05262821 Level II Training Book

05262821 Level II Training Book

May 26 - 28 , 20 2 1 Zoom Webinar Training

Commissioner Certification Training LEVEL II AGENDA May 26 - 28, 2021 ZOOM VIRTUAL TRAINING Training on PST Time

Wednesday, May 26

Please plan to stay for the entire class on each day to get your certificate of completion. Please be on time for sessions 9:00 AM 10:30 AM Licensing: Key Employees & Primary Officials Billy David, Bo-Co-Pa & Associates 10:30 AM 10:45 AM Break 10:45 AM 12:15 PM Licensing: Vendors & Facilities Billy David, Bo-Co-Pa & Associates 12:15 PM 1:15 PM Lunch Break 1:15 PM 2:45 PM Internal Auditing-What's Required & How it Should Be Approached Sheryl Ashley, CPA, Partner Blue Bird CPA's 2:45 PM 3:00 PM Break 3:00 PM 4:30 PM Financial Controls & Accounting Standards Sheryl Ashley, CPA, Partner Blue Bird CPA's Thursday, May 27 9:00 AM 10:30 AM Employment Issues for Regulators Charlene Jackson, Jackson Law 10:30 AM 10:45 AM Break 10:45 AM 12:15 PM Journey of Submission Peter Nikiper, Director of Technical Compliance, BMM Test Labs 12:15 PM 1:15 PM Lunch Break 1:15 PM 2:45 PM Tribal Sovereign Immunity and The Gaming Regulator Liz Homer, Homer Law 2:45 PM 3:00 PM Break 3:00 PM 4:30 PM Effective Regulatory Writing Liz Homer, Homer Law Friday, May 28 9:00 AM 10:30 AM Roles of Surveillance Cheats & Scams George Joseph, Worldwide Casino Consulting, Inc. 10:30 AM 10:45 AM Break 10:45 AM 12:15 PM Roles of Surveillance Cheats & Scams George Joseph, Worldwide Casino Consulting, Inc .

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YOUR SPEAKER

• BILLY DAVID, OWNER

BO-CO-PA & ASSOCIATES, LLC

BILLY.DAVID90@GMAIL,.COM 541-810-0700

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LICENSING AUTHORITY: • WHERE DOES IT COME FROM?

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YOUR DOCUMENTS The governing documents of licensing regulations: 1. Indian Gaming Regulatory Act 2. Tribal Gaming Ordinance 3. Compact Licensing Requirements (if applicable) 4. Tribal Gaming Authority Gaming Requirements

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WHAT YOU SHOULD REALLY KNOWREGARDING THE LICENSING PROCESS?

1. UNDERSTAND EVERYONE'S ROLES AND RESPONSIBILITIES: I. GAMING COMMISSION/ERS II. TRIBAL COUNCIL/GOVERNMENTS

III. GAMING MANAGEMENT/DEPARTMENTS IV. CASINO/BUSINESS BOARD OF DIRECTORS V. OTHER GOVERNMENTAL AGENCIES

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UNDERSTANDING EVERYONE'S ROLE • GAMING COMMISSIONS/ERS Ø LICENSING AUTHORITY Ø ENFORCEMENT Ø PROMULGATE RULES AND REGULATIONS

Ø APPROVE AND DEVELOP INTERNAL CONTROLS Ø HIGHER APPROPRIATE COMMISSION STAFF

Ø CONDUCT HEARING (SOME TRIBAL PROPERTIES HAVE ANOTHER ENTITY CONDUCT HEARINGS) Ø ACT AS THE OFFICIAL TRIBAL AUTHORITY AS PRESCRIBED IN THE TRIBAL GAMING ORDINANCE Ø PROTECT THE FAIRNESS, INTEGRITY, SECURITY, AND HONESTY OF THE TRIBAL GAMING OPERATION (F.I.S.H) Ø CONDUCT OR OVER SEE INTERNAL INVESTIGATIONS

Ø ENSURE COMPLIANCE WITH ALL REQUIRED REGULATING DOCUMENTS Ø AMONGST OTHER REQUIRED DUTIES, BUDGETS, FINANCIAL TRACKING ETC.

