1 BEFORE THE GAMING COMMISSION

STATE OF MISSOURI

OPEN MEETING

MAY 28, 2003

8 2417 Knipp Drive

Jefferson City, Missouri

13 COMMISSION MEMBERS: ROBERT SMITH, Chairman

FLOYD O. BARTCH

14 JUDITH SUTTER-HINRICHS

JACK GANT

19 REPORTED BY:

20 STEPHANIE L. KURTZ MORGAN, RPR, CCR

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21 714 West High Street

P. O. Box 1308

22 Jefferson City, Missouri 65101

(573) 636-7551

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1 I N D E X

I. Call to Order 4

II. Consideration of Minutes

4 A. April 11, 2003 7

5 III. Consideration of Hearing Officer

Recommendations

6 B. Laurence C. Walker, Jr. 10

1. Resolution No. 03-045

7 C. Safronia B. Brown 13

1. Resolution No. 03-046

8 D. Michael Hacker 16

1. Resolution No. 03-054

IV. Consideration of Settlement

10 Agreements

F. Gametech International, Inc. 24

11 1. Resolution No. 03-003-B

G. IOC-Boonville, Inc. 28

12 1. Resolution No. 03-047

H. St. Joseph Riverboat Partners 33

13 1. Resolution No. 03-048

14 V. Consideration of Relicensure of

Certain Suppliers

15 I. Paul-Son Gaming Supplies, Inc. 39

1. Resolution No. 03-049

16 J. Casino Data Systems 39

1. Resolution No. 03-050

17 K. Tech Art Manufacturing, Inc. 39

1. Resolution No. 03-051

VI. Consideration of Certain

19 Level I/Key Applicants

L. Resolution No. 03-052 44

VII. Consideration of Rules & Regulations

21 M. Withdrawal of Proposed Amendment 47

1. 11 CSR 45-10.030 - Licensee's

22 Duty to Report and Prevent--

Misconduct

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1 I N D E X (CONTINUED)

VIII. Update on Sigma v. MGC 49

IX. Legislative Report 79

X. Market Report 85

XI. Closed Session 110

XII. Adjournment 111

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1 P R O C E E D I N G S

2 CHAIRMAN SMITH: Good morning. We'll call the

3 meeting to order. Looks like we have lots of -- must

4 have lots of interesting items. There's nobody here

5 today, which is a pleasure and change from the normal.

6 Let's start out by calling roll.

7 MS. ANGIE FRANKS: Chairman Smith?

8 CHAIRMAN SMITH: Present.

9 MS. FRANKS: Commissioner Bartch?

10 COMMISSIONER BARTCH: Present.

11 MS. FRANKS: Commissioner Hinrichs?

12 COMMISSIONER HINRICHS: Present.

13 MS. FRANKS: Commissioner Gant?

14 COMMISSIONER GANT: Present.

15 CHAIRMAN SMITH: Before we get started, it's

16 my pleasure first to introduce the newest member of the

17 Gaming Commission, Judge Jack Gant.

18 He's got two titles. I could call him

19 Senator Gant or I could call him Judge Gant, either

20 one. Why he'll have to explain to us which way he's

21 gonna go.

22 As a lawyer, I think I'll call him Judge, if

23 that's all right.

24 COMMISSIONER GANT: That's fine.

25 CHAIRMAN SMITH: He's certainly had a

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1 distinguished record. He's -- he earned his bachelor's

2 degree from the University of Missouri-Columbia, and

3 his law degree from -- also from the University of

4 Missouri system.

5 He's had experience -- he was in the Marine

6 Corp., I believe, from 1946 to 1948. He was in the

7 Missouri Senate from 1966 to 1977. He was appointed to

8 the judicial bench upon his leaving the Senate.

9 He served as an active judge in the Kansas City

10 area until he retired in 1998 to senior status, which

11 doesn't necessarily mean that you retired, but you

12 can, I think, pick and choose a little bit.

13 He was the presiding judge of the Jackson

14 County Circuit Court for a while, president of the

15 Missouri State Trial Judges, president of the Missouri

16 State Judicial Juvenile Judges Section of the Missouri

17 Judicial Conference, chairman of the Missouri Division

18 of Youth Services Advisory Commission.

19 I notice he's been -- sponsored baseball

20 teams. He's got -- received a number of foundations

21 from the Kansas City -- Missouri Law Foundation Award.

22 He's got recognition, by the way, from the

23 Association for Women Lawyers for Greater Kansas City,

24 so he must have treated the women well. He's received

25 the Missouri State Criminal Div-- Defense Attorney's

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1 Award, Greater Kansas City Metropolitan Bar Association

2 Lifetime Achievement Award and Kansas City Metropolitan

3 Bar Association Award.

4 He's a Methodist and is -- is married and has

5 five children and ten grandchildren. So he's been very

6 prolific, in addition.

7 It's a real pleasure to welcome you to the

8 Commission, Judge, and appreciate any comments you'd

9 like to make.

10 COMMISSIONER GANT: Mr. Chairman, I got to

11 meet part of the Commission last night and enjoyed the

12 dinner. I look forward to this.

13 I've known Kevin for I don't know how many

14 years, because once you're in the Senate, you still

15 gravitate back to the Capitol quite a bit. And Kevin

16 was working for Senator Wiggins when I first met him.

17 This -- this seems to be very interesting. I

18 accept it as a new challenge and look forward to

19 working with Kevin and the staff and with everyone else

20 in the room.

