1

1 MISSOURI GAMING COMMISSION

MEETING

3 - - -

4 OCTOBER 26, 2004

5 BE IT REMEMBERED, that the Missouri Gaming

6 Commission held the following meeting at the

7 St. Joseph City Hall, 3rd Floor Council Chamber, 1100

8 Frederick, St. Joseph, Missouri, on the 26th day of

9 October, 2004, commencing at 9:00 a.m., in the morning

10 of that day, said meeting having been called by

11 members of the Missouri Gaming Commission, pursuant to

12 the issuance of due notice to all parties in interest,

13 and the following is a transcript of the records of

14 proceedings had during the course of said meeting.

16 A P P E A R A N C E S

17 Mr. Floyd O. Bartch, Chairman

18 Mr. Ralph Biele, Commissioner

(via telephone)

Mr. Jack E. Gant, Commissioner

Mr. George Hartsfield, Commissioner

Ms. Judith Sutter-Hinrichs, Commissioner

Mr. Kevin P. Mullally, Executive Director

Ms. Angie Franks, Administrative Assistant

Ms. Tammy S. Menke, Shorthand Reporter of

25 Cross Reporting Service

1 PRESENTATIONS

2 PAGE

3 Hearing Officer Recommendations

Hearing Officer Gary Jenkins . . . . 4

Settlement Agreements

5 Asst. Attorney General Jane Rackers. 57

6 Disciplinary Actions

General Counsel Michael Bushmann. . . 83

Licensure of Level I/Key Applicants

8 MSHP Lt. Keith Johnson . . . . . . . 100

1 MR. CHAIRMAN: Would you call the meeting

2 to order?

3 MS. ANGIE FRANKS: Chairman Bartch?

4 MR. CHAIRMAN: Present.

5 MS. FRANKS: Commissioner Hinrichs?

6 COMMISSIONER HINRICHS: Present.

7 MS. FRANKS: Commissioner Gant?

8 COMMISSIONER GANT: Present.

9 MS. FRANKS: Commissioner Hartsfield?

10 COMMISSIONER HARTSFIELD: Present.

11 MS. FRANKS: Commissioner Biele?

12 COMMISSIONER BIELE: Present.

13 MR. KEVIN MULLALLY: Mr. Chairman, first item on

14 the agenda includes the consideration of our minutes

15 since May. I hope you enjoyed reading them.

16 MR. CHAIRMAN: It took a long time.

17 Do we have any motions on the minutes?

18 COMMISSIONER GANT: I move that they be

19 approved as though read.

20 COMMISSIONER HARTSFIELD: Second.

21 MR. CHAIRMAN: Do we need to go through

22 each one of them?

23 MR. MULLALLY: I think you need to list the

24 dates is all: Minutes of May 24, July 8, August

25 25, and September 1, all of 2004.

1 MR. CHAIRMAN: I have a motion and a

2 second. Any other discussion or changes? If not,

3 would you call the roll?

4 MS. FRANKS: Chairman Bartch?

5 MR. CHAIRMAN: Approved.

6 MS. FRANKS: Commissioner Hinrichs?

7 COMMISSIONER HINRICHS: Approved.

8 MS. FRANKS: Commissioner Gant?

9 COMMISSIONER GANT: Approved.

10 MS. FRANKS: Commissioner Hartsfield?

11 COMMISSIONER HARTSFIELD: Approved.

12 MS. FRANKS: Commissioner Biele?

13 COMMISSIONER BIELE: Approved.

14 MS. FRANKS: By your vote you have adopted

15 the minutes of the May 24, July 8, August 25

16 and September 1, 2004, meetings.

17 MR. MULLALLY: Mr. Chairman, Commissioners,

18 as you know, we have been rather busy considering

19 issues related to new developments in St. Louis for

20 the past several months, which has created a little

21 bit of a backlog of hearing officer opinions, so I

22 would expect for the next several meetings we will

23 have a good number of hearing officer

24 recommendations.

25 We have five of them today and Hearing

1 Officer Gary Jenkins is here to make the

2 presentation.

3 MR. GARY JENKINS: Commissioners, Gary Jenkins,

4 hearing officer.

5 The first case on the agenda is Leslie

6 Anderson, Case No. 04-027. Mr. Anderson is a Level

7 II gaming employee, holds a Level II gaming

8 occupational license.

9 MR. CHAIRMAN: Would you turn your

10 microphone up, please.

11 MR. JENKINS: Is that better?

12 MR. CHAIRMAN: Yes.

13 MR. JENKINS: He self-reported that he was

14 charged in the City of Oakview, Missouri, with five

15 counts of stealing on September 29, 2003. He later

16 self-reported that he pleaded guilty and was sentenced

17 to pay $127.67 in restitution. He was given a

18 suspended imposition of sentence and placed on

19 two-year probation.

20 Along that is that anyone who has been

21 convicted of a crime under 11 CSR 45-4.260, anyone that

22 has been convicted of a crime or found guilty or to

23 plead nolo contendre to a crime including such

24 findings or pleas and is suspended imposition of

25 sentence, may have the occupational license revoked.

1 And in this case I agreed with the

2 recommendation of the Missouri Gaming Commission to

3 revoke Mr. Anderson's license. I believe that five

4 counts of stealing money is more than enough to -- if

5 you can continue to employ him as a gaming employee,

6 that his actions show a lack of moral character and

7 would adversely affect public trust in gambling.

8 That's all I have on Mr. Anderson.

9 MR. CHAIRMAN: Any questions or discussion?

10 COMMISSIONER GANT: I have one question.

11 Gentlemen, we keep having this issue come

12 up about suspended imposition of sentences. Are we

13 making it clear on whatever they fill out that that's

14 supposed to be reported or not? I know these are

15 probably -- we discussed this previously. But it

16 still seems to be reoccurring all the time.