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UNDERSTANDING EVERYONE’S ROLE • TRIBAL COUNCILS: Ø ULTIMATELY RESPONSIBLE FOR THE WHOLE CASINO OPERATIONS. Ø APPROVE TRIBAL GOVERNING DOCUMENTS Ø MEET WITH STATE AND FEDERAL AGENCIES REGARDING GAMING COMPACTS, ORDINANCES AS WELL AS OTHER APPLICABLE LAWS Ø APPOINTING OR HIRING COMMISSIONERS Ø ANY OTHER REQUIREMENTS AS DICTATED BY TRIBAL LAW(S)

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UNDERSTANDING EVERYONE’S ROLE • GAMINGMANAGEMENT/DEPARTMENTS Ø HIRE ALL QUALIFIEDCASINO STAFF Ø FOLLOWTHE CASINOBUSINESS PLAN Ø WRITE AND IMPLEMENT DEPARTMENT POLICY Ø WRITE AND IMPLEMENT DEPARTMENT PROCEDURES Ø ENSURE THAT COMPLIANCE IS ACHIEVEDBY ALL REQUIREDDEPARTMENTS Ø GENERATE REVENUE TOBE DISTRIBUTED TO THE TRIBE PER THE GAMINGORDINANCE, REVENUE ALLOCATION PLAN OR

OTHER TRIBAL LAWDICTATINGHOWGAMING REVENUE IS TOBE HANDLED. Ø ANY OTHER REQUIREMENTS PER THE GAMINGBOARDOF DIRECTORS

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UNDERSTANDING EVERYONE’S ROLE

• CASINO/BUSINESS BOARD OF DIRECTORS

Ø DEVELOP AND IMPLEMENT THE BUSINESS PLAN Ø HIGHER APPROPRIATE CASINOS CEO, GM. CFO ETC Ø APPROVE CERTAIN POLICY AND PROCEDURES

Ø HOLD UPPER MANAGEMENT ACCOUNTABLE FOR DAILY, QUARTERLY AND ANNUAL FINANCIAL STATEMENTS Ø ASSURE THE TRIBE THAT THE BUSINESS IS BEING OPERATED IN A MANNER THAT GENERATES REVENUE FOR THE TRIBE.

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OTHER GOVERNMENTAL AGENCIES

• NATIONAL INDIAN GAMING COMMISSION • STATE DEPARTMENT OF GAMING

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WHEN SHOULD I EXERCISE MY AUTHORITY

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WITH GREAT POWER COMES GREAT RESPONSIBILITY

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ENFORCEMENT LICENSING:

• YOU ARE NOT LAW ENFORCEMENT (UNLESS TRIBAL ORDINANCE GIVES YOU THAT AUTHORITY) • YOU ARE AN ADMINISTRATIVE ENFORCEMENT OFFICER. • WORK WITHIN YOUR SCOPE OF AUTHORITY: DISCUSSION

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LICENSING: SCOPE OF AUTHORITY

• WHAT IS YOUR RESPONSIBILITY WITH LICENSING? • GAMING COMMISSION, • GAMING COMMISSION STAFF, • MANAGEMENT, • POTENTIAL LICENSEE

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GOVERNING DOCUMENTS: IGRA

Most licensing regulations must comply with the Federal licensing standards.

Those standards are found in the Indian Gaming Regulatory Act 1988

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LICENSING: IGRA

Important items to know about IGRA

Not all licensing regulations need to comply with IRGA

National Indian Gaming Commission can only enforce their own standards

The Tribal licensing authority is responsible to ensure that the Tribe is in compliance with all licensing documents

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IGRA REQUIREMENTS 25 CFR Part 556 – Addresses Background Investigations – Addresses Licensing for Key and PMO. • Changes were published in the CFR January 25, 2013 with a compliance date of February 25, 2013. for Key and PMO. • 25 CFR Part 558.

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IGRA REQUIREMENTS

556.8 and 558.6 “Compliance with this part” both state: – All tribal gaming ordinances and ordinance amendments approved by the Chair prior to the February 25, 2013 and that reference this part, do not need to be amended to comply with this part. All future ordinance submissions, however, must comply.

