CHAIRMAN L.G. ULLERY: Ladies and gentlemen, I think we should start this and get on with the meeting if we can come to order, please.
Angie, I’ve almost forgotten your name, would you call the roll please.
ANGIE FRANKS: Sure. Chairman Ullery?
CHAIRMAN ULLERY: I’m present
MS. FRANKS: Commissioner Smith?
ROBERT C. SMITH: Present.
MS. FRANKS: Commissioner Nikolaisen?
LYNNE NIKOLAISEN: Present.
MS. FRANKS: Commissioner Battle?
MURIEL BATTLE: Present.
MS. FRANKS: Commissioner Adorjan?
COMMISSIONER NIKOLAISEN: Not present.
CHAIRMAN ULLERY: It seems as though four of the five, maybe Commissioner Adorjan will be able to join us a little later. Go ahead, we have it called to order and lets go ahead.
KEVIN P. MULLALLY: Mr. Chairman, the first item on the agenda under Tabs A and B are a couple of Settlement Agreements regarding bingo organizations and Joseph Kizito of the staff will make a brief presentation.
CHAIRMAN ULLERY: Good morning, Joseph.
JOSEPH KIZITO: Good morning Mr. Chairman, good morning Commissioners.
COMMISSIONER SMITH: Good morning Joseph.
MR. KIZITO: Before you, you have Settlement Agreements for Arcadia Valley Elks Lodge and they had six violations. The most serious of them was they had eleven illegal gambling devices containing $2,000.55. They also had accounting problems. They had members that were working the game whose names did not appear on the approved list with the Commission. They also had problems with the starting time and their pull-tab sales began prior to the time that was allowed and the pull-tab money was being held until the game was complete and was being deposited into the bank the next day as required by the rules.
We initially proposed a discipline for a suspension of one year, but as you know with all bingo organizations, a suspension for one year would put them out of business so we ultimately negotiated a settlement and we compromised at suspending them for six weeks and facing a fine of $6,000 from non-bingo funds and that would be followed by a two year probation with the condition that they agree to obey all laws, waive any claim or right to contest the forfeiture of the video machines and the money and to make all of the corrections that they need to ensure that they do not violate the rules anymore.
I have no further on that.
COMMISSIONER BATTLE: This is Muriel Battle. You said a suspension for six weeks and you are saying one week per month for a period of six months.
MR. KIZITO: Yes, Commissioner Battle.
COMMISSIONER BATTLE: Ok.
COMMISSIONER SMITH: I just have, this is Bob Smith, just one question. Has there been any prior violation or is this the first one?
MR. KIZITO: This is the first one regarding illegal gambling devices.
COMMISSIONER SMITH: Ok.
COMMISSIONER NIKOLAISEN: This is Lynne and it might apply to the other one as well, a general question. Once these bingo settlements are put in place and we’ve got somebody who has had some violations, are they checked on more frequently than say a bingo operation that has not had violations?
MR. KIZITO: Yes, that’s true, and from time to time we conduct unannounced inspections.
COMMISSIONER NIKOLAISEN: Ok, so there is a more frequent check. That’s what I was concerned about. Ok. Thank you.
CHAIRMAN ULLERY: Do we have any further questions or comments?
COMMISSIONER SMITH: Mr. Chairman, I move approval of these settlement orders.
COMMISSIONER NIKOLAISEN: Second.
CHAIRMAN ULLERY: I have a motion and I have a second on Resolution No. 01-007-B, boy, Settlement Agreement.
Angie will you call the roll.
MS. FRANKS: Chairman Ullery?
CHAIRMAN ULLERY: I’m in favor.
MS. FRANKS: Commissioner Smith?
COMMISSIONER SMITH: In favor.
MS. FRANKS: Commissioner Nikolaisen?
COMMISSIONER NIKOLAISEN: In favor.
MS. FRANKS: Commissioner Battle?
COMMISSIONER BATTLE: In favor.
MS. FRANKS: By your vote you’ve adopted Resolution No. 01-007-B.
CHAIRMAN ULLERY: Ok, lets go on to 01-008-B, can we not.
J. JOE ADORJAN: Hello.
MS. FRANKS: Mr. Adorjan.
COMMISSIONER ADORJAN: Yes.
CHAIRMAN ULLERY: Hold on a minute Joseph. Commissioner Adorjan?
COMMISSIONER ADORJAN: Yes, I’m here.
CHAIRMAN ULLERY: You are present as now.
COMMISSIONER ADORJAN: I am present and accounted for.
