MONTEAU & PEEBLES LLP

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1 HAROLD A. MONTEAU MT JOHN M. PEEBLES NE CO, D.C. MICHAEL J. ANDERSON FRED ASSAM NE, SD ROBERT A. ROSETTE CONLY J. SCHULTE NE LORETTA A. TUELL CA AZ, CA, D.C. MONTEAU & PEEBLES LLP ATTORNEYS AT LAW 1001 SECOND STREET SACRAMENTO, CALIFORNIA TELEPHONE: (916) FACSIMILE: (916) CHARLES J. ANTONEN CA MI, NE JENNIFER L. BLISS QWENDOLYN N. BROWN GA JERRY D. GUENTHER AZ, MT ROBERT L. HUNTER, JR. CHRISTINA V. KAZHE CA MARK A. LEVITAN MT, WA CA, NAV, NM MO, NE SHILEE T. MULLIN MICHAEL A. ROBINSON CA D.C., WA SHELBY L. SETTLES JEREMIAH D. WEINER MT THE SECOND STREET JOURNAL NO. 26: August 15, 2003 TOP STORIES New law sends more gambling money to poorest tribes By:EDWARD SIFUENTES - Staff Writer Gov. Gray Davis has signed a law that shifts $51 million in casino winnings to some of the state's poorest tribes, but the law may end up short-changing local governments who deal with the effects of American Indian casinos. The measure will send $680,000 to each of the state's 75 tribes that either have no gambling or run fewer than 350 slot machines, including the La Jolla Band of Mission Indians in the Palomar Mountain area. "Four years ago, I signed compacts that for the first time in the nation benefited gaming and nongaming tribes," Davis said in statement Tuesday announcing the new law. "Californians voted twice to help Native Americans improve the quality of their lives. This legislation furthers the will of voters by assisting tribes in their quest to gain selfsufficiency." ws/top_stories/8_13_030_04_20.txt Tribe inks gaming agreement Some say Torres Martinez compact limits sovereignty By Dennis A. Britton The Desert Sun August 14th, 2003 TORRES MARTINEZ RESERVATION -- After waiting three and a half years to join 61 other tribes with compacts, the Torres Martinez Desert Cahuilla on Wednesday reached an agreement with Gov. Gray Davis to become a gaming tribe. In a joint announcement, the tribe and the governor emphasized the compact was "negotiated to meet the unique needs and circumstances of the Torres Martinez Tribe." And because of that, it is almost certain to stir controversy. Unlike the 1999 compact, the agreement calls on the tribe to give the state general fund a share of its profits from slot machines and to enter binding agreements with local governments before it can begin construction. Davis earlier this year said he wanted compact

2 re-negotiations to bring the state at least $1.5 billion in new fees to help reduce the state budget deficit. Wednesday s agreement, the first new compact since 1999, must be ratified by the state Legislature and approved by the U.S. Department of Interior. Only two months after the 1999 compact was signed with the 61 other tribes, the 700- member Torres Martinez petitioned to get the same deal. And it has been waiting since. The compact it finally negotiated differs in significant ways from the 1999 compact. For instance, it calls for the tribe to enter into binding agreements with Riverside and Imperial counties and impact issues before it can begin construction on a casino. Critics of the 1999 agreements have complained that since the tribes weren t required to take impacts into consideration, they have not. However, most of the tribes said they have done so voluntarily.surrounding communities on environmental and other "One of my highest priorities (in these negotiations) was to make sure we got MOUs (memorandums of understanding) with surrounding communities to try to be good neighbors," said Davis in a telephone conference call. "I m pleased the Torres Martinez agreed." In fact, the tribe had little choice since it was required to do so by federal legislation allowing it to purchase land off the reservation for a casino and giving Riverside County and local communities the right to say no to such an acquisition. The other significant change from the 1999 compact is that the tribe agreed to pay a percentage of its "net win" into the state general fund rather than into a special distribution fund aimed at helping non-gaming tribes and to help mitigate the environmental impact of casinos. The Torres Martinez compact calls for it to pay the state 3 percent of its net win in the first year, 4 percent the next year and 5 percent in the third and subsequent years. Officials could not estimate how much revenue this would produce for the state. In January, Phillip Hogen, head of the National Indian Gaming Commission, said that since tribes are sovereign nations they cannot be taxed by states, "so if there is a state tax, even though called by another name, that s illegal. " /local/ shtml Stevens sticks to message on FOX News show WEDNESDAY, AUGUST 13, 2003 The head of the nation's largest Indian gaming group went on national television last night in an attempt to dispel negative perceptions of the $14 billion and growing industry. Ernie Stevens Jr., president of the National Indian Gaming Association, appeared on "The O'Reilly Factor," a Fox News Network show hosted by Bill O'Reilly, a popular firebrand known for treating guests with differing views in a less than favorable manner. O'Reilly stuck to that image, interrupting Stevens frequently to make just one point: tribes should make financial and other information about their casinos public. "But why don't you open your books?" he asked. "See, that would -- that would silence the critics." Stevens agreed with O'Reilly's argument. "We're working on that very intensely," he said. But when Stevens tried to point out that the information should be shared in a spirit of goverment-to-government cooperation, O'Reilly jumped to another topic: the July 14 raid of the Narragansett Tribe's smoke shop.

