1              BEFORE THE MISSOURI GAMING COMMISSION

 

         2                        STATE OF MISSOURI

 

         3

 

         4

 

         5                         MONTHLY MEETING

 

         6

 

         7                    TRANSCRIPT OF PROCEEDINGS

 

         8

 

         9

 

        10                        December 12, 2003

 

        11                            9:00 a.m.

 

        12                   Missouri Gaming Commission

 

        13                        3417 Knipp Drive

 

        14                       Jefferson City, MO

 

        15

 

        16

 

        17  COMMISSION MEMBERS PRESENT:

 

        18                Commissioner Floyd Bartch, Chairman

                          Commissioner Jack Gant

        19                Commissioner Judith Sutter-Hinrichs

 

        20

 

        21  REPORTED BY:       Monnie S. VanZant, CCR, CSR, RPR

                               Associated Court Reporters

        22                     714 W. High Street

                               Jefferson City, MO  65102

        23                     (573) 636-7551

 

        24

 

        25

 

 

                                                                        1

 

 

         1                    TRANSCRIPT OF PROCEEDINGS

 

         2                      CHAIRMAN BARTCH:  Call the roll.

 

         3                      MS. ANGELA FRANKS:  Chairman Bartch?

 

         4                      CHAIRMAN BARTCH:  Present.

 

         5                      MS. FRANKS:  Commissioner Hinrichs?

 

         6                      COMMISSIONER HINRICHS:  Present.

 

         7                      MS. FRANKS:  Commissioner Gant?

 

         8                      COMMISSIONER GANT:  Present.

 

         9                      MR. KEVIN MULLALLY:  Mr. Chairman, if I

 

        10            might, before we -- is this on?

 

        11                      MS. FRANKS:  Yeah.

 

        12                      MR. MULLALLY:  Before we begin into

 

        13            the business in the Commission book, make a

 

        14            couple of comments, some observations I was

 

        15            able to make last week.  As you know, I was a

 

        16            presenter at the National Center for

 

        17            Responsible Gaming's Fourth Annual Conference

 

        18            on Problem Gambling in Las Vegas earlier this

 

        19            week.  And one of the things that was rather

 

        20            stunning, frankly, about that conference was

 

        21            that in almost every -- I think, save one,

 

        22            every presentation that I attended --- and

 

        23            there were a number -- and this was a

 

        24            collection of about 450 people I think were

 

        25            the number of attendees at this conference.

 

 

 

 

                                                                        2

 

 

 

         1            This year, they had a business in government

 

         2            track.  So, traditionally, it's a track that a

 

         3            lot of academics and clinicians that deal in

 

         4            the problem gambling, either treatment and

 

         5            research and some regulatory and industry

 

         6            members.  But this year, much -- much larger

 

         7            representation from industry and from the

 

         8            regulatory community.

 

         9                 In every one of those presentations, save

 

        10            one, Missouri was prominently mentioned as a

 

        11            standard of excellence in some manner or

 

        12            another.  And not just in the areas of problem

 

        13            gambling.  The new compliance directive that

 

        14            we've come up with came up in one of the

 

        15            sessions.  Some of the things that we've done

 

        16            in the way of starting a new discussion on

 

        17            performance measurement for regulatory

 

        18            enforcement agencies came up.  And -- and it

 

        19            was not that we were mentioned in a laundry

 

        20            list with a whole bunch of other states.

 

        21            These comments were made almost to the

 

        22            exclusion of the other state regulatory

 

        23            bodies.

 

        24                 So for an agency that's only been around

 

        25            for -- we just had our 10th anniversary.  To

 

 

 

 

 

                                                                        3

 

 

         1            have achieved that level of stature versus

 

         2            other states that have been around for decades

 

         3            like Nevada and New Jersey -- and even the

 

         4            Midwestern states have been around

 

         5            significantly longer than us such as Iowa and

 

         6            Illinois and Mississippi.  I thought it was

 

         7            quite remarkable and worthy of comment and

 

         8            very indicative of the quality of the work

 

         9            that folks have done here and -- and the

 

        10            policies that this Commission sets forth and

 

        11            your predecessors.

 

        12                 So I was -- I was quite proud of that.

 

        13            Probably even more gratifying was the opening

 

        14            of the Argosy Casino Wednesday night and the

 

        15            work that our staff did there.  Person after

 

        16            person after person that was associated with

 

        17            the opening of that property came up to -- to

 

        18            Steve Johnson and I and mentioned the

 

        19            professionalism and competency of our staff

 

        20            and how hard-working they were and -- and how

 

        21            dedicated they were.  I mean, we have people

 

        22            that have given up the past several weeks and,

 

        23            in many cases, months of their lives.  Larry

 

        24            Buschjost has been there -- has lived at that

 

        25            property.  Todd Nelson and Blaine Preston are

 

 

 

 

 

                                                                        4

 

 

         1            two technical people that handle a lot of the

 

         2            slot equipment things have been there as well.

