaff of the Mohegan Tribe Provided however the Authority shall have no power to retain distributed net revenues: and provided further that the Authority may receive and expend any funds appropriated to it by the Tribal Council. All net revenues shall be distributed as provided by the Fmanring Agreements, the Collateral Documents and the Management Agreements)

( 2) To carry out the purposes and intent of the Indian Gaming Regulatory Act, 25 US C. § 2701, et seq. ( Pub. L. No. 100 497) and of the Moh, egan Tribal Gaming Ordinance, No. 94 1, adopted pursuant to that Act, as either that Act or that Ordinance ma. Y be amended from time to time.

( 3) To negotiate with state aad local governments and private entities, and to enter into and implement contracts in furtherance of the development, Operation, maintenance,

promotion, construction, and regulation of the f: nterprise and . Associated development.

( ¢ ) To provide a fair return to the Tribe on its investment consistent with the development and operation of a legal and profitable Gaming Enterprise, the terms of any applicable management or laUw tlVbbb bInnub ur. An it nnLKcn I'sge 5 tevirI uo. u i yj UV : JJi %) 1. UV . a%) i MV. o, ruu I i yJqu r V financing agreements and, where pracdical, with the employment of mmbers of the Mohegan Tribe in the operation of the Enterprise.

( 5) To raise the financing for the activities and purposes of the Authority set forth in this Ordinance.

( b) Ancillary . To do everything necessary, proper, advisable, or convenient for the accomplishment of the purposes for which the Authority is established pursuant to Article XIII, and to do all things incidental thereto or connected therewith. I § 5. Management Board; establishment; duties and powers ( a) Establishment. There is hereby established a Management Board of the Mohegan Tribal Gaming Authority the Purpose of , which is to carry out the duties and powers set forth herein.

( b) Exercise of powers by Management Board. Subject to applicable Federal and Tribal Laws and Regulations, the Management Board shall exercise the following powers and duties

( 1) The Management Board of the ~ Mohegan Tribal Gaming . Authority is hereby delegated full and complete authority and r( jvX nv0ck) o Innuo ur. Ar a 11nLoLCK r MMuo. u I y3 uy :~~~&) 1. uy : js/ nu. J) ou r ly34d r responsibility of the T . al Council and the' Tribe for the development, operation, management, promotion and construction of the Prop, the Enterprise and all associated development. '

( 2) The lvianagement Board is authorized to implement the policies .

and purposes set forth '~ Article 7X of the Mohegan Constitution, the Tribal Gaming Ordinance, Mohegaa Ord. 94 1,

and Resolution No. 94 / 282, and this Ordinance, and to ex~ eraise the powers set forth in 3ubsection ( c) below without any further authorization or subseq~ ent approval by the Tribal Council or the Tribe. All parties d~ aling with the Authority shall have the right to rely upon any 4ction taken by the Manageme. rnt Board on behalf of the Tribe; ro ided however, tha the Management oard shall not have th~ power or, authority or responsibility to exercise regulatory funktions, including conducting background i . checks, issuing and revbking licenses .

( 3) The Management Eoar~ shall be responsible for selection of Tribal representatives I the Business Board of the Enterprise as established by the gement Agreement and shall be . responsible for establis ' g tribal policies to be implemented by the Tribal representati e to the Business Board; provided howeverManage ent Board shall. not have direct control or responsibility over ~ e e= ployees of the Enterprise. i FROM HOBBS STRAUS DEAN & WALKER par ~

i ( WON) 09 0 1~ 95 09 : 36/ ST. 09 : 33/ N0. 3y6U ( 19346 P 8 ( 4) The Management Board shall exerc., ibe its powers ia the best inuParests of the Mohegan Tnbe withirn the limits. of , riesponsilie business judgment. . .

( g) The Management Board shall adopt such rules as it may determine necessary for the orderly conduct of its business:

( 6) Minutes of each meeting shall be kept by the Secretary and be made available promptly after each meeting to the Tribal Council., and to such other officials as inay be designated from time to time .

( 7) Members shall be reimbursed for expenses incurred in attending its meetings or in furtherance of business objectives and the Management Board may, at its discretion, propose a fee to be paid to its members ( subject to approval by the Tribal Council)

on a per meeting attended or an annual basis .

( 8) The Chairman of the Management Board shall make a formal report to the Tribal Council not less often than each quarter, and in each annual report, shall include a sumnaary of the budget ., which the Management Board has approved for the coming fiscal year.

