1 1 STATE OF NEW JERSEY 2 CASINO CONTROL COMMISSION 3 - - - - - - - - - - - - - - - - - - - 4 5 PUBLIC MEETING NO. 10-01-20 6 7 - - - - - - - - - - - - - - - - - - - 8 9 Wednesday, January 20, 2010 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 10:37 a.m. to 1:13 p.m. 15 16 17 Certified Court Reporter: Darlene Sillitoe 18 - - - - - - - - - - - - - - - - - - - - - - - - - - - 19 20 ATLANTIC CITY COURT REPORTING, LLC 21 CERTIFIED COURT REPORTERS AND VIDEOGRAPHERS 22 1125 ATLANTIC AVENUE, SUITE 416 23 ATLANTIC CITY, NEW JERSEY 08401 24 (609) 345-8448 www.accourtreporting.com 25 2 1 B E F O R E : 2 CASINO CONTROL COMMISSION: LINDA M. KASSEKERT, CHAIR 3 MICHAEL C. EPPS, VICE CHAIR WILLIAM T. SOMMELING, COMMISSIONER 4 SHARON ANNE HARRINGTON, 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 DENIS J. CORBETT, SENIOR COUNSEL TERESA M. NAGENGAST, SENIOR COUNSEL 10 SETH H. BRILLIANT, SENIOR COUNSEL ROBERT A. MONCRIEF, COUNSEL 11 TRACY E. RICHARDSON, COUNSEL 12 DIVISION OF GAMING ENFORCEMENT: DEPUTY ATTORNEYS GENERAL 13 JOHN E. ADAMS, JR., DEPUTY ATTORNEY GENERAL BRIAN C. BISCIEGLIA, DEPUTY ATTORNEY GENERAL 14 TIMOTHY C. FICCHI, DEPUTY ATTORNEY GENERAL JAMES C. FOGARTY, DEPUTY ATTORNEY GENERAL 15 CHARLES F. KIMMEL, DEPUTY ATTORNEY GENERAL LOUIS ROGACKI, DEPUTY ATTORNEY GENERAL 16 17 18 19 20 21 22 23 24 25 3 1 A P P E A R A N C E S : 2 ITEM NO. 2 DARYL W. NANCE, ADMINISTRATIVE ANALYST JOSEPH A. CORBO, JR., ESQ. 3 FOR: MARINA DISTRICT DEVELOPMENT COMPANY ITEM NO. 5 DENIS J. CORBETT, SENIOR COUNSEL 4 CHARLES F. KIMMEL, DEPUTY ATTORNEY GENERAL N. LYNN HUGHES, ESQ. 5 FOR: HARRAH'S ATLANTIC CITY OPERATING COMPANY 6 ITEM NO. 6 DENIS J. CORBETT, SENIOR COUNSEL TIMOTHY C. FICCHI, DEPUTY ATTORNEY GENERAL 7 N. LYNN HUGHES, ESQ. FOR: BALLY'S PARK PLACE, INC. 8 ITEM NO. 8 TERESA M. NAGENGAST, SENIOR COUNSEL LOUIS ROGACKI, DEPUTY ATTORNEY GENERAL 9 PATRICK McAULEY, ESQ. FOR: MICROSOFT CORPORATION 10 ITEM NO. 9 TERESA M. NAGENGAST, SENIOR COUNSEL LOUIS ROGACKI, DEPUTY ATTORNEY GENERAL 11 K & L GATES, LLP MARSHA A. SAJER, ESQ. 12 ABRAM D. BURNETT, III, ESQ. FOR: EXPEDIA, INC. AND SUBSIDIARIES 13 ITEM NO. 10 TERESA M. NAGENGAST, SENIOR COUNSEL LOUIS ROGACKI, DEPUTY ATTORNEY GENERAL 14 MARIE JONES, ESQ. FOR: GALAXY GAMING, INC. 15 ITEM NO. 11 TRACY E. RICHARDSON, COUNSEL LOUIS ROGACKI, DEPUTY ATTORNEY GENERAL 16 NOAH BRONKESH, ESQ. FOR: MOTOROLA COMMUNICATIONS AND 17 ELECTRONICS ITEM NO. 12 TRACY E. RICHARDSON, COUNSEL 18 JAMES C. FOGARTY, DEPUTY ATTORNEY GENERAL JOSEPH A. CORBO, JR., ESQ. 19 FOR: MARINA DISTRICT DEVELOPMENT COMPANY ITEM NO. 13 TRACY E. RICHARDSON, COUNSEL 20 JOHN E. ADAMS, JR., DEPUTY ATTORNEY GENERAL 21 PASHMAN STEIN SEAN MACK, ESQ. 22 FOR: TRUSTEE/CONSERVATOR DUANE MORRIS, LLP 23 GILBERT L. BROOKS, ESQ. FOR: THE SECURED LENDERS 24 ITEM NO. 19 SETH H. BRILIANT, SENIOR COUNSEL MARIE JONES, ESQ. 25 FOR: SHUFFLE MASTER, INC., BALLY'S PARK PLACE, INC. 4 1 AGENDA PUBLIC MEETING NO. 10-01-20 2 JANUARY 20, 2010, 10:37 a.m. ITEM PAGE VOTE 3 1 Ratification of the minutes of the 9 9 January 6, 2010, public meeting 4 2 Applications for employee and casino service industry licenses 5 5 initial and/or renewal of casino key 9 10 and casino employee licenses 6 2 initial and/or renewal of casino key 10 10 and casino employee licenses 7 Application for initial or renewal of 10 11 casino key employee license and for 8 qualification of David Loftus, Director of Hotel Operations for Showboat Atlantic City 9 Operating Company, LLC 3 Petition of