NEW MEXICO GAMING CONTROL BOARD
One-Day Regular Board Meeting
April 12, 2005
MINUTES
The Board of Directors of the New Mexico Gaming Control Board (Board) conducted a one-day Regular Board meeting at Gaming Control Board Headquarters, 6400 Uptown Blvd, Suite 100-E. Chair Carla Lopez called the meeting to order at approximately 9:05 am, on Tuesday April 12 2005. Due notice was published in accordance with the Gaming Control Act and the New Mexico Gaming Control Board Open Meetings Resolution and Chair Carla Lopez declared a quorum. Present were: Hossie Sanchez, Don Dutton, Carla Lopez, and Carolyn Monroe. Acting Executive Director Greg Saunders and General Counsel Frank Baca were also in attendance.
· Approval of Agenda
Chair Carla Lopez presented the agenda for approval. A motion was made to approve the agenda: C. Monroe. Second: D. Dutton. Vote: 4-0.
1 Closed Executive Session. Chair Carla Lopez entertained a motion to go into closed executive session until 1:30 p.m., for the purpose of discussing licensing matters, issues of finding of suitability on key and affiliated persons, pending administrative and enforcement matters, pending and threatened litigation, limited personnel matters as enumerated in detail on the agenda, and tribal matters. (Closed pursuant to section 10-15-1(H), NMSA 1978): H. Sanchez. Second: D. Dutton. Vote: 4-0. A roll call vote was taken and all voted to go into closed executive session: H. Sanchez, D. Dutton, C. Lopez, C. Monroe.
2 On Tuesday, April 12, 2005 at approximately 1:35 p.m., a motion was made to go back into open session: D. Dutton. Second: C. Monroe. Vote: 4-0. A roll call vote was taken and all voted in favor of the motion: H. Sanchez, D. Dutton, C. Lopez, C. Monroe.
3 Approval of Minutes. Chair Carla Lopez presented the minutes for the March 1, 2005 One Day Regular Board Meeting. All voted in favor of approval of the minutes for the March 1 One Day Regular Board Meeting.
4 Board Chair Announcements. Chair Carla Lopez announced that the scheduled Board Meetings are the second Tuesday of each month. If a two day meeting is required, the Board will reconvene the next following morning. The next regular scheduled Board Meetings are Tuesday May 17 and Tuesday June 14 2005. Chair noted that the next board meeting will be held at the new facility, 4900 Alameda NE.
Acting Executive Director noted that Item D under Licensing, Zia Park/Black Gold Casino Request Waiver of Rule Requiring All Paperwork to be Retained for Five Years should be removed from the agenda, and will be re-entered on next month’s agenda.
5 Licensing.
Advanced Electronic Systems, Inc. (Las Vegas, NV)- Distributor of Associated Equipment License. Mr. Saunders noted that the Board was presented with the facts of the case in closed executive session. There were no representatives from Advanced Electronic Systems. There were no questions from the board. Commissioner Monroe moved to grant the license with the condition that the distributor must provide audited financial statements 120 days after the end of the first year of operations. Second: D. Dutton. Vote: 4-0. A roll call was taken and all voted in favor of the motion: H. Sanchez, D. Dutton, C. Lopez, C. Monroe.
· Zia Park/Black Gold Casino Adoption of Internal Controls Acting Executive Director noted that the board was presented with the facts in closed executive session. Mr. Rimbo stepped forward and noted that the staff from Zia worked with the staff from NMGCB and he thought the internal controls were sufficient. Commissioner Dutton moved to approve and adopt Zia Park’s revised internal control procedures, as submitted. Second: C. Monroe. Vote: 4-0. A roll call was taken and all voted in favor of the motion: H. Sanchez, D. Dutton, C. Lopez, C. Monroe.