( 9) No. member of the Management Board may vote on any matter before the Management Board in which such member has a FROM UBUs SIluus ULnN I rrALLErc i IJtUNI UtL U 1 0 Uy : 3b/~~ I . UV : JJ/ NU. J~~ bU ( 19440 r y financial interest directly or Wdirectly which is specific and , peculiar to that member.

( I0) The Management Board shall appoint a Director of Regulation . who shall perform the gaming regulatory functions of the Tribal Government as set forth in Ordinance N 94 1. ) The Director of Regulation and all regulatory staff shall act independently of the Management Board, and pertaining to all f regularly required duties of the Tribe pursuant to the IGRA and the Compact, shall have the duty of conducting background checks, issuing and revoking licenses and generally overseeing the integrity of the gaming operation through promulgatiorn and enforcement of appropriate regulations pursuant to the relevant Federal, and Tribal laws and the Tribal State Compact between the Mohegan Tribe and the State of Connecticut

( c) Enumerated powers. The Management Board shall have the following powers:

( 1) Facilities . The Management Board shall have the full authority of the Tribe with respect to the development, operation,

.., management, promotion, and construction of all gaming facilities, utilities and associated resoiit property owned by the Mohegan Tribe, including such expansion and enlargements thereof as shall be authorized: for the planning, construction and operation of additional. Gaming and Associated facilities y, IIa IYN. r ..

rag~ e 9 , N. .. 1 .1 vv. v i av v .. . vvi . .1 . vO . vvi nv. , rdvv i i w4v i IV inclurding the negotilLtion and execitioti ' of developatem and construction contracts and for taking of any and all usual,

necessary actions incident thereto including, should it be deemed advisable or desirable, the borrowing of funds, and the maldng of contracts or commitments necessary to the functioning of the organization.

( 2) To appoint officers and agents . To select agents, auditors, and such professional consultants as in the opinion of the Manageanent Board may be needed from time to time, and to define their duties and fix their compensation; provided,

however, that the selection of a Director of Regulation and. of Business Board representatives shall be approved by the Tribal Council.

( 3) To act as agent. To act in any state, territory, district, or possession of the United States, or in any foreign country for and on behalf of the Tribal Enterprise .

( 4) To deal in real property. To negotiate the acquisition of ( by purchase, exchange, lease, hire or othwrwfse), utilize, improve,

. manage, operate, and to negotiate the lease, or mortgage of,

either alone or in conjunction with others, real estate of every ldnd, character and description and any interest therein,

necessary or incidental to the purposes set forth in Article )= of the Mohegan Constitution, Mohegan Tribal Ord. No. 94 1 and rnvrt nvcoa atdnua uann ec nnIACn pagel0 ~ teM ua uI yJ UV . wia1. VV : a%) inv . OJuui iy0yu I Tribal Resolution No. 9 ¢ 7/ 282 except as prohibited by. Tniba! or Federal law.

( 5) To deal in pcnsorcal property, genadly. To acquire ( by purchase,

exchange, lease, hire or otherwise), hold, own, manage, o'Perate,

mortgage, pledge, hypothecate, exchaage, sell, deal in and dispose of, either alone or in conjunction with others, personal property, and interests therein and comatodities of every kind,

character and description necessary or incidental to the purposes set forth in Article XIII of the Mohegan Constitution, Ord. No.

94 1, and Tribal Resolution No. 94 7/ 282

( 6) To deal in inventions, copyrights, and trademarks. To acquire ( by application, assignment, purchase, exchange, lease, hire or otherwise), hold, own, use, license, lease, and sell, either alone or in conjunction with others, the absolute or any partial or qualified interest in and to inventions, improvements, letters patent and applications therefor, licenses, formulas, privileges,

processes, copyrights and applications therefor, trademarks and applications therefor, and trade names, and that title of all such acquisitions shall be taken in the name of the Ivfohegan Tribe of Indians of Connecticut.

( 7) Depository. To designate and approve all depositories used for the deposit of funds o £ the Enterprise. raur nvnoD DiaMa ULAN e nni. Mn page il / MR) UM ui V UV : V/ 61 uy : sJ/ nu. NOW iy34o r lie ( 8) To = LL. coatracts. : To eAter into, maker Perform and carry out or cancel and resdnd, contracts' for, any lawful puipose , pertaining to its business necessary or incidental to the purposes set forth in Article = of the Drtohegan Constitution, Or+ duuue No. 94 1 and Resolution No. 94 7/ 282, imcluding the negotiation of contracts subject to 25 US. C § 81, which shall, as therein provided, become effective only upon the approval of the Secretary of the Interior or the Chairman of the National Indian Gaming Commission, as appropriate.