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IGRA REQUIREMENTS

• 25 CFR 502.14 AND 502.19 DEFINES KEY EMPLOYEE AND PMOMINIMUMS • • TRIBES ABLE TO EXPAND KEY AND PMO DEFINITIONS THROUGH ORDINANCE • – “ANY OTHER PERSON DESIGNATED BY THE TRIBE AS A PMO” • • ENSURE 556 AND 558 REGULATIONS APPLY TO KEY AND PMO EMPLOYEES

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IGRA REQUIREMENTS: APPLICATION PROCESS 556.4 (1 – 14) Sets forth what the application must contain: Privacy Notice, False Statement Notice, name, social security number, address, employers, business relationships, previous gaming licenses, references, criminal history photograph and fingerprints (results).

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IGRA LICENSING REQUIREMENTS

• 556.2 PRIVACY NOTICE. • • 556.3 NOTICE REGARDING FALSE STATEMENTS. • – CHANGES INCLUDED REPLACE ALL LANGUAGE REFERRING TO HIRINGAND FIRINGAND REPLACING IT WITH LICENSING LANGUAGE. • – EXACT LANGUAGE CAN BE FOUND IN CFR 556 AT NIGC.GOV • – ALL FORMS MUST BE UPDATE BYAUGUST 2013.

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IGRA LICENSING REQUIREMENTS

• FOR EVERY PRIMARY MANAGEMENT OFFICIAL OR A KEY EMPLOYEE, A TRIBE SHALL: • • CREATE AND MAINTAIN AN INVESTIGATIVE REPORT ON EACH BACKGROUND INVESTIGATION. AN

INVESTIGATIVE REPORT SHALL INCLUDE ALL OF THE FOLLOWING: • – STEPS TAKEN IN CONDUCTING A BACKGROUND INVESTIGATION; • – RESULTS OBTAINED; • – CONCLUSIONS REACHED; AND • – THE BASIS FOR THOSE CONCLUSIONS .

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IGRA LICENSING REQUIREMENTS • REGULATION’S REQUIRE A TWO-PART SUBMISSION • – A NOTICE OF RESULTS (NOR) OF BACKGROUND INVESTIGATIONS, 25 CFR 556 • – A NOTICE OF LICENSING DETERMINATION, 25 CFR 558 • • NOTIFICATIONS SUBMISSION METHODS. • – ENCRYPTED EMAIL TO THE REGIONAL OFFICE. • – FAX. • – MAIL. • • THE TWO PART SUBMISSIONS MUST NOT BE MADE AT THE SAME TIME

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IGRA LICENSING REQUIREMENTS • A TRIBE MUST NOTIFY NIGC OF THE RESULTS OF THE BACKGROUND INVESTIGATION WITHIN 60 DAYS OF AN INDIVIDUAL BEGINNING WORK. • – A TRIBE SHALL CONDUCT AN INVESTIGATION SUFFICIENT TO MAKE AN ELIGIBILITY DETERMINATION

• • NOR MUST INCLUDE: • – APPLICANTS NAME • – DOB • – SOCIAL SECURITY NUMBER

• – DATE ON WHICH THEY WILL BEGIN WORK • – COPY OF THE ELIGIBILITY DETERMINATION

• • AN ELIGIBILITY DETERMINATION IS TO MAKE A FINDING CONCERNING THE ELIGIBILITY OF A KEY EMPLOYEE OR PRIMARY MANAGEMENT OFFICIAL FOR GRANTING OF A GAMING LICENSE, AN AUTHORIZED TRIBAL OFFICIAL SHALL REVIEW THE RESULTS OF A PERSON'S INVESTIGATION TAKING INTO CONSIDERATION A PERSON CRIMINAL HISTORY, REPUTATION, HABITS, AND ASSOCIATIONS.

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IGRA LICENSING REQUIREMENTS

• A SUMMARY AND LISTING OF THE INFORMATION PRESENTED IN THE INVESTIGATIVE REPORT MUST BE INCLUDED IN THE NOR: • – PREVIOUSLY DENIED LICENSES • – REVOKED LICENSES • – CRIMINAL CHARGES BROUGHT WITHIN 10 YEARS OF THE APPLICATION • – EVERY FELONY CONVICTION OR ON-GOING PROSECUTION • • A DEFERRED SENTENCE IS CONSIDERED AN ONGOING PROSECUTION.