6 Issuance of Findings of Suitability on Key and Affiliated Persons. Mr. Saunders read aloud the list of new key person applications and noted that during the executive session, the staff presented the results of the background investigations on the findings of suitability for key persons. There were no comments from the public or from the Board. Commissioner Sanchez made a motion to approve the Issuance of Findings of Suitability on Key and Affiliated Persons. Second: C. Monroe. Vote: 4-0. A roll call was taken and all voted in favor of the motion: H. Sanchez, D. Dutton, C. Lopez, C. Monroe.
7 Pending Administrative and Enforcement Actions
· Proposed Settlement Agreement with Loves Travel Stop. Acting Executive Director noted the board was briefed with the facts in closed session. Attorney Robert Martinez came forward with a letter authorizing him to sign the settlement agreement on behalf of Loves. There were no questions from the board. Commissioner Monroe moved to approve the proposed settlement agreement. Second: H. Sanchez. Vote: 4-0. A roll call was taken and all voted in favor of the motion: H. Sanchez, D. Dutton, C. Lopez, C. Monroe.
· Gaming Control Board vs. Robert Herron Cause No. 04-011-EA; Hearing Officer’s Recommendation of Default Judgment. Mr. Saunders noted the board was presented with the facts in closed executive session. Mr. Herron was not present. There were no questions from the board. Commissioner Dutton moved to accept the hearing officer’s recommendation of default judgment. Second: C. Monroe. Vote: 4-0. A roll call was taken and all voted in favor of the motion: H. Sanchez, D. Dutton, C. Lopez, C. Monroe.
8 Policy and Rulemaking Matters
· Request by Racetrack Operators for Variance of 15.1.10.20 (D), Requiring Ten Business Days Notice to the Board Prior to Beginning Date of a Promotion That is Not an Additional Payout. Mr. Harold Payne stepped forward and noted that on March 9 2005, General Counsel conducted a meeting for racetrack operators and marketing staff. Mr. Payne noted that at the meeting, the operators and Counsel came together on some issues of advertising and promotions. Mr. Payne requested a variance only on promotions that are not additional payout promotions. Commission Dutton asked if staff had any recommendations, and General Counsel noted staff has looked at the issue, and will continue to address the issues, but noted that in regards to the specific request, there are different views within the staff. General Counsel requested Mr. Payne to present the request and some of the possible difficulties granting the variance could represent. Chair asked exactly what variance the operators were proposing to the board. Mr. Payne responded that it was his understanding that the 10 day requirement was the problem. He noted that daily promotions are causing a backlog within the staff. Mr. Rimbo then stepped forward and noted how there are two main requirements to promotions advertising: the responsible gaming message in all text, as well as no enticements to game. Mr. Rimbo noted that the racetracks do not believe it is the board’s place to ensure the ads are done correctly, but rather the board’s responsibility is to cite the operators when the ads are not done correctly. Jimmy White stepped forward and noted agreement with the tracks on this issue. Commissioner Monroe moved to grant the request for the variance. Commissioner Dutton clarified the motion to grant the request for variance to 15.1.10.20-D, requiring ten business days notice to the board prior to the beginning date of a promotion that is not an additional payout. Second: C. Monroe. Vote: 4-0. A roll call vote was taken and all voted in favor of the motion: H. Sanchez, D. Dutton, C. Lopez, C. Monroe.
