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1 BEFORE THE MISSOURI GAMING COMMISSION

6 Open Meeting

September 28, 2005

7 Missouri Gaming Commission

3417 Knipp Drive

8 Jefferson City, Missouri

COMMISSION MEMBERS: Floyd O. Bartch, Chairman

12 Judith Sutter-Hinrichs

Ralph Biele

13 Darryl T. Jones

Noel J. Shull

20 REPORTED BY:

21 KELLENE K. FEDDERSEN, RPR, CSR, CCR

MIDWEST LITIGATION SERVICES

22 714 West High Street

P.O. Box 1308

23 Jefferson City, MO 65101

(573)636-7551

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1 I N D E X

2 I. Call to Order 3

3 II. Consideration of Minutes 3

4 III. Consideration of Hearing Officer Recommendations

5 C. Edna Jane Logan, Resolution No. 05-059 5

D. Abe Huffstickler III, Resolution No. 05-060 7

6 E. Robert Palm, Resolution No. 05-061 10

F. Patricia McIntyre, Resolution No. 05-062 13

7 G. Lorie Anne Crowl, Resolution No. 05-063 15

H. Lillie Vaughn, Resolution No. 05-064 17

8 I. James B. Smith, Resolution No. 05-065 21

J. Jeffery Rainwater, Resolution No. 05-066 24

9 K. Robert Lee, Resolution No. 05-067 25

L. Brenda K. Fisher, Resolution No. 05-068 27

10 M. President Riverboat, Resolution No. 05-069 28

N. President Riverboat, Resolution No. 05-070 33

IV. Consideration of Licensure of Level I/Key Applicants

O. Resolution No. 05-071 49

V. Consideration of Relicensure of Certain Suppliers

P. Bally Gaming, Inc., Resolution No. 05-072 52

VI. Consideration of Settlement Agreements

Q. Gregory M. Brazel, Resolution No. 05-073 54

17 R. International Gameco, Resolution No. 05-009-B 55

18 VII. Consideration of Disciplinary Actions

19 S. Harrah's Maryland Heights, DC-05-158 58

T. IOC-Kansas City, Inc., DC-05-159 59

20 U. Ameristar Casino Kansas City, DC-05-160 62

V. Harrah's North Kansas City, DC-05-161 64

VIII. Consideration of Rulemaking 66

IX. Consideration of Casino One Corporation's

23 Compliance with Resolution No. 04-046 68

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

2 CHAIRMAN BARTCH: Call the meeting to order

3 and call the roll.

4 MS. ANGIE FRANKS: Chairman Bartch?

5 CHAIRMAN BARTCH: Present.

6 MS. FRANKS: Commissioner Hinrichs?

7 COMMISSIONER SUTTER-HINRICHS: Present.

8 MS. FRANKS: Commissioner Biele?

9 COMMISSIONER BIELE: Present.

10 MS. FRANKS: Commissioner Jones?

11 COMMISSIONER JONES: Present.

12 MS. FRANKS: Commissioner Shull?

13 COMMISSIONER SHULL: Present.

14 MR. KEVIN MULLALLY: Mr. Chairman, Commissioners,

15 the materials are formidable. Whether the agenda is will

16 be determined. But the first two items are consideration

17 of the minutes of the June 29th and July 29th meetings

18 under Tabs A and B.

19 CHAIRMAN BARTCH: If there's no comments --

20 COMMISSIONER SUTTER-HINRICHS: I'll move we

21 approve the minutes of the June 29, 2005 meeting.

22 COMMISSIONER SHULL: Second.

23 CHAIRMAN BARTCH: Further discussion? If

24 not, please call the roll.

25 MS. FRANKS: Chairman Bartch?

0004

1 CHAIRMAN BARTCH: Approved.

2 MS. FRANKS: Commissioner Hinrichs?

3 COMMISSIONER SUTTER-HINRICHS: Approve.

4 MS. FRANKS: Commissioner Biele?

5 COMMISSIONER BIELE: Approve.

6 MS. FRANKS: Commissioner Jones?

7 COMMISSIONER JONES: Approve.

8 MS. FRANKS: Commissioner Shull?

9 COMMISSIONER SHULL: Approve.

10 MS. FRANKS: By your vote, you've adopted

11 the minutes of the June 29, 2005 meeting.

12 COMMISSIONER SUTTER-HINRICHS: I move that

13 we approve the minutes of the July 29, 2005 meeting.

