0001

1 BEFORE THE MISSOURI GAMING COMMISSION

2 STATE OF MISSOURI

TELEPHONIC MEETING

7 TRANSCRIPT OF PROCEEDINGS

Tuesday, April 27, 2004

2:00 p.m.

Missouri Gaming Commission

3417 Knipp Drive

Jefferson City, Missouri

16 COMMISSIONERS PRESENT VIA TELEPHONE:

Chairman Floyd O. Bartch

17 Commissioner Jack E. Gant

Commissioner Judith Sutter-Hinrichs

18 Commissioner Ralph Biele

Commissioner George Hartsfield

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

22 Midwest Litigation Services

714 W. High Street

23 Jefferson City, MO 65102

(573) 636-7551

0002

1 A P P E A R A N C E S

Also Present via

3 Telephone for Kansas City Office:

Mr. Matthew Block

4 Mr. Bruce Schmitter

Mr. Larry Seckington

5 Mr. Dan Young

6 Also Present via

Telephone for St. Louis Office:

7 Mr. Rolland Hopson

Mr. Randy Asherbranner

8 Ms. Kate Northcutt

Mr. Ron Updegrave

Also Present at

10 Hearing in

Jefferson City: Mr. Kevin Mullally

11 Ms. Angie Franks

Ms. Jane Rackers

12 Ms. Donna Watson

Mr. Chris Baker

13 Mr. Jim Oberkirsch

Ms. Debbie Ferguson

14 Mr. Mike Bushmann

24 Phonetic spelling: (ph.)

Exactly as Stated: (sic)

0003

1 TRANSCRIPT OF PROCEEDINGS

2 MR. KEVIN MULLALLY: We have Kansas City

3 and St. Louis offices? Are they both on? Is

4 there anybody in Kansas City?

5 MS. CHERYL NAPOLI: Yes. I'm going to

6 have them identify themselves, Kevin.

7 MR. MATTHEW BLOCK: Matthew Block with

8 Ameristar Casino, Kansas City.

9 MR. BRUCE SCHMITTER: Bruce Schmitter,

10 Grace Entertainment.

11 MR. LARRY SECKINGTON: Larry Seckington,

12 Grace Entertainment.

13 MR. DAN YOUNG: Dan Young from Bryan

14 Cave.

15 MR. MULLALLY: Bruce and Larry, I

16 haven't had a chance to talk to you on the

17 phone yet, but you certainly have our

18 condolences for Mr. Grace. He was a -- a good

19 man.

20 MR. SECKINGTON: We appreciate that.

21 MR. SCHMITTER: A fine gentleman.

22 MR. ROLLAND HOBSON: Rolland Hobson, and I have

23 three people with me. I'll let them introduce

24 themselves.

25 MR. RANDY ASHERBRANNER: Randy

0004

1 Asherbranner, Missouri Riverboat Gaming

2 Association.

3 MS. KATE NORTHCUTT: Kate Northcutt,

4 Gallop, Johnson, Newman law firm.

5 MR. RON UPDEGRAVE: Ron Updegrave, ABC

6 Barnhart Casino.

7 MR. MULLALLY: Okay. Mr. Chairman,

8 just as a procedural matter, the meeting is

9 being recorded with a court reporter, so to

10 help her out, if you could identify yourselves

11 before you speak, it would help in the

12 translation -- or transcription.

13 COMMISSIONER BARTCH: We will try to

14 do that. Are we ready then?

15 MR. MULLALLY: Yes, sir.

16 COMMISSIONER BARTCH: This is Floyd

17 Bartch. And would you call the roll?

18 MS. ANGIE FRANKS: Chairman Bartch?

19 COMMISISONER BARTCH: Here.

20 MS. FRANKS: Commissioner Hinrichs?

21 COMMISSIONER HINRICHS: Here.

22 MS. FRANKS: Commissioner Gant?

23 COMMISSIONER GANT: Here.

24 MS. FRANKS: Commissioner Hartsfield?

25 COMMISSIONER HARTSFIELD: Here.

0005

1 MS. FRANKS: Commissioner Biele?

2 COMMISSIONER BIELE: Here.

3 MR. MULLALLY: Okay. Mr. Chairman,

4 the first two agenda items are minutes from

5 January and February under Tabs A and B in your

6 book.

7 COMMISSIONER GANT: Kevin, do you

8 want a motion separately on each one of those

9 or a collective one?

10 MR. MULLALLY: If there's no

11 additions or corrections, I think you could

12 move for the adoption of both sets of minutes.

13 COMMISISONER GANT: Okay. I so move.

14 COMMISSIONER HINRICHS: Second.

15 COMMISSIONER BARTCH: Any other

16 discussion? Any opposition? If not, we can

17 call the roll.