17 What do we tell them when they fill out an

18 application, or whatever the procedure is, about

19 recording anything and everything?

20 MR. MULLALLY: The application question, in

21 my mind, is painfully clear. I mean, it talks about:

22 Have you ever been questioned, detained. In essence,

23 what it asks you is: Have you ever come into contact

24 with the police? If so, tell us about it.

25 So it would be hard for someone and very

1 difficult for someone, in my view, to have been

2 arrested for anything and not think that that

3 question would cover it. Because even if their

4 lawyer tells them, you know, you got an SIS, it's not

5 going to show up as a conviction on your record, you

6 were still detained and questioned.

7 So I wish I had -- I don't know if anybody

8 has a copy of that here or if it's in -- or if that

9 question is in the record.

10 (Discussion held off the record.)

11 MR. MULLALLY: Here we go. Here we go.

12 Yeah. Okay. Yes.

13 We have two things. But here's the

14 question that's asked on the original application

15 that everybody fills out. "Have you ever been

16 arrested, detained, charged or indicted, convicted,

17 pleaded guilty or nolo contendre," in parenthesis,

18 "no contest or forfeited bail concerning any crime or

19 offense in any state -- any federal, state or local

20 jurisdiction, including any findings or pleas in a

21 suspended imposition of sentence?"

22 COMMISSIONER GANT: I think where part of

23 the confusion comes in is they come in and they said

24 that either the person that imposed the suspended

25 imposition of sentence or a lawyer told them it would

1 not affect them. They filled out -- they sign that

2 right after they fill it out. They don't have time

3 to talk to a lawyer to get different advice, I guess.

4 Maybe that would be it.

5 Maybe we ought to educate the lawyers.

6 MR. MULLALLY: Well, and I have appeared at

7 at least one Missouri Bar event. I believe the one I

8 did was for prosecutors. I have offered, to the CLE

9 program, to appear at others, including the annual

10 meeting. In fact, they had me scheduled and I had a

11 conflict last year, to talk to them.

12 But you are right, the defense bar -- we

13 need to do something with the defense bar to help

14 educate them a little bit better.

15 COMMISSIONER GANT: It's so common among

16 the lawyers that a suspended imposition of sentence

17 is, you know, something that's not going to be on

18 your record. But, you know, probably would save us a

19 lot of time and everybody else. I think it's hard to

20 educate them.

21 I'm also concerned the lawyers are giving

22 them bad advice because they haven't checked with our

23 application before they tell them that.

24 MR. MULLALLY: Then there's another form

25 called a notice of duty to disclose arrests and

1 convictions. And someone else will need to speak to

2 how this process actually works. But I think what

3 happens is that when we suspect or discover that

4 there's an arrest that hasn't been disclosed, we

5 offer them the opportunity, because they might be

6 confused, to do it. And there is a long sheet that

7 explains it.

8 MS. DEBBIE FERGUSON: That one is done at the

9 time they come in. That's their second chance.

10 MR. MULLALLY: Yeah. But it's when we

11 suspect that there is an arrest and they haven't

12 disclosed, right?

13 So we give them a second chance. After we

14 find out, either we suspect or know through a records

15 check, we have a second form. We explain it to them

16 about: Now, here is your second chance. And it's a

17 long thing that explains what they have to disclose.

18 Well, I'm not going to read all this, but it's the

19 full page that explains all the circumstances.

20 COMMISSIONER GANT: Okay.

21 MR. MULLALLY: And we say, now, are you

22 sure there's nothing.

23 COMMISSIONER GANT: Does the employer get

24 a copy of that, after that goes out?

25 MR. MULLALLY: Does who? This goes to the

1 applicant. We call them in. Call the applicant in

2 and say, okay --

3 COMMISSIONER GANT: That's theirs to keep?

4 MR. MULLALLY: Pardon?

5 COMMISSIONER GANT: They can keep that if

6 they --

7 MS. DONNA WATSON: They get a copy of it.

8 COMMISSIONER GANT: -- if you are going to

9 give it to them?

10 MR. MULLALLY: Yes.

11 Donna, did I explain it properly?

12 MS. WATSON: They get a copy of it. We

13 maintain the original and they get a copy.

14 MR. MULLALLY: We maintain the original.

15 They get a copy of this.

16 COMMISSIONER GANT: Okay. Because then if

17 they took a copy to their lawyer, he can read it and

18 say this is what it says. As long as they got a

19 copy, that's the main thing.

20 MR. MULLALLY: Donna Watson is our

21 licensing manager. I want to make sure that I have

22 explained this properly because I am rarely involved

23 in this process.

24 MS. WATSON: You're correct.

25 COMMISSIONER HINRICHS: Kevin, who was

1 interviewing? Or is someone interviewing the people

2 when they are filling this out or is this just

3 writing it down by themselves?

4 MR. MULLALLY: Donna?

5 MR. STEVE JOHNSON: A licensing manager sits down

6 -- one of our licensing managers, on either side of

7 the state, sits down with the applicant -- Steve

8 Johnson, ma'am, so you have it for the record -- sits

9 down with the applicant. And we actually review

10 these forms with them, in person, and stay with them

11 through the signing of the forms. They are not left

12 alone. We beg the question.

13 And in the formal presentation, when we're

14 talking with them, we also mention, "irrespective of

15 whether you've been advised by an attorney

16 otherwise." In each case they're given that

17 information, Judge.

18 COMMISSIONER GANT: Okay.

19 COMMISSIONER HINRICHS: They're told that

20 even though a parking ticket or a speeding ticket

21 isn't --

22 MR. JOHNSON: They're told any detention.

23 Of course, we're not concerned about those, but

24 they're asked to disclose any detention, any holding.

25 And as far as the arrest information is