1 1 STATE OF NEW JERSEY 2 CASINO CONTROL COMMISSION 3 - - - - - - - - - - - - - - - - - - - 4 5 PUBLIC MEETING NO. 07-03-21 6 7 - - - - - - - - - - - - - - - - - - - 8 9 Wednesday, March 21, 2007 10 Atlantic City Commission Offices 11 Joseph P. Lordi Public Meeting Room - First Floor 12 Tennessee Avenue and Boardwalk 13 Atlantic City, New Jersey 08401 14 10:34 a.m. to 11:40 a.m. 15 16 17 Certified Shorthand Reporter: Darlene Sillitoe 18 - - - - - - - - - - - - - - - - - - - - - - - - - - - 19 20 CIPOLLONI & ASSOCIATES, INC. 21 CERTIFIED SHORTHAND REPORTERS 22 1125 ATLANTIC AVENUE, SUITE 416 23 ATLANTIC CITY, NEW JERSEY 08401 24 (609) 348-9190 25 www.cipolloni-associates.com 2 1 B E F O R E : 2 CASINO CONTROL COMMISSION: LINDA M. KASSEKERT, CHAIR 3 MICHAEL A. FEDORKO, VICE CHAIR MICHAEL C. EPPS, COMMISSIONER 4 RALPH G. FRULIO, COMMISSIONER WILLIAM T. SOMMELING, COMMISSIONER 5 PRESENT FOR THE CASINO CONTROL COMMISSION: 6 DARYL W. NANCE, ADMINISTRATIVE ANALYST DANIEL J. HENEGHAN, PUBLIC INFORMATION OFFICER 7 OFFICE OF THE GENERAL COUNSEL: 8 DIANNA W. FAUNTLEROY, GENERAL COUNSEL/EXECUTIVE SECRETARY 9 LEONARD J. DIGIACOMO, ASSISTANT GENERAL COUNSEL STEVEN M. INGIS, ASSISTANT GENERAL COUNSEL 10 DENIS CORBETT, SENIOR COUNSEL E. DENNIS KELL, ASSISTANT GENERAL COUNSEL 11 LON E. MAMOLEN, SENIOR COUNSEL BERNADETTE T. FRIGEN, PROGRAM SUPERVISOR 12 CLAIRE FRANK, PROGRAM SUPERVISOR/SENIOR EEO COORDINATOR 13 14 DIVISION OF GAMING ENFORCEMENT: ASSISTANT ATTORNEYS GENERAL 15 ANTHONY ZARRILLO, ASSISTANT ATTORNEY GENERAL 16 DEPUTY ATTORNEYS GENERAL JAMES ARMSTRONG, DEPUTY ATTORNEY GENERAL 17 BRIAN BISCIEGLIA, DEPUTY ATTORNEY GENERAL TIMOTHY FICCHI, DEPUTY ATTORNEY GENERAL 18 MARY JO FLAHERTY, DEPUTY ATTORNEY GENERAL JAMES FOGARTY, DEPUTY ATTORNEY GENERAL 19 20 21 22 23 24 25 3 1 A P P E A R A N C E S : 2 ITEM NO. 3 DARYL W. NANCE, ADMINISTRATIVE ANALYST TAMA HUGHES, ESQ. 3 FOR: TROPICANA CASINO AND HOTEL 4 ITEM NO. 4 DARYL W. NANCE, ADMINISTRATIVE ANALYST KAREN WOSNACK, ESQ. 5 FOR: HARRAH'S OPERATING COMPANY, INC. 6 ITEM NO. 14 CLAIRE FRANK, PROGRAM MANAGER MARY JO FLAHERTY, DEPUTY ATTORNEY GENERAL 7 KAREN WOSNACK, ESQ. FOR: HARRAH'S OPERATING COMPANY, INC. 8 ITEM NO. 15 CLAIR FRANK, PROGRAM MANAGER 9 JAMES FOGARTY, DEPUTY ATTORNEY GENERAL MARIE JONES, ESQ. 10 FOR: MGM MIRAGE 11 ITEM NO. 25 LEONARD J. DiGIACOMO, ASSISTANT GENERAL COUNSEL 12 MARY JO FLAHERTY, DEPUTY ATTORNEY GENERAL GILBERT BROOKS, ESQ. 13 PATRICIA M. WILD, ESQ. FOR: RIH ACQUISITIONS, NJ, LLC 14 15 16 17 18 19 20 21 22 23 24 25 4 1 AGENDA PUBLIC MEETING NO. 07-03-21 2 MARCH 21, 2007, 10:34 a.m. ITEM PAGE VOTE 3 1 Ratification of the minutes of 11 11 4 March 7, 2007 2 Applications for employee and casino 5 Service industry licenses 10 applications for initial and/or 11 12 6 Renewal of casino key and casino employee licenses 16 applications for initial and/or 12 12 7 Renewal of casino key and casino employee licenses Consideration of the qualification of 13 13 8 Ramesh Srinivasan and Jeffrey Connors in connection with the gaming related 9 casino service industry license of Bally Gaming, Inc., pursuant to NJAC 10 19:51-1.14B(h) Consideration of renewal of casino key 11 employee licenses and for qualification: Michael J. Flemming, Surveillance 13 15 12 Director for Bally's Park Place, Inc. Charles J. Guenther, Vice President of 13 Corporate Surveillance for RIH Resorts, LLC, Resorts International Holdings, LLC, 14 And Colony RIH Holdings, Inc. Philip E. Juliano, Senior Vice President 15 of Marketing-Regional for RIH Acquisitions NJ, LLC 16 Peter Lipuma, Jr., Director of Surveillance for Trump Marina Associates, LLC 17 Lawrence Maschiocchi, Vice President of of Player Development Slots for Trump Taj 18 Mahal Associates, LLC Laura L. Palazzo, Vice President of 19 Finance-Chief Financial Officer for RIH Acquisitions, NJ, LLC 20 Stephen Prakash, Vice President of Food Food and Beverage for Boardwalk Regency 21 Corporation Shepard I. Stein, Director of Security 22 for trump Marina Associates, LLC Jules Vorndran, Vice President of 23 Customer Development for Adamar of New Jersey, Inc. 24 25 5 1 CONTINUED AGENDA PUBLIC MEETING NO. 07-03-21 2 MARCH 21, 2007, 10:34 a.m. ITEM PAGE VOTE 3 3 Petition of Adamar of New Jersey, Inc. 15 16 4 (d/b/a Tropicana Casino and Resort) for the issuance of a temporary casino key employee 5 license to Steve Luu pursuant to NJSA 5:12-89(e) and to permit him pursuant to NJAC 19:43-2.6 to 6 assume the duties and exercise the powers of Vice President of Customer Development without 7 first having been found qualified (PRN 0530707) 4 Petition of Harrah's Operating Company, 17 18 8 Inc., Marina Associates (d/b/a Harrah's Casino Hotel Atlantic City), Atlantic City 9 Showboat, Inc., Bally's Park Place, Inc. (d/b/a Bally's Atlantic City), and Boardwalk 10 Regency Corp; (d/b/a Caesars Atlantic City) for the issuance of a temporary casino key 11 employee license to Jennifer Weissman pursuant to NJSA 5:12-89(e) and to permit her pursuant to 12 NJAC 19:43-2.6 to assume the duties and exercise the powers of Vice President of Marketing-Regional 13 for Atlantic City Operations without first having been found qualified (PRN 0580711) 14 5 Stipulations of settlement and consent agreements: a) Themla M. Barley (06-0179-ER) 18 20 15 b) Dana V. Pettway (06-0566-ER) 18 20 c) Bin Wang (06-0570-ER) 18 20 16 d) Bryan L. Dennis (06-0349-RC) 18 20 e) Elwood R. Caban (06-0422-ER) 18 20 17 f) Warren A. White (05-0677-ER) 18 20 6 State v. Boardwalk Regency Corporation 20 21 18 (d/b/a Caesars Atlantic City) et al. (John P. Arambulo) (05-0307-VC) 19 7 State v. Boardwalk Regency Corporation 22 23 (d/b/a Caesars Atlantic City) et al. 20 (Donald D. Smith) (05-0307-VC) 8 Stipulation of settlement in State v. 23 24 21 Felix E. Vazquez (06-0346-VC) 9 Initial decision in renewal application 24 28 22 of Glenford Cunningham (05-0454-ER) 10 Petition of Darryl Brown for early 28 29 23 Reapplication (07-0094-RA) 11 Application for suspension of Sharon D. 29 30 24 Ponzetti (07-0121-RC) 25 6 1 CONTINUED AGENDA PUBLIC MEETING NO. 07-03-21 2 MARCH 21, 2007, 10:34 a.m. ITEM PAGE VOTE 3 12 Preliminary hearing concerning the 31 32 4 Exclusion of Louis Colavecchio (07-0096-EL) 13 Consideration of the qualification of 32 34 5 Eric L. Hausler to serve as Senior Vice President of Development for Trump 6 Entertainment Resorts, Inc., Holding Company of Casino Licensees Trump Marina Associates, 7 LLC, Trump Plaza Associates, LLC, and Trump Taj Mahal Associates, LLC 8 14 Petition of Harrah's Operating Company, 35 37 Inc., Marina Associates, Atlantic City 9 Showboat, Inc., Bally's Park Place, Inc., and Boardwalk Regency Corp. for the temporary 10 Qualification of Mark Fetah to serve as Vice President of Design and Construction for the 11 Eastern Division of HOC pending plenary qualification (PRN 0710706) 12 15 Petition of MGM MIRAGE for the temporary 37 40 qualification of Kenny C. Guinn as a 13 proposed Director of the Board of Directors of MGM MIRAGE in connection with the casino 14 license of Marina District Development