18 MS. FRANKS: Chairman Bartch?

19 COMMISSIONER BARTCH: Approve.

20 MS. FRANKS: Commissioner Hinrichs?

21 COMMISSIONER HINRICHS: Approve.

22 MS. FRANKS: Commissioner Gant?

23 COMMISSIONER GANT: Approve.

24 MS. FRANKS: Commissioner Hartsfield?

25 COMMISISONER HARTSFIELD: Approve.

0006

1 MS. FRANKS: Commissioner Biele?

2 COMMISSIONER BIELE: Abstain. I was

3 not on the Commission at that time.

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

5 adopted the minutes of the January 24, 2004

6 and February 19, 2004 meeting.

7 MR. MULLALLY: Mr. Chairman, I know

8 this agenda appears to be formidable, but I

9 think we're going to be able to combine a lot

10 of these items as we explain them, so we can

11 probably get through this whole thing with just

12 about two or three votes. The first item for

13 your consideration is -- on the formal agenda

14 is Consideration of Licensure of Level I and

15 Key Applicants. And Sergeant George Hamilton

16 is here to make that presentation.

17 SERGEANT GEORGE HAMILTON: Mr. Chairman and

18 Commissioners.

19 COMMISSIONER BARTCH: Yes.

20 SERGEANT HAMILTON: The St. Louis

21 background team conducted an investigation of

22 the following Level I applicants that included,

23 but was not limited to, criminal, financial and

24 general character inquiries. The following

25 individual is found suitable for licensing by

0007

1 the Commission: Thomas L. Malone, Chief

2 Accounting Officer, Ameristar Casinos,

3 Incorporated.

4 COMMISSIONER BARTCH: Is that the

5 only one we have, Kevin, on this one?

6 MR. MULLALLY: On this one. And then

7 I think Items D through O I can consolidate

8 into a single motion. But this one, if you can

9 just go ahead and vote on it.

10 COMMISSIONER BARTCH: We need a

11 motion on 04-014.

12 COMMISSIONER GANT: I so move.

13 COMMISSIONER HARTSFIELD: Second.

14 COMMISSIONER BARTCH: Any discussion?

15 Would you call the roll?

16 MS. FRANKS: Chairman Bartch?

17 COMMISSIONER BARTCH: Approve.

18 MS. FRANKS: Commissioner Hinrichs?

19 COMMISSIONER HINRICHS: Approve.

20 MS. FRANKS: Commissioner Gant?

21 COMMISSIONER GANT: Approve.

22 MS. FRANKS: Commissioner Hartsfield?

23 COMMISSIONER HARTSFIELD: Approve.

24 MS. FRANKS: Commissioner Biele?

25 COMMISSIONER BIELE: Approve.

0008

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

2 adopted Resolution No. 04-014.

3 MR. MULLALLY: Mr. Chairman, if I

4 could --

5 COMMISSIONER GANT: Kevin, let me

6 stop just a second. Probably -- it's my fault.

7 I should have said who was making the motions

8 on those last two and -- since -- it's Gant

9 that made it. Because the reporter is probably

10 having to guess who was talking.

11 COMMISSIONER HINRICHS: She won't

12 have a hard time guessing who I am, however.

13 COMMISSIONER GANT: Judy, they can

14 tell on you.

15 COMMISSIONER HARTSFIELD: I'm

16 Hartsfield. I seconded it.

17 COMMISSIONER GANT: Okay.

18 MR. MULLALLY: Items D

19 through I are renewals -- relicensure of

20 suppliers. And all the standard checks have

21 been done on these suppliers, and we have found

22 no items of concern. Items J through O involve

23 the temporary licensure of one supplier and

24 five casino companies. What we would like to

25 do here, these resolutions simply extend their

0009

1 license into July at which time we will have

2 a live meeting and the investigative officers

3 can make full-blown presentations and the

4 companies can make their renewal presentations

5 at that time.

6 COMMISSIONER HINRICHS: So we make

7 all of these as one single motion?

8 MR. MULLALLY: Yes. I think if we

9 could have a motion simply to approve the

10 resolutions contained in Tabs D through O, we

11 could adopt all these items at once as long

12 as --

13 COMMISSIONER HINRICHS: Moved.

14 COMMISSIONER BIELE: Second. Biele,

15 second.

16 COMMISSIONER BARTCH: Any discussion?

17 Please call the roll.

18 MS. FRANKS: Chairman Bartch?

19 COMMISSIONER BARTCH: Approve.

20 MS. FRANKS: Commissioner Hinrichs?

21 COMMISSIONER HINRICHS: Approve.

22 MS. FRANKS: Commissioner Gant?

23 COMMISSIONER GANT: Approve.

24 MS. FRANKS: Commissioner Hartsfield?

25 COMMISSIONER HARTSFIELD: Approve.

0010

1 MS. FRANKS: Commissioner Biele?

2 COMMISSIONER BIELE: Approved.

3 MS. FRANKS: By your vote, you have

4 adopted Resolution No. 04-015 through 04-026.