Marina District Development 11 13 10 Company, LLC, (d/b/a Borgata Hotel Casino & Spa) for the issuance of a temporary casino 11 key employee license to Mark Vanderwielen pursuant to NJSA 5:12-89(e) and to permit 12 him pursuant to NJAC 19:43-2.6 to assume the duties and exercise the powers of Vice 13 President of Hospitality without first having been found qualified (PRN 0081002) 14 4 Stipulations of settlement and consent agreements: 15 a) Adam Dickerson (09-0390-RC) 14 15 b) Ravi Shah (09-0490-RC) 14 15 16 c) Buteau H. Parent (09-0563-ER) 14 15 d) Theresa M. McConaghie (08-0048-RC) 14 15 17 e) Timothy Vasquez (08-0917-ER) 14 15 f) Loretta A. Flinn (a/k/a Loretta A. 14 15 18 Needham) (09-0606-RC) g) Latasha N. Cherry (09-0565-ER) 14 15 19 h) Stanelle R. Franklin (09-0473-ER) 14 15 i) Norman J. Martin (09-0324-ER) 14 15 20 j) Sandra K. Young (09-0532-ER) 14 15 k) Kenneth P. Martin (009-0406-RC) 14 15 21 l) Joseph E. Beals, Sr. (09-0554-NC) 14 15 m) Linwood Johnson (09-0478-ER) 14 15 22 n) Phillip S. King (08-0892-EA) 14 15 o) Deni L. Moss (08-0170-EA) 14 15 23 p) Clarence M. Scott (08-0907-ER) 14 15 5 Stipulation of settlement in State v. 16 17 24 Harrah's Atlantic City Operating Company, LLC, (d/b/a Harrah's Marina Hotel & Casino) 25 and Showboat Atlantic City Operating Company, LLC (d/b/a Showboat Casino Hotel) (09-0096-VC) 5 1 CONTINUED AGENDA PUBLIC MEETING NO. 10-01-20 2 JANUARY 20, 2010, 10:37 a.m. ITEM PAGE VOTE 3 6 Stipulation of settlement in State v. 18 19 Bally's Park Place, Inc. (d/b/a Bally's 4 Atlantic City) (09-0231-VC) 7 Consideration of the decision on motion adj. 5 for summary judgment in State v. Atlantic City Showboat, Inc. (d/b/a Showboat Casino 6 Hotel) (08-0281-VC) 8 Petition of Microsoft Corporation for 19 21 7 exemption from nongaming casino service industry license (PRN 2730901) 8 9 Petition of Expedia, Inc., and 22 23-24 subsidiaries for exemption from casino 9 service industry license (PRN 2470902) 10 Petitions of Galaxy Gaming, Inc., for 24 27 10 permission to conduct business: a) Bally's Park Place, Inc. (PRN 2890901) 11 b) Harrah's Atlantic City Operating Company, Showboat Atlantic City 12 Operating Company, LLC (PRN 2800902) c) Resorts International Hotel, Inc. 13 (PRN 2800905) d) Trump Taj Mahal Associates (PRN 2800906) 14 11 Petition of Motorola Communications and 27 30 Electronics, Inc., requesting removal from 15 the prohibited list and exemption from licensure as a nongaming casino service 16 industry enterprise (PRN 3090903) 12 Petition of Marina District Development 30 32 17 Company, LLC, (d/b/a Borgata Hotel Casino & Spa) for waiver of the qualification 18 requirement for a new officer of its holding company, Boyd Gaming Corporation, 19 pursuant to NJSA 5:12-85d(1) (PRN 3550903) 13 Petition of the Trustee and Conservator 32/66 72 20 for Adamar of New Jersey, Inc., (d/b/a Tropicana Casino and Resort) to extend the 21 sale period and for other relief (PRN 0131001) 14 Proposed publication of amendments to 57 58 22 NJAC 19:45-1.43 (Procedure for Counting and Recording Contents of Slot Drop Buckets 23 and Slot Drop Boxes) 15 Proposed publication and temporary 59 60 24 adoption of amendments to NJAC 19:45-1.8 (Destruction of Gaming Vouchers) 25 6 1 CONTINUED AGENDA PUBLIC MEETING NO. 10-01-20 2 JANUARY 20, 2010, 10:37 a.m. ITEM PAGE VOTE 3 16 Proposed publication and temporary 60 61 adoption of amendments to NJAC 19:45-1.10, 4 1.33A and 1.54 (Bill Validator Drops Procedures) 5 17 Proposed temporary