Company, LLC (PRN 0590703) 15 16 Proposed readoption of NJAC 19:53 (Equal 40 41 Employment and Business Opportunity) 16 17 Proposed adoption of amendments to NJAC 41 42 19:40-1.2; 19:43-7.3; 19:45-1.10, 1.15, 1.40, 17 1.46, 1.46A, 1.54 and 1.55; 19:46-1.20; and 19:51-1.1 and 1.2; and proposed new rules NJAC 18 19:45-1.33A, 1.35A and 1.40F; and 19:46-1.28B and 1.28C (Express Jackpots, Gaming Voucher 19 Redemption Machines; Automated Jackpot Payout Machines) 20 18 Proposed adoption of amendments to NJAC 43 44 19:45-1.39, 1.40, 1.41, 1.42, and 1.42 21 (Slot Machine Meters) 19 Rulemaking petition of Francis Lentz for adj. 22 Proposed publication of amendments to NJAC 19:47-3.7 and 7.7 ("Last Call For Bets" in 23 Mini-Baccarat) 20 Petition of Taj Mahal Associates, LLC 44 46 24 (d/b/a Trump Taj Mahal Casino Resort) to amend NJAC 19:46.18(g) (PRN 0290701) 25 7 1 CONTINUED AGENDA PUBLIC MEETING NO. 07-03-21 2 MARCH 21, 2007, 10:34 a.m. ITEM PAGE VOTE 3 21 Proposed adoption of amendments to NJAC 46 47 4 19:47-20.9 and 20.10 (Irregularity Option for Card Dealt Face Up in and Omaha) 5 22 Proposed adoption of amendments to NJAC 47 48 19:47-20.9 and 20.10 (D0 (Dealer Stack Kept in 6 Automated Shoe Until Player Wagering Decisions Made in Three Card Poker) 7 23 Proposed publication of amendments and 49 49 new rules for Asia Poker 8 24 Joint petition of RIH Acquisitions, LLC, adj. NJ and Resorts International Hotel, Inc., 9 for approval of a Second Amended and Restated Joint Services Agreement (PRN 0600601) 10 25 Petition of RIH Acquisitions NJ, LLC for 49 58 permission to transfer securities and for 11 approval of Financial Sources and for other Relief (PRN 2640601); and Joint petition of 12 RIH Acquisitions NJ, LLC, and Resorts International Hotel, Inc., for approval to 13 allow Colony Capital Acquisitions, LLC, to withdraw as a Limited Partner and for other 14 Relief (PRN 3630601 - all counts but the Sixth Count) 15 16 17 18 19 20 21 22 23 24 25 8 1 2 E X H I B I T S : 3 4 ITEM NO. 2 DESCRIPTION EVD 5 EL-1 Remand for hearings 10 license X 6 applications EL-2 Grant 16 licenses X 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 (Exhibits retained by Commission.) 22 23 24 25 9 1 (Public Meeting 07-03-21 was commenced 2 at 10:34 a.m.) 3 MR. NANCE: I'd like to read an opening 4 statement: 5 This is to advise the general public 6 that in compliance with Chapter 231 of the 7 Public Laws of 1975 entitled the "Open Public 8 Meetings Act," the New Jersey Casino Control 9 Commission on October 16th, 2006, filed with 10 the Secretary of State at the State House in 11 Trenton an annual meeting schedule. On October 12 16th, copies were mailed to the Press of 13 Atlantic City, the Newark Star Ledger. 14 Members of the press will be permitted 15 to take photographs, and we would ask that this 16 be done in a manner which is not disruptive or 17 distracting to the Commission. 18 The use of cellular telephones in the 19 public meeting room while the Commission is in 20 session is prohibited. 21 Any members of the public who wish to 22 address the Commission will be given the 23 opportunity to do so before the Commission 24 adjourns for the day. 25 Please stand for the Pledge of 10 1 Allegiance. 2 (The flag salute was recited.) 3 CHAIR KASSEKERT: Good morning. 4 MR. NANCE: Good morning. The matters 5 discussed in the closed session were: Employee 6 and enterprise license matters. 7 The Commissioners approved the March 8 7th, 2007, closed session minutes. 9 Litigation update regarding: State 10 versus David Wirtz; 11 Warren Lackland and Lewis Springer, Jr., 12 versus the State of New Jersey and the Casino 13 Control Commission; 14 Gloria Ford versus State of New Jersey, 15 Casino Control Commission, et al.; 16 Tyrone J. Floyd versus Casino Control 17 Commission and Sands Hotel Casino; 18 Husain versus the Casino Control 19 Commission, et al. 20 Personnel matters were discussed as 21 follows -- the following personnel matters 22 received requisite approvals subsequent to the 23 last public meeting: 24 Promotion of Babu Verghese to the 25 position of Information Technology Manager 11 ITEM NO. 1-2 1 within the Division of Administration; 2 The hiring of Robert Minor to the 3 position of MIS Analyst 4 within the Department 4 of Administration; 5 The promotion of Kathaleen Hamer to the 6 position of Program Manager within the Division 7 of Licensing; 8 And the transfer of Michelle Caplan to 9 the position of Program Compliance and Support 10 Specialist 1 within the Division of Licensing. 11 Item No. 1, ratification of the minutes 12 of March 7th, 2007, public meeeting. 13 COMMISSIONER SOMMELING: Move to 14 approve. 15 VICE CHAIR FEDORKO: Second. 16 CHAIR KASSEKERT: The motion has been 17 made and seconded. All in favor? 18 (Ayes.) 19 CHAIR KASSEKERT: Opposed? 20 (No response.) 21 CHAIR KASSEKERT: The motion carries. 22 MR. NANCE: Item No. 2, application for 23 employee and casino service industry licenses. 24 This agenda item will be entered as Exhibit 25 List 1 and 2. 12 ITEM NO. 2 1 Exhibit List 1 consists of 10 2 applications for initial and/or renewal of 3 casino key and casino employee licenses. 4 The Division has objected to licensure. 5 COMMISSIONER FRULIO: Motion to remand 6 for hearings. 7 VICE CHAIR FEDORKO: Second. 8 COMMISSIONER EPPS: Second. 9 CHAIR KASSEKERT: The motion has been 10 made and seconded. All in favor? 11 (Ayes.) 12 CHAIR KASSEKERT: Opposed? 13 (No response.) 14 CHAIR KASSEKERT: The motion carries. 15 MR. NANCE: Exhibit List 2 consists of 16 16 applications for initial and/or renewal of 17 casino key and casino employee licenses. 18 Staff and the Division have recommended 19 that these licenses be granted. 20 COMMISSIONER FRULIO: Motion to grant 21 applications. 22 VICE CHAIR FEDORKO: Second. 23 CHAIR KASSEKERT: The motion has been 24 made and seconded. All in favor? 25 (Ayes.) 13 ITEM NO. 2 1 CHAIR KASSEKERT: Opposed? 2 (No response.) 3 CHAIR KASSEKERT: The motion carries. 4 MR. NANCE: For consideration is the 5 qualification of Ramesh Srinivasand and Jeffrey 6 Connors in connection with the gaming related 7 casino industry license of Bally Gaming, Inc., 8 pusuant to NJAC 19:51-1.14B(h). 9 The staff and Division have recommended 10 that these applications be granted. 11 COMMISSIONER FRULIO: Motion to find 12 qualifier Ramesh Srinivasan and Jeffrey Connors 13 preliminary qualified in connection with the 14 gaming related casino service industry license 15 of Bally Gaming, Inc. 16 VICE CHAIR FEDORKO: Second. 17 CHAIR KASSEKERT: The motion has been 18 made and seconded. All in favor? 19 (Ayes.) 20 CHAIR KASSEKERT: Opposed? 21 (No response.) 22 CHAIR KASSEKERT: The motion carries. 