( 9) To approve budgets. To give initial approval to annual Enterprise budgets subject to approval of the Tribal Coundl.

( 10) Limited Waiver of sovereign immunity. To grant limited waivers of sovereign immunity, to the extent permitted by Article X331 of the Mohegan Constitution, including the waivers of sovereign immunity contained in the Financing Agreements,

the Collateral. Documents, and the Management Agreement.

( 1.1) To stipulate for judgment as provided by Article XIII of the . ( 12) To delegate or assign any or all. of its authority and responsibility for the development, operation, management, promotion \ and construction of the Enterprise and any and a11 associated development to the Manager pursuant to tlie terms of the Mohegan Constitution . rava nvnuJ 0ipnvS) ue. nn a IMIAnan pAV72 r % evnI uo. uI y% I uy .') 1/ 0 1 . uy .,).) iIrv. OduuI iy') qu r ~ o management Agreement, provided that, the Management Board shall not retain any such authority or responsibility which is delegated to the Manager in the Management Agreement.

( d) Ancillary powers. To have and vaercise all powers necessary or .

convenient to effect any or all of the purposes for which the Authority is organized.

( e) No construction of powers as purposes. The powers enumerated herein shall not be construed as purposes but the Ivfohegan Tribal Gaming Authority shall have and exercise such powers solely in furtherance of but not in addition to, the limited purposes set forth in this ordinance.

§ 6. Business Board Representatives: functions; duties ( a) The Business Board Representatives shall be selected by the Management Board to represent the Authority On the Business Board established by the Management Agreement.

( b) The Business Board Representatives shall, together with the Manager's I Representatives to the Board, oversee the operation of the Gaming Enterprise in accordance with the provisions of the Management Agreement. ~/ Pf a e'\

Wj 4, h'KUII HUM S~ i tUUS uW I rinLLEn / ftV 13 uaunj UM ul yi uy : 31/ 6) j . uy : jainv. JJVVIt yJ9v 1 144 ( c)

( d)

( e)

r Repr. esentadves sha11 exerdse their best jtisdga~ e= tt The Business Board in the Consideration, of all business decisiM, and UL the effedua. tfon of the generai policties determined by the Management' Board and the Executive Committee thereof.

The Business Board Representatives shall report semi monthly to the Exectitive Committee and may call Spe ° al5essions of the Executive Committee to review proposals under consideration by the Business Board.

The Business Board Representatives shall be reimbursed for any personal expenses they may incur in carrying out his or her responsibilities .

§ 7. IndemmificaEion of officers, employees and members of the Authority.

The Authority shall indemnify any officer, employee or member of the Authority or former officer, employee or member of the Authority, or any person who may have served at its request as an officer, employee or member of the Authority,

against reasonable expenses actually and necessarily ixtcurred by that person in connection with the defense of any action, suit or proceeding in which that person is nude a party by reason of being, or having been such officer, employee or member of the Authority except in relation to matters as to which that person shall be adjudged in such action, suit or proceeding to be liable for, negligence or misconduct in the performance of duty; or except in relation to matters in which such employee rKUII tiuuts5 S'fKAUS llh: M1 It ttltLUK , P& vl4 ( VON) UN. U 1 95 Uy : J f/ ST. 09 : 33/ N0. 396U ( 1930 Y 15 was acting beyond the scope of his employment. The Authority shall also  reimburse to any officer, employee or member of the Authority reasonable costs of seitlements of any such action, suit or proceeding if it shall be found by a majority of the Manag~ aeat Board other than members involved in the matter of controversy ( whether or not a quorum exists), that it is in the best interest of the Mohegan Tribal Gaming Authority and the Mohegan Tribe that such settlement be made and that such officer, employee or member of the Management Board was not guilty of negtigenm or misconduct, or acting beyond the scope of his employment Such rights of indeauaification and reimbursement shall not be deemed exclusive of any other rights which such officer, employee, or member of the Management Board may be entitled to receive.

§ 8. Membership of Management Board; qualification; term of office The Management Board shall consist of all members of the Tribal Council. In addition thereto, there shall be two non voting advisory members who shall have experience in business management and shall have no financial interest in, nor be an employee of, the Enterprise. These non voting  members shall be chosen by, and shall serve at the pleasure of, the Tribal Council..

§ 9. Meeting of Management Board ( a) Annual meeting. The annual meeting of the Management Board shall be held at 7: 00 p. m. on the second Tuesday of October at the principal raun nubua blnnO ur. nn I nni. tian IYUNIUa U( 0 Uy : Jn/ bi. Uy: JS/ NU. J) bUlly34b V Ib I pap; e'is place of business, or at such other place as the Board shall fix,

commendng with 199S. The Executive Committee shall provide notice of the annual meeting at least 30 days in advance to all members of the Mamageaant Board, and shall cause such notice to be posted at the Board's office and such locations as the Managernent Board may fix ( b) Regular meetings. The Management Board shall meet at least semi monthly upon notice fixing the time and place.

