1             BEFORE THE MISSOURI GAMING COMMISSION

             

         2   

             

         3    IN RE:  Public Meeting on September 27, 2002 at the

             

         4    Maryland Heights Community Center, 2344 McKelvey Road,

             

         5    Maryland Heights, Missouri

             

         6   

             

         7           BE IT REMEMBERED that the above-entitled matter

             

         8    came on for a public meeting at the Maryland Heights

             

         9    Community Center, 2344 McKelvey Road, in the City of

             

        10    Maryland Heights, State of Missouri, on the 27th day of

             

        11    September, 2002, commencing at the hour of 9:00 a.m.

             

        12    in the morning of that day, said meeting having been

             

        13    called by Chairman Robert Smith of the Missouri Gaming

             

        14    Commission pursuant to the issuance of due notice to

             

        15    all parties in interest, and the following transcript

             

        16    is the transcript of the record made of all proceedings

             

        17    had during the course of said meeting. 

             

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         1              MISSOURI GAMING COMMISSION MEMBERS

             

         2   

             

         3                   Chairman Robert C. Smith

             

         4                  Commissioner J. Joe Adorjan

             

         5                 Commissioner Muriel W. Battle

             

         6               Commissioner Lynne R. Nikolaisen

             

         7                   Commissioner Floyd Bartch

             

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            CONCANNON & JAEGER   ST. LOUIS, MISSOURI    (314) 421-1000

 

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         1               CHAIRMAN SMITH:  We'll call the meeting to

             

         2    order.  Can you hear me all right?  The guy sitting in

              

         3    the back row, can you hear me okay?  Please raise your

             

         4    hand if you can't.  Okay, fine.  I'll call the meeting

             

         5    to order.  Let's call the roll. 

             

         6               MS. ANGIE FRANKS:  Chairman Smith? 

             

         7               CHAIRMAN SMITH:  Present. 

             

         8               MS. FRANKS:  Commissioner Nikolaisen? 

             

         9               COMMISSIONER NIKOLAISEN:  Present. 

             

        10               MS. FRANKS:  Commissioner Battle? 

             

        11               COMMISSIONER BATTLE:  Present. 

             

        12               MS. FRANKS:  Commissioner Adorjan? 

             

        13               COMMISSIONER ADORJAN:  Present. 

             

        14               MS. FRANKS:  Commissioner Bartch? 

             

        15               COMMISSIONER BARTCH:  Present. 

             

        16               CHAIRMAN SMITH:  The first item of business

             

        17    is consideration of the minutes from July 24, 2002.

             

        18    Does anyone have any corrections?  I may have one minor

             

        19    correction on page 40, line six, is there anybody in

             

        20    the audience that wants to appear and comment, it says

             

        21    we get at this time, and I believe it should be we give

             

        22    at this time.  So if you can change get to give, I'd

             

        23    appreciate it.   Do I have a motion to approve the

             

        24    minutes? 

             

        25               COMMISSIONER BATTLE:  I so move.  

             

 

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         1               CHAIRMAN SMITH:  Is there a second? 

             

         2               COMMISSIONER ADORJAN:  Second. 

             

         3               CHAIRMAN SMITH:  All in favor say aye. 

             

         4               ALL COMMISSIONERS:  Aye. 

             

         5               CHAIRMAN SMITH:  Opposed? 

             

         6               DIRECTOR KEVIN MULLALLY:  Mr. Chairman, the next

             

         7    item on the agenda is the consideration of hearing

             

         8    officer recommendations, and Hearing Officer Mike Yost

             

         9    is here to make the presentation on the first four

             

        10    items.  Thad McCanse has come down ill and will not be

             

        11    available for items F through H. 

             

        12               HEARING OFFICER MIKE YOST:  Good morning.

             

        13    Resolution 02-069, the petitioner is a William Shumate.

             

        14    The proposed discipline against Mr. Shumate was an

             

        15    eight-hour suspension.  What happened in this case was

             

        16    on July 9th of 2000, Mr. Shumate was part of the team

             

        17    working in the hard count room.  His specific role at

             

        18    that time in the hard count room, at least at the time,

             

        19    was to pick up coins off the floor that I assume had

             

        20    fallen down off the machinery.  

             

        21               While he was conducting these duties, the

             

        22    members of his hard count team, the other five

             

        23    employees, essentially left on their break.  They were

             

        24    all wanded out by security personnel.  The practice of

             

        25    the team at that time was that the team leader would

             

 

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         1    sign each person's name out as they all left, so they

             

         2    weren't individually signing their names.  The manager

             

         3    was signing their names for them in and out. 