adoption of amendments 61 62 to NJAC 19:46-1.19B (Replacement and 6 Reconstructed Sets of Pai Gow Tiles) 18 Proposed temporary adoption of 62 63 7 amendments to NJAC 19:47-2.4 and 2.5 (Pre-Shuffling Cards) 8 19 Petition of Shuffle Master, Inc., and 63 65 Bally's Park Place, Inc., (d/b/a Bally's 9 Atlantic City( for approval of "6 Card Bonus," an additional optional wager in 10 the game of three-card poker pursuant to NJSA 5:12-5 and NJAC 19:45-8.4 11 (PRN 3350903) 12 13 14 15 16 17 18 19 20 21 22 23 24 25 7 1 E X H I B I T S : 2 NO. DESCRIPTION EVD 3 4 P-1 Remand for hearings 5 license X 5 P-2 Grant 2 licenses X 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 (Exhibits retained by Commission.) 25 8 1 (Public Meeting 10-01-20 was commenced 2 at 10:37 a.m.) 3 MR. NANCE: Good morning. I'd like to 4 read an opening 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 Meeting Act," the New Jersey Casino Control 9 Commission on October 15, 2009, filed with the 10 Secretary of State at the State House in 11 Trenton, New Jersey, an annual schedule. On 12 October 16, copies were mailed to subscribers. 13 Members of the press will be permitted 14 to take photographs. We ask that this be done 15 in a manner which is not disruptive or 16 distracting to the Commission. 17 The use of cell phones in the public 18 meeting room is prohibited. 19 Any member of the public who wish to 20 address the Commission will be given the 21 opportunity to do so before the Commission 22 adjourns for the day. 23 Please stand for the Pledge of 24 Allegiance. 25 (The flag salute was recited.) 9 ITEM NO. 1-2 1 CHAIR KASSEKERT: Good morning. 2 MR. NANCE: Good morning. 3 The matters discussed in closed session 4 were: Employee and enterprise license matters. 5 The Commission approved the January 6th, 6 2009, closed-session minutes. 7 Item No. 1, ratification of the minutes 8 of January 6th, 2010, public meeting. 9 COMMISSIONER SOMMELING: Move to 10 approve. 11 VICE CHAIR HARRINGTON: 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: Motion carries. 18 MR. NANCE: Item No. 2, applications for 19 employee and casino service industry licenses. 20 This agenda item will be entered as Exhibit 21 List 1 and 2. 22 Exhibit List 1 consists of five 23 applications for initial and/or renewal of key 24 and casino employee licenses. 25 The Division has objected to licensure. 10 ITEM NO. 2 1 COMMISSIONER EPPS: I move we remand 2 these matters for hearings. 3 COMMISSIONER SOMMELING: Second. 4 CHAIR KASSEKERT: The motion has been 5 made and seconded. All in favor? 6 (Ayes.) 7 CHAIR KASSEKERT: Opposed? 8 (No response.) 9 CHAIR KASSEKERT: Motion carries. 10 MR. NANCE: Exhibit List 2 consists of 11 two applications for initial and/or renewal of 12 key casino employee license. 13 Staff and the Division has recommended 14 that these licenses be granted. 15 COMMISSIONER EPPS: Move that we grant 16 the applications. 17 COMMISSIONER SOMMELING: Second. 18 CHAIR KASSEKERT: The motion has been 19 made and seconded. All in favor? 20 (Ayes.) 21 CHAIR KASSEKERT: Opposed? 22 (No response.) 23 CHAIR KASSEKERT: The motion carries. 24 MR. NANCE: For consideration is the 25 application of David Loftus for renewal of a 11 ITEM NO. 3 1 casino key employee license and for 2 qualification as Director of Hotel Operations 3 for Showboat Atlantic City Operating Company, 4 LLC. 5 Staff and the Division have recommended 6 that this application be granted. 