NEW MEXICO GAMING CONTROL BOARD
One-Day Regular Board Meeting
June 19, 2007
MINUTES
The Board of Directors of the New Mexico Gaming Control Board (Board) conducted a one-day Regular Board meeting at SunRay Park & Casino, 39 Road 5568, Farmington, New Mexico. Chairman David Norvell called the meeting to order at approximately 11:08 a.m., on Tuesday, June 19, 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, and Chairman David Norvell. Commissioner Carolyn Monroe was not present. Deputy Executive Director Greg Saunders was also in attendance.
· Approval of Agenda
Chairman Norvell presented the agenda for approval. Mr. Saunders noted the following changes to the agenda: A-3-Approval of Hearing Officer’s Recommendation; SunRay Park Casino; Cause No. 06-022-EA to be Tabled. On Issuance of Findings of Suitability on Key and Affiliated Persons (l) Phillip S. Ziegler, Marketing Director/Assistant Gaming Manager – Zia Park, LLC, is Assistant General Manager, not Assistant Gaming Manager. Chairman Norvell entertained a motion to approve the agenda as amended: A. Rael. Second: D. Dutton. Vote: 3-0. All voted in favor of the motion: A. Rael, D. Dutton and D. Norvell.
1 Closed Executive Session. Chairman Norvell entertained a motion to go into closed executive session 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. Dutton. Second: A. Rael. Vote: 3-0. A roll call vote was taken and all voted to go into closed executive session: A. Rael, D. Dutton and D. Norvell.
2 On Tuesday June 19, 2007 at approximately 1:35 p.m., a motion was made to go back into open session: D. Dutton. Second: A. Rael. Vote: 3-0. A roll call vote was taken and all voted in favor of the motion: A. Rael, D. Dutton and D. Norvell. 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 enumerated in detailed on the agenda.
3 Approval of Minutes. Chairman Norvell presented the Minutes for the Working Session for April 9, 2007 and May 1, 2007 and the One Day Regular Board Meeting minutes of May 8, 2007 for approval: Commissioner Rael moved to approve the minutes of the Board meeting and Working Sessions as stated. Second: D. Dutton. Vote: 3-0. All voted in favor of the motion: A. Rael, D. Dutton and D. Norvell.
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 meeting is scheduled for 11:00 a.m. July 24, 2007 at Ruidoso Downs Racetrack in Ruidoso, NM. The August meeting will be held in Albuquerque.
5 Pending Administrative and Enforcement Actions
· Approval of Settlement Agreement; Aristocrat Technology; Cause No. 07-006-EA. Antonia Cowan, Counsel and Vice President of Compliance for Aristocrat Technologies, Inc. was present and addressed the Board on this issue:
· Ms. Cowan: I am pleased to be before you today representing the company. I want to apologize, we made a rather blatant error and we failed to strictly adhere to the rules and regulations as set forth by this Control Board. Let me explain what happened, we certainly made every effort but in spite of our best efforts we were lax in how we reported shipments of EPROM’s into the jurisdiction. We had a set of EPROM’s which had one part number but it composed two EPROM’s and we shipped that set plus one EPROM and the person that shipped it filed all the documents counting that as two EPROM’s because she only had two part numbers now we realized that that’s not the way it should have been done, it should have been done as three EPROM’s even though the two were, in our business, a part of a set and that is where the confusion was and we worked with your staff to develop the Settlement Agreement which is before you. There is also a very detailed letter that describes exactly what happed, that I have submitted to your staff.
Chairman Norvell: Thanked Ms. Cowan for working with staff on the Settlement Agreement and asked if there were any questions from the Board. There were no questions from the Board. Commissioner Rael moved to approve the settlement agreement and to file a stipulated motion to dismiss the complaint without prejudice. Second: D. Dutton. Vote: 3-0. All voted in favor of the motion: A. Rael, D. Dutton and D. Norvell.
· Approval of Settlement Agreement; Veterans of Foreign Wars Post #2951; Cause No. 07-007-EA. There was no one present from VFW #2951 to address the Board on this issue. Commissioner Dutton moved to accept the Settlement Agreement with regard to Post #2951. Second: A. Rael. Vote: 3-0. All voted in favor of the motion: A. Rael, D. Dutton and D. Norvell. Commissioner Dutton amended his motion to include the dismissal of the complaint without prejudice. Chairman Novell noted this amended motion would be a part of the motion that was approved.
· Approval of Hearing Officer’s Recommendation; SunRay Park & Casino; Cause No. 06-022-EA. This item was Tabled.