( c) Special meetings. Special meetings of the Management Board may be called by the Chairman.

( d) Notice.

( 1) Notice of rneetings shall state the time, date and place of the meeting and shall be given in writing or telecopy properly addressed to each member according to the latest available Authority records. Notice shall be given no Liter than five days nor more than 30 days immediately preceding the ateedng,

excluding the day of the meeting.

( 2) Notice may be waived in writing signed by the member or members entitled to such notices; whether before or after the time stated therein, and such waiver shall be deemed equivalent . , , FROM HOBBS 5' TKAUS DUN A MIALLU taurIi Ua u 1 y, r uy . aoi ~~ . u2 . ~~~ ~, V. ~~~~ ~ ~  YV, W .

. to the givirtg of such notice. Atten~ of any member at fhe special meeting shall constitute a waiver of notice.

( e) Quorum. Five voting members of the Management Board shall eonstit0e a quorum for the transaclion of any business . The act of the majority of the members present and voting at a meeting at whiclt a quorum is present shall be the act of the Management Board.

§ 10. F_ xecutive committee I ( a) Designation of committee. The Management Board, by res ° lution duly adopted, shall designate the Chairdtan, Secretary, and Treasurer of the Management Board to serve as the Executive Committee Following such designation of Executive Committee membership or a modification thereof, the Management Board shall give prompt notice in writing to the Tribal Council The designation of such Executive Committee and the delegation of the authority herein granted, shall.

not operate to relieve the Management Board, or members thereof, of any responsibility imposed by this ordinance. No member of the Executive Committee shall continue to be a member thereof after he ceases to be a member of the Management Board The Management Board shall have the power to increase the number of members of the Executive Committee, and to fill vacancies thereon.

( b) powers of the Exccutive Committee. During the intervals between meetings of the Managemernt Board, and subject to such limitations as FROM HOBBS STRAUS DEAN & WALKER ( 110N) 08. 0I~ 95 09 : 35/ S'f. U9 : 33/ NU. 3M119346 P IB f ps ® a 17 may be adopted by , resolution of the Maaagement Board, the Executive Cominittee shall have and may exercise such authpdty as may be . properly detegated by the Board. .

All minutes of meetings of the Executive Committee shall be submitted to the next succeeding meeting of the Management Board for approval, but failure to submit the same or to receive the approval thereof shall not invalidate any prior action taken by the Authority upon authorization of the Executive Committee.

r ( c) Procedure, meetings . The Tribal Chairman shall serve as the Chairman of the Executive Committee, shall. preside at meetings of the Executive Committee and perform all duties incident to the office of the Chairman of the Executive Committee, and such other duties as,

from time to time, may be assigned to him by the Management Board or the Executive Committee The Secretary of the Authority shall keep a record of the meetings of the Executive Committee and its proceedings. In the absence of the Secretary, the Chairman of the Executive Committee shall designate a person to act in said capacity.

( d) ' No individual authority. The members of the Executive Committee shall aa only as a committee, and the individual members shall have no power as individuals.

( e) Notice. Notices of all. meetings of the Executive Committee shall be given by the Chairman and the Secretary in the manner provided by FKUK HOBBS STtiAUS DEAN I WALKER htUNl UB. U 1 95 Uy : 35/ R. U9 : 33/ ft 43U i i yJ4b Y 19 the Bylaws of the Mohegan . Tribe with respect to meetings of the Tribal Council, and maybe waived as therein provided. .

( f) Quorum. The presence of not less than two members of the Executive Committee shall be necessary to constitute a quorum of the Executive Coauaittee for the transaction of business and the act of a majority of those members present and voting at a meeting at which a quorum is present shall be the act of the Committee

§ L LL Principal officers The princzpal officers of the Authority shall consist of the following:

( 1.) Chairman of the Management Board, who shall be the Tribal Chairman .

( Z) Secretary and a Treasurer.

, ( 3) Business Board Representatives.

( 4) Director of Regulation, who shall not be a member of the Management Board, nor a member of the Tribal Council.