7 COMMISSIONER EPPS: Move that we grant 8 the initial key license and for qualification. 9 VICE CHAIR HARRINGTON: Second. 10 CHAIR KASSEKERT: Motion is made and 11 seconded. This is a roll call vote. 12 MR. NANCE: Commissioner Sommeling? 13 COMMISSIONER SOMMELING: Yes. 14 MR. NANCE: Commissioner Epps? 15 COMMISSIONER EPPS: Yes. 16 MR. NANCE: Vice Chair Harrington? 17 VICE CHAIR HARRINGTON: Yes. 18 MR. NANCE: Chair Kassekert? 19 CHAIR KASSEKERT: Yes. 20 MR. NANCE: The record will reflect that 21 the motion is unanimous. 22 Item No. 3, Petition No. 0081002 of 23 Marina District Development Company, LLC, is 24 requesting the issuance of a temporary casino 25 key employee license to Mark Vanderwielen 12 ITEM NO. 3 1 pursuant to NJSA 5:12-89(e) and to permit him 2 pursuant to NJSA 19:43-2.6 to assume the duties 3 and exercise the powers of Vice President of 4 Hospitality with first -- without first having 5 been found qualified. 6 COMMISSIONER SOMMELING: Move to approve 7 the petition, Madame Chair. 8 CHAIR KASSEKERT: Let me first recognize 9 Mr. Corbo is here. 10 MR. CORBO: Yes. 11 CHAIR KASSEKERT: And is this Mr. 12 Vanderwielen? Am I saying that correctly?. 13 MR. CORBO: Yes. Thank you, Chair 14 Kassekert. Joe Corbo on behalf of the Borgata. 15 This is Mark Vanderwielen who, subject to 16 approval today, will be our new Vice President 17 of Hospitality. 18 CHAIR KASSEKERT: Very good. 19 MR. CORBO: Nothing to add to the 20 petition. And thank you for the opportunity to 21 appear today. 22 CHAIR KASSEKERT: Thank you. 23 Congratulations. 24 Okay, Commissioner Sommeling? 25 COMMISSIONER SOMMELING: Madame Chair, 13 ITEM NO. 3 1 renew my motion to approve the petition. 2 CHAIR KASSEKERT: Okay. We're going to 3 issue a temporary key employee license to Mark 4 Vanderwielen and permit him to assume the 5 duties and exercise the powers of Vice 6 President of Hospitality without having been 7 first qualified. 8 COMMISSIONER SOMMELING: Yes. 9 CHAIR KASSEKERT: Is there a second? 10 COMMISSIONER EPPS: Second. 11 CHAIR KASSEKERT: The motion has been 12 made and seconded. This a roll call vote. 13 MR. NANCE: Commissioner Sommeling? 14 COMMISSIONER SOMMELING: Yes. 15 MR. NANCE: Commissioner Epps? 16 COMMISSIONER EPPS: Yes. 17 MR. NANCE: Vice Chair Harrington? 18 VICE CHAIR HARRINGTON: Yes. 19 MR. NANCE: Chair Kassekert? 20 CHAIR KASSEKERT: Yes. 21 MR. NANCE: The record will reflect that 22 the motion is unanimous. 23 CHAIR KASSEKERT: Thank you. 24 MR. CORBETT: Thank you very much. 25 MR. VANDERWIELEN: Thank you. 14 ITEM NO. 4 1 MR. NANCE: Item No. 4, stipulation of 2 settlement and consent agreements. When I call 3 your name, please come forward, stand behind 4 his middle table, spreading across the room so 5 that you may be seen: Adam Dickerson, Ravi 6 Shah, Buteau Parent, Theresa McConaghie, 7 Timothy Vasquez, Loretta Flinn, Latasha Cherry, 8 Stanelle Franklin, Norman Martin, Sandra Young, 9 Kenneth Martin, Joseph Beals, Sr., Linwood 10 Johnson, Phillip King, Deni Moss, and Clarence 11 Scott. 12 CHAIR KASSEKERT: Has everyone whose 13 name been called come forward? 14 Thank you. 15 I'm going ask that you each state your 16 name for the record, beginning with you, sir. 17 MR. BEALS: Joseph Beals. 18 MR. MOSS: Deni Moss. 19 CHAIR KASSEKERT: Okay. In a moment we 20 are going to vote on the stipulations which 21 you've agreed to with the Division of Gaming 22 Enforcement. I'm going to ask at this point if 23 any of you wish to be heard on your matter. 