5 MR. MULLALLY: Mr. Chairman, the

6 final thing we have for you is a set of

7 proposed amendments to rules and some final

8 orders of rulemaking. And General Counsel

9 Mike Bushmann is here to make that

10 presentation.

11 MR. MIKE BUSHMANN: Good afternoon,

12 Commissioners.

13 COMMISSIONER BARTCH: Good afternoon,

14 Mike.

15 COMMISSIONER HINRICHS: Good

16 afternoon.

17 COMMISSIONER GANT: Good afternoon.

18 COMMISSIONER HARTSFIELD: Good

19 afternoon.

20 COMMISSIONER BIELE: Good afternoon.

21 MR. BUSHMANN: The four proposed rule

22 amendments, the first one, 4.260 under Tab P,

23 this revision in 260 subsection N is one of the

24 grounds for discipline or denial of an

25 occupational licensee. And what we're

0011

1 proposing to do is to delete the ground for any

2 just cause because the legal staff considers

3 that to be somewhat vague and overly broad.

4 We've never really relied on that for anything

5 anyway. We propose that we replace that with

6 language that would make a licensee subject to

7 discipline or denial if they lied to a

8 Commission agent or provide false information

9 to a Commission agent.

10 The reason that we're proposing this is

11 there's already a provision in the rules that

12 says if you make false statements during the

13 application process you're subject to

14 discipline. But we had a case recently where

15 someone may have lied during an investigation.

16 And it seemed like there was a hole in the

17 rules. And so this language would plug that

18 hole and make someone who lies to a Commission

19 agent during an investigation subject to

20 discipline.

21 COMMISSIONER HINRICHS: Makes sense.

22 COMMISSIONER BARTCH: Do we have a

23 motion, then on -- let's see. Is that 4.260?

24 COMMISSIONER GANT: I so move

25 that we adopt it. And this is Commissioner

0012

1 Gant.

2 COMMISSIONER HARTSFIELD: Hartsfield,

3 second.

4 MR. MULLALLY: Would you like to vote

5 on these as a group, or do you want to take

6 them one at a time?

7 COMMISSIONER BARTCH: I was under the

8 impression we need to take these one at a time.

9 If we can go through them and take them as a

10 group, certainly, that's what we should do.

11 COMMISSIONER HINRICHS: I'm not sure

12 it takes any more time one way or the other.

13 COMMISSIONER GANT: Well, it probably

14 would be -- she wouldn't have to call the roll

15 so many times.

16 COMMISSIONER HINRICHS: That's true.

17 COMMISSIONER GANT: So why don't we

18 go through them all? Because I read through

19 them. I don't have any real big questions on

20 anything. Let's go through them all and let's

21 make a blanket one if that's all right,

22 Mr. Chairman?

23 COMMISSIONER BARTCH: That's fine

24 with me.

25 COMMISSIONER HINRICHS: Works for me.

0013

1 MR. BUSHMANN: I'll go ahead and

2 describe the next rule amendment, which was

3 5.150. And this rule amendment proposes to

4 change the requirement for casinos to compute

5 unredeemed liability of chips and tokens. And,

6 basically, what that is, it's the chips and

7 tokens that are unaccounted for. For example,

8 if someone walks home with a bucket full of

9 tokens at the end of the day or they've put a

10 few chips in their pocket to keep as souvenirs,

11 theoretically, they could claim those for cash

12 at any time and that's considered to be an

13 unredeemed liability of the casino. Our audit

14 staff has told us it's not necessary to compute

15 that on a daily basis, that that's a waste of

16 the casino's resources, and we really only need

17 to look at that on a monthly basis. Were

18 there any questions on that rule before I go

19 on?

20 COMMISSIONER GANT: No. Sounds

21 logical.

22 COMMISSIONER BIELE: Yep. No

23 problem.

24 MR. BUSHMANN: Okay. The next one is

25 6.030. This one should look familiar because

0014

1 it's the same rule that this Commission

2 approved last fall. For the benefit of the new

3 Commissioners, I'll just give you a real brief

4 history of why this rule is back in front of

5 you. When the concealed carry firearms bill

6 passed over the veto of the Governor last

7 fall, this Commission proposed a rule that

8 would implement that provision. In the

9 concealed carry law, a person is

10 prohibited from carrying a firearm into a

11 casino unless they have the consent of the

12 owner or the manager. And this bill was -- oh,

13 excuse me. This rule was put in to explain how

14 a casino owner or manager can give that

15 consent. But then it got tied up in the

16 courts.