23 MR. NANCE: For consideration are the 24 following applications for renewal of casino 25 key and for casino employee licenses and for 14 ITEM NO. 2 1 qualification: For Michael J. Flemming, Senior 2 Director for Bally's Park Place, Inc.; Charles 3 J. Guenther, Vice President of Corporate 4 Surveillance for RIH Resorts, LLC, Resorts 5 International Holdings, LLC, and Colony RIH 6 Holdings, Inc.; Philip E. Juliano, Senior Vice 7 President of Marketing- Regional for RIH 8 Acquisitions, NJ, LLC; Peter Lipuma, Jr., 9 Director of Surveillance for Trump Marina 10 Associates, LLC; Lawrence Masciocchi, Vice 11 President of Players Development Slots for 12 Trump Taj Mahal Associates, LLC; Laura Palazzo, 13 Vice President of Finance, Chief Financial 14 Officer for RIH Acquisitions, New Jersey, LLC; 15 Stephen Prakash, Vice President of Food and 16 Beverage for Boardwalk Regency Corporation; 17 Shepard Stein, Director of Security for Trump 18 Marina Associates, LLC; and Jules Vorndran, 19 Vice President of Customer Development for 20 Adamar of New Jersey, Inc. 21 Staff and the Division has recommended 22 that these applications be granted. 23 COMMISSIONER FRULIO: Motion to grant 24 key license renewals and for qualification. 25 VICE CHAIR FEDORKO: Seconded. 15 ITEM NO. 3 1 CHAIR KASSEKERT: Motion has been made 2 and seconded. This is a role call vote. 3 MR. NANCE: Commissioner Sommeling? 4 COMMISSIONER SOMMELING: Yes. 5 MR. NANCE: Commissioner Epps? 6 COMMISSIONER EPPS: Yes. 7 MR. NANCE: Commissioner Frulio? 8 COMMISSIONER FRULIO: Yes. 9 MR. NANCE: Vice Chair Fedorko? 10 VICE CHAIR FEDORKO: Yes. 11 MR. NANCE: Chair Kassekert? 12 CHAIR KASSEKERT: Yes. 13 MR. NANCE: The record will reflect that 14 the motion is unanimous. 15 Item No. 3, Petition No. 0530707 of 16 Adamar, New Jersey, Inc., is requesting the 17 issuance of a temporary casino key employee 18 license to Steve Luu pursuant to NJSA 19 5:12-89(e) and to permit him pursuant to NJAC 20 19:43-2.6 to assume the duties and exercise the 21 powers of the Vice President of Customer 22 Development without first having been found 23 qualified. 24 Staff and the Division have recommended 25 that these petitions be granted. 16 ITEM NO. 3 1 CHAIR KASSEKERT: Good morning, Miss 2 Hughes. 3 MS. HUGHES: Good morning, Madame Chair, 4 Commissioners. I just wanted to enter my 5 appearance on behalf of Tropicana Casino and 6 Hotel. And if you have any questions, I'm here 7 to answer them. 8 CHAIR KASSEKERT: Thank you. 9 Any questions? 10 COMMISSIONER SOMMELING: No questions, 11 Madame Chair. 12 COMMISSIONER FRULIO: Motion to grant 13 temporary key license and qualification. 14 VICE CHAIR FEDORKO: Second. 15 CHAIR KASSEKERT: Motion is made and 16 seconded. This is a roll call vote. 17 MR. NANCE: Commissioner Sommeling? 18 COMMISSIONER SOMMELING: Yes. 19 MR. NANCE: Commissioner Epps? 20 COMMISSIONER EPPS: Yes. 21 MR. NANCE: Commissioner Frulio? 22 COMMISSIONER FRULIO: Yes. 23 MR. NANCE: Vice Chair Fedorko? 24 VICE CHAIR FEDORKO: Yes. 25 MR. NANCE: Chair Kassekert? 17 ITEM NO. 4 1 CHAIR KASSEKERT: Yes. 2 MR. NANCE: The record will reflect that 3 the motion is unanimous. 4 Item No. 4, Petition No. 0580711 of 5 Harrah's Operating Company, Inc., Marina 6 Associates, Atlantic City, Showboat, Inc., 7 Bally's Park Place, Inc., and Boardwalk Regency 8 Corp. is requesting the issuance of a temporary 9 casino key employee license to Jennifer 10 Weissman pursuant to NJSA 5:12-89(e) and to 11 permit her pursuant to NJAC 19:43-2.6 to assume 12 the duties and exercise the powers of the Vice 13 President of Marketing-Region for Atlantic City 14 operations without first having been found 15 qualification. 16 MS. WOSNACK: Good morning. Karen 17 Wosnack here on behalf of Harrah's. I have 18 Miss Weissman with me if anybody has any 19 questions. 20 Other than that, I just request that you 21 grant the relief requested. 22 CHAIR KASSEKERT: Thank you. 23 Any questions? 24 COMMISSIONER SOMMELING: No questions, 25 Madame Chair. 18 ITEM NO. 5 1 COMMISSIONER FRULIO: Motion to grant 2 temporary key license and qualification. 3 VICE CHAIR FEDORKO: Second. 4 CHAIR KASSEKERT: Motion is made and 5 seconded. This is a roll call vote. 6 MR. NANCE: Commissioner Sommeling? 7 COMMISSIONER SOMMELING: Yes. 8 MR. NANCE: Commissioner Epps? 9 COMMISSIONER EPPS: Yes. 10 MR. NANCE: Commissioner Frulio? 11 COMMISSIONER FRULIO: Yes. 12 MR. NANCE: Vice Chair Fedorko? 13 VICE CHAIR FEDORKO: Yes. 14 MR. NANCE: Chair Kassekert? 15 CHAIR KASSEKERT: Yes. 16 MR. NANCE: The record will reflect that 17 the motion is unanimous. 18 MS. WOZNIAK: Thank you. 19 CHAIR KASSEKERT: Thank you. 20 MR. NANCE: Item No. 5, stipulations of 21 settlement and consent agreements. When I call 22 your name, please come forward, stand behind 23 this middle table, spreading across the room so 24 that you may be seen: 25 Thelma Barley, Dana Pettway, Bin Wang, 19 ITEM NO. 5 1 Bryan Dennis, Elwood Caban, and Warren White. 2 CHAIR KASSEKERT: Thank you. Has 3 erveryone whose name has been called come 4 forward, please? 5 You can just stand right where you're 6 standing, sir. 7 I'm going to ask if you each state your 8 name for the record, starting with you, sir. 9 MR. WHITE: Warren White. 10 MR. DENNIS: Bryan Dennis. 11 MR. CABAN: Elwood Caban. 12 MR. WANG: Bin Wang. 13 CHAIR KASSEKERT: Okay. In a moment we 14 are going to vote on the stipulations which 15 you've agreed to with the Division of Gaming 16 Enforcement. I'm going to ask at this point if 17 any of you wish to be heard on your matter. 18 You don't have to say anything if you don't 19 want to. 20 Does anyone wish to be heard. 21 FROM THE FLOOR: No. 22 CHAIR KASSEKERT: Okay. Mr. Biscielgia? 23 MR. BISCIEGLIA: Thank you, Chair. 24 The Division has nothing further, and I 25 respectfully ask that the stipulations be 20 ITEM NO. 6 1 accepted. 2 Thank you. 3 CHAIR KASSEKERT: Thank you. 4 Any questions? 5 COMMISSIONER SOMMELING: Move to approve 6 the stipulations, Madame Chair. 7 COMMISSIONER EPPS: Second. 8 CHAIR KASSEKERT: The motion has been 9 made and seconded. All in favor? 10 (Ayes.) 11 CHAIR KASSEKERT: Opposed? 12 (No response.) 13 CHAIR KASSEKERT: The motion carries. 14 Thank you very much for coming. Good 15 luck. 16 FROM THE FLOOR: Thank you. 17 MR. NANCE: Item No. 6, state versus 18 Boardwalk Regency Corp., et al. 19 Mr. Corbett? 20 MR. CORBETT: Chair, Commissioners, this 21 matter involves the individual Respondent John 22 Paul Arambulo. 23 Mr. Zarrillo represents the Division. 24 Is Mr. Arambulo or anyone representing him in 25 the meeting room today? 21 ITEM NO. 6 1 I don't see him here. 2 CHAIR KASSEKERT: Okay. 3 MR. ZARRILLO: Good morning, Chair, 4 Commissioners. 5 CHAIR KASSEKERT: Good morning. 6 MR. ZARRILLO: We just ask that you 7 adopt the stipulation of settlement with Mr. 8 Arambulo. This was a matter that was tried at 9 length before Commissioner Fedorko, and our 10 determination was this was a reasonable 11 disposition for this young man. 12 CHAIR KASSEKERT: Thank you. 13 Any questions? 14 COMMISSIONER SOMMELING: Madame Chair, 15 move to approve the stipulation and find Mr. 16 Arambulo in violation of NJAC 19:45-1.10 and 17 1.11 regarding improper surveillance activity 18 and suspend his casino employee license for 19 five working days. 20 CHAIR KASSEKERT: Is there a second? 21 COMMISSIONER FRULIO: Second. 22 CHAIR KASSEKERT: The motion has been 23 made and seconded. All in favor? 