 

         3            I mean, you know, Larry's a grizzled old

 

         4            veteran.  And for him to be away from home, his

 

         5            wife is just eating ice cream on his side of

 

         6            the bed.  But Blaine and Todd are both one

 

         7            year or less newlyweds with beautiful young

 

         8            wives.  And so for them to be away from home

 

         9            I'm  telling you, is a giant sacrifice.  And

 

        10            you know, the entire --

 

        11                      MAN IN CROWD:  Well, Larry's about

 

        12            -- over 40.

 

        13                      MR. LARRY BUSCHJOST:  I'd just like to

 

        14            know if he's been at my house.

 

        15                      COMMISSIONER HINRICHS:  Ask him what

 

        16            flavor it was.

 

        17                      MR. MULLALLY:  The new one or the

 

        18            old one, Larry?

 

        19                      MR. BUSCHJOST:  Either.

 

        20                      MR. MULLALLY:  But the -- the entire

 

        21            Patrol contingent, Lieutenant Bob Zubeck

 

        22            and Sergeant Eric Tilford and his entire unit

 

        23            there did a great job.  Eartha Taylor, the

 

        24            auditor that was assigned to that project, did

 

        25            an outstanding job.  And there's a whole bunch

 

 

 

 

 

                                                                        5

 

 

         1            of other people that I'm leaving out, but

 

         2            those were the principal folks and really an

 

         3            outstanding effort and worthy of comment.

 

         4            So --

 

         5                      COMMISSIONER HINRICHS:

 

         6            Congratulations to all.

 

         7                      MR. MULLALLY:  They did a good job.

 

         8                      CHAIRMAN BARTCH:  Certainly.

 

         9            Congratulations.  And, you know, Kevin, I'm

 

        10            relatively new at this business as the other

 

        11            Commissioners are.  And I would say this, that

 

        12            of all the comments that -- that I've had in

 

        13            the last year or so, they've all been positive

 

        14            about the Gaming Commission.  They've all been

 

        15            good and how hard everybody works and the

 

        16            things that are being done.  So that

 

        17            reputation is well-deserved by everyone.

 

        18            Thank you.

 

        19                      COMMISSIONER GANT:  I've heard a lot

 

        20            of people say she really keeps you on the

 

        21            ball.

 

        22                      MR. MULLALLY:  If you hear it a lot,

 

        23            it's usually accurate.  Mr. Chairman, there

 

        24            are three sets of minutes in Tabs A, B and C

 

        25            that start the action here.

 

 

 

 

 

                                                                        6

 

 

         1                      COMMISSIONER HINRICHS:  I'll move

 

         2            that we approve the September 12th minutes.

 

         3                      COMMISSIONER GANT:  Second.

 

         4                      CHAIRMAN BARTCH:  Please call the

 

         5            roll.

 

         6                      MS. FRANKS:  Chairman Bartch?

 

         7                      CHAIRMAN BARTCH:  Approved.

 

         8                      MS. FRANKS:  Commissioner Henrichs?

 

         9                      COMMISSIONER HINRICHS:  Approved.

 

        10                      MS. FRANKS:  Commissioner Gant?

 

        11                      COMMISSIONER GANT:  Approved.

 

        12                      MS. FRANKS:  By your vote, you've

 

        13            adopted the September 12, 2003 minutes.

 

        14                      COMMISSIONER HINRICHS:  I'm just --

 

        15            I'm on a roll here.  Move that we approve the

 

        16            October 9th, 2003 minutes.

 

        17                      COMMISSIONER GANT:  Second.

 

        18                      CHAIRMAN BARTCH:  Call the roll.

 

        19                      MS. FRANKS:  Chairman Bartch?

 

        20                      CHAIRMAN BARTCH:  Approved.

 

        21                      MS. FRANKS:  Commissioner Hinrichs?

 

        22                      COMMISSIONER HINRICHS:  Approved.

 

        23                      MS. FRANKS:  Commisisoner Gant?

 

        24                      COMMISSIONER GANT:  Approved.

 

        25                      MS. FRANKS:  By your vote, you have

 

 

 

 

 

                                                                        7

 

 

         1            adopted the minutes of the October 9, 2003

 

         2            minutes.

 

         3                      COMMISSIONER HINRICHS:  I move that

 

         4            we approve the October 28, 2003 minutes.

 

         5                      COMMISSIONER GANT:  Second.

 

         6                      CHAIRMAN BARTCH:  Call the roll,

 

         7            please.

 

         8                      MS. FRANKS:  Chairman Bartch?

 

         9                      CHAIRMAN BARTCH:  Approve.

 

        10                      MS. FRANKS:  Commissioner Hinrichs?

 

        11                      COMMISSIONER HINRICHS:  Approve.

 

        12                      MS. FRANKS:  Commissioner Gant?

 

        13                      COMMISSIONER GANT:  Approve.

 

        14                      MS. FRANKS:  By your vote, you've

 

        15            adopted the minutes of the October 28, 2003

 

        16            meeting.

 

        17                      MR. MULLALLY:  Mr. Chairman, the

 

        18            next item on the agenda involves Sallie Lane.