17 And when this rule came up to become

18 final, we withdrew it at that time because the

19 Supreme Court had not ruled yet and there was a

20 chance that it may not go into effect. In the

21 meantime, the Supreme Court did rule and it

22 does look like the concealed carry law will go

23 into effect, and we'll need to have something in

24 place to explain how the casinos can give

25 consent if they want to. So this is exactly

0015

1 the same rule that you had already approved

2 last fall, but it's back for you again because

3 of that timing issue. Were there any questions

4 on this rule?

5 COMMISSIONER BARTCH: No. I -- I

6 certainly agree. It is exactly the same thing

7 the Commission approved some months ago. And

8 we withdrew on a temporary basis depending on

9 what the Court's going to do. So I don't

10 believe we have any choice but to bring this

11 back in existence, do we?

12 COMMISSIONER GANT: No. Commissioner

13 Gant. I agree, also.

14 MR. BUSHMANN: Okay. With no

15 questions, then I'll move on to the last

16 amendment, which deals with an applicant's duty

17 to disclose information. We discovered -- and

18 this is kind of a housekeeping matter, but we

19 discovered that there were two different rule

20 provisions in two different chapters of our

21 rules that both said how long an appli --

22 or, excuse me -- a licensee has to disclose

23 changes in their application information; for

24 instance, if they were to get arrested or

25 something like that. One rule said seven days.

0016

1 One said ten days. So to be consistent, we're

2 proposing that we amend the one for seven days,

3 changing it to ten days to match the other rule.

4 COMMISSIONER BARTCH: No problem.

5 COMMISSIONER GANT: Okay. All right.

6 MR. BUSHMANN: There were two other

7 matters in front of you dealing with rules.

8 They're both final orders of rulemaking, and

9 these are rules that had already come before

10 you. You had approved them. We’ve gone through

11 the public hearing and comment period. In both

12 cases, there were no comments received from the

13 public on these rules. The first one is 1.020,

14 and this deals with the power of the Chairman

15 to extend licenses for up to 60 days

16 without a vote of the Commission, which would

17 have come in handy today. This rule received

18 no comments.

19 The other final order of rulemaking is a

20 requirement for licensees to take reasonable

21 actions to safeguard assets and to safeguard

22 information that they have. And, again, that

23 one had no comments either.

24 COMMISSIONER HINRICHS: Can I ask a

25 question about the first one, the 1.020?

0017

1 MR. BUSHMANN: Yes, ma'am.

2 COMMISSIONER HINRICHS: Can the

3 Chairman just keep giving one-month extensions

4 add infinitum?

5 MR. BUSHMANN: The rule, I think, is

6 written in such a way that before the end of

7 that 60-day period, there would have to be a

8 vote of the full Commission.

9 COMMISSIONER HINRICHS: Okay.

10 COMMISSIONER BARTCH: Is there any

11 other discussion from anyone?

12 COMMISSIONER GANT: If not,

13 Mr. Chairman, this is Gant, I'll move that we

14 adopt -- and rather than me going through each

15 one of these, if Angie's got the numbers, which

16 I'm sure she has, I'll move that we adopt all

17 the ones we've just discussed.

18 COMMISSIONER HARTSFIELD: This is

19 Hartsfield. I'll second.

20 COMMISSIONER BARTCH: Is there any

21 other discussion? If not, would you call the

22 roll?

23 MS. FRANKS: Chairman Bartch?

24 COMMISSIONER BARTCH: Approve.

25 MS. FRANKS: Commissioner Hinrichs?

0018

1 COMMISSIONER HINRICHS: Approve.

2 MS. FRANKS: Commissioner Gant?

3 COMMISSIONER GANT: Approve.

4 MS. FRANKS: Commissioner Hartsfield?

5 COMMISSIONER HARTSFIELD: Approve.

6 MS. FRANKS: Commissioner Biele?

7 COMMISSIONER BIELE: Approve.

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

9 adopted Proposed Amendments 11 CSR 45-4.260,

10 5.150, 6.030 and 10.020, and Final Orders of

11 Rulemaking 11 CSR 45-1.020 and 10.030.

12 MR. MULLALLY: Mr. Chairman, your

13 book contains two sets of closed minutes. But

14 these telephonic meetings really aren't very

15 conducive to dealing with closed

16 session issues. So it would be my

17 recommendation that we just postpone that.

18 There's nothing pressing about adopting those

19 minutes until we meet in person.

20 COMMISSIONER BARTCH: Certainly.

21 That makes sense. Do we have anything else to

22 talk about?

23 MR. MULLALLY: The staff has

24 nothing more for your consideration

25 today.

0019