24 (Ayes.) 25 CHAIR KASSEKERT: Opposed? 22 ITEM NO. 7 1 (No response.) 2 CHAIR KASSEKERT: The motion carries. 3 MR. ZARILLO: Thank you. 4 MR. NANCE: Item No. 7, State versus 5 Boardwalk Regency Corp., et al. 6 Mr. Corbett? 7 MR. CORBETT: Chair, Commissioners, in 8 this case, the individual did not request a 9 hearing, and he's in default. 10 Staff is recommending that there be a 11 fine imposed upon him $500, to be placed on the 12 restricted list, and if he comes back into the 13 industry again, he'll have to deal with that 14 penalty. 15 CHAIR KASSEKERT: Thank you. 16 Mr. Zarrillo? 17 MR. ZARRILLO: We're in accord with that 18 recommendation. 19 CHAIR KASSEKERT: Thank you. 20 Any questions? 21 COMMISSIONER SOMMELING: No questions, 22 Madame Chair. 23 VICE CHAIR FEDORKO: Motion to impose a 24 civil penalty of $500 against Mr. Smith for 25 violation of NJAC 19:45-1.10 and 1.11 regarding 23 ITEM NO. 8 1 improper surveillance activity. 2 COMMISSIONER FRULIO: Second. 3 CHAIR KASSEKERT: The motion has been 4 made and seconded. All in favor? 5 (Ayes.) 6 CHAIR KASSEKERT: Opposed? 7 (No response.) 8 CHAIR KASSEKERT: The motion carries. 9 MR. NANCE: Item -- 10 MR. ZARRILLO: Thank you. 11 MR. NANCE: -- No. 8, stipulation of 12 settlement in State versus Felix E. Vazquez. 13 Mr. Corbett? 14 MR. CORBETT: Is Felix Vazquez present 15 in the public meeting room today or anyone 16 representing him? 17 I don't see him, either, Chair. 18 This stipulation calls for a penalty of 19 $250 for violation of section 100n of the 20 Casino Control Act. 21 Mr. Biscielgia is here for the Division. 22 CHAIR KASSEKERT: Thank you. 23 Mr. Biscielgia? 24 MR. BISCIEGLIA: Thank you, Chair. 25 The Division has nothing further to add 24 ITEM NO. 9 1 in this matter. 2 Thank you. 3 CHAIR KASSEKERT: Thank you. Any 4 questions? 5 COMMISSIONER SOMMELING: No questions, 6 Madame Chair. 7 COMMISSIONER EPPS: Madame Chair, I move 8 we approve stipulations and impose a civil 9 penalty of $250 for violation of section 100n 10 of the Casino Control Act. 11 COMMISSIONER SOMMELING: Second. 12 CHAIR KASSEKERT: The motion has been 13 made and seconded. All in favor? 14 (Ayes.) 15 CHAIR KASSEKERT: Opposed? 16 (No response.) 17 CHAIR KASSEKERT: The motion carries. 18 MR. NANCE: Item No. 9, initial decision 19 and renewal application of Glenford Cunningham. 20 Mr. Corbett? 21 MR. CORBETT: Chair, Commissioners, I 22 see Mr. Cunningham here in the public meeting 23 room. Would you come forward, please, sir? 24 Have a seat. 25 The initial decision of Commissioner 25 ITEM NO. 9 1 Frulio finds that the Applicant need not make 2 payments to the Bureau of Public Debt in order 3 to establish his financial qualifications and 4 grants the application for renewal of the 5 casino key employee license. 6 Mr. Biscielgia is here for the Division. 7 CHAIR KASSEKERT: Thank you. 8 Mr. Biscielgia? 9 MR. BISCIEGLIA: Thank you, Chair. 10 I believe there was statement that is 11 going to be read -- 12 CHAIR KASSEKERT: Yes. I will do that. 13 Yeah, 14 MR. BISCIEGLIA: Okay. Once that is 15 done, the Division did not file any exceptions 16 to this matter and does not object to the 17 adoption of the initial decision taken in 18 conjunction with the language that will be 19 added on the record. 20 CHAIR KASSEKERT: In the statement. 21 Thank you. 22 MR. BISCIEGLIA: Thank you. 23 CHAIR KASSEKERT: Mr. Cunningham, 24 anything to say today? 25 Okay. Any questions? 26 ITEM NO. 9 1 COMMISSIONER SOMMELING: No questions, 2 Madame Chair. 3 CHAIR KASSEKERT: I have a statement I 4 want to put on the record regarding this 5 matter. 6 In my judgment, this initial decision 7 should be adopted. However, I believe there 8 needs to be some clarification on the record 9 regarding our policy in resolving cases of this 10 nature. This case involves the filing of 11 improper but not fraudulent federal tax 12 returns. The Division alleged that the returns 13 were improper because the Applicant could not 14 substantiate all of the charitable 15 contributions claimed as itemized deductions. 16 The initial decision concludes that an 17 applicant need not make a payment in lieu of 18 taxes to the Bureau of Public Debt for tax 19 years beyond the IRS statute of limitations. 20 This is so because, according to the IRS rules, 21 a taxpayer cannot amend a tax return older than 22 three years. Thus, there is no legal 23 obligation or debt owed to the IRS for these 24 tax years beyond the statute of limitations. 25 Therefore, future stipulations should not 27 ITEM NO. 9 1 require payment to the Bureau of Public Debt or 2 any charitable organization. 3 The filing of improper but non 4 fruaudlent tax returns which are beyond the 5 statute of limitations does not adversely 6 impact an applicant's financial qualifications 7 so long as the applicant cures by amending the 8 tax returns that fall within the three-year 9 statute of limitations and addressing any 10 additional tax due by lump sum payment or 11 payment plan. The filing of deliberately 12 fraudulent tax returns, however, would be 13 treated differently as they impact on the 14 applicant's good character, honesty, integrity, 15 and financial integrity. This case before us 16 today does not involve fraudulent tax returns. 17 And, accordingly, I will move that we 18 adopt the initial decision and grant Mr. 19 Cunningham's casino key employee license 20 renewal. 21 Is there a second? 22 COMMISSIONER EPPS: Second. 23 VICE CHAIR FEDORKO: Second. 24 CHAIR KASSEKERT: The motion has been 25 made and seconded. All in favor? 28 ITEM NO. 10 1 (Ayes.) 2 CHAIR KASSEKERT: Opposed? 3 (No response.) 4 CHAIR KASSEKERT: The motion carries. 5 Thank you for coming. Good luck. 6 MR. NANCE: Item No. 10, petition of 7 Daryl Brown for early reapplication, 8 Miss Frigen? 9 MS. FRIGEN: Good morning, Madame Chair, 10 Commissioners. 11 Mr. Brown is present. I would ask him 12 to come forward. Have a seat at the table, Mr. 13 Brown. 14 For your consideration is Mr. Brown's 15 petition seeking permission to obtain 16 noncredential hotel employment early. 17 The Division has interposed no objection 18 to his petition. 19 CHAIR KASSEKERT: Thank you. 20 Good morning, Mr. Brown. 21 MR. BROWN: Good morning. 22 CHAIR KASSEKERT: Is there anything 23 you'd like to say today? 24 MR. BROWN: No. 25 CHAIR KASSEKERT: Okay. Mr. Biscieglia? 29 ITEM NO. 11 1 MR. BISCIEGLIA: The Division has 2 opposed no objection to this petition. 3 Thank you. 4 CHAIR KASSEKERT: Thank you. 5 Any questions? 6 COMMISSIONER EPPS: Motion to grant Mr. 7 Brown permission to work as a noncredential 8 hotel employee. 9 COMMISSIONER SOMMELING: Second. 10 COMMISSIONER FRULIO: Second. 11 CHAIR KASSEKERT: The motion has been 12 made and seconded. All in favor? 13 (Ayes.) 14 CHAIR KASSEKERT: Opposed? 15 (No response.) 16 CHAIR KASSEKERT: The motion carries. 17 Thank you for coming. Good luck. 18 MR. BROWN: Thank you. 19 MR. NANCE: Item No. 11, application for 20 suspension of Sharon D. Ponzetti. 21 Miss Frigen? 