24 You don't have to say anything if you don't 25 want to? 15 ITEM NO. 4 1 Anyone wish to be heard? 2 (No response.) 3 CHAIR KASSEKERT: Okay. We'll take that 4 as a no. 5 Mr. Biscieglia? 6 MR. BISCIEGLIA: Thank you. Good 7 morning, Chair and Commissioners. 8 The Division has nothing further to add 9 and ask that the stipulations be approved as 10 submitted. 11 Thank you. 12 CHAIR KASSEKERT: Thank you. 13 Any questions? 14 COMMISSIONER SOMMELING: Madame Chair, 15 move to approve stipulations. 16 COMMISSIONER EPPS: 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: Motion carries. 23 Thank you for coming. Good luck. 24 MR. BEALS: Thank you. 25 MR. MOSS: Thank you. 16 ITEM NO. 5 1 MR. NANCE: Item No. 5, stipulation of 2 settlement in State versus Harrah's Atlantic 3 City Operating Company, LLC, and Showboat 4 Atlantic City Operating Company, LLC. 5 Mr. Corbett? 6 MR. CORBETT: Chair, Commissioners, in 7 the stipulation of settlement in this case, the 8 casino licensees admits the regulatory 9 violation regarding internal controls and each 10 agrees to a penalty of $20,000. 11 Mr. Kimmel is here for the Division and 12 Miss Hughes for the casino licensee. 13 CHAIR KASSEKERT: Thank you. 14 MS. HUGHES: Good morning. I have read 15 and worked with Mr. Kimmel on the stipulation 16 of settlement, and we ask that you approve it. 17 Thank you. 18 CHAIR KASSEKERT: Thank you. 19 Mr. Kimmel? 20 MR. KIMMEL: Good morning. Charles 21 Kimmel on behalf of the Division of Gaming 22 Enforcement. 23 We also approve the stipulation and ask 24 that you resolve this case by granting the 25 stipulation. $40,000 total civil penalty is 17 ITEM NO. 5 1 appropriate, and we'd like to see the case 2 resolved. 3 Thank you. 4 CHAIR KASSEKERT: Thank you. 5 Is it 40 or 20? 6 MR. KIMMEL: Twenty each. 7 MR. CORBETT: Each agrees to pay 20. 8 MR. KIMMEL: The 40. 9 CHAIR KASSEKERT: Oh, okay. 10 Any questions? 11 COMMISSIONER SOMMELING: No questions, 12 Madame Chair. 13 CHAIR KASSEKERT: Okay. 14 VICE CHAIR HARRINGTON: I move that we 15 approve the stipulation of settlement and 16 impose a civil penalty of $20,000 against 17 Harrah's Atlantic City Operating Company, LLC, 18 and Showboat Atlantic City Operating Company, 19 LLC, for violation of Commission regulations 20 regarding internal controls. 21 CHAIR KASSEKERT: Is there a second? 22 COMMISSIONER SOMMELING: Second. 23 CHAIR KASSEKERT: The motion has been 24 made and seconded. All in favor? 25 (Ayes.) 18 ITEM NO. 6 1 CHAIR KASSEKERT: Opposed? 2 (No response.) 3 CHAIR KASSEKERT: Motion carries. 4 MR. KIMMEL: Thank you. 5 MR. NANCE: Item No. 6, stipulation of 6 settlement in State versus Bally's Park Place, 7 Inc. 8 CHAIR KASSEKERT: Mr. Corbett? 9 MR. CORBETT: Chair, in this case, the 10 casino licensee admits to regulatory violation 11 regarding underaged gambling and agrees to a 12 penalty of $10,000. 13 Mr. Ficchi is here for the Division and 14 Miss Hughes for the licensee. 15 CHAIR KASSEKERT: Thank you. 16 MS. HUGHES: Thank you. 17 On behalf of Bally's, I have read over 18 the stipulation of facts and settlement and ask 19 that you approve this settlement. 20 Thanks. 21 CHAIR KASSEKERT: Thank you. 22 Mr. Ficchi? 23 MR. FICCHI: Yes. Good morning, Chair, 24 Commissioners. 25 Yes. The Division would ask this 19 ITEM NO. 6-8 1 Commission to adopt the settlement as drafted. 2 Thank you. 3 CHAIR KASSEKERT: Thank you. 4 Any questions? 5 COMMISSIONER SOMMELING: No questions, 6 Madame Chair. 