· Request by Racetrack Operators for Clarification of 15.1.10.41, Relating to Food or Alcohol as Enticements to Game. Mr. Payne and Mr. Rimbo again stepped forward to discuss the issue. Mr. Payne noted questions as to what content in ads is acceptable; even if the logo of the casino is on an advertisement, Mr. Payne questioned the board whether or not there could be an advertisement for alcohol, even if the alcohol advertisement pertains only to the racetrack. Commissioner Dutton asked if there was some line that could be drawn in the ads. Mr. Rimbo noted that the problem for the racetracks is the logos; any ads for the racetracks that include alcohol are violating Board Rules. General Counsel noted the statutory reference, and noted that if an advertisement contained a reference to alcohol or food, as well as a reference to the casino, it has in the past been disallowed. Mr. Baca noted that the issue will be addressed in the rulemaking process, but noted that something has to be done in the interim. Mr. Saunders noted that the racetracks want to be able to mention both the racetrack and casino in one ad, and noted that is where the operators are having problems with the regulations. Mr. Saunders suggested delineating within the ad what is racetrack related, and what is casino related. Mr. Rimbo and Mr. Payne noted that to be a good idea, but again questioned the issue of the logo. Commissioner Dutton responded that only the logo of the casino should not be an issue. Commissioner Monroe noted her agreement with Commissioner Dutton. Commissioner Lopez noted her agreement with the logo, but hesitated with a division within the ad, and wondered how clear the separation would come across to the reader. Commissioner Dutton asked the operators if it would be possible to ad on a phrase pertaining to the regulation of no alcohol in the casino. The operators noted that they would be willing to comply with that stipulation. Mr. Saunders noted that Commissioner Dutton’s idea was a good one, but also noted that the delineation should always be constant within the ad, so a reasonable person could always tell. Commissioner Lopez suggested allowing the logo always to be included in an advertisement, and further suggested that anything with alcohol enticements and the racetracks, be first submitted to the board staff for approval. Mr. Smith from the Downs at Albuquerque asked about television ads as well, and delineating between reduced food or alcohol dealing with the racetrack. Chair noted that the logo in television is the same idea as the logo in print, as long as the only place the casino appears in the ad is a part of the logo. Mr. Smith requested the board share the information between the tracks regarding violations to the advertisement policy. General Counsel responded that in general terms the staff could share the information. Commissioner Dutton moved that as an interim policy, that the use of a logo on an advertisement that includes the word casino would not be in and of itself a violation of the statute or rule 15.1.10.41; everything else would be handled on a case by case basis. Second: C. Monroe. Vote: 4-0. A roll call vote was taken and all voted in favor the motion: C. Monroe, C. Lopez, D. Dutton, H. Sanchez.
· Notice from Board Regarding a Deadline for Operators to Submit Internal Controls for Review and Approval. General Counsel noted the rules were approved and published as of February 28, 2005. He noted that the new rules included a new set of internal controls, and stated the board needed to set a deadline for operators to submit new internal controls. Commissioner Monroe wondered what a reasonable amount of time was, and Jimmy White noted that 60 days from the day of the meeting was a reasonable amount of time, and then the audit division could review the controls and try to work out the problems. Mr. Rimbo noted that one of the problems in the internal controls is the necessity of 30 days of surveillance, and stated that 90 days could be easier on the operators. Mr. Panlenier asked if the internal controls were a racetrack issue only, or if non profits also had to comply. Mr. White replied that if the non profits do not submit within 60 days, that by default NMGCB internal controls become non profit internal controls. Commissioner Dutton moved to set a 90 day deadline as of April 12, 2005 for licensees to submit internal controls to the board for review and approval. Second: C. Monroe. Vote: 4-0. A roll call vote was taken and all voted in favor of the motion: H. Sanchez, D. Dutton, C. Lopez, C. Monroe.
· Designate a Representative to Approve Minimum Internal Controls Pursuant to Revised Rule 15.1.9.8. General Counsel noted that the new rule specifically states that the internal controls could be reviewed by the board or by the board’s designated representative. Commissioner Dutton moved to continue with previous policy of allowing staff to review internal controls, and make a recommendation to the board. Second: C. Monroe. Vote: 4-0. A roll call vote was taken and all voted in favor of the motion: H. Sanchez, D. Dutton, C. Lopez, C. Monroe.
9 Public Comment
Mr. Rimbo stepped forward and invited the board to Phase 2 of the Zia Park opening, the opening of a new steakhouse. Mr. Panlenier congratulated the board on having a regularly scheduled board meeting. Chair Carla Lopez reminded everyone that the Governor signed SB 370, which brings Bingo and Raffle to the Gaming Control Board.
10 Adjournment
Chair Carla Lopez entertained a motion to adjourn. Motion: C. Monroe. Second: D. Dutton. Vote: 4-0.
_________________________ ___________________
Carla C. Lopez, CPA, Esq. Date Approved