22 MS. FRIGEN: Before we hear from the 23 Division, let me ask whether Ms. Ponzetti is 24 present or represented here today? 25 Apparently she is not here. 30 ITEM NO. 11 1 CHAIR KASSEKERT: Mr. Biscielgia, you 2 may proceed. 3 MR. BISCIEGLIA: Thank you. 4 The Division would just like to add that 5 on February 7th, 2007, the Respondent was 6 indicted for one count of theft by deception, 7 third degree. Respondent failed to attend a 8 pre-arraignment interview on March 8th, 2007. 9 A bench warrant was issued for her arrest. The 10 warrant has since been executed and she was 11 picked up on the warrant. 12 Thank you. 13 CHAIR KASSEKERT: Thank you. 14 Any questions? 15 COMMISSIONER SOMMELING: No questions, 16 Madame Chair. 17 VICE CHAIR FEDORKO: Motion to grant the 18 Division's application to suspend Miss 19 Ponzetti's casino employee license. 20 COMMISSIONER SOMMELING: Second. 21 COMMISSIONER FRULIO: Second. 22 CHAIR KASSEKERT: The motion has been 23 made and seconded. All in favor? 24 (Ayes.) 25 CHAIR KASSEKERT: Opposed? 31 ITEM NO. 12 1 (No response.) 2 CHAIR KASSEKERT: The motion carries. 3 MR. NANCE: Item No. 12, preliminary 4 hearing concerning the exclusion of Louis 5 Colavecchio. 6 Miss Frigen? 7 MS. FRIGEN: Let me ask whether Mr. 8 Colavecchio is present or represented here 9 today? 10 Apparently not. 11 I would ask the Division to provide you 12 with the basis for which it's seeking 13 preliminary exclusion. 14 CHAIR KASSEKERT: Thank you. 15 Mr. Ficchi, good morning. 16 MR. FICCHI: Thank you, Chair, 17 Commissioner. 18 The Division has filed on February 15th 19 and attached documentation, and we will just 20 rely on the papers as far as that goes. This 21 person was arrested in November of 2006 for 22 forgery and the other crimes that were 23 enumerated on the complaint. And on that basis 24 and for the other reasons that were stated in 25 the complaint, we ask for Mr. Colavecchio be 32 ITEM NO. 13 1 put on the exclusion list. 2 CHAIR KASSEKERT: Thank you. 3 Any questions? 4 COMMISSIONER SOMMELING: No questions, 5 Madame Chair. 6 COMMISSIONER EPPS: Madame Chair, I move 7 that we grant the Division's request for a 8 preliminary order placing the name of Louis 9 Colavecchio on the exclusion list pending final 10 action on the related petition for final 11 exclusion. 12 COMMISSIONER SOMMELING: Second. 13 CHAIR KASSEKERT: The motion has been 14 made and seconded. All in favor? 15 (Ayes.) 16 CHAIR KASSEKERT: Opposed? 17 (No response.) 18 CHAIR KASSEKERT: The motion carries. 19 MR. FICCHI: Thank you. 20 MR. NANCE: Item No 13, consideration of 21 the qualification of Eric L. Hausler to serve 22 as Senior Vice President of Development for 23 Trump Entertainment Resorts, Inc., holding 24 company of casino licensee Trump Marina 25 Associates, LLC, Trump Plaza Associates, LLC, 33 ITEM NO. 13 1 and Trump Taj Mahal Associates, LLC. 2 Miss Frank? 3 MS. FRANK: Good morning, Chair and 4 Commissioners. 5 Eric Hausler received temporary 6 equalification from the Commission on November 7 8th, 2006. A draft resolution on his plenary 8 qualification has been shared with the parties. 9 While Trump's counsel is not here today, 10 Mr. Fogarty is here for the Division, and I'd 11 like to note that Mr. Hausler himself is in the 12 meeting room. 13 CHAIR KASSEKERT: We had a good lawyer 14 up here. 15 COMMISSIONER EPPS: Good move. 16 CHAIR KASSEKERT: Oh, good move. Okay. 17 Mr. Fogarty? 18 MR. FOGARTY: Good morning. 19 We filed our letter report with you on 20 Mr. Hausler's personal information dated March 21 2 of this year, and we recommended that you 22 plenary qualify him for the position of Vice 23 President of Development with Trump 24 Entertainment Resorts. 25 CHAIR KASSEKERT: No questions in your 34 ITEM NO. 13 1 mind whatsoever? 2 MR. FOGARTY: None at all. 3 CHAIR KASSEKERT: Very good. 4 MR. FOGARTY: Absolutely none. 5 CHAIR KASSEKERT: Let me ask if there 6 are any other questions? 7 COMMISSIONER SOMMELING: No questions, 8 Madame Chair. 9 MR. FOGARTY: I've seen the draft 10 resolution. 11 CHAIR KASSEKERT: Oh, I'm sorry. 12 COMMISSIONER FRULIO: Move we adopt the 13 draft resolution and find Eric L. Hausler 14 qualified to serve as Senior Vice President of 15 Development for Trump Entertainment Resorts, 16 Inc. 17 CHAIR KASSEKERT: Is there a second? 18 COMMISSIONER SOMMELING: Second. 19 CHAIR KASSEKERT: Okay. Very good. 20 Motion is made and seconded. This is a roll 21 call vote. 22 MR. NANCE: Commissioner Sommeling? 23 COMMISSIONER SOMMELING: Yes. 24 MR. NANCE: Commissioner Epps? 25 COMMISSIONER EPPS: Yes. 35 ITEM NO. 14 1 MR. NANCE: Commissioner Frulio? 2 COMMISSIONER FRULIO: Yes. 3 MR. NANCE: Vice Chair Fedorko? 4 VICE CHAIR FEDORKO: Okay. 5 MR. NANCE: Chair Kassekert? 6 CHAIR KASSEKERT: Yes. 7 MR. NANCE: The record will reflect that 8 the motion is unanimous. 9 CHAIR KASSEKERT: Congratulations, Eric. 10 It just goes to show you that you can come out 11 of the Casino Control Commission and do -- and 12 make good. 13 MR. HAUSLER: Happy to be back. 14 MR. NANCE: Item No. 14, petition of 15 Harrah's Operating Company, Inc., Marina 16 Associates, Atlantic City Showboat, Inc., 17 Bally's Park Place, Inc., and Boardwalk Regency 18 Corp. for the temporary qualification of Mark 19 Fetah to serve as Vice President of Design and 20 Construction for Eastern Division of HOC 21 pending plenary qualification. 22 Miss Frank? 23 MS. FRANK: A draft resolution on Mr. 24 Fetah's temporary qualification has been shared 25 with the parties. 36 ITEM NO. 14 1 Miss Wosnack is here for Harrah's, and 2 Mr. Fogarty and Miss Flaherty are here for the 3 Division. 4 CHAIR KASSEKERT: Thank you, Miss 5 Wozniak? 6 MS. WOSNACK: Good morning. Karen 7 Wosnack again. 8 We have nothing to add. We've reviewed 9 the draft resolution and ask that you grant the 10 relief requested. 11 CHAIR KASSEKERT: Thank you. 12 Miss Flaherty? 13 MS. FLAHERTY: Yes, Chair and 14 Commissioners. 15 We've filed a report, and with respect 16 to the filing of the full PHD within a period, 17 subject to that, we have no objections. 18 CHAIR KASSEKERT: Thank you. 19 Any questions? 20 COMMISSIONER SOMMELING: No questions, 21 Madame Chair. 22 VICE CHAIR FEDORKO: Motion to adopt the 23 draft resolution and authorize Mark Fetah on a 24 temporary basis prior to his plenary 25 qualification to assume the duties and exercise 37 ITEM NO. 15 1 the powers of Vice President of Design and 2 Construction for the Eastern Division of HOC 3 subject to the conditions contained in NJAC 4 19:43-2.7; which among other things require 5 that he file a personal history disclosure form 6 MJ and NJ supplemental by April 5, 2007. 7 COMMISSIONER FRULIO: Second. 8 COMMISSIONER EPPS: Second. 9 CHAIR KASSEKERT: Motion had been made 10 and seconded. This is a roll call vote. 11 MR. NANCE: Commissioner Sommeling? 12 COMMISSIONER SOMMELING: Yes. 13 MR. NANCE: Commissioner Epps? 14 COMMISSIONER EPPS: Yes. 15 MR. NANCE: Commissioner Frulio? 16 COMMISSIONER FRULIO: Yes. 17 MR. NANCE: Vice Chair Fedorko? 18 VICE CHAIR FEDORKO: Yes. 19 MR. NANCE: Chair Kassekert? 