7 COMMISSIONER EPPS: Chair, I move we 8 approve the stipulation of settlement and 9 impose a civil penalty of $10,000 against 10 Bally's Park Place, Inc., for violation of 11 casino regulations regarding underaged 12 gambling. 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: Motion carries. 19 Thank you. 20 MR. FICCHI: Thank you. 21 MR. NANCE: Item No. 7 has been 22 adjourned to the February 17th public meeting. 23 Item No. 8, petition of Microsoft 24 Corporation for exemption from nongaming casino 25 service industry license. 20 ITEM NO. 8 1 Miss Nagengast? 2 MS. NAGENGAST: Good morning, Chair, 3 Commissioners. 4 For your consideration is the petition 5 of Microsoft seeking an exemption under the new 6 one-tenth of one percent exemption. 7 Patrick McAuley is here on behalf of 8 Microsoft and Lou Rogacki on behalf of the 9 Division. 10 CHAIR KASSEKERT: Good morning, Mr. 11 McAuley. 12 MR. McAULEY: Good morning, Chair 13 Kassekert. 14 I would request that the petition be 15 granted. I would just point out in 2008 and 16 2009 Microsoft had revenues of approximately 17 $100,000 from the casinos that had revenues of 18 60 billion and 58 billion in those years, 19 making our threshold the 60 million and 58 20 million, so we're clearly well below the 21 threshold and don't expect any changes in 22 circumstances. 23 But we have submitted, also, a 24 supplemental certification from Mr. Guiten 25 (phonetic) that we're aware of the continuing 21 ITEM NO. 8 1 obligations. 2 CHAIR KASSEKERT: Thank you. 3 Mr. Rogacki? 4 MR. ROGACKI: Good morning, Chair. 5 Commissioners. 6 The Division put our position in a 7 letter dated November 16th. We recommend that 8 the petition be granted. We reviewed the 9 revenues as well as casino sales with 10 Microsoft. We believe they just barely make it 11 under the new exemption. 12 (Laughter.) 13 MR. ROGACKI: I'll be happy to answer 14 any questions that you have. 15 CHAIR KASSEKERT: Thank you. 16 Any questions? 17 COMMISSIONER SOMMELING: No questions, 18 Madame Chair. 19 Madame Chair, I move to grant the 20 petition of Microsoft Corporation for an 21 exemption from nongaming service industry 22 licensure pursuant to NJSA 5:12-92(c)(3)(ii) 23 and subject to the conditions in the order. 24 VICE CHAIR HARRINGTON: Second. 25 CHAIR KASSEKERT: The motion has been 22 ITEM NO. 9 1 made and seconded. All in favor? 2 (Ayes.) 3 CHAIR KASSEKERT: Opposed? 4 (No response.) 5 CHAIR KASSEKERT: Motion carries. 6 MR. McAULEY: Thank you. 7 CHAIR KASSEKERT: Thank you. 8 MR. NANCE: Item No. 9, petition of 9 Expedia, Inc., and subsidiaries for exemption 10 from casino service industry license. 11 Miss Nagengast? 12 MS. NAGENGAST: Chair and Commissioners, 13 similar to the last petition, Expedia is 14 looking for an exemption as well. 15 Marsha Sajer is here on behalf of 16 Expedia and Lou Rogacki for the Division. 17 CHAIR KASSEKERT: Thank you. 18 I'm sorry. I didn't get your name. 19 MR. BURNETT: Yes, ma'am. I'm Abram 20 Burnett and Marsha Sajer. 21 CHAIR KASSEKERT: Thank you. 22 MR. BURNETT: Thank you. 23 CHAIR KASSEKERT: Anything you want to 24 add on this petition? 25 MR. BURNETT: No, ma'am. We'd like to 23 ITEM NO. 9 1 stand on the petition and with the concurrence 2 with the Office of Attorney General, Division 3 of Gaming Enforcement. 4 CHAIR KASSEKERT: Thank you. 5 MR. ROGACKI: Chair, I'm pinch-hitting 6 for DAG Way on this one. She filed a letter 7 report to the Commission dated November 12th, 8 2009. 9 I'll be happy to answer any questions 10 you might have. 11 CHAIR KASSEKERT: Thank you. 12 Any questions? 