NEW MEXICO GAMING CONTROL BOARD
One-Day Regular Board Meeting
November 14, 2006
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, 4900 Alameda Blvd. NE. Chair Carla Martinez called the meeting to order at approximately 9:10 a.m., on Tuesday November 14, 2006. Due notice was published in accordance with the Gaming Control Act and the New Mexico Gaming Control Board Open Meetings Resolution and Chair Carla Martinez declared a quorum. Present were: Commissioner Eddie Fowler, Commissioner David Norvell, Commissioner Don Dutton (telephonic) and Chair Carla Martinez. Commissioner Carolyn Monroe was not present. Executive Director John Monforte and General Counsel Frank Baca were also in attendance.
· Approval of Agenda
Chair Carla Martinez presented the agenda for approval. Mr. Monforte noted that a few items would be taken out of order in the Closed Session:
1) B-Licensing: (3c) Cummins-Ellison. Move to #1 on the agenda representatives were here in person.
2) B-Licensing (1) DigiDeal Corporation, Move to #2 on the agenda.
3) A-3: Aristocrat Technology – Table.
A motion was made to approve the agenda as amended: D. Norvell. Second: E. Fowler. Vote: 4-0. A roll call vote was taken and all voted to approve the amended agenda: E. Fowler, D. Norvell, D. Dutton, and C. Martinez.
1 Closed Executive Session. Chair Carla Martinez entertained a motion to go into closed executive session until 1:30 p.m., for the purpose of discussing tribal matters, licensing matters, issuance 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. (Closed pursuant to section 10-15-1(H), NMSA 1978): D. Norvell. Second: E. Fowler. Vote: 4-0. A roll call vote was taken and all voted to go into closed executive session: E. Fowler, D. Norvell, D. Dutton and C. Martinez.
2 On Tuesday November 14, 2006 at approximately 2:15 p.m., a motion was made to go back into open session: D. Norvell. Second: D. Dutton. Vote: 3-0. A roll call vote was taken and all voted in favor of the motion: D. Norvell, D. Dutton and C. Martinez. E. Fowler was not present for the afternoon open session. Chair Carla Martinez certified the only matters that were discussed in closed executive session were licensing matters, issuance of finding of suitability on key and affiliated persons and pending administrative and enforcement matters.
3 Approval of Minutes. Chair Carla Martinez presented the following minutes for approval:
1. Working Session, October 11, 2006
2. Working Session, October 13, 2006
3. One Day Regular Board Meeting, October 17, 2006
Commissioner Norvell moved to approve the minutes of all three sessions. Second: D. Dutton. Vote: 3-0. A roll call vote was taken and all voted to approve the minutes: D. Norvell, D. Dutton and C. Martinez.
4 Board Chair Announcements. Chair Carla Martinez 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 Board meetings are Tuesday, December 12, 2006 and January 9, 2007.
5 Pending Administrative and Enforcement Actions
· Approval of Settlement Agreement for Bally Gaming; Cause No. 06-008-SA. Commissioner Norvell moved to approve the settlement agreement with Bally Gaming. Second: D. Dutton. Vote: 3-0. A roll call vote was taken and all voted to approve the motion: D. Norvell, D. Dutton and C. Martinez.
· Approval of Settlement Agreement for Progressive Gaming f/k/a Mikohn Gaming; Cause No. 06-009-SA. Commissioner Norvell moved to approve the settlement agreement with Progressive Gaming. Second: D. Dutton. Vote: 3-0. A roll call vote was taken and all voted to approve the motion: D. Norvell, D. Dutton and C. Martinez.
· Approval of Settlement Agreement for Aristocrat Technology; Cause No. 06-010-SA. Commissioner Norvell moved to table this matter. Second: D. Dutton. Vote: 3-0. A roll call vote was taken and all voted to approve the motion: D. Norvell, D. Dutton and C. Martinez.
· Approval of Recommendation of Dismissal without Prejudice for Martin Encinias; Cause No. 06-009-EA. Commissioner Norvell moved to approve the recommendation of dismissal without prejudice for Martin Encinias. Second: D. Dutton. Vote: 3-0. A roll call vote was taken and all voted to approve the motion: D. Norvell, D. Dutton and C. Martinez.
· Approval of Recommendation of Dismissal without Prejudice for BPO Elks Lodge #1172; Cause No. 06-010-EA. Commissioner Norvell moved to approve the recommendation of dismissal without prejudice for BPO Elks Lodge #1172. Second: D. Dutton. Vote: 3-0. A roll call vote was taken and all voted to approve the motion: D. Norvell, D. Dutton and C. Martinez.