             

         4               So essentially, they never realized that

             

         5    they left without Mr. Shumate, who continued to stay in

             

         6    the room working picking up the coins.  Due to the

             

         7    noise and machinery, he didn't realize that the rest of

             

         8    the team had left either.  About ten minutes into being

             

         9    alone in the room, video surveillance showed, as the

             

        10    testimony was, that he basically peeked his head up and

             

        11    noticed that no one else was in the room with him. 

             

        12               At that time, he really didn't know what to

             

        13    do, so he made the decision just to continue on working

             

        14    doing what he was doing.  Then at some time later, the

             

        15    rest of the team came back from their break, and

             

        16    realized that they had left Mr. Shumate in there by

             

        17    himself, and the matter was reported to security and

             

        18    then later to the Gaming Commission. 

             

        19               I realize an eight-hour suspension is

             

        20    certainly not the most serious suspension this

             

        21    Commission has ever handed down on someone, but I can't

              

        22    recommend that it be passed down in this particular

             

        23    case.  I just felt that Mr. Shumate was put in a

             

        24    terribly bad situation by his co-workers.  With friends

              

        25    like those, who needs enemies, so to speak. 

             

 

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         1               He was put in a position where he had just a

             

         2    few things he could do.  Most of the things that he

             

         3    could do were bad.  If he would have left the count

             

         4    room by himself, first of all, the regulations would

             

         5    have required him to be wanded out by security, which

             

         6    he couldn't have done because nobody was there.  So, he

             

         7    decided to stay and keep on working.  I'll point out,

             

         8    too, a less-trustworthy person could have tried to take

             

         9    advantage of their situation being alone in there. 

             

        10               What he really should have done was to call

             

        11    for someone to come and be with him down there.  But

             

        12    given the circumstances as a whole, I'm recommending

             

        13    that this body reprimand Mr. Shumate for his decision,

             

        14    because he did violate the regulations of the

             

        15    Commission, there's no doubt about that, but I just

             

        16    don't think that an eight-hour suspension is

             

        17    appropriate, given this set of facts.  

             

        18               CHAIRMAN SMITH:  Commissioner Battle? 

             

        19               COMMISSIONER BATTLE:  Did he have training

             

        20    before he started his duties? 

             

        21               HEARING OFFICER YOST:  He testified that he

             

        22    was not aware that he was not allowed to be there by

             

        23    himself.  I believe the agent at the time testified

             

        24    that they were made aware of the regulations.  So, I

             

        25    think that's in dispute.  I will say he had only been

             

 

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         1    on the job for three weeks, at least that particular

             

         2    job.  So, it's certainly possible he did not know

             

         3    really what he was going to do, so he just decided to

             

         4    keep on working.             

             

         5               CHAIRMAN SMITH:  Is there a record of any

             

         6    prior violations on his part? 

             

         7               HEARING OFFICER YOST:  Not that I'm aware

             

         8    of. 

             

         9               CHAIRMAN SMITH:  Any other questions or

             

        10    comments?  So, if he left, he violated the rules, and

             

        11    if he stayed there by himself he violated the rules, is

             

        12    basically what you're saying, isn't it? 

             

        13               HEARING OFFICER YOST:  Yes.  Obviously, the

             

        14    correct choice was to call somebody.  But given the

             

        15    whole of the circumstances, I guess, as I wrote in my

             

        16    decision, of all of the bad choices that were made that

             

        17    morning, his was certainly not the worst of the bad

             

        18    choices that were made.  

             

        19               CHAIRMAN SMITH:  Any other comments?  Do we

             

        20    have a motion either approving or modifying the

             

        21    recommendation? 

             

        22               COMMISSIONER ADORJAN:  I move to approve

             

        23    Resolution 02-069. 

             

        24               COMMISSIONER NIKOLAISEN:  Second. 

             

        25               CHAIRMAN SMITH:  I have a motion and a

             

 

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         1    second that we approve the finding of the hearing

             

         2    officer to be reduced to a reprimand.  Let's call the

             

         3    roll. 