( 5) At the discretion of the Management Board, there may be a Vice Ckiairman of the Management Board, Assistant Secretary, and Assistant Treasurer. FROM iiOBBS STKnUS uW e rrni. xEK J% r 19 § 12. Powers and duties ( jlVrl/ UO. UI UJ Uy " JV/ w1 " UV " JJ/ iIV " wvVI 1'; Q IV 6 a. V , All officers, and agents of the Authority shall have the following duties and S ' h off= duties as may be determined by resolution of the Management Board, uc zzot inconsistent with the Ordinance:

( 1) The Chairman of the Management Board. The Chairman of the Management Board shall preside at all meetings of the Management Board, and shall perform all duties incident to the office of the Chairman of the Management Board and such other duties as, from time to time, may be assigned to him by the Management Board A Vice Chairman, if elected, shall act in the capacity of the Chairman in the absence of the latter, and shall discharge any other duties designated by the Chairman.

( 2) The Secretary . The Secretary shall keep, or cause to be kept, the minutes of the meeting of the Management Board and the Executive Committee. The Secretary shall see that all notices are duly given in accordance with the provisions of this ordinance. The Secretary shall be custodian of the seal and records, and shall perform all duties incident to the office of the Secretary, and such other duties as may,

from time to time, be assigned to the Secretary by the Management Board, the Chairman, or the Executive Committee. FROIt HOBBS STUAUS DEAN I WALKER tiiUN 1 UK u ( y3 uy : Jy161. uy : aalnu. Nuu MN4u r s, I np 20 ( 3) The Tracsurer. The Treasurer shall be the finantW officer of the . Authority and shall have charge and custody of, and be responsible for,

all funds of the Authority, and shall deposit such fnmds in such banks,

trust companies, or other depositories as shall have been designated by the Management Board. The Treasuter sball.' receive and give receipts for monires due and payable to the Authority from any source whatsoever, and, in general, shall perform all duties incident to the office of the Treasurer and such other duties as, from time to time, may be assigned to him by the Management Board, the Chairman, or the Executive Committee. The Treasurer shatl render to the Chairman " and, the Management Board, whenever the same may be required, an account of all transactions as Treasurer and of the financial condition of the Authority. The Treasurer shall, at the expense of the Authority,

give a bond for the faithful performance and discharge of the Treasurer's duties in such amount, so conditioned, and with such surety or sureties as the Management Board may require.

( 4) Business Board Representatives. The Business Board ILepresentatives are the representatives to the Management Board directing the outside Manager for the Tribe's Gaming Enterprise and associated resort. The Business Board Representatives shall render reports to the Manage~ nemt Board and oversee all functions and duties as specified in the gaming Management Agreement. hK1All tiVbBb MAUS ULAN & IMALKLK IMUNI Ud. U i 95 Uy : 3y/~~ t . Uy : 33/ NU. 356U ( I 9346 P 2?

i r ( 5) Duector of Regulation . ~ Thg Director of Regulation shall carry out the Tribe's regulatory duties as described in the Gaming Ordinance, .

Ordinance No. 94 1, as may be amended from time to tiane. The .

Director shall employ staff who sha11 carry out the tasks Of completing background iavestigations; reviewing Licensing applications,

recoaimending for promulgation such additional regulations as may be deemed necessary to ensure the safety and integrity of the Gaming Enterprise. Pursuant to procedures established by the Tribal Council,

the Director of Regulation shall promulgate regulations and shall have final authority over all license applications. Determinations of the Director of Regulation may be appealed to the Gaming Disputes Court pursuant to § 13. The Director of Regulation and the regulatory staff shall not have the power or authority to participate or direct the development, construction, operation, promotion and financing of gaming on the Tribe's lands .

§ 13. Decisio. ns A. ppealable to Gaming Disputes Court Final decisions of the Director of Regulation regarding the promulgation and enforcement of regulations and the issuance or revocation of gaming licenses shall be appealable to the Gaming Disputes Court. The Tribal Council. shall establish reasonable procedures by which such appeals may be taken.

§ IL Removal FROM HOBBS STRAUS DEAN & WALKER tU0N108. 07' 95 U9 : 39/ ST. 09 : 33/ NU. SW ( 1930 !' ? 3 PaV zz Any officer or agent elected or appointed by the Ivtanagement l3oard way be removed, b3" the Manageatient Board whenever, in its judgment, the best interest of the Authontlr will be served thereby.

C i5. ILesignaEi, ons; vacancies Any of5, cer may resign at any time by giving written notice to the Management Board, the Chairman of the Management Board, or Secretary of the Authority. Such resignation shall take effect at the time specified therein, and,

unless otherwise specified therein, the accepta. nce of such resignation shall not be necessary to make it effective. Any vacancy in any office because of death,

resignation, removal, or any other cause shall be filled for the unexpired portion of the term in the manner prescribed herein for election or appointment to such offioe.