21 CHAIRMAN SMITH: Well, we're glad to have you.

22 Okay.

23 MR. KEVIN MULLALLY: Thank you, Judge. From the

24 staff's perspective we couldn't be more pleased and --

25 CHAIRMAN SMITH: It's good to have numbers,

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1 too.

2 MR. MULLALLY: Yes, it is.

3 CHAIRMAN SMITH: For a while we had to

4 struggle along with three members when we're supposed

5 to have five, but we at least have four now.

6 I guess the next item of business then is the

7 consideration of the minutes of the previous meeting.

8 Are there any corrections to those minutes? I

9 had one minor correction on page 6 down on line 12. It

10 says, I guess you -- it says, I guess you say -- saying

11 that it may not want to make the settlement after the

12 hearing, which I don't worry about one way or another.

13 There's an "is" in that line that probably

14 needs to be taken out for it to make sense, but that's

15 the only correction I had.

16 If there are no corrections -- other

17 corrections, is there a motion to be -- approve the --

18 COMMISSIONER HINRICHS: Motion we approve the

19 minutes of the April 22 (sic), 2003 meeting.

20 CHAIRMAN SMITH: With the amendment.

21 COMMISSIONER BARTCH: Second.

22 CHAIRMAN SMITH: All right.

23 COMMISSIONER HINRICHS: With the amendment.

24 CHAIRMAN SMITH: Okay. Moved and seconded.

25 Any discussion?

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1 (No response.)

2 CHAIRMAN SMITH: If not, call roll.

3 MS. FRANKS: Chairman Smith?

4 CHAIRMAN SMITH: In favor.

5 MS. FRANKS: Commissioner Bartch?

6 COMMISSION BARTCH: Favor.

7 MS. FRANKS: Commissioner Hinrichs?

8 COMMISSIONER HINRICHS: Favor.

9 MS. FRANKS: Commissioner Gant?

10 COMMISSIONER GANT: Favor.

11 MS. FRANKS: By your vote you've adopted the

12 minutes of the April 11, 2003 meeting.

13 MR. MULLALLY: Mr. Chairman, before we get

14 into the scheduled business, I would like to make one

15 introduction. We have with us today our new

16 information technology director, who I'd like to

17 introduce.

18 Ray Pope is a -- has a long tenure of

19 experience in both the public and private sectors.

20 He's served for a number of years with Jackson County

21 as the information technology director of Jackson

22 County, which is interesting because Judge Gant is from

23 Jackson County, and he was also the information technology

24 director for the City of Columbia where Mr. Smith is from,

25 and most recently with a private company called Car Fax.

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1 So, Ray, we're very excited to have

2 you.

3 Will you stand up and --

4 CHAIRMAN SMITH: That's kind of bad.

5 Everybody's coming from Kansas City and Columbia now.

6 MR. MULLALLY: Yeah.

7 He -- but he's got a big job ahead of him.

8 You know, this organization depends

9 heavily on its technology solutions with

10 14 locations -- 200 employees spread out over

11 14 locations.

12 It's a challenge to communicate and to

13 keep the information stream flowing. And

14 we're confident that he's going to do an excellent job

15 in managing that process.

16 CHAIRMAN SMITH: All right. We're glad to

17 have you, and certainly looking forward to your

18 work.

19 Any other preliminary matters then?

20 MR. MULLALLY: No, sir.

21 CHAIRMAN SMITH: All right. Then I guess the

22 next item of business is the consideration of this

23 Resolution 03-043 (sic) concerning Laurence Walker.

24 Good morning, Judge McCanse.

25 MR. THAD McCANSE: Good morning, Mr. Chairman,

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1 members of the Commission.

2 I'd like to point out that I have a similar

3 career to Judge Gant in that I have children and

4 grandchildren and I am a Methodist.

5 But other than that, I don't think I've ever

6 been elected to anything before.

7 CHAIRMAN SMITH: Well, you came from Kansas

8 City, too.

9 MR. McCANSE: And came from Kansas City.

10 The first two cases, Walker and Brown

11 were reassigned after Hearing Officer Yost

12 resigned. And, therefore, there was some delay

13 in getting them processed.

14 Both of these cases -- we'll take Walker

15 first, of course -- were cases where he failed to

16 appear at the time of the hearing after getting notice.

17 He was charged with playing one of

18 the electric gaming devices at the casino, which

19 was against the rule. And when he was told not to do

20 it, he went ahead and did it again.

21 The recommendation of the Commission was to

22 revoke his license. He -- there is some indication in

23 the file that he was willing to go along with that if

24 they refunded his filing fee, which the rules provide

25 can’t be done.

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1 So by failing to appear -- and incidentally

2 the rules don't provide what happens if somebody fails

3 to appear at a hearing. It does provide what happens

4 if they fail to file a request for a hearing.

5 But since they have the burden of proving why

6 they should not be disciplined, as they failed to

7 appear, they didn't meet that burden. And so the facts

8 warranted the revocation of his license.

9 At the time of the hearing his license had

10 already expired, although the action was started before

11 it had expired. So we can't revoke something that's

12 still dead, but we -- I do suggest that we put a

13 notation in the file that he would not be suitable for

14 employment should he apply for a job in the future, and

15 that the facts in the file warrant the revocation of

16 his license.

17 CHAIRMAN SMITH: I think it also violates our

18 rule, doesn't it, that the employee cannot --

19 MR. McCANSE: Yeah.

20 CHAIRMAN SMITH: -- play the gaming machines,

21 so --

22 MR. McCANSE: Right. The -- there is a rule

23 specifically on that point that the employee is not