             

         4               MS. FRANKS:  Chairman Smith? 

             

         5               CHAIRMAN SMITH:  In favor. 

             

         6               MS. FRANKS:  Commissioner Nikolaisen? 

             

         7               COMMISSIONER NIKOLAISEN:  In favor. 

             

         8               MS. FRANKS:  Commissioner Battle? 

             

         9               COMMISSIONER BATTLE:  In favor. 

             

        10               MS. FRANKS:  Commissioner Adorjan? 

             

        11               COMMISSIONER ADORJAN:  In favor. 

             

        12               MS. FRANKS:  Commissioner Bartch? 

             

        13               COMMISSIONER BARTCH:  In favor. 

             

        14               MS. FRANKS:  By your vote, you have adopted

             

        15    Resolution Number 02-069. 

             

        16               HEARING OFFICER YOST:  The next resolution

             

        17    is 02-070.  Patrick Chan is the petitioner.  The

             

        18    proposed discipline of Mr. Chan is a 30-day suspension

             

        19    of his license.  The facts in this case were

             

        20    undisputed, both by Mr. Chan and the Missouri Gaming

             

        21    Commission.  

             

        22               What happened in this case was that Mr. Chan

             

        23    was the manager of the Harrah's North Star Casino one

             

        24    morning, and he received a call that his EMT on duty

             

        25    was going to arrive late. 

             

 

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         1               CHAIRMAN SMITH:  Could you please tell me

             

         2    what an EMT is?  

             

         3               HEARING OFFICER YOST:  An EMT is an

             

         4    emergency medical technician.  It's a paramedic,

             

         5    essentially, who was supposed to be on the boat so that

              

         6    if there's a medical emergency, that there's prompt

             

         7    medical care. 

             

         8               The EMT was caught in traffic and was going

             

         9    to be late.  Mr. Chan made the decision that he was

             

        10    going to open the boat, despite the fact that his EMT

             

        11    was not going to be on board.  His reasoning for that

             

        12    was that the Harrah's Mardi Gras Casino, which is

             

        13    adjacent to the North Star, had an EMT on duty.  In his

             

        14    opinion, as a practical matter, there was not a medical

             

        15    problem with his decision.  

             

        16               The Gaming Commission agent on the boat

             

        17    found out that he was planning on opening the boat

             

        18    without the EMT, which is in direct violation of

              

        19    Commission regulations.  They approached Mr. Chan

             

        20    before he opened the boat and told him, if you do this,

             

        21    you're going to be in direct violation of the

             

        22    Commission rules.  Mr. Chan essentially told them, I'm

             

        23    going to open the boat, so you guys do what you have to

             

        24    do.  

             

        25               He went ahead and opened the boat, and the

             

 

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         1    EMT arrived about 25 minutes after the opening.  Mr.

             

         2    Chan essentially admitted to all these things.  His

             

         3    defense was essentially a plea for leniency as opposed

             

         4    to a factual defense.  I have to say I thought a lot

             

         5    about this particular case.  A 30-day suspension is

             

         6    quite severe.  Speaking myself, if I had to go 30 days

             

         7    without income or employment, it would seriously

              

         8    financially damage my situation.  I'm sure it will hurt

             

         9    Mr. Chan's situation as well. 

             

        10               But as I thought about it, a couple of

             

        11    things kind of struck me.  First of all, a 30-day

             

        12    suspension, when you look at what Mr. Chan did, just

             

        13    the act itself, you know, to purposely and directly

             

        14    violate the Commission rules, I would remind the

             

        15    Commission about the licensees that come before you and

             

        16    accidently violate the rules, such as a loss limit

             

        17    violation, as we have talked about on many occasions,

             

        18    just when the situation dictates they didn't do what

             

        19    they were supposed to do not by any purpose, but merely

             

        20    by accident, those people have gone under a one-week

             

        21    suspension. 

             

        22               I think when you put it in that context, a

             

        23    30-day suspension probably isn't overly harsh in that

             

        24    context.  But really, as I thought about it, Mr. Chan

             

        25    was a highly intelligent man.  He seemed like a good

             

 

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         1    and a decent man.  I have no doubt that the decision he

             

         2    made was a calculated and thought-out and reasoned

             

         3    decision.  That's really what kind of tipped it for me.

             

         4               Mr. Chan essentially looked at this

             

         5    situation and had to make the decision what is going to

             

         6    get me in more trouble, if I decide to open the boat

             

         7    and violate the Commission rules, or if I don't open

             

         8    the boat and then have to answer to my employer as to

             

         9    why I didn't open the boat.  And clearly, Mr. Chan made

             

        10    the decision that he'd rather face the music from the

             

        11    Commission than face the music from his employer.

             

        12               Really, the motivation for his decision was

             

        13    more troubling for me than the decision itself.  The

             

        14    other thing was his statement, which I have to say he

             

        15    stated repeatedly at the time of the hearing, and that

             

        16    was, if I had known I was going to get a 30-day