20 CHAIR KASSEKERT: Yes. 21 MR. NANCE: The record will reflect that 22 the motion is unanimous. 23 MS. WOZNIAK: Thank you very much. 24 CHAIR KASSEKERT: You're welcome. 25 MR. NANCE: Item No. 15, petition of MGM 38 ITEM NO. 15 1 MIRAGE for the temporary qualification of Kenny 2 C. Guinn as a proposed Director of the Board of 3 Directors of MGM MIRAGE in connection with the 4 casino license of Marina District Development 5 Company, LLC. 6 Miss Frank? 7 MS. FRANK: A draft resolution on Mr. 8 Guinn's temporary qualification has been 9 distributed to the parties. 10 Miss Jones is here for MGM MIRAGE, and 11 Mr. Fogarty for the Division. 12 CHAIR KASSEKERT: Good morning, Miss 13 Jones. 14 MS. JONES: Good morning, Chair, 15 Commissioners. 16 We have reviewed the draft resolution 17 and urge you to adopt it. 18 Thank you. 19 CHAIR KASSEKERT: Thank you. 20 Mr. Fogarty? 21 MR. FOGARTY: Yes. We sent a letter to 22 you all dated March 8th, having no objection to 23 Mr. Guinn being qualified pending a follow-up 24 review for the position of MGM MIRAGE. Mr. 25 Guinn, as you may or may not know, is the 39 ITEM NO. 15 1 former government of the state of Nevada. It's 2 always nice to get someone from Nevada in our 3 system. 4 And he does apparently -- I mean no 5 disrespect. He likes to be called Kenny Guinn, 6 not Kenneth. So we recommend that you 7 temporary qualify him for his position with MGM 8 MIRAGE. 9 CHAIR KASSEKERT: Thank you. 10 Any questions? 11 COMMISSIONER SOMMELING: No questions, 12 Madame Chair. 13 COMMISSIONER FRULIO: Move to adopt the 14 draft resolution and authorize Kenny Guinn on a 15 temporary basis prior to his plenary 16 qualification to assume the duties and exercise 17 the powers of a member of the Board of 18 Directors for MGM MIRAGE subject to the 19 conditions contained in NJAC 19:43-2.7, which 20 among other things, require that he file a 21 personal history disclosure form-MJ and NJ 22 Supplemental by April 5, 2007. 23 VICE CHAIR FEDORKO: Second. 24 CHAIR KASSEKERT: Motion is made and 25 seconded. This is a roll call vote. 40 ITEM NO. 16 1 MR. NANCE: Commissioner Sommeling? 2 COMMISSIONER SOMMELING: Yes. 3 MR. NANCE: Commissioner Epps? 4 COMMISSIONER EPPS: Yes. 5 MR. NANCE: Commissioner Frulio? 6 COMMISSIONER FRULIO: Yes. 7 MR. NANCE: Vice Chair Fedorko? 8 VICE CHAIR FEDORKO: Yes. 9 MR. NANCE: Chair Kassekert? 10 CHAIR KASSEKERT: Yes. 11 MR. NANCE: The motion will record will 12 reflect that the motion is unanimous. 13 CHAIR KASSEKERT: Thank you. 14 MS. JONES: Thank you. 15 MR. NANCE: Item No. 16, proposed 16 readoption of NJAC 19:53. 17 Miss Frank? 18 MS. FRANK: Chapter 53, Equal Employment 19 in Business Opportunity, is scheduled to expire 20 on May 24th of this year. Upon filing a notice 21 of proposed readoption with the Office of 22 Administrative Law, the expiration date will be 23 extended six months to November of this year. 24 These rules are before you today for 25 approval of the notice of proposal for 41 ITEM NO. 17 1 publication in the New Jersey Register. 2 CHAIR KASSEKERT: Thank you. 3 Any questions? 4 COMMISSIONER SOMMELING: Move to readopt 5 for publication without amendment. 6 VICE CHAIR FEDORKO: Sceond. 7 COMMISSIONER EPPS: Go ahead. 8 CHAIR KASSEKERT: The motion has been 9 made and seconded. All in favor? 10 (Ayes.) 11 CHAIR KASSEKERT: Opposed? 12 (No response.) 13 CHAIR KASSEKERT: The motion carries. 14 MS. FRANK: Thank you. 15 MR. NANCE: Item No. 17, proposed 16 adoption of amendments and proposed new rules 17 concerning the Express Jackpots, Gaming Voucher 18 Redemption Machines, and Automated Jackpots. 19 Mr. Kell? 20 MR. KELL: Good morning, Madame Chair, 21 Commissioners. 22 Before you are proposed amendments and 23 the new rules authorizing express jackpots, 24 gaming voucher redemption machines, and 25 automated jackpot payout machines. This 42 ITEM NO. 17 1 proposal was published and temporarily adopted 2 on September 20, 2006. 3 The only comments received were from 4 IGT. For the reasons set forth in the proposed 5 notice of adoption, the staff recommends that 6 you reject one comment relating to definitions, 7 accept one comment in part relating to 8 firewalls and provide requested clarification 9 as to the other two comments. 10 Accordingly, we recommend that you adopt 11 the amendments as published with one change not 12 requiring additional public notice or comments. 13 CHAIR KASSEKERT: Thank you. 14 Any questions? 15 COMMISSIONER SOMMELING: No questions, 16 Madame Chair. 17 COMMISSIONER EPPS: Madame Chair, I move 18 that we adopt the amendment and new rules as 19 published with minor substantive changes not 20 requiring additional public notice or comment. 21 COMMISSIONER SOMMELING: Second. 22 CHAIR KASSEKERT: The motion has been 23 made and seconded. All in favor? 24 (Ayes.) 25 CHAIR KASSEKERT: Opposed? 43 ITEM NO. 18 1 (No response.) 2 CHAIR KASSEKERT: The motion carries. 3 MR. NANCE: Item No. 18, proposed 4 adoption of amendments concerning slot meter -- 5 slot machine meters. 6 Mr. Kell? 7 MR. KELL: Before you are proposed 8 amendments requiring casino licensees to have 9 an approved computer system to read the meters 10 on slot macines. This proposal was published 11 and temporarily adopted on July 19th, 2006. 12 The only comment received was from 13 Borgata supporting the amendments and also 14 requesting a similar amendment with respect to 15 reading the in meter on progressive slot 16 machines. 17 Staff recommends that you accept 18 Borgata's comment and adopt these amendments 19 with this one change not requiring additional 20 public notice or comment. 21 CHAIR KASSEKERT: Thank you. 22 Any questions? 23 COMMISSIONER SOMMELING: No questions, 24 Madame Chair. 25 VICE CHAIR FEDORKO: Notion to adopt the 44 ITEM NO. 18-20 1 amendments with minor substantive changes and 2 not requiring additional public notice or 3 comment. 4 COMMISSIONER FRULIO: Second. 5 CHAIR KASSEKERT: The motion has been 6 made and seconded. All in favor? 7 (Ayes.) 8 CHAIR KASSEKERT: Opposed? 9 (No response.) 10 CHAIR KASSEKERT: The motion carries. 11 MR. KELL: Thank you. 12 MR. NANCE: Item 19, has been adjourned. 13 Item 20, petition of Taj Mahal 14 Associates, LLC, to amend NJAC 19:46-1.18(g). 15 Mr. Mamolen? 16 MR. MAMOLEN: Good morning, Madame Chair 17 and Commissioners. 18 This matter is before you, and the 19 petition of Taj Mahal Associates. I believe 20 you're all familiar with it. Essentially, the 21 current usage of cards on an open gaming table 22 for most games, the general rules 24 hours, and 23 Taj Mahal seeks to expand that to up to 48 24 hours. Particularly as for continuous 25 operation and use tables. 45 ITEM NO. 20 1 I noticed Mr. Leonne, the casino 2 manager, in the audience. I gather he's here 3 should you have any questions that aren't 4 addressed. 5 Mr. Ficchi is here for the Division for 6 counsel -- counsel. 7 CHAIR KASSEKERT: Thank you. Sir, you 8 are just here in case there are any questions? 9 MR. LEONNE: Yes, ma'am. 10 CHAIR KASSEKERT: Very good. 11 Mr. Ficchi? 