5 16 AccounEing; fiscal year The Management Board shall establish and install an acconnting system in conformity with accounting principles generally accepted in the gaming field in order to manage the Tribe's gaming assets. Financial and operating statements shall be provided to the Chairman of the Tribal Council and the Management Board not . less often than quarterly. The accounting system shall insure the availability of information as may bp, necessary to comply with Federal, State, and Tribal regulatory requirements. Use of automatic data processing shall be encouraged wherever possible. The fiscal year of the Authority shall be October I to September 30.

§ 19. Records; inspection; audits FROM HOBBS STRAUS DEAN & RALIER pa ® e 23 ( MON) 08. 07' 95 09 : 39/ ST. 09 : 33/ N0. 3560719346 P 24 .

: The books, records and property of the Authority shall be available for inspection at all reasonable times by auttiwrized representatives of the Mohegart Tribe, and upon notice to the Mohegan Tribal Coundl, by representatives of the Secretary of the Interior. The accounts and records of the Authority shall be audited at the close of each fiscal year in. accordance with the provisions of the Indfan Gaming Regulatory Act and the regulations of the National Indian Gaming Gosnmi, ssioxt. Copies of such Audit Reports shall be furnished to the parties receiving copies of the financial and operating statements and to the Tribal Council.

§ 18. Insurance Insurance, including liability, adequate and sufficient to protect the interests of the United States and the Tribe from losses by fire or other disaster shall be carried on all property of the Authority .


[Federal Register Volume 79, Number 236 (Tuesday, December 9, 2014)]
[Notices]
[Pages 73140-73141]
[FR Doc No: 2014-28725]

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DEPARTMENT OF TRANSPORTATION

National Highway Traffic Safety Administration

[Docket No. NHTSA-2012-0141, Notice 2]

Denial of Petition for Import Eligibility

AGENCY: National Highway Traffic Safety Administration (NHTSA),
Department of Transportation (DOT).

ACTION: Denial of Petition.

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SUMMARY: This document sets forth the reasons for the denial of a
petition submitted to the National Highway Traffic Safety
Administration (NHTSA) under 49 U.S.C. 30141(a)(1)(B). The petition,
which was submitted by US SPECS of Havre de Grace, Maryland, a
registered importer (RI) of motor vehicles, requested NHTSA to decide
that what US SPECS described as a ``2012 Lita GLE-6 low-speed vehicle
(LSV)'' that was not originally manufactured to comply with all
applicable Federal Motor Vehicle Safety Standards (FMVSS) is eligible
for importation into the United States because it has safety features
that comply with, or are capable of being altered to comply with, all
such standards. NHTSA is denying the petition because the 2012 Lita
GLE-6 as originally manufactured would be classified as something other
than an LSV, and could not be converted to an LSV through the RI
process.