13 COMMISSIONER SOMMELING: I have no 14 questions, Madame Chair. 15 CHAIR KASSEKERT: You have two motions, 16 Commissioner Epps? 17 COMMISSIONER EPPS: I move we, first, 18 seal Exhibit No. 2, and it's Exhibits A and B, 19 as permitted by NJSA 5:12-74. 20 CHAIR KASSEKERT: Is there a second? 21 COMMISSIONER SOMMELING: Second. 22 CHAIR KASSEKERT: The motion has been 23 made and seconded. All in favor? 24 (Ayes.) 25 CHAIR KASSEKERT: Opposed? 24 ITEM NO. 10 1 (No response.) 2 CHAIR KASSEKERT: Motion carries. 3 COMMISSIONER EPPS: And also I move that 4 we grant the petition of Expedia, Inc., for an 5 exemption for itself and subsidiaries for 6 nongaming casino service industry licensure 7 pursuant to NJSA 5:12-92(c)(3)(ii) and subject 8 to the conditions in the order. 9 VICE CHAIR HARRINGTON: Second. 10 CHAIR KASSEKERT: The motion has been 11 made and seconded. All in favor? 12 (Ayes.) 13 CHAIR KASSEKERT: Opposed? 14 (No response.) 15 CHAIR KASSEKERT: Motion carries. 16 Thank you. 17 MR. BURNETT: Thank you very much. 18 MR. NANCE: Item No. 10, petition of 19 Galaxy Gaming, Inc., for permission to conduct 20 business, Bally's Park Place, Inc., Harrah's 21 Atlantic City Operating Company, Showboat 22 Atlantic City Operating Company, LLC, Resorts 23 International Hotel, Inc., and Trump Taj Mahal 24 Associates. 25 Miss Nagengast? 25 ITEM NO. 10 1 MS. NAGENGAST: Chair and Commissioners, 2 before you are four petitions seeking nunc pro 3 tunc permission to conduct certain business 4 transactions. 5 Marie Jones is here on behalf of the 6 Petitioners and Lou Rogacki on behalf of the 7 Division. 8 CHAIR KASSEKERT: Good morning, Miss 9 Jones. 10 MS. JONES: Good morning, Chair, 11 Commissioners. 12 These petitions come about as a result 13 of a restructuring within Galaxy Gaming. 14 Galaxy Gaming had a situation where it had a 15 subsidiary who was a licensee merged up to the 16 parent company. The company was unaware that 17 that invalidated license. They did not think 18 they had to bring it to our attention. When we 19 did find out about it, we immediately notified 20 the Commission, the Division, and took 21 appropriate action to rectify the situation. 22 They have since put controls in to prevent such 23 an occurrence from happening again. 24 I do want to point out in this 25 situation, the casino licensees were unaware of 26 ITEM NO. 10 1 the restructuring until we notified them. 2 Thank you. 3 CHAIR KASSEKERT: Thank you. 4 Mr. Rogacki? 5 MR. ROGACKI: Chair, Commissioners, just 6 to add to what Miss Jones said, I think the key 7 factors for the Division in going along with 8 these four petitions are the fact that the 9 company restructured itself, not only without 10 letting the casinos know so they would have no 11 idea that there was an issue with Galaxy's 12 license and the machines that were on the 13 floor, but without letting its local counsel 14 know when they did the restructure. 15 So, therefore, our position is in four 16 separate letters dated January 11th asking that 17 you issue these transactional waivers nunc pro 18 tunc. 19 CHAIR KASSEKERT: Thank you. 20 Any questions for the parties? 21 COMMISSIONER EPPS: No questions. 