NEW MEXICO GAMING CONTROL BOARD
One-Day Regular Board Meeting
April 10, 2007
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. Chairman David Norvell called the meeting to order at approximately 9:00 a.m., on Tuesday, April 10, 2007. Due notice was published in accordance with the Gaming Control Act and the New Mexico Gaming Control Board Open Meetings Resolution and Chairman David Norvell declared a quorum. Present were: Commissioner Arnold Rael, Commissioner Don Dutton, Chairman David Norvell and Commissioner Carolyn Monroe. Executive Director John Monforte and General Counsel Frank Baca were also in attendance.
· Approval of Agenda
Chairman Norvell presented the agenda for approval. Executive Director Monforte presented the changes to the agenda: Section C1c Carma J. Hire change from Assistant Gaming Manager to Assistant Gaming Accountant and on renewals Table Advanced Electronics. Chairman Norvell entertained a motion to approve the agenda as amended: A. Rael. Second: D. Dutton. Vote: 4-0. All voted in favor of the motion: A. Rael, D. Dutton, D. Norvell and C. Monroe.
1 Closed Executive Session. Chairman Norvell 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): C. Monroe. Second: D. Dutton. Vote: 4-0. A roll call vote was taken and all voted to go into closed executive session: A. Rael, D. Dutton, D. Norvell and C. Monroe.
2 On Tuesday April 10, 2007 at approximately 1:30 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: A. Rael, D. Dutton, D. Norvell and C. Monroe. Chairman Norvell certified the only matters that were discussed in closed executive session 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 detailed on the agenda.
3 Approval of Minutes. Chairman Norvell presented the One Day Regular Board Meeting minutes of March 20, 2007 for approval: Commissioner Rael moved to approve the minutes of the March 20, 2007 Board meeting as stated. Second: C. Monroe. Vote: 4-0. All voted in favor of the motion: A. Rael, D. Dutton, D. Norvell and C. Monroe.
4 Board Chairman Announcements. Chairman Norvell 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 May 8, 2007 and the June meeting is scheduled for June 19, 2007 at SunRay Park in Farmington.
5 Pending Administrative and Enforcement Actions
· Approval of Recommendation for Dismissal; Gaming Control Board vs. Martin Pyke; Cause No. 60-007-EA. There was no one present representing Mr. Pyke. Commissioner Rael moved to accept the recommendation for dismissal. Second: D. Dutton. Vote: 4-0. All voted in favor of the motion: A. Rael, D. Dutton, D. Norvell and C. Monroe.
· Approval of Order of Default Judgment; B.P.O. Elks #2750; Cause No. 06-014-EA. There was no one present representing B.P.O. Elks #2750. Commissioner Monroe moved to modify the default judgment to include that the license is suspended for one year. Second: D. Dutton. Vote: 4-0. All voted in favor of the motion to modify the default judgment as read: A. Rael, D. Dutton, D. Norvell and C. Monroe.
6 Licensing
· Zia Park, L.L.C. a wholly owned subsidiary of Penn National Gaming, Inc., Racetrack Operator’s License (Hobbs, NM). Representatives from Zia Park requested to address the Board in closed executive session. Chairman Norvell entertained a motion to go into closed executive session. D. Dutton moved to go into executive session for the sole purpose of discussing the licensure of Zia Park, LLC. Second: A. Rael. Vote: 4-0. All voted in favor of the motion. A. Rael, D. Dutton, D. Norvell and C. Monroe. Commissioner Dutton moved to go back into open session. Second: A. Rael. Vote: 4-0. A roll call voted was taken and all voted in favor of the motion. A. Rael, D. Dutton, D. Norvell and C. Monroe. Chairman Norvell certified the only matters that were discussed in closed executive session was the licensing matters relating to Zia Park, LLC, the wholly owner subsidiary of Penn National Gaming, Inc. Commissioner Dutton moved that the New Mexico Gaming Control Board issue a license to Zia Park, LLC a wholly owned subsidiary of Penn National Gaming, Inc. to operate the racetrack and casino at Hobbs, New Mexico with the following conditions:
1. That Penn National pay, in full, all licensing and investigative fees and cost arising out of the gaming license application within 30 days of receipt of a final accounting of such fees and costs from the Board or its designee.
2. That Zia Partners, LLC accept the minimum internal controls currently in place at Zia Park or that they adopt new minimum internal control regulations within 180 days from their date of licensing.
3. That all current key licensed personnel submit on forms provided by the Board new key license applications within 30 days of the date closing of their transactions and/or in issuance of the license.
4. I would also include in the motion that the Board grant its consent to the form of the allocation agreement entered into between Ruidoso Down Racing and Zia Park LLC pertaining to the 150 machines and the lease thereof. Second: C. Monroe. Vote: 4-0. All voted in favor of the motion. A. Rael, D. Dutton, D. Norvell and C. Monroe.