6 Licensing
· New Application: Glory, U.S.A., Inc. Manufacturer’s License. There was no one present to address the Board on this issue. Commissioner Rael moved to grant Glory, U.S.A., Inc. a Manufacturer’s License with the stipulation that they must provide an audited financial statement 120 days after the end of the first year of operation. Second: D. Dutton. Vote: 3-0. All voted in favor of the motion: A. Rael, D. Dutton and D. Norvell.
· Renewals of Gaming Licenses for 2007.
Mr. Saunders read into the record the Renewals of Gaming Licenses for 2007:
a. Aristocrat Technology (Las Vegas, NV)
b. B.P.O. Elks #408 (Las Vegas, NM)
c. B.P.O. Elks #461 (Albuquerque, NM)
d. B.P.O. Elks #1244 (Clovis, NM)
e. B.P.O. Elks #2053 (Grants, NM)
f. ShuffleMaster (Albuquerque, NM)
Mr. Saunders noted that there was a complaint pending for Aristocrat Technology and B.P.O. Elks #408 and a citation to be issued on ShuffleMaster. There was no one present to address the Board on those issues. Commissioner Rael moved to approve the renewal of the gaming licenses as read by Mr. Saunders with the stipulation on B.P.O. Elks #408 that the licensee shall obtain an external accountant to prepare financial statements. Second. D. Dutton. Vote: 3-0. All voted in favor of the motion. A. Rael, D. Dutton and D. Norvell.
· Issuance of Findings of Suitability on Key and Affiliated Persons. Mr. Saunders read into the record the new applications and one renewal as follows:
1. New Application
a. Arthur M. Gonzales – Assistant Gaming Manager – B.P.O. Elks #408 (Las Vegas, NM)
b. Fred Shanks – Gaming Manager – B.P.O. Elks #413 (Silver City, NM)
c. Jan P. Strand – Gaming Accountant – B.P.O. Elks #865 (Raton, NM)
d. Frances Cummins – Assistant Gaming Manager – B.P.O. Elks #2086 (Ruidoso, NM)
e. Betty Fritz – Gaming Accountant – Fraternal Order of Eagles #4308 (Caballo, NM)
f. Masato Ishida – President – Glory USA, Inc., - (West Caldwell, NJ)
g. Masaki Kurabayashi – Executive Vice President – Glory USA, Inc., - (West Caldwell, NJ)
h. Nobuhiro Omori – Secretary / Assistant Treasurer – Glory USA, Inc., - (West Caldwell, NJ)
i. Tetsuya Yamada – Treasurer / Business Planning Manager – Glory USA, Inc., - (West Caldwell, NJ)
j. Mabel R. Esquibel – Gaming Manager – Veterans of Foreign Wars #1547 (Las Vegas, NM)
k. Oscar Renteria – Director of Security, Surveillance and Compliance – Zia Park, L.L.C. (Hobbs, NM)
l. Phillip S. Ziegler – Marketing Director / Assistant General Manager – Zia Park, L.L.C. (Hobbs, NM)
2. Renewal Key Persons
a. William Morgan – Property Shift Manager – SunRay Gaming of NM, L.L.C. (Farmington, NM)
Commissioner Rael moved to accept all findings of suitability without conditions except for Fraternal Order of Eagles #4308, that Betty Fritz, Gaming Accountant may review the paperwork only. Second: D. Dutton. Vote: 3-0. All voted in favor of the motion: A. Rael, D. Dutton, D. Norvell.
7 Policy and Rulemaking Matters.
· Announcement of July 5, 2007, 9:00 a.m. Rule Hearing on 15.1.13 NMAC, LLC (Farmington, NM)
· Announcement of July 5, 2007, 9:15 a.m. Nonprofit Minimum Internal Control Hearing, Key Control, Section 3.
· Approval of Nonprofit Minimum Internal Control’s Surveillance, Section 9.
Commissioner Dutton moved to approve the Nonprofit Minimum Internal Control’s Surveillance, Section 9. Second. A. Rael. Vote: 3-0. All voted in favor of the motion: A. Rael, D. Dutton, D. Norvell.
8 Public Comments. Mr. Campbell thanked the Board for coming to Farmington. Commissioner Dutton noted that the Audit Staff participated in the NAGRA annual conference in Kansas City last week where they did a presentation on the Bingo & Raffle Rules and forms that were newly developed. They did an outstanding job. The comments and feedback from the members in attendance (approximately 200 people attended) were just terrific, it looks as if the Bingo & Raffle Rules that they came up with will be the standard adopted for the industry. I just wanted to acknowledge the hard work that the group did and the outstanding performance that they did and also enforcement was included with that.
9 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: 3-0. All voted in favor of the motion: A. Rael, D. Dutton, D. Norvell.
/s/David Norvell, Esq. Date Approved: 06-19-07
Chairman