STATE OF MICHIGAN

MICHIGAN GAMING CONTROL BOARD

PUBLIC MEETING

Cadillac Place

3062 W. Grand Blvd., Suite L-700

Detroit, Michigan

Tuesday, September 12, 2006

10:00 A.M.

MINUTES

On Tuesday, September 12, 2006, the Michigan Gaming Control Board held a public meeting at the Board office in the Cadillac Place, 3062 W. Grand Blvd, Suite L-700, Detroit, Michigan.

Present:             In attendance were the following Board members:

                                                 Damian Kassab, Chairman

                                                 Judge Benjamin Friedman

                                                 Mr. Donald Robinson

                                                 Ms. Barbara Rom

                                                 Judge Michael Stacey

                         Also attending were:

                                                 Dan Gustafson

                                                 Patty James

                                                 D/F/Lt. Vicki Johnson

                                                 Ben McMakin

                                                 John Page

                                                 Tom Barker

                                                 Jack Cahill

Business:          Board Chairman Damian Kassab called the staff briefing of the public meeting to order at 10:02 a.m.  Chairman Kassab invited Dan Gustafson to give an overview of the meeting’s agenda.

                        Mr. Gustafson advised the Board that 29 applications for comp exemptions in the Greektown comp program have been received.  Twenty-six have been granted and 3 are pending.

                        Mr. Gustafson also congratulated Ms. Rom on being recognized as one of the top 100 attorneys in Michigan by the Southeast Michigan Journal of Business.                 
      

                        Upon conclusion of Mr. Gustafson’s comments, Chairman Kassab called the meeting to order, and noted for the record that all Board members were present for the meeting.

                        Next, Chairman Kassab stated the first order of business was to approve the minutes from the August 8, 2006 regular public meeting.  Chairman Kassab noted that all Board members had previously received the minutes, and asked if there were any questions or concerns.

                        Ms. Rom inquired as to whether Harvard Consulting had complied with the Board’s order to remedy its deficiency within 15 days.  Deputy Director Ben McMakin advised the Board that Harvard Consulting, did in fact, remedy its deficiency within the 15-day time frame.

                        Next, Chairman Kassab requested a motion to approve the minutes from the August meeting.

                        It was moved and seconded that the minutes of the August 8, 2006 meeting be approved.  Motion carried.

                        Mr. Gustafson next presented the Executive Director’s report.  Mr. Gustafson advised the Board that the Investigation Section has hired 2 new employees since the last public meeting.  Mr. Gustafson next introduced Margie McNutt and Mark O’Farrell, along with Gary Hough, Sara Botke and Matt Clark, employees who were hired by the Board in July.

                        In regards to the Board’s budget, Mr. Gustafson reported that for fiscal year 2006, from October 1, 2005 through August 31, 2006, the Board has incurred expenditures of $13,350,476, leaving the unexpended balance of $5,976,242 in appropriated funding for FY 2006, which includes funds for anticipated reimbursement for expenditures by the Attorney General’s Office and Michigan State Police. 

                        Mr. Gustafson next reported that the casinos continue to operate 24/7 and for August 2006, the aggregate revenue in taxes for all three Detroit casinos was up 4.85 percent compared to the same month last year.  The gaming taxes for the three Detroit casinos for August 2006 were 13.149 million compared to 12.512 million for the same period last year.

                        Upon conclusion of Mr. Gustafson’s report, Chairman Kassab requested a motion to accept the recommendations of the Executive Director and the Licensing Division’s staff regarding the 96 Level 1 and 2 occupational license applications. 

                        It was moved by Ms. Rom and seconded by Judge Friedman to accept the recommendations of the Executive Director and the Licensing Division’s staff for the applications summarized in Exhibit 1.  A voice vote was taken.

                        Motion carried.

                        Next, the Board considered the Executive Director’s Reports and the Licensing Division’s staff recommendations regarding the eligibility and suitability of required key persons/qualifiers of casino licensees MGM Grand Detroit and Greektown Casino.

                        There being no questions from Board members, it was moved by Judge Friedman and seconded by Ms. Rom that the Board enter orders finding and concluding that Rose McKinney-James, is eligible and suitable as a required qualifier of casino licensee MGM Grand Detroit, L.L.C., and Kewadin Casinos Gaming Authority, is eligible and suitable as a required qualifier of casino licensee Greektown Casino, L.L.C., under the licensing standards and requirements of the Act and Rules of the Board.  A voice vote was taken.

                        Motion carried.

                        Next the Board considered the Executive Director’s Reports and the Licensing Division’s staff recommendations regarding the pending supplier license applications of TCS America, Inc.,  d/b/a TCS John Huxley, Telecom Technicians, Inc., d/b/a TTI, and Dixon Inc.

                        Again, there being no questions from Board members, it was moved by Judge Stacey and seconded by Judge Friedman that the Board enter orders finding and concluding that TCS America, Inc., Telecom Technicians, Inc. and Dixon Inc., and their qualifiers are eligible and suitable for licensure.  A voice vote was taken.

                        Motion carried.           

                        The next item considered by the Board was the Board staff’s recommendations regarding New Parthenon Restaurant, Inc.’s and North Country Aviation’s requests to withdraw their supplier license applications.

                        There being no questions from Board members, it was moved by Mr. Robinson and seconded by Judge Stacey that the Board enter orders granting the requests of New Parthenon Restaurant, Inc. and North Country Aviation, for withdrawal of their supplier license applications.  A voice vote was taken.

                        Motion carried.           