6 Licensing
· DigiDeal Corporation; Distributor’s License (Spokane, WA). Commissioner Norvell moved to approve the distributor’s license with DigiDeal with the condition that the Board maintain the right to continue review of DigiDeal’s financial information and data for the next ninety days. Second: D. Dutton. Vote: 3-0. A roll call vote was taken and all voted to approve the motion: D. Norvell, D. Dutton and C. Martinez. Modification to motion: Commissioner Norvell moved that DigiDeal will provide the Board with financial information for the balance of the ninety days and at the end of the ninety days the Board will review its decision. Second: D. Dutton. Vote: 3-0. A roll call vote was taken and all voted to approve the motion: D. Norvell, D. Dutton and C. Martinez.
· Renewals of Gaming Licenses for 2006:
Mr. Monforte noted that this information was presented to the Board in closed executive session. Mr. Monforte read into the record the following Renewals of Gaming Licenses for 2006:
Renewals of Gaming Licenses for 2006
a. Fraternal Order of Eagles #2811 (Santa Fe)
b. Fraternal Order of Eagles #3189 (Hobbs)
c. Veterans of Foreign Wars Post #3015 (Clovis)
d. Zia Partners (Hobbs)
Commissioner Norvell moved approval of all the renewals as read. Second: D. Dutton. Vote: 3-0. A roll call vote was taken and all voted to approve the motion: D. Norvell, D. Dutton and C. Martinez.
Miscellaneous Matters
· Request for Extension to pay charity; Veterans of Foreign Wars Post #10124.
Commissioner Norvell moved to table this matter. Second: D. Dutton. Vote: 3-0. A roll call vote was taken and all voted to approve the motion: D. Norvell, D. Dutton and C. Martinez.
· Request for Extension to pay charity; American Legion Post #26. Commissioner Norvell moved to grant the extension for American Legion Post #26 to the specific date of December 5, 2006. Second: D. Dutton. Vote: 3-0. A roll call vote was taken and all voted to approve the motion: D. Norvell, D. Dutton and C. Martinez.
· Cummins Ellison; Request for Reconsideration. Commissioner Norvell moved to deny the request for reconsideration by Cummins Ellison and as part of this motion to modify the Decision and Order entered by this Board on March 23, 2006 by deleting from that Order Paragraph 11 which reads as follows: If the Board does not grant a further waiver after the September 1, 2006 expiration of this waiver, Cummins shall be required to remove its equipment from the jurisdiction or obtain licensure as a manufacturer of associated equipment and delete paragraph 15 of that Decision and Order that paragraph basically mirrors that language which I just read and that the Order itself be modified likewise to remove that same language which is in the 3rd paragraph of the Order which in effect would allow if Cummins does not apply for and receive a license then the equipment would remain in its present location and additionally that the Cummins would not be allowed to service that equipment unless they apply for and obtain a license.
General Counsel Frank Baca noted that the same language is mentioned in the Decision and Order dated October 30, 2006. Commissioner Norvell noted that it would be included in the motion as being deleted.
Chair Carla Martinez: A point of clarification on those two paragraphs we are still requiring Cummins Ellison to obtain licensure, essentially we are changing the requirement that they remove the equipment and that the equipment remain with the licensees. I just want to make sure if we delete those two paragraphs we’re not deleting the requirement for them to obtain licensure as a manufacturer.
Commissioner Dutton: If they did not seek a license that the equipment be inoperable in the hands of our current licensee racetrack. Commissioner Norvell stated that he would accept that amendment.
Commissioner Norvell moved to deny the request for Cummins Ellison for reconsideration that if they are to continue in this State that they must be licensed, they must apply for and receive a license and if they do not, the language of the various orders that have been entered herein on three different occasions requiring that if they are not provided additional waivers that they would be required to move the equipment from the jurisdiction be deleted but that they would not be allowed to service the machines if they do not seek and obtain licensure from this jurisdiction and the machines would be made inoperable. Second: D. Dutton. Vote: 3-0. A roll call vote was taken and all voted to approve the motion: D. Norvell, D. Dutton and C. Martinez.
Work Permit Application for Christopher Martinez. Mr. Martinez was not present. Commissioner Norvell moved to deny that request application. Second: D. Dutton. Vote: 3-0. A roll call vote was taken and all voted to approve the motion: D. Norvell, D. Dutton and C. Martinez.