14 COMMISSIONER BIELE: Second.

15 CHAIRMAN BARTCH: Is there any further

16 discussion? If not, please call the roll.

17 MS. FRANKS: Chairman Bartch?

18 CHAIRMAN BARTCH: Approve.

19 MS. FRANKS: Commissioner Hinrichs?

20 COMMISSIONER SUTTER-HINRICHS: Approve.

21 MS. FRANKS: Commissioner Biele?

22 COMMISSIONER BIELE: Approve.

23 MS. FRANKS: Commissioner Jones?

24 COMMISSIONER JONES: Approve.

25 MS. FRANKS: Commissioner Shull?

0005

1 COMMISSIONER SHULL: Approve.

2 MS. FRANKS: By your vote, you've adopted

3 the minutes of the July 29, 2005 meeting.

4 MR. MULLALLY: Mr. Chairman, Hearing

5 Officer Gary Jenkins is joining us by phone. He has two

6 hearing officer recommendations where the facts are fairly

7 straightforward, and those materials are in Tabs C and D.

8 Mr. Jenkins?

9 MR. GARY JENKINS: Are we ready? I don't have

10 their agenda, so which one do you want to start with

11 first?

12 CHAIRMAN BARTCH: Ms. Logan.

13 MR. JENKINS: Okay. That is Edna Jane

14 Logan, Missouri Gaming Commission Case No. 05-051. This

15 is a case about, she had filled out her Level II gaming

16 license, and under the question where it asks if you've

17 ever been arrested for anything or had any criminal

18 convictions in the past, she indicated no. Investigator

19 Foree testified that he also went back over that and

20 indicates she doesn't have any knowledge of any past

21 arrest.

22 When the Investigator Foree checked her

23 fingerprints with the FBI, he found that she'd been

24 arrested in San Angelo, Texas for theft in October of

25 1979, and he found the disposition where she'd pled guilty

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1 to theft and received a deferred adjudication, they called

2 it, and one-year probation on October 22, 1979.

3 He interviewed her about this, and she

4 stated she didn't remember that arrest. That was her

5 testimony, that she did not remember that arrest. And the

6 State recommends that they suspend her -- I mean deny her

7 a Level II occupation, and I will concur with that

8 recommendation that the Commission deny her a Level II

9 occupational license for failure to report that theft or

10 that theft conviction on her application. And that's all

11 I have on that.

12 CHAIRMAN BARTCH: Yes. Is the -- is she in

13 the audience and would she like to comment?

14 (No response.)

15 COMMISSIONER SUTTER-HINRICHS: I'll move

16 that we approve Resolution No. 05-059.

17 COMMISSIONER JONES: I second.

18 CHAIRMAN BARTCH: Is there any further

19 discussion? If not, please call the roll.

20 MS. FRANKS: Chairman Bartch?

21 CHAIRMAN BARTCH: Approve.

22 MS. FRANKS: Commissioner Hinrichs?

23 COMMISSIONER SUTTER-HINRICHS: Approve.

24 MS. FRANKS: Commissioner Biele?

25 COMMISSIONER BIELE: Approve.

0007

1 MS. FRANKS: Commissioner Jones?

2 COMMISSIONER JONES: Approve.

3 MS. FRANKS: Commissioner Shull?

4 COMMISSIONER SHULL: Approve.

5 MS. FRANKS: By your vote, you've adopted

6 Resolution No. 05-059.

7 CHAIRMAN BARTCH: You can do the second

8 one, Gary.

9 MR. JENKINS: This is Abe N. Huffstickler,

10 III, Missouri Gaming Commission Case. No. 04-140. In this

11 case, Mr. Huffstickler was a supervisor of surveillance

12 section in the casino, and Isle of Capri -- correction --

13 the Ameristar. And on -- I don't see the date now. Oh,

14 that's not it. Anyway, August of '05, I believe, that he

15 was observed taking a VCR out the back of the casino, and

16 he laid it on a pickup truck, and another casino employee

17 walked right up and took it off that truck and put it in

18 his car. And they taped that, and so we saw a -- the

19 evidence had a videotape of him carrying that VCR out.

20 So the Ameristar director of surveillance,

21 Christian Culver, testified that she was a supervisor of

22 Mr. Huffstickler, and they have a policy that no casino

23 property is to be removed from the casino unless they have

24 something, what's called a back-door pass that's

25 completed, and she would be the one who would approve that

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1 back-door pass to take that VCR out of the casino and take

2 it off the grounds.