                        The next item considered by the Board was the Board staff’s recommendation regarding Cannon Electric Company’s request to withdraw its supplier license application and waive the one-year waiting period to reapply.

                        There being no questions from Board members, it was moved by Ms. Rom and seconded by Judge Stacey that the Board enter an order granting the request of Cannon Electric Company, for withdrawal of its supplier license application and waiving the one-year waiting period for re-application.  A voice vote was taken.

                        Motion carried.

                        The next order of business was to consider the Executive Director’s Report and the Licensing Division’s staff recommendation regarding the transfer of interest in supplier licensee Kone, Inc.

                        There being no questions from Board members, it was moved by Judge Friedman and seconded by Ms. Rom that the Board enter an order approving the proposed transfer of ownership interest in supplier licensee Kone, Inc., from Kone Holdings, Inc. to Kone Elevator Holding OY, under the licensing standards and requirements of the Act and Rules of the Board.  A voice vote was taken.

                        Motion carried.

                        Next the Board considered the Proposal for Decision in the matter of the revocation of Cynthia Ha-Thi Huong’s occupational license.

                        Chairman Kassab noted for the record the presence of Assistant Attorney General Michael Lockman, the Board’s  representative.  Chairman Kassab further noted for the record that neither Ms. Huong nor her representatives were present at the meeting. 

                        After a brief summary of the case presented by Mr. Lockman, it was moved by Judge Stacey and seconded by Ms. Rom, that the Board enter a final decision and order in the matter of the revocation of Cynthia Ha-Thi Huong’s occupational license, accepting, adopting, and incorporating the ALJ’s Proposal for Decision in the matter in its entirety and revoking Cynthia Ha-Thi Huong’s occupational license.  A voice vote was taken.

                        Motion carried.

                        Next the Board considered the Proposal for Decision in the matter of the revocation of Justin Collins, Jr.’s occupational license.

                        Chairman Kassab again noted for the record the presence of Assistant Attorney General Michael Lockman. 

                        Upon conclusion of Mr. Lockman’s overview of the case, it was moved by Mr. Robinson and seconded by Judge Stacey, that the Board enter a final decision and order in the matter of the revocation of Justin Collins, Jr.’s occupational license, accepting, adopting, and incorporating the ALJ’s Proposal for Decision in the matter in its entirety and revoking Justin Collins, Jr.’s occupational license.  A voice vote was taken.

                        Motion carried.

                        For the record, Chairman Kassab confirmed that neither Justin Collins nor his representatives were present at the meeting.

                        The next item considered by the Board was the Proposal for Decision in the matter of the revocation of Earl Ray Colbert’s occupational license.

                        Chairman Kassab noted Assistant Attorney General Melinda Leonard’s presence for the record.

                        After Ms. Leonard gave a brief overview of the case and questions from Board members were answered, it was moved by Ms. Rom and seconded by Judge Friedman, that the Board enter a final decision and order in the matter of the revocation of Earl Ray Colbert’s occupational license, accepting, adopting, and incorporating the ALJ’s Proposal for Decision in the matter in its entirety and revoking Earl Ray Colbert’s occupational license.  A voice vote was taken.

                        Motion carried.

                        Next the Board considered the request of Delores Jones for waiver of the one-year waiting period for reapplication of an occupational license.

                        Chairman Kassab noted for the record the presence of Assistant Attorney General Bethany Scheib and applicant Delores Jones.

                        Upon conclusion of Ms. Scheib’s summary of the case, comments from Ms. Jones and questions from Board members were answered, it was moved by Ms. Rom and seconded by Judge Friedman, that the Board enter an order granting Delores Jones’ request for relief from the Board to waive the one-year waiting period to reapply for an occupational license.  A roll call vote was taken.

                                     Chairman Kassab:             Aye

                                     Judge Friedman:               Aye

                                     Mr. Robinson:                  Aye

                                     Ms. Rom:                        Aye

                                     Judge Stacey:                 Nay

                        Motion carried.

                        Next the Board considered the proposed public meeting schedule for fiscal year 2006-2007.

                        There being no questions from Board members, it was moved by Ms. Rom and seconded by Judge Friedman, that the Board adopt and post the proposed schedule of its regular public meetings for the new fiscal year beginning October 1, 2006, in accordance with the Open Meetings Act.   A voice vote was taken.

                        Motion carried.

                        Next Mr. Gustafson asked the Board for clarification on its order regarding the revocation of Cynthia Ha-Thi Huong’s occupational license.    The Board confirmed that the order included the ALJ’s recommendation of a $5,000 fine.

                        Next, Chairman Kassab requested a motion for the Board to go into closed session.

                        Therefore, it was moved by Judge Stacey and seconded by Ms. Rom that the Board go into closed session immediately following the conclusion of the public meeting for the purpose of receiving legal advice and counsel from the Board’s attorney regarding pending Board litigation, and receiving confidential notification from the Executive Director regarding the names of individuals placed on the Board’s Disassociated Persons List since the Board’s last public meeting as required by the Act.  A roll call vote was taken.

                                     Chairman Kassab:            Aye

                                     Judge Friedman:               Aye

                                     Mr. Robinson:                  Aye

                                     Ms. Rom:                        Aye

                                     Judge Stacey:                 Aye

                        Motion carried.

                        There being no comments from the public, Chairman Kassab acknowledged Mr. Gustafson’s request that the Board take up the request for a declaratory ruling on the issue of whether political committees are included in the ban for political contributions at the October 10, 2006 regular public meeting. 

                        Chairman Kassab adjourned the meeting at 10:52 a.m.

                              Patricia S. James

                              Board Secretary