12 MR. FICCHI: Very good, Madame Chair, 13 Commissioners. 14 The Division sent its letter on November 15 20th regarding the seven-day period, and we're 16 not comfortable to extending to the extent, 17 but the 48 hours the Division, again, has no 18 objection provided that there was the taping of 19 the pit stand if there's no personnel in the 20 pit, if the pit's closed. And also if they 21 follow procedures regarding, you know, counting 22 the cards and putting them back into the packs, 23 and so forth. And putting them, you know, 24 right in the pit stand, you know, and locking 25 that. We had we would have no objection to the 46 ITEM NO. 21 1 48 hours. 2 CHAIR KASSEKERT: Thank you. 3 Any questions? 4 COMMISSIONER SOMMELING: No questions, 5 Madame Chair. 6 COMMISSIONER FRULIO: Move to grant the 7 petition and direct staff to prepare an 8 amendment for temporary adoption at the April 9 4, 2007, public meeting. 10 CHAIR KASSEKERT: Is there a second? 11 VICE CHAIR FEDORKO: Second. 12 COMMISSIONER EPPS: Second. 13 CHAIR KASSEKERT: The motion has been 14 made and seconded. All in favor? 15 (Ayes.) 16 CHAIR KASSEKERT: Opposed? 17 (No response.) 18 CHAIR KASSEKERT: The motion carries. 19 Thank you. 20 MR. LEONNE: Thank you. 21 MR. FICCHI: Okay. Thank you. 22 MR. NANCE: Item No. 21, proposed 23 adoption of amendment to NJAC 19:47-14.15. 24 Mr. Mamolen? 25 MR. MAMOLEN: This matter is before you 47 ITEM NO. 22 1 for final adoption, and it would give casino 2 licensees an option or irregularity to deal 3 with the instance of when a card is dealt 4 faceup in the authorized games of Hold'em Poker 5 and Omaha. 6 It doesn't mean that the casinos, of 7 course, have to do this option. What it would 8 do is allow these casinos to essentially use 9 the card that's dealt faceup as a burn card. 10 CHAIR KASSEKERT: Thank you. 11 Any questions? 12 COMMISSIONER SOMMELING: No questions, 13 Madame Chair.. 14 COMMISSIONER EPPS: Move that we adopt 15 this as published. 16 VICE CHAIR FEDORKO: Second. 17 CHAIR KASSEKERT: The motion has been 18 made and seconded. All in favor? 19 (Ayes.) 20 CHAIR KASSEKERT: Opposed? 21 (No response.) 22 CHAIR KASSEKERT: The motion carries. 23 MR. NANCE: Item No. 22, proposed 24 adoption of amendments to NJAC 19:47-20.9 and 25 20.10. 48 ITEM NO. 22 1 Mr. Mamolen? 2 MR. MAMOLEN: This is another optional 3 games protection measure that the casinos can 4 use for the authorized game of three-card poker 5 when they're dealing cards in three-card 6 stacks. It would allow the casinos to have 7 their dealers keep the stacks in the shuffler, 8 essentially, until all the decisions are 9 complete so as to inhibit any kind of viewing 10 of a marked card, on the top cards 11 particularly, as they are leaving the shuffler. 12 CHAIR KASSEKERT: Thank you. 13 Any questions? 14 COMMISSIONER SOMMELING: No questions, 15 Madame Chair. 16 VICE CHAIR FEDORKO: Motion to adopt as 17 published. 18 COMMISSIONER FRULIO: Second. 19 COMMISSIONER EPPS: Second. 20 CHAIR KASSEKERT: The motion has been 21 made and seconded. All in favor? 22 (Ayes.) 23 CHAIR KASSEKERT: Opposed? 24 (No response.) 25 CHAIR KASSEKERT: The motion carries. 49 ITEM NO. 23-25 1 MR. NANCE: Item No. 23, proposed 2 publication of amendments and new rules for 3 Asia Poker. 4 Mr. Mamolen? 5 MR. MAMOLEN: This matter is before you 6 for publication at this point. As you know, 7 the game has been offered for some time now at 8 Borgata and most recently it started up at 9 Caesar's. 10 CHAIR KASSEKERT: Any questions? 11 COMMISSIONER SOMMELING: No questions, 12 Madame Chair. 13 COMMISSIONER FRULIO: Move to adopt for 14 publication. 15 VICE CHAIR FEDORKO: Second. 16 CHAIR KASSEKERT: The motion has been 17 made and seconded. All in favor? 18 (Ayes.) 19 CHAIR KASSEKERT: Opposed? 20 (No response.) 21 CHAIR KASSEKERT: The motion carries. 22 Thank you. 23 MR. NANCE: Item 24 has been adjourn. 24 Item 25, petition of RIH Acquisitions 25 New Jersey, LLC, for permission to transfer 50 ITEM NO. 25 1 securities and for approval of Financial 2 Sources, and for other relief, and joint 3 petition for RIH Acquisitions New Jersey, LLC, 4 and Resorts International Hotel, Inc., for 5 approval to allow Colony Capital Acquisitions, 6 LLC, to withdraw as a limited partner and for 7 other relief. 8 Mr. DiGiacomo? 9 MR. DiGIACOMO: Madame Chair, 10 Commissioners, good morning. 11 A brief recess may be in order at this 12 point. 13 CHAIR KASSEKERT: Okay. We'll go off 14 the record for a moment. Thank you. 15 MR. DiGIACOMO: Madame Chair, on the 16 other hand, I don't know if you want to take 17 public participation at this point? Or -- it's 18 your discretion. 19 CHAIR KASSEKERT: Yeah. I don't see 20 anybody. 21 Is there anybody from the public that 22 wishes to be heard? 23 I don't see anyone so I'll check again, 24 though, after we -- yeah. 25 (A recess was taken from 11:04 to 11:33 51 ITEM NO. 25 1 a.m.) 2 CHAIR KASSEKERT: We'll go back on the 3 record. 4 CHAIR KASSEKERT: No more surprises, 5 Daryl. 6 MR. DiGIACOMO: Madame Chair, 7 Commissioners. Good morning. 8 I believe Mr. Nance has already called 9 the item. We're on Item No. 25, if I'm not 10 mistaken. 11 MR. NANCE: Twenty-five; correct. 12 MR. DiGIACOMO: Mr. Gilbert Brooks and 13 Miss Patricia Wild are here for the parties, 14 and Mary Jo Flaherty from the Division of 15 Gaming Enforcement. 16 I've shared with counsel for the parties 17 a copy of the draft resolution. There are in 18 three instances changes to include references 19 to section 84(b) of the Casino Control Act. 20 Counsel, I think, is prepared to include those 21 in. And I think that maybe the Commissioners 22 are aware of where they may appear in the draft 23 resolution. Specifically they were referred 24 to, the findings as to three entities, Colony 25 Capital VII, Capital Management Partners VII, 52 ITEM NO. 25 1 and Barrack Colony VII, LLC. 2 With those changes and modifications, I 3 believe the counsel for the parties are 4 prepared to accept the form and content of the 5 resolution. 6 CHAIR KASSEKERT: Thank you. 7 Mr. Brooks? 8 MR. BROOKS: Thank you, Madame Chair. 9 I will indicate for the record that we 10 are prepared to accept the resolutions with the 11 changes outlined by Mr. DiGiacomo. I would 12 also point out for the Commission that we filed 13 this -- this application actually addresses two 14 petitions. Petition 26 -- Petition Reference 15 No. 2640601 and Petition Reference No. 3630601. 16 In the interim, there were a couple of 17 other items that we have addressed and the 18 Division addressed in its report related to the 19 resolution of the two petitions. Specifically, 20 with the formation of Colony Capital VII and 21 Colony Management Partner VII, there is an 22 entity, Barrack Colony VII, which was formed 23 which is an LLC involved with Mr. Barrack. It 24 involves family trust and it is an investor in 25 the Capital VII structure, the Colony 53 ITEM NO. 25 1 Management VII structure. It's in addition 2 to-- it's an add-on to the other entities we 3 addressed in the aforementioned petitions. 