3 So she testified that Mr. Huffstickler had

4 not obtained a back-door pass to take that VCR out, and

5 she stated that she terminated Mr. Huffstickler's

6 employment and the employee who was involved in this

7 incident, terminated his employment, also.

8 Mr. Huffstickler stated that he didn't

9 believe it was stealing because it was an old broken VCR,

10 and his fellow employee simply wanted to learn how to fix

11 the VCR, and he was going to use that to learn how to fix

12 VCRs. He knew that -- Mr. Huffstickler testified he knew

13 about the back-door pass, he just forgot to get one. He

14 was going to tell her the next day.

15 And he was charged in Clay County

16 with theft. We don't have a disposal or disposition of

17 that theft charge. He stated that it was going to be

18 dismissed. That was after the hearing. So we don't

19 know -- I didn't get any evidence on what happened to that

20 theft charge.

21 And I would concur with the State's

22 recommendation that his Level II occupational license be

23 revoked.

24 CHAIRMAN BARTCH: Is Mr. Huffstickler in

25 the audience?

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1 (No response.)

2 CHAIRMAN BARTCH: If not, do we have a

3 motion?

4 COMMISSIONER SUTTER-HINRICHS: I'll move

5 that we approve Commission Resolution No. 05-060.

6 COMMISSIONER JONES: Second.

7 CHAIRMAN BARTCH: We have a second. Do we

8 have any further discussion on this item? If not, please

9 call the roll.

10 MS. FRANKS: Chairman Bartch?

11 CHAIRMAN BARTCH: Approve.

12 MS. FRANKS: Commissioner Hinrichs?

13 COMMISSIONER SUTTER-HINRICHS: Approve.

14 MS. FRANKS: Commissioner Biele?

15 COMMISSIONER BIELE: Approve.

16 MS. FRANKS: Commissioner Jones?

17 COMMISSIONER JONES: Approve.

18 MS. FRANKS: Commissioner Shull?

19 COMMISSIONER SHULL: Approve.

20 MS. FRANKS: By your vote, you've adopted

21 Resolution No. 05-060.

22 CHAIRMAN BARTCH: I think, Gary, that's all

23 that you have today?

24 MR. JENKINS: That's all I had, sir.

25 CHAIRMAN BARTCH: Thank you very much, and

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1 have a good day.

2 MR. JENKINS: You, too. Bye.

3 MR. MULLALLY: Mr. Chairman, the next

4 series of hearing officer opinions will be presented by

5 Stephen Stark.

6 CHAIRMAN BARTCH: Good morning, Steve.

7 MR. STEPHEN STARK: Good morning, Commissioner, and

8 other Commissioners, good morning.

9 The first case we have is letter E, Robert

10 Palm. The Preliminary Order for Disciplinary Action

11 alleges two violations of law in this particular case.

12 The first law is that each licensee must keep the

13 information on his or her application up to date,

14 informing the Commission of any changes. The second

15 alleged violation was that Mr. Palm failed to provide the

16 Commission with requested information.

17 As to the first allegation, Mr. Palm

18 applied for and received his Level II occupational license

19 in 1995. One question on the application, standard

20 question, is whether or not the licensee has been arrested

21 for an alleged crime. Well, on November 29, 2003,

22 Mr. Palm was not working in the gaming industry but was

23 maintaining his license. However, on that date of

24 November 29, 2003, Mr. Palm was arrested for an alleged

25 assault on a law enforcement officer and for allegedly

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1 resisting arrest.

2 Mr. Palm did not report this arrest to the

3 Commission as required. Mr. Palm renewed his license, and

4 during the process of renewing his license, the Commission

5 conducted its investigation and learned in January of 2004

6 about the unreported arrest of November 2003.

7 At the hearing, Mr. Palm did admit that he

8 did not advise the Commission of his arrest within the

9 required ten days. His reasoning was that since he was

10 not employed at a casino, the obligation to report such

11 events was not required. True enough, eight years passed

12 since Mr. Palm's initial application to the date of his

13 arrest in 2003, but the law is pretty clear that the

14 obligation continues even if you're not employed. If the

15 licensee wishes to maintain the license, they need to keep

16 the application information up to date.

17 So my finding is that Mr. Palm did not