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IGRA LICENSING REQUIREMENTS

• A TRIBE SHALL RETAIN THE FOLLOWING FOR INSPECTION BY THE CHAIR OR HIS OR HER DESIGNEE FOR NO LESS THAN THREE YEARS FROM THE DATE OF

TERMINATION OF EMPLOYMENT: • – APPLICATIONS FOR LICENSING; • – INVESTIGATIVE REPORTS; AND • – ELIGIBILITY DETERMINATIONS

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TRIBAL-STATE PROTOCOLS FOR LICENSING PMO AND KEYS

This will differ and is subject to each individual State and Tribal negotiations. There are similar differences that can be found in many Tribal-State Compacts.

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COMPACT LICENSING SIMILARITIES

Many similarities would include: • Definition of how Class III licenses will be handled in the State • Who will the Tribe have to submit information to within the State • Who from the State will have availability to Tribal licensing records

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TRIBAL ORDINANCE: LICENSING REQUIREMENTS

In many Tribal Gaming Ordinances there are criteria that the Tribe has lined out for the regulatory authority has outlined.

Do you know what your Tribal licensing standards are??? Discussion

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TOOLS AND TIPS TO HELP UNDERSTANDING LICENSING STANDARDS

To be an effective and productive licensing authority you need to understand not only the licensing regulations used by the Tribe, NIGC and your State but you need to know the internal details used by your licensing/background department.

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TIPS AND TOOLS: 1. Learn your internal processes I.

The different regulatory/law enforcement agencies you will have to work with II. Timelines for submission to all regulatory agencies involved with the licensing processes III. What your Tribal standards are for denials and revocations 2. Understand the vocabulary of the industry: Fingerprint results, law enforcement reports for the different jurisdictions, 3. Don’t be ashamed to ask questions 4. Network with your fellow Commissioners 5. Be knowledgeable of what technology your background/licensing department utilizes 6. Be respectful, confidential and ethical

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LICENSING AND BACKGROUNDING

Licensing and back grounding potential PMOs and/or Key casino employees could be one of the most single important directives of a regulatory authority. Be diligent and through DISCUSSION

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LICENSEES

Primary Management Official

Key Employee

High Security

Help!!

Dual License

Low Security

Class III

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DEVELOP TRACKING PROCESSES:EXAMPLE

Name

Position

Id Number/Classification Application Date Received

Date Submitted for Approval

Date submitted to NIGC/State

Joe schmoo Blackjack dealer 13-012/Key

10/2/13 04/2/12

Judy schmoo T.G. Director

12-001

6/5/12

6/10/12

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SCENARIOS

• DISCUSSION

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#1 • PMO HAD A SPOUSE PASS AWAY FROM CANCER. SHE BATTLED IT FOR YEARS AND IT COSTED THEM DEARLY. MEDICAL COSTS FOR FIVE YEARS EXHAUSTED THEIR SAVINGS, EXHAUSTED KIDS COLLEGE SAVINGS, MAXED OUT THEIR CREDIT, AND THEY LOST THEIR HOME. • IN THE END HIS SPOUSE PASSED AWAY AND HE LITERALLY LOST EVERYTHING HE HELD DEAR. THE ONLY THING HE HAD WAS HIS OWN HEALTH, COLLEGE DEGREE AND HIS GAMING EXPERIENCE. • WHAT ARE THE ISSUES AS YOU SEE IT?

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#2 • A POTENTIAL PMOWAS AFFECTEDBY THE RECESSION IN 2008; • JOBS CLOSED AND SHE LOST HER JOB AFTER 20 YEARS. SHE HAD A DIFFICULT TIME GETTINGBACK INTO THE JOBMARKET WITH LIMITED JOBS AVAILABLE. HERHUSBAND LOST HIS JOB ASWELL, THEY LOST THEIRHOME AND SAVINGS. • THEY ACCEPTED JOBS AT A LOWER PAY RATE AND LIVEDOFF OF THEIRCREDIT FOR SEVERAL YEARS UNTIL THEIRCREDIT DRIEDUP. • THEY ARE APPLYING FOR A DIRECTOR POSITION, ONE OF THE JOBDUTIES IS APPROVING PURCHASES ANDDEVELOPING BUDGETS, • THIS POTENTIAL LICENSEE IS A TRIBAL MEMBER, • WHAT CONCERNSWOULD YOU SEEWITH LICENSING THIS PMO?