SUPPLEMENTARY INFORMATION: NHTSA published a notice of receipt of the
petition, with a 30-day public comment period, on May 21, 2013, in the
Federal Register (78 FR 29808). The notice contained the following
cautionary statement: ``It should be noted that the publication of this
notice is not an acknowledgment that the vehicle that is the subject of
the petition, the 2012 Lita GLE-6, is a low speed vehicle. In addition,
in NHTSA's view, a vehicle that is not a low speed vehicle may not be
converted to one by installing a governor (electronic or mechanical) or
by removing weight such as by removing a seat, which may be
reinstalled.'' See 78 FR 29809. The agency solicited comments on these
specific issues. Ibid. No comments were submitted in response to the
notice. Despite the absence of comments, NHTSA has reviewed the
petition, and concluded that it must be denied. The reasons for this
conclusion are set forth below.
    In evaluating the petition, NHTSA has concluded that the activities
US SPECS is proposing to undertake with respect to the vehicle in
question are not ones that fall within the limited scope of activities
an RI is authorized to perform. As detailed in the agency's regulations
at 49 CFR part 592 Registered Importers of Vehicles not Originally
Manufactured to Conform to the Federal Motor Vehicle Safety Standards,
an RI is responsible for taking possession of a nonconforming motor
vehicle that has been offered for importation, performing all
modifications necessary to conform the vehicle to all Federal motor
vehicle safety and bumper standards that apply to the vehicle, and then
certifying the vehicle as conforming to those standards. See 49 CFR
592.6(c).
    Under the Safety Act, RIs are not in the same position as original
manufacturers. In general, manufacturers that produce motor vehicles
and motor vehicle equipment for the United States market and that
import vehicles and equipment for the United States market must produce
and import vehicles and equipment that comply with, and are certified
to, Federal Motor Vehicle Safety Standards (FMVSSs). See 49 U.S.C.
30112(a), 30115. RIs are on a different footing. An exception to the
general rule, which applies to motor vehicles (but not to motor vehicle
equipment), is that vehicles that were not originally manufactured to
comply with FMVSSs may be imported under the registered importer
program if a number of conditions are met.
    Under the statute, RIs are recognized as occupying a unique
position as modifiers of previously manufactured vehicles. Section
30141 permits importation of vehicles that do not comply with FMVSSs
only if NHTSA determines that the vehicle can be modified to meet all
applicable FMVSSs. 49 U.S.C. 30141. More specifically, Section
30141(a)(1)(A), which governs the import eligibility of vehicles with a
substantially similar U.S. certified counterpart, authorizes NHTSA to
allow importation of such a vehicle if the vehicle is ``capable of
being readily altered to comply with applicable motor vehicle safety
standards prescribed under this chapter.'' (Emphasis added), 49 U.S.C.
30141(a)(1)(A)(iv). When a non-compliant vehicle does not have a
substantially similar U.S. counterpart, NHTSA may only determine that
the vehicle is eligible for importation if ``the safety features comply
with or are capable of being altered to comply with . . .'' applicable
FMVSS. (Emphasis added), 49 U.S.C. 30141(a)(1)(B). The agency is
empowered to make such determinations on its own initiative or ``on
petition of a manufacturer or importer registered under subsection (c)
of this section.'' 49 U.S.C. 30141(a). An importer registered under
subsection (c) of Sec.  30141 is an RI. Therefore, on its face, Sec.
30141 establishes that Congress distinguished RIs from original
``manufacturer[s]''.
    RI's have a special status and responsibilities and duties beyond
those generally imposed on ``manufacturer[s]'' under the Safety Act. In
contrast to companies that produce and import vehicles certified to
comply with FMVSSs, RI's must post a bond when importing vehicles. 49
U.S.C. 30141(d). Congress also established ownership restrictions for
RI's and directed NHTSA to establish regulations unique to these
entities. 49 U.S.C. 30141(c). Unlike original manufacturers that self-
certify vehicles, RIs must also demonstrate, to NHTSA's satisfaction,
that particular vehicles have been brought into compliance with all
applicable FMVSS. Under 49 U.S.C. 30146(a) an RI may ``release custody
of a motor vehicle imported by the registered importer . . . only after
. . . the registered importer certifies to the Secretary of
Transportation, in the way the Secretary prescribes, that the motor
vehicle complies with each standard prescribed in the year the vehicle
was manufactured and that applies in that year to that vehicle.'' Where
an RI has certified a vehicle that is substantially similar to a
vehicle certified for the U.S. market by its original manufacturer, the
RI must recall the vehicles it has certified if the original
manufacturer recalls its U.S.-certified counterpart. 49 U.S.C.
30147(a)(1)(A).
    NHTSA's regulations properly recognize the congressional
determination that an RI's role is to modify non-compliant vehicles.
Petitions for import eligibility must identify the original
manufacturer of the vehicle and the vehicle's model name and model
year. 49 CFR 593.6(a)(1) and (b)(1). In the case of petitions seeking
eligibility on a ``substantially similar'' basis, the petition must
identify the necessary modifications that must be completed to bring
the non-compliant vehicle into compliance with the FMVSS applicable to
the vehicle's U.S.-certified counterpart. Sec.  593.6(a)(5). For other
vehicles, the petition must show that the vehicle is capable of being
modified to meet the standards that would have applied had it been
originally manufactured for importation into and sale in the U.S. Sec.
593.6(b)(2).
    Any examination of the petition filed by US SPECS is premised on
the notion that the 2012 Lita GLE-6 is a ``motor vehicle.'' For the
purposes of the Safety Act, a ``motor vehicle'' is ``a vehicle driven
or drawn by mechanical power and manufactured primarily for use on