CHAIRMAN ULLERY: Angie, would you so log that.
MS. FRANKS: Sure.
COMMISSIONER SMITH: Good morning, Joe.
COMMISSIONER ADORJAN: Good morning.
COMMISSIONER BATTLE: Good morning, Joe.
COMMISSIONER ADORJAN: Good morning.
CHAIRMAN ULLERY: We’re on resolution, the second resolution of the morning.
COMMISSIONER BATTLE: Tab B.
COMMISSIONER ADORJAN: Ok.
CHAIRMAN ULLERY: 01-008-B, like boy. Joseph, do you want to go ahead please.
MR. KIZITO: The second proposed settlement regarding Warrenton Elks Lodge. They also had five illegal gambling devices containing $228. Their two bingo pull-tabs games are being sold in the bar. Members working the game were also not on the approved list with the Commission, and not all the winning pull-tabs over the $100 limit had been signed and dated as required by the Commission rules.
Initially we proposed a discipline for suspension for a straight six months. Subsequently we compromised and agreed to suspend them for six weeks with penalty of $3,000, two years probation and the agreement to obey all laws and regulations. I have no further on that.
COMMISSIONER BATTLE: And again this is like the other one, it’s one week per month for six months.
MR. KIZITO: That’s true Commissioner.
CHAIRMAN ULLERY: The suspension was for how long, Joseph?
MR. KIZITO: The suspension is for six months, one week out of every month.
CHAIRMAN ULLERY: Ok, ok, thank you.
MR. KIZITO: For a total of six weeks.
CHAIRMAN ULLERY: Pardon me?
MR. KIZITO: For a total of six weeks.
CHAIRMAN ULLERY: Six weeks, ok.
COMMISSIONER NIKOLAISEN: I move for approval of 01-008-B.
COMMISSIONER BATTLE: I second.
CHAIRMAN ULLERY: I have a motion and I have a second on Resolution No. 01-008-B, boy, regarding Settlement Agreement. Angie would you call the roll please.
MS. FRANKS: Chairman Ullery?
CHAIRMAN ULLERY: I’m in favor.
MS. FRANKS: Commissioner Smith?
COMMISSIONER SMITH: In favor.
MS. FRANKS: Commissioner Nikolaisen?
COMMISSIONER NIKOLAISEN: In favor.
MS. FRANKS: Commissioner Battle?
COMMISSIONER BATTLE: In favor.
MS. FRANKS: Commissioner Adorjan?
COMMISSIONER ADORJAN: In favor.
MS. FRANKS: By your vote you’ve adopted Resolution No. 01-008-B.
EXECUTIVE DIRECTOR MULLALLY: Mr. Chairman and Commissioners, just as a point of information, there’s been a growing level of frustration among the bingo enforcement group and the bingo staff regarding these illegal gambling machines because the enforcement efforts haven’t appeared to deter their operation. We are preparing to announce, within the next couple of weeks, a zero tolerance policy on illegal gambling machines and in order to effectuate that, we are going to write a letter to each one of the licensees, both to the Bingo Chairman and to the President of the organization as well as their parent organization, if any exists. Therefore, if it’s an Elks, we’ll send one to the national Elks organization. We are also going to send a copy to all members of the state legislature and to the bingo associations and we are going to issue a press release that announces the zero tolerance policy that if you have illegal gambling devices on your premises, we don’t care if their locked up, there’s tape around them, whether the cord is cut off, whether they have money in them or not, if you have the devices your license will be revoked. We will not seek to settle any of the cases. We will take it as far as the courts will allow. We are just simply not going to tolerate these illegal machines anymore and so this way everybody will know the rules. We’re going to settle the remaining cases consistently with how we’ve done this in the past but any future cases, we are simply going to seek revocation and no negotiation.
COMMISSIONER NIKOLAISEN: Kevin, once you send that letter, which by the way I think is a great idea, is there some sort of date where you will actually start enforcing it?
EXECUTIVE DIRECTOR MULLALLY: Yes, we will include in the letter and that’s what we are in the process of doing right now is actually drafting the document, but we will set a deadline date and we are drafting the language just to make sure that they understand that this is unequivocal, there will be no excuses.
A lot of times they will come in with excuses saying that they were locked up in a closet or they weren’t in operation. We’re just going to say look if you have them, we don’t care whether they are in operation or not, if they’re found on your premises you’re going to have your license revoked.
CHAIRMAN ULLERY: So possession is it and that’s the end of that story, is that correct?