Work Permit Application for Allan Estrada. Mr. Estrada was not present. Commissioner Norvell moved to deny that request application. Second: D. Dutton. Vote: 3-0. A roll call vote was taken and all voted to approve the motion: D. Norvell, D. Dutton and C. Martinez.
7 Issuance of Findings of Suitability on Key and Affiliated Persons. Mr. Monforte noted that during the closed executive session, the staff presented the results of the background investigations on the findings of suitability for key and affiliated persons. Mr. Monforte read aloud the following list of new key person applications:
New Applications
Commission Norvell moved to table the application for William M. Baker and Alan W. Steelman. Second: D. Dutton. Vote: 3-0. A roll call vote was taken and all voted to approve the motion: D. Norvell, D. Dutton and C. Martinez.
a. James McElroy – Commander – American Legion Post #19 (Conchas Dam, NM)
b. Jesse Alvarez – Assistant Gaming Manager – American Legion Post #25 (Clovis, NM)
c. Andre Jacques – Independent Director – Bally Gaming (Las Vegas, NV)
d. Kevin L. Verner – Independent Director – Bally Gaming (Las Vegas, NV)
e. Alfred Wilms – Major Shareholder – Bally Gaming (Las Vegas, NV)
f. Rebecca Fisher – Assistant Gaming Manager – B.P.O. Elks #969 (Roswell, NM)
g. Danny Coe – Gaming Manager – B.P.O. Elks #1119 (Las Cruces, NM)
h. Anne Hester – Controller – Black Gold Casino (Hobbs, NM)
i. Nicole Floyd – Chief Financial Officer – DigiDeal Corporation (Spokane, WA)
j. Michael Kuhn – CEO & President – DigiDeal Corporation (Spokane, WA)
k. Robert Stoll – Investor / Board Member – DigiDeal Corporation (Spokane, WA)
l. Denise Gibson – Assistant Gaming Manager – FOE #3815(Las Vegas, NM)
m. Terrance Oliver – Outside Director – Mikohn Gaming (Las Vegas, NV)
n. Robert Parente – Vice President of Sales – Mikohn Gaming (Las Vegas, NV)
o. Heather Rolo – Executive Vice President & CFO – Mikohn Gaming (Las Vegas, NV)
p. Michael Todoroff – Outside Director – Mikohn Gaming (Las Vegas, NV)
q. Raymond Walters – Investor and Shareholder – SunRay Park & Casino (Farmington, NM)
Commission Norvell moved to take Raymond Walters separately but for the balance of those moved to approve the applications. Second: D. Dutton. Vote: 3-0. A roll call vote was taken and all voted to approve the motion: D. Norvell, D. Dutton and C. Martinez. Mr. Walter was not present. Commissioner Norvell with regard to Raymond Walters moved to approve the application subject to the payment by Mr. Walters of a fine in the sum of $25,000.00 within thirty days from the date of the issuance of Decision and Order. Second: D. Dutton. Vote: 3-0. A roll call vote was taken and all voted to approve the motion: D. Norvell, D. Dutton and C. Martinez.
Renewal Key Persons
a. Leslie Heisz – Independent Director – IGT (Las Vegas, NV)
b. Russel McMeekin – CEO, President – Mikohn Gaming (Las Vegas, NV)
c. Kathleen McJohn – Vice President, General Counsel & Secretary – Mikohn Gaming (Las Vegas, NV)
Commissioner Norvell moved approval for all three applicants. Second: D. Dutton. Vote: 3-0. There were no comments from the public. A roll call vote was taken and all voted to approve the motion: D. Norvell, D. Dutton and C. Martinez.
8 Public Comments. There were no public comments.
· Chair Carla Martinez entertained a motion to back into closed executive session to discuss the remaining items. D. Norvell. Second: D. Dutton.
Chair Carla Martinez entertained a motion to go into open session at 2:58 p.m. D. Norvell. Second: D. Dutton. Vote: 3-0. A roll call vote was taken and all voted to go into open session: D. Norvell, D. Dutton and C. Martinez. Chair Carla Martinez certified that the only matters that were discussed in closed executive session were tribal matters, pending and threatened litigation and limited personnel matters as enumerated in detail on the agenda.
9 Adjournment. There being no other business to come before the Board, Chair Carla Martinez entertained a motion to adjourn. D. Norvell. Second: D. Dutton.
/s/Carla C. Martinez, Esq., CPA Date Approved:12/12/06
Chair