4 Also Camille Barrois is an individual 5 who is now a partner in Colony Cap -- a limited 6 partner in Colony Capital VII, which is, again, 7 a limited partnership and Colony Management 8 Partners, which is a limited partnersip. 9 And the Division has reported about Miss 10 Barrois, but she's someone who's in addition to 11 the petitioners. 12 CHAIR KASSEKERT: Uh-huh. 13 MR. BROOKS: As well we had an 14 individual by the name of Darren Tangen, who 15 was an individual and actually been involved in 16 Colony Investor VI as well -- Colony Capital VI 17 and Colony Management Partner VI. He is, 18 likewise, a limited partner in VII, but through 19 and for estate planning reasons, he's 20 transferring his interests to a family trust. 21 So it's the Darren and Nicole, which is his 22 wife, Tangen Family Trust. And so we brought 23 that to the attention of the Division. The 24 Divisino has addressed that. 25 And, finally, in addition to the 54 ITEM NO. 25 1 information we've provided in the petitions, 2 we've also provided different and additional 3 notes related to and approval we obtained from 4 the Commission in the fall of 2006. 5 These were notes that ran from Colony 6 RIH Holdings, LLC, to Colony Investors VI, and 7 Colony Investors VII. You might remember that 8 there was a co-investment -- there was $50 9 million requirement in connection with the 10 prior financing that Colony put up, a $50 11 million equity investment which needed to be 12 put on, which they did. It came down through 13 Investor VI and Investor VII. 14 Subsequently there was a co-investment 15 piece, of roughly around $7 million, so the 16 notes -- and we got approval for this in the 17 fall. Those were actually changed to reflect 18 the amounts that added up to approximately $43 19 million. And there were those notes, there 20 were some changes in connection with those 21 notes. And they are slightly differnt than the 22 notes that were actually approved by -- the 23 form of the notes that were approved by the 24 Commission. They've all since been repaid with 25 procedes of the land sale, so the notes have 55 ITEM NO. 25 1 been repaid at this point. But they are 2 different, and I wanted to point that out to 3 the Commission because that is additional 4 relief that we were seeking, the nunc pro tunc 5 relief in addition to notes, and they were a 6 little bit different relief than they were 7 seeking with those two petitions. 8 So with those changes, that addresses 9 everything. And the Division has addressed all 10 these items, and we would be prepared to accept 11 the resolution as recommended. 12 CHAIR KASSEKERT: Thank you. 13 Miss Flaherty? 14 MS. FLAHERTY: Yes, Chair, 15 Commissioners. 16 As noted there is a series of relief 17 which is requested. The Division has filed 18 four reports, one with regard to the first 19 petition in December of last year, and three 20 recent reports all in March of this year. The 21 12th through 16th with regard to other relief. 22 Generally, the relief goes to corporate 23 structure changes, a transfers of security 24 holdings among various people, and a number of 25 the different companies. The notes which Mr. 56 ITEM NO. 25 1 Brooks has just mentioned, approval of 2 financial sources, and any qualifiers, and the 3 conditions which were imposed with regard to 4 the conditions of the transaction which never 5 occurred. 6 With regard to that, the Division will 7 submit further information to the Commission 8 regarding the notes transactions which were 9 mentioned. We think it's important to address 10 all these matters prior to the upcoming renewal 11 hearing so that we can concentrate on the 12 company as it exisits. 13 And we thank you or your patience in 14 reviewing all this, and hope that you grant the 15 approvals. 16 Thank you. 17 CHAIR KASSEKERT: Thank you. 18 Any questions? 19 COMMISSIONER SOMMELING: No questions, 20 Madame Chair. 21 MR. DiGIACOMO: Madame Chair, if I may, 22 through you. 23 MS. FLAHERTY: Oh, one more item. I 24 just wanted to mention. I'm sorry. 25 We wanted to note that Mr. Sanders, who 57 ITEM NO. 25 1 is an officer with regard to the general 2 partnership VII, which acts as a general 3 partnership of a number of companies, including 4 Capital VII and Capital Management Partner VII, 5 we did not mention him in our report, but we do 6 now understand that he continues to be a 7 partner in that company, and we report 8 positively with regard to him. 9 CHAIR KASSEKERT: Very good. Thank you. 10 Mr. DiGiacomo? 11 MR. DiGIACOMO: That was the other item 12 I was going to mention to you, Madame Chair and 13 Commissioners. And the draft resolution 14 incorporates the information that both Miss 15 Flaherty and Mr. Brooks have put on the record. 16 CHAIR KASSEKERT: Thank you. Okay. 17 Any questions? 18 COMMISSIONER SOMMELING: No questions, 19 Madame Chair. 20 VICE CHAIR FEDORKO: Motion to adopt the 21 draft resolution and grant the relief requested 22 in the petition to the extent set forth in the 23 findings and rulings and subject to the 24 conditions in the resolution. 25 COMMISSIONER FRULIO: Second. 58 ITEM NO. 25 1 CHAIR KASSEKERT: Motion is made and 2 seconded. This is a roll call vote. 3 MR. NANCE: Commissioner Sommeling? 4 COMMISSIONER SOMMELING: Yes. 5 MR. NANCE: Commissioner Epps? 6 COMMISSIONER EPPS: Yes. 7 MR. NANCE: Commissioner Frulio? 8 COMMISSIONER FRULIO: Yes. 9 MR. NANCE: Vice Chair Fedorko? 10 VICE CHAIR FEDORKO: Yes. 11 MR. NANCE: Chair Kassekert? 12 CHAIR KASSEKERT: Yes. 13 MR. NANCE: The record will reflect that 14 the motion is unanimous. 15 CHAIR KASSEKERT: Thank you, 16 MR. BROOKS: Thank you very much. 17 MR. NANCE: In accordance with 18 Resolution No. 06-12-13-20, the next closed 19 session of the Commission shall be held on 20 Wednesday April 4th, 2007, at 9:15 a.m. in the 21 Commission offices. 22 It is now time for the public 23 participation portion of the meeting. 24 CHAIR KASSEKERT: Seeing no one from the 25 public, I will declare this portion of the 59 1 meeting closed and entertain a motion to 2 adjourn. 3 COMMISSIONER SOMMELING: Motion to 4 adjourn. 5 VICE CHAIR FEDORKO: Second. 6 CHAIR KASSEKERT: The motion has been 7 made and seconded. All in favor? 8 (Ayes.) 9 CHAIR KASSEKERT: Opposed? 10 (No response.) 11 CHAIR KASSEKERT: The motion carries. 12 (Meeting 07-03-21 was adjourned at 11:40 13 a.m.) 14 15 16 17 18 19 20 21 22 23 24 25 60 1 2 C E R T I F I C A T E 3 4 5 I, DARLENE SILLITOE, a Certified 6 Shorthand Reporter and Notary Public of the 7 State of New Jersey, certify that the foregoing 8 is a true and accurate transcript of the 9 proceedings. 10 11 12 I further certify that I am neither 13 attorney, of counsel for, nor related to or 14 employed by any of the parties to the action; 15 further that I am not a relative or employee of 16 any attorney or counsel employed in this case; 17 nor am I financially interested in the action. 18 19 20 DARLENE SILLITOE CSR 21 License No XI01023 22 23 Dated: March 25, 2007 24 My Commission Expires on July 10, 2009 25 ID No 2062871