EXECUTIVE DIRECTOR MULLALLY: That’s correct.
CHAIRMAN ULLERY: Good. I think the notification is super great. We should have been maybe more diligent in enforcement and not negotiating and so on and so forth but that’s past history and so I think once all of them know how the enforcement is coming down, particularly on these illegal machines etc., then I think it’s a fair game and we can continue on and everything will be great. So, hopefully staff is living with that and knowing that there’s going to be a correction in the very near future and also the industry will know where they stand.
COMMISSIONER SMITH: I had one question Mr. Chairman. Is the Administrative Hearing Commission going to continue to hear all bingo cases? Is that the procedure we’re following?
CHAIRMAN ULLERY: I can’t answer that but I’m sure Kevin can.
EXECUTIVE DIRECTOR MULLALLY: That’s correct. They will hear the bingo cases.
COMMISSIONER SMITH: Is there some reason they’re just hearing those and not the others?
EXECUTIVE DIRECTOR MULLALLY: The statute is different.
COMMISSIONER SMITH: Oh, it’s different, ok. Is the only other business you have is the rule changes, Kevin.
EXECUTIVE DIRECTOR MULLALLY: That’s correct.
COMMISSIONER SMITH: If you all don’t mind then I really have got something else that I’m holding up some people who are waiting here. If you don’t need me I think I’ll check out now unless there was anything else that was going happen.
CHAIRMAN ULLERY: Commissioner Smith, it’s not that we don’t need you but we understand.
COMMISSIONER BATTLE: Yeah we always need you Bob, but we understand.
COMMISSIONER SMITH: Well, it will move faster without me.
CHAIRMAN ULLERY: Glad you said that.
COMMISSIONER SMITH: Good-bye. I’ll see you at the next meeting.
COMMISSIONER ADORJAN: Take care, Bob.
EXECUTIVE DIRECTOR MULLALLY: Mr. Chairman and Commissioners, under Tab C we have a couple of Final Orders of Rulemaking and Patricia Churchill will provide the explanation.
CHAIRMAN ULLERY: Ok, thank you.
PATRICIA CHURCHILL: Good morning.
CHAIRMAN ULLERY: Good morning.
COMMISSIONER BATTLE: Good morning Patricia.
MS. CHURCHILL: The first rule for your consideration is 11 CSR 45-3.010 and it regards the maintenance of the records in Jefferson City rather than St. Louis. There was no change in the proposed rule. We did receive one internal comment but we decided no further changes were necessary.
CHAIRMAN ULLERY: Anybody have any problem with this final order.
COMMISSIONER BATTLE: This is Muriel. Explain to me again, are you changing from being some place else to being in Jefferson City or are you just validating that point?
MS. CHURCHILL: The previous rule said St. Louis and it was really just a left-over from when the office was originally in St. Louis, a clean-up to make sure that our rules are consistent.
CHAIRMAN ULLERY: Are you ok with that Muriel?
COMMISSIONER BATTLE: I’m ok with that.
CHAIRMAN ULLERY: Ok.
COMMISSIONER NIKOLAISEN: I move for adoption of 11 CSR 45-3.010.
COMMISSIONER BATTLE: I second.
CHAIRMAN ULLERY: We have a motion and a second for Order of Rulemaking on rule 11 CSR 45-3.010. Angie would you call the roll please.
MS. FRANKS: Chairman Ullery?
CHAIRMAN ULLERY: In favor.
MS. FRANKS: Commissioner Smith?
COMMISSIONER SMITH: In favor.
MS. FRANKS: Commissioner Nikolaisen?
COMMISSIONER NIKOLAISEN: In favor.
MS. FRANKS: Commissioner Battle?
COMMISSIONER BATTLE: In favor.
MS. FRANKS: Commissioner Adorjan?
COMMISSIONER ADORJAN: In favor.
MS. FRANKS: By your vote you’ve adopted the Final Order of Rulemaking 11 CSR 45-3.010.
MS. CHURCHILL: The next Final Order of Rulemaking is 11 CSR 45-4.380. It’s regarding billing Class A and supplier licensees for occupational license renewals rather than having them send in a check at the time of the application. Originally this amendment only provided for Class A licensees. We received one comment that suggested that we include supplier licensees in this and we decided to make that change.
CHAIRMAN ULLERY: It looks like a good move to me but any comments or questions?
COMMISSIONER BATTLE: I move adoption of 11 CSR 45-4.380.
COMMISSIONER NIKOLAISEN: Second.