public streets, roads, and highways.'' See 49 U.S.C. 30102(a)(6). In
filing the petition, US SPECS acknowledges 2012 Lita GLE-6 is
manufactured primarily for use on public streets, roads and highways.
If this were not the case, and the 2012 Lita GLE-6 was not manufactured
primarily for highway use, then it is not a ``motor vehicle'' subject
to the FMVSS, and there would be no reason to consider performing
conformance modifications to ensure that the 2012 Lita GLE-complies
with those standards.
    Because there is no need to examine whether the 2012 Lita GLE-6 is
a motor vehicle, the next question that arises is what class of vehicle
is at issue in this petition. US SPECS contends that the 2012 Lita GLE-
6 should be classified as a Low Speed Vehicle (LSV). NHTSA's
regulations at 49 CFR 571.3 define, among other things, the types of
vehicles that are subject to the FMVSS. Those regulations state: ``Low-
speed vehicle (LSV) means a motor vehicle, (1) That is 4-wheeled, (2)
Whose speed attainable in 1.6 km (1 mile) is more than 32 kilometers
per hour (20 miles per hour) and not more than 40 kilometers per hour
(25 miles per hour) on a paved level surface, and (3) Whose GVWR [gross
vehicle weight rating] is less than 1,361 kilograms (3,000 pounds).''
Requirements for LSVs are specified in FMVSS No. 500 Low-Speed
Vehicles, at 49 CFR 571.500. The purpose of the standard is to ensure
that low-speed vehicles operated on the public streets, roads, and
highways are equipped with the minimum motor vehicle equipment
appropriate for motor vehicle safety. The standard requires an LSV to
be equipped with headlamps, front and rear turn signal lamps,
taillamps, stop lamps, reflex reflectors, mirrors, a parking brake, a
windshield that conforms to the FMVSS on glazing materials (49 CFR
571.205), a vehicle identification number or VIN that conforms to the
requirements of 49 CFR part 565 Vehicle Identification Number
Requirements, and a Type 1 or Type 2 seat belt assembly at each
designated seating position that conforms to FMVSS No. 209 Seat Belt
Assemblies (49 CFR 571.209).
    Consistent with these requirements, US SPEC's petition stated that
the company would need to install headlights, turn signals, tail
lights, a stop light, reflex reflectors, mirrors, a parking brake, and
a compliant windshield, seat belts and VIN plate on the vehicle if it
was not already so equipped. In addition, the petition stated that
every vehicle must be weighed and ``[a]ny vehicle not meeting the
required GVWR for low speed vehicle (sic) must have some of the seating
removed to achieve the correct calculated GVWR.'' This statement was
made in reference to the requirements for calculating a vehicle's GVWR
that are found in NHTSA Certification regulations at 49 CFR part 567.
Section 567.4(g)(3) of those regulations specifies that a vehicle's
stated GVWR ``shall not be less than the sum of the unloaded vehicle
weight, rated cargo load, and 150 pounds times the number of the
vehicle's designated seating positions.'' Finally, the petition states:
``Every vehicle must be checked to insure that it does not exceed the
maximum (25 mph) and minimum (20 mph) speed requirement. We must
reprogram any vehicle that is not within the required speed limits.''
    Given the modifications that US SPECS described as potentially
needing to be performed on the 2012 Lita GLE-6, a question can be
raised as to whether the vehicle was originally manufactured as an LSV.
If the 2012 Lita GLE-6, as originally manufactured, had the
characteristics of LSV but also has a GVWR of 3,000 pounds or more,
then it would need to be classified as a motor vehicle of some type
other than a low speed vehicle, such as a passenger car, multipurpose
passenger vehicle, or truck. If the vehicle met one of those
classifications, it could not be modified and certified as a low speed
vehicle by a registered importer, as a registered importer is not
authorized to change a vehicle's type classification to circumvent the
need for bringing the vehicle into compliance with standards that would
have applied to the vehicle had it been originally manufactured for
sale in the United States.
    By changing the vehicle's minimum or maximum speed capability, by
removing designated seating positions to justify a reduction in its
GVWR, and by adding equipment items required by FMVSS No. 500 that were
not installed on the vehicle as originally manufactured, US SPECS would
not be conforming something originally manufactured as an LSV to
applicable FMVSS, as RI's are authorized to do, but would instead be
converting a passenger car, multi-purpose vehicle, truck or bus into an
LSV.
    In view of these considerations, NHTSA has decided to deny the
petition under 49 CFR 593.7(e). That section provides that a notice of
denial must state that the Administrator will not consider a new
petition covering the model that is the subject of the denial until at
least 3 months from the date of the notice of denial. Because the 2012
Lita GLE-6 would not be classified as an LSV as originally
manufactured, NHTSA will not consider any further import eligibility
petitions covering that vehicle as an LSV.

    Authority: 49 U.S.C. 30141(a)(1)(B) and (b)(1); 49 CFR 593.7;
delegations of authority at 49 CFR 1.95 and 501.8.

Nancy Lummen Lewis,
Associate Administrator for Enforcement.
[FR Doc. 2014-28725 Filed 12-8-14; 8:45 am]
BILLING CODE 4910-59-P