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#3 • KEY EMPLOY APPLIED FOR TABLES DEALER POSITION. • SHE FILLED OUT HER APPLICATION IN THE OFFICE AND SHE LOOKED STRESSED OUT, SHAKING, CRYING, ETC. SHE LEFT OUT PORTIONS OF HER RESIDENCY IN THE UNITED STATES AND VIETNAM. • THIS PROMPTED YOUR BACKGROUND PERSON TO SIT DOWN AND ASK ME TO VISIT WITH HER TO SEE WHAT WAS GOING ON WITH HER. SHE HAD A FEELING THAT SHE WAS HOLDING BACK BUT DID NOT KNOW HOW TO APPROACH HER. SO YOU SET THERE WITH HER IN SILENCE FOR 5 MINUTES AND ALLOWED HER EMOTIONS TO POUR THROUGH HER. YOU HAND HER TISSUES AND WATER AND SAY SOFTLY, IT’S OK TO SPEAK OPENLY ABOUT YOUR PAST. YOU ASK IF THERE WAS SOMETHING IN HER PAST THAT GAVE THE IMPRESSION THAT SHE WAS TIED TO ORGANIZED CRIME, • ASSOCIATED WITH BY DEFAULT, MARRIAGE OR RELATIONSHIP IN ANY SHAPE OR FORM. SHE WAS CRYING REALLY HARD AND TALKED ABOUT HER RELATIONSHIP WITH ONE OF THE LEADERS FROM THE TRAN ORGANIZATION. HER LAST NAME WAS TRAN, VENTED ABOUT HER EXPERIENCE AND HOW SHE GOT CAUGHT IN THE MIDDLE OF SOMETHING THAT SHE DID NOT WANT TO GET CAUGHT UP IN. • CONCERNS???

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#4

• KEY EMPLOYEE APPLIED FOR A GAMING LICENSE. WHEN THE FBI RESULTS CAME BACK, SHE CAME UP AS DECEASED. • SHE WAS A FALSE POSITIVE AND THERE WAS AN ERROR ON THE FBI >Page 1 Page 2 Page 3 Page 4 Page 5 Page 6 Page 7 Page 8 Page 9 Page 10 Page 11 Page 12 Page 13 Page 14 Page 15 Page 16 Page 17 Page 18 Page 19 Page 20 Page 21 Page 22 Page 23 Page 24 Page 25 Page 26 Page 27 Page 28 Page 29 Page 30 Page 31 Page 32 Page 33 Page 34 Page 35 Page 36 Page 37 Page 38 Page 39 Page 40 Page 41 Page 42 Page 43 Page 44 Page 45 Page 46 Page 47 Page 48 Page 49 Page 50 Page 51 Page 52 Page 53 Page 54 Page 55 Page 56 Page 57 Page 58 Page 59 Page 60 Page 61 Page 62 Page 63 Page 64 Page 65 Page 66 Page 67 Page 68 Page 69 Page 70 Page 71 Page 72 Page 73 Page 74 Page 75 Page 76 Page 77 Page 78 Page 79 Page 80 Page 81 Page 82 Page 83 Page 84 Page 85 Page 86 Page 87 Page 88 Page 89 Page 90 Page 91 Page 92 Page 93 Page 94 Page 95 Page 96 Page 97 Page 98 Page 99 Page 100 Page 101 Page 102 Page 103 Page 104 Page 105 Page 106 Page 107 Page 108 Page 109 Page 110 Page 111 Page 112 Page 113 Page 114 Page 115 Page 116 Page 117 Page 118 Page 119 Page 120 Page 121 Page 122 Page 123 Page 124 Page 125 Page 126 Page 127 Page 128 Page 129 Page 130 Page 131 Page 132 Page 133 Page 134 Page 135 Page 136 Page 137 Page 138 Page 139 Page 140 Page 141 Page 142 Page 143 Page 144 Page 145 Page 146 Page 147 Page 148 Page 149 Page 150 Page 151 Page 152 Page 153 Page 154 Page 155 Page 156 Page 157 Page 158 Page 159 Page 160 Page 161 Page 162 Page 163 Page 164 Page 165 Page 166 Page 167

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