3 Even when confronted with the shift, Stevens stuck to his theme. "It goes back to communication and tribal sovereignty," he started to say until O'Reilly interjected again asp Tribe opens shop for sovereignty By Jim Baron, Journal Register News Service CHARLESTOWN -- The small, nondescript trailer on Route 2 that was the site of a violent confrontation between State Police and Narragansett Indians when the tribe attempted to sell tax-free cigarettes there will be converted Friday into the rallying point for Narragansett pride and sovereignty. Shuttered since the July 14 raid, the building will reopen today as the Tribal Sovereignty Headquarters in ceremonies scheduled to start at 10 a.m. All Rhode Island residents and members of various groups, including all Indian tribes throughout the area, are invited. "The re-opening of the Smoke Shop is symbolic of our tribe s fight toward achieving self-sufficiency," Chief Sachem Matthew Thomas said in a press release. "We will use the smoke shop as a place for people to gather, show support, and learn more about the history of our tribe and its struggles. We are looking to affirm our rights to sell tax-free cigarettes, as other tribes throughout the country have done, as well as reinstate the gaming rights that were involuntarily stripped from us. We see this as a step in the right direction." The Smoke Shop/Sovereignty Headquarters will be open daily from 11 a.m. to 4 p.m. and will be staffed by various tribal officials, including himself, Thomas said. One of the principal purposes of the sovereignty headquarters, Thomas said in an interview Thursday, is to serve as an information center. "No matter where we go, there are questions," Thomas said about the tribe and its various legal squabbles with the state. "We talk about federal recognition (of the Narragansetts as a tribe) and people ask, What does that mean? They ask why we can t have gaming on our own property. You wouldn t believe the number of questions I get on that issue alone." Thomas said the Smoke Shop will be used to collect donations for the tribe s sovereignty defense fund, to give them money to fight the court battles like the one now in federal court over the smoke shop issue. There will be T-shirts and bumper stickers to give out to people who make donations. One of the T-shirts reads "Narragansett Indian Tribe, Fighting Terrorism Since 1492." The bumper stickers, Thomas said, will carry a variety of slogans &BRD=1712&PAG=461&dept_id= &rfi=6 CALIFORNIA GAMBLING CONTROL COMMISSION The CGCC s next scheduled meetings are: Wednesday, August 20, 2003 Monday, August 25 th at Hiram Johnson Office Building, 455 Golden Gate Ave., San Francisco at 1:30 PM Wednesday, September Wednesday, September 17, 2003 Wednesday, October 8, 2003 Wednesday, October 22, 2003 Wednesday, November 5, 2003 Wednesday, November 19, 2003 Wednesday, December 3, 2003 Wednesday, December 17, 2003