· Request for Re-Opening; B.P.O. Elks #408 (Las Vegas, NM).
Commissioner Rael motioned that the Board approve the request for re-opening of B.P.O. Elks #408 in Las Vegas, NM. Second: D. Dutton. Vote: 4-0. Dwight Torres, Gaming Manager BPO Elks #408 was present and asked if they were granted permission to open how soon before they could open? All voted in favor of the motion. A. Rael, D. Dutton, D. Norvell and C. Monroe. Commissioner Dutton stated that Mr. Torres’ question was how soon they could open and asked Jimmy White if he would answer that, Mr. White referred to Greg Saunders who noted that if everything was satisfied on the audit and enforcement side they could turn the machines on by this afternoon.
· Renewals of Gaming Licenses for 2007:
Commissioner Monroe moved to approve without conditions the following Renewals of Gaming Licenses for 2007:
a. American Legion Post #25 (Clovis, NM)
b. American Legion Post #77 (Logan, NM)
c. B.P.O. Elks #1717 (Artesia, NM)
d. B.P.O. Elks #1897 (Alamogordo, NM)
e. Loyal Order of Moose #1517 (Albuquerque, NM)
f. Veterans of Foreign Wars #3280 (Clovis, NM)
and that we grant the license renewal of the Loyal Order of Moose #2080 with the condition that the lodge must pay all license, approval, and investigation fees and costs arising out of processing of the gaming license application in accordance to the terms of the approved payment plan. Second: D. Dutton. Vote: 4-0. All voted in favor of the motion. A. Rael, D. Dutton, D. Norvell and C. Monroe.
· Issuance of Findings of Suitability on Key and Affiliated Persons
· Commissioner Dutton moved to issue findings of suitability for key and affiliated persons for the new applications as follows:
a. Kenneth Patterson – Gaming Manager – B.P.O. Elks #2086 (Ruidoso, NM)
b. Jeffry Bailey – Assistant Gaming Manager – Fraternal Order of Eagles #3526 (Logan, NM)
c. Carma J. Hire – Assistant Gaming Accountant – Fraternal Order of Eagles #4101 (Alamogordo, NM)
d. Patti Hart – Independent Director – IGT, Inc. (Las Vegas, NV)
e. Peter Carlino – Chief Executive Officer/Chairman – Penn National Gaming (Pennsylvania)
f. Jordan B. Savitch – Senior Vice President & General Counsel – Penn National Gaming (Pennsylvania)
g. William J. Clifford – Senior Vice President of Finance & Chief Executive Officer – Penn National Gaming
h. Harold Cramer – Director – Penn National Gaming (Pennsylvania)
i. Robert Ippolito – Vice President/Secretary/Treasurer – Penn National Gaming (Pennsylvania)
j. Robert P. Levy – Director – Penn National Gaming (Pennsylvania)
k. David Handler – Director – Penn National Gaming (Pennsylvania)
l. John Jacquemin – Director – Penn National Gaming (Pennsylvania)
m. Leonard DeAngelo – Executive Vice President of Operations – Penn National Gaming
n. Joan Chan – Controller – SunRay Park & Casino (Farmington, NM)
o. Isabel Pacheco – Post Commander – Veterans of Foreign Wars #1547 (Las Vegas, NM)
p. David James – Gaming Manager – Veterans of Foreign Wars #2951 (Santa Fe, NM)
all without conditions: Second: A. Rael. Vote: 4-0. All voted in favor of the motion: A. Rael, D. Dutton, D. Norvell and C. Monroe. Billy Blackburn noted that under item (g) William J. Clifford is Senior Vice President of Finance & Chief Financial Officer. Commissioner Dutton amended the motion to include the changes. All voted in favor of the amended motion. A. Rael, D. Dutton, D. Norvell and C. Monroe.
7 Public Comments.
Commissioner Dutton noted that the Responsible Gaming Commission met last month, we had two visitors who presented some different responsible gaming programs. We will be meeting here in Albuquerque at this office on April 26, 2007 beginning at 10:00 a.m. and I want to invite all you license holders to come and offer any comments that you might have. We will be working on putting a strategic plan together that we will submit to the Governor and the Legislature so any comments that the public might have in particular our licensees we would should like to hear it. Mr. Panlener is also a member of the committee.
8 Adjournment. There being no other business to come before the Board, Chairman David Norvell entertained a motion to adjourn. A. Rael Second: D. Dutton. Vote: 4-0. All voted in favor of the motion: A. Rael, D. Dutton, D. Norvell and C. Monroe.
/s/David Norvell, Esq. Date Approved: 05-08-07
Chairman