 

        19            As you may recall, at an occupational licensee

 

        20            hearing -- who had some proposed discipline

 

        21            issued against her.  And we brought it up at

 

        22            the last meeting and were unable to resolve

 

        23            the issue and tabled it.  Mike Bushmann has

 

        24            prepared a memo for you and is here to make

 

        25            the presentation.

 

 

 

 

 

                                                                        8

 

 

         1                      MR. MIKE BUSHMANN:  Good morning,

 

         2            Mr. Chairman, Commissioners.  At the last

 

         3            Commission meeting on October 28th, you

 

         4            considered the hearing officer recommendations

 

         5            in the case of Sallie Lane.  That

 

         6            recommendation was to suspend Ms. Lane's

 

         7            temporary license for two weeks and then to

 

         8            grant her a Level II license.

 

         9                 Director Mullally questioned whether or

 

        10            not the Commission has the authority to do

 

        11            that, and you requested that that issue be

 

        12            researched and then brought back up at a

 

        13            future meeting.

 

        14                 My purpose here today is not to recommend

 

        15            what kind of decision that you should reach in

 

        16            that case because that would be improper.  But

 

        17            I'm only here to explain what I think your

 

        18            options are in getting to that decision.  In

 

        19            your books, I provided a memo citing a statute

 

        20            and administrative rule which lead to my

 

        21            conclusion that the Commission is not

 

        22            authorized to suspend a temporary license in

 

        23            the manner suggested in the hearing officer

 

        24            recommendations.

 

        25                 Ms. Lane is an applicant for a license,

 

 

 

 

 

                                                                        9

 

 

         1            not a licensee.  Therefore, the Commission has

 

         2            two options, either to approve or to deny Ms.

 

         3            Lane's license application.  Also, in your

 

         4            books, there are two resolutions for you to

 

         5            choose between.  Resolution 03-087 denies a

 

         6            license.  And Resolution 03-088 grants a

 

         7            license.

 

         8                 The hearing officer findings attached to

 

         9            the resolutions have also been amended by

 

        10            changing paragraph 19 only to correspond to

 

        11            the proposed outcome.  My suggestion would be

 

        12            to weigh and balance the facts of the case

 

        13            and then to choose between the two proposed

 

        14            resolutions.

 

        15                      MR. THAD MCCANSE:  Mr. Chairman,

 

        16            respectfully, the -- I think it's agreed that

 

        17            she has a temporary license.  I don't think

 

        18            that anybody has raised that question.  I did

 

        19            some looking, and while the rules initially

 

        20            provide for a temporary license for a

 

        21            supplier, they do not provide for a temporary

 

        22            license for a licensee.  However, one rule

 

        23            does say that the temporary licensee may renew

 

        24            the license.  So by inference, they must

 

        25            recognize the fact that a -- the Commission is

 

 

 

 

 

                                                                       10

 

 

         1            authorized to grant temporary licenses.  As a

 

         2            practical matter, it's in excess to do so

 

         3            because it takes time to investigate people

 

         4            and to put them on hold, so to speak, until

 

         5            the investigation is complete.

 

         6                 The statute that I think applies, then,

 

         7            assuming that there is such a thing as a

 

         8            temporary licensee, is Section 313.805,

 

         9            subsection 6, which authorizes the Commission

 

        10            to assess any appropriate administrative

 

        11            penalty against a licensee, including, but not

 

        12            limited to, suspension, revocation and

 

        13            penalties, monetary penalties.  That's pretty

 

        14            broad.  And if there is such a thing as a

 

        15            temporary licensee, it would seem to me that

 

        16            under that statute the Commission would be

 

        17            authorized to suspend a temporary license as

 

        18            well as a permanent license.  I don't see any

 

        19            distinction.

 

        20                 I haven't seen a copy of Mr. Bushmann's

 

        21            memo.  The -- the statutes of the river --

 

        22            concerning the riverboat do not speak to

 

        23            temporary licenses in any manner.  So it's by

 

        24            rule that we have produced under the

 

        25            assumption that you can have a temporary

 

 

 

 

 

                                                                       11

 

 

         1            license.  And I think it's conceded that she's

 

         2            wearing one now.  So the question is, under the

 

         3            facts of this case, should she just be denied

 

         4            or should she be found suitable or should she

 

         5            be punished in some respect?

 

         6                 My conclusion was that due to her own

 

         7            confusion and the way it came up where they

 

         8            said that there would be no record of this

 

         9            when she was arrested some ten years before

 

        10            the hearing that a person of her background,

 

        11            not a legal background, could be confused as

 

        12            to whether or not she had been arrested or

 

        13            whether she should list it.  You don't have to

 

        14            adopt that position.  I found that she would

 

        15            be suitable because for the past ten years

 

        16            she's had no other record and she's been

 

        17            working -- apparently the casino doesn't have

 

        18            any problem with her work as a cashier.

 

        19                 Of course, the Commission can decide on

 

        20            their own whether or not the facts

 

        21            indicate a deliberate refusal to answer the