4 ( Subject to change without notice ) CNIGA ACTIVITIES 8/27: CNIGA Monthly Membership Meeting in Sacramento CA 9/16-18: G2E Week, Las Vegas Convention Center [details to follow soon on CNIGA website] NATIONWIDE EVENTS AUGUST /18-19: NIGA Mid-Year Meeting and Golf Tournament. Includes a Business Network Mini-Expo. At Mystic Lake Casino Hotel, Pryor Lake, MN and Lone Pine Country Club, Howard Lake Rd., Shakopee, MN For details, call NIGA at x402. To register visit NIGA website at idyear/midyear-meeting.pdf 8/20-22: NITA 5 th Annual Conference (National Intertribal Tax Alliance) Mohegan Sun Casino Uncasville, CT: for reservations call MOHEGAN and mention group code NITA1. 8/22: Indian Housing Infrastructure Summit (MWTLC event), Phoenix Park Hotel, Washington DC; kmccarthy@naihc.net for information. 8/22-23: 2nd Annual Missoula Indian Center Pow Wow, Missoula Indian Center, Fort Missoula Rd. #33, Missoula, MT; Phone: (406) Fax: (406) mturcotte@montana.com 8/26-27: Tribal Community Hazard Mitigation- Basic Approaches to Risk Management; KwaTaqNuk Resort, Flathead Indian Reservation in Polson, Montana; contact Jamie Gomez at , or via jgomez@ncai.org SEPTEMBER /3-4: Council of Energy Resource Tribes and Wells Fargo present Indian Energy Solutions 2003 and the American Spirit Award Dinner; San Diego Marriott Hotel, 333 W. Harbor Drive, San Diego CA Register at or call ($400 for CERT tribe members, all others $600) by 8/12/03 9/8-10: NIGA Casino Manager Certification - Slots and Human Resource Departments. Green Bay, WI. Click Here for pricing, agenda, travel and hotel details, or call x217. 9/15-18: ATNI 50th Annual Conference, Wildhorse Resort & Casino, Pendleton, OR; Reservation # 1/800/ Website: Please note: Due to the limited number of rooms, we are hoping to have our Tribal Elders located at our host hotel. We will have alternate hotels listed at a later date. For more information contact ATNI at: 503/ /16-18: Global Gaming Expo, Las Vegas Convention Center, Las Vegas NV; For more information visit To register, click Register Now! Or visit Questions? Call toll free: /18: NIGA Seminar Institute - Cage/Vault Operations and Protection

5 & Security/Surveillance Training. Las Vegas, NV. Click Here for pricing, agenda, travel and hotel details, or call x217. 9/29-10/2: NIHB 2003 Consumer Conference, Radisson Riverfront Hotel, St. Paul, MN: for reservations call (651) /30-10/2: Indian Child Welfare Training Institute, Best Western Doublewood Inn, Bismarck, North Dakota. For more information call Kim Just at NICWA at: 503/ ext /23-24: Trading at the River Conference, Portland, OR. For more information contact Kayeri Akweks, Special Projects Manager at ONABEN: A Native American Business Network at: 1/800/ or 503/ or web site: NOVEMBER /16-21/03: NCAI 60th Annual Session, Hyatt Regency Hotel, Albuquerque, NM; pre-registration deadline is 10/31/03; visit to register online. OCTOBER /7-8: Fall Great Plains Indian Gaming Association Quarterly Meeting, Harrah s Prairie Band [Potowatami] Casino, Mayetta KS: call GPIGA at for information; HARRAHS for hotel reservations. 10/20-22: NIGA Casino Manager Certification - Security/Surveillance and Accounting Departments. Palm Springs, CA. Click Here for pricing, agenda, travel and hotel details, or call x /20-22: USET ANNUAL MEETING & EXPO (United South & Eastern Tribes) Hosted by the Mashantucket Pequot Tribal Nation; at Foxwoods Resort Casino Mashantucket, CT: Call for reservations. 11/18-20: Indian Child Welfare Training Institute, Monarch Hotel and Convention Center, Portland, OR. For more information call Kim Just at NICWA at: 503/ ext. 113 DECEMBER /10-11: NIGA s Native American Hotel & Resort Meeting & Workshops; details to be announced on NIGA website JANUARY /14-15: Western Indian Gaming Conference, Palm Springs Convention Center, Palm Springs CA.

6 FEBRUARY /23-25: NCAI Executive Council Winter Session; Wyndham Hotel, Washington DC; see NCAI National Calendar online for updates. SEPTEMBER /25-28: American Indian-Alaska Native Tourism Association Conference; Green Bay, WI. NIGC ANNOUNCEMENTS AND EVENTS The NIGC has announced that Tribal gaming revenues for 2002 were up an overall 13% from For a detailed chart, visit the NIGC website. LAWYER LEVITY Question: How can you tell when it is really, really cold outside? Answer: When you see a lawyer with his hands in his OWN pockets!