CHAIRMAN ULLERY: I have a motion and I have a second on the Final Order of Rulemaking 11 CSR 45-4.380. Angie.
MS. FRANKS: Chairman Ullery?
CHAIRMAN ULLERY: In favor.
MS. FRANKS: Commissioner Nikolaisen?
COMMISSIONER NIKOLAISEN: In favor.
MS. FRANKS: Commissioner Battle?
COMMISSIONER BATTLE: In favor.
MS. FRANKS: Commissioner Adorjan?
COMMISSIONER ADORJAN: In favor.
MS. FRANKS: By your vote you’ve adopted the Final Order of Rulemaking 11 CSR 45-4.380.
EXECUTIVE DIRECTOR MULLALLY: Mr. Chairman, that’s all the business we have for you today.
CHAIRMAN ULLERY: Ok. Anybody have anything? If not, I’ll entertain a motion to adjourn.
COMMISSIONER ADORJAN: I do have a question.
CHAIRMAN ULLERY: Ok.
COMMISSIONER ADORJAN: Maybe I can just cover this with Kevin but I saw in the newspaper the issue of the problem gambling with the legislature. Was that discussed before I got on the phone?
EXECUTIVE DIRECTOR MULLALLY: No, it was not. It has been in both the Kansas City and St. Louis papers. The St. Louis paper, although I think the stories have been accurate, I’m not sure that the issue has been put in proper prospective or focus. From our perspective, we really think that this is good news. What has happened is that a lot of people are accessing treatment and it appears that very shortly the Department of Mental Health will run out of money to reimburse counselors. We think this is good news. We’ve known for some time that there are more problem gamblers than those that are accessing treatment. In fact, the frustrations has been that very, very few people have accessed treatment. However, our outreach efforts have affected all of the other services that the Alliance provides that when we started Responsible Gaming Education Week in 1999, we saw a dramatic increase in the calls to the hotline and also in people entering the Voluntary Exclusion Program. That increase has continued as the outreach efforts have expanded.
We hoped or we postulated that at some point that would also effect treatment and now we’re seeing that and we think that that is good news. We will need to go to the Department of Mental Health. We’ll need to go to the legislature and ask for what they call a supplemental appropriation to augment that fund. I do not see it as a problem. We’ve already, Debbie Ferguson has already contacted the Office of Budget and Planning to register our support for that. They appeared to react very favorably. I really, frankly, do not see a problem and I think the issue has really been overstated and has ignored the fact that this, we really should be rejoicing in this, that these folks are finally seeking help.
COMMISSIONER ADORJAN: The implication that I saw in the Post Dispatch was that there was going to be problems because of the budget problems, there were going to be problems getting the supplemental funding but your feeling is that that will occur. That is what I was really questioning.
EXECUTIVE DIRECTOR MULLALLY: There are serious budget problems but fortunately we don’t have budget problems. The gaming industry hasn’t, the funding coming from gaming has not really been negatively effected and so particularly since we’re talking about a fairly small amount of money, I really don’t foresee a problem. Mike Ryan is from the Riverboat Gaming Association is here and is indicating that he would like to speak.
MIKE RYAN: I think most important Commissioners is that Mental Health will continue to provide the service whether they have the source of funds or not. So that’s the important thing. If people present, while the legislative process is continuing, they will receive, the clients will receive treatment.
COMMISSIONER ADORJAN: Thank you.
CHAIRMAN ULLERY: Good question, Joe. The press in Kansas City was probably a little more positive or basically said the same thing I would imagine. I didn’t see St. Louis but the slant had been more positive.
EXECUTIVE DIRECTOR MULLALLY: The Kansas City press was a lot better.
CHAIRMAN ULLERY: Yeah, well.
COMMISSIONER BATTLE: I wonder if you could send us a copy of that article. I didn’t see it.
EXECUTIVE DIRECTOR MULLALLY: Yes, we’ll get it out to you. I’m in the process of drafting one of my monthly reports to you so I’ll attach it with that also give you an update on issues regarding LaGrange.
COMMISSIONER BATTLE: Ok, thank you.
CHAIRMAN ULLERY: Sounds good. Do we have any other questions? Nothing else? Entertain a motion to adjourn.
COMMISSIONER BATTLE: So moved.
COMMISSIONER NIKOLAISEN: Second.
CHAIRMAN ULLERY: I have a motion and I have a second. All in favor?
ALL COMMISSIONERS: Aye.
CHAIRMAN ULLERY: All opposed. We are officially adjourned.