22 Madame Chair, I move that we grant nunc 23 pro tunc the four joint petitions of Galaxy 24 Gaming, Incorporated, and Bally's Park Place, 25 Inc, Harrah's Atlantic City Operating Company, 27 ITEM NO. 11 1 LLC, Showboat Atlantic City Operating Company, 2 LLC, Resorts International Hotel, Incorporated, 3 and Trump Taj Mahal Associates and approve the 4 transactional waivers for the transactions as 5 set forth in their respective petitions without 6 any prejudice to any future action which the 7 DGE may take, as well as any alleged regulatory 8 violations and licensing considerations as well 9 as future transactional waiver requests. 10 CHAIR KASSEKERT: Is there a second? 11 VICE CHAIR HARRINGTON: 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: Motion carries. 18 MS. NAGENGAST: Thank you. 19 MR. NANCE: Item No. 11, petition of 20 Motorola Communications and Electronics, Inc., 21 requesting removal from the prohibited list and 22 exemption from licensure as a nongaming casino 23 service industry enterprise. 24 Miss Richardson? 25 MS. RICHARDSON: Good morning, Chair and 28 ITEM NO. 11 1 Commissioners. 2 This is the petition of Motorola 3 Communications and Electronics, Inc., for 4 removal from the prohibited vendors list and 5 also exemption from the nongaming CSI licensing 6 requirements. 7 Here for the Petitioner is Noah Bronkesh 8 and for the Division is DAG Lou Rogacki. 9 CHAIR KASSEKERT: Good morning, Mr. 10 Bronkesh. 11 MR. BRONKESH: Good morning, Madame 12 Chair. 13 CHAIR KASSEKERT: Anything you'd like to 14 add to your petition? 15 MR. BRONKESH: Just a little bit of 16 history. Motorola is a publicly traded 17 company, and in 2005 it sought an exemption 18 under the then-existing statute and 19 regulations. And given the de minimis amount 20 of business it did at that time, it elected not 21 to pursue the licensure, was placed on the 22 prohibited list. This past year, with the 23 change in law and regulations, it is seeking to 24 come back in and do business in Atlantic City, 25 and it has over $30 billion in business this 29 ITEM NO. 11 1 past year. Did a lot less than one-tenth of 2 one percent when it last did business in 3 Atlantic City. And we would request that the 4 appropriate -- that we be removed from the 5 prohibited list and be granted the de minimis 6 exemption pursuant to the statute and 7 regulations. 8 CHAIR KASSEKERT: Thank you. 9 Mr. Rogacki? 10 MR. ROGACKI: Again, I'm pinch-hitting 11 for DAG Way here on this one, but she filed a 12 letter dated November 30th putting the 13 Division's position in agreement with the 14 petition. 15 I would just echo Counsel's statement 16 that the reason Motorola was on the prohibited 17 list had nothing to do with anything we found 18 when they previously came into our system. It 19 was purely a business decision based on the 20 amount of -- the volume of business they were 21 doing back in 2005. So we have no objection. 22 CHAIR KASSEKERT: Thank you. 23 Any questions? 24 COMMISSIONER EPPS: No questions. 25 COMMISSIONER SOMMELING: Madame Chair, 30 ITEM NO. 12 1 based on the facts and circumstances as 2 presented issuing a declaratory ruling and, A, 3 remove Motorola Communications and Electronics, 4 Incorporated, from the prohibited vendor list; 5 and, B, grant the request to exempt Motorola 6 Communications and Electronics, Incorporated, 7 from the nongaming casino service industry 8 licensure pursuant to NJSA 5:12-92(c)(3)(ii) 9 and subject to the conditions in the order. 10 COMMISSIONER EPPS: 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: Motion carries. 17 Thank you. 18 MR. BRONKESH: Thank you. 19 MR. NANCE: Item No. 12, petition of 20 Marina District Development Company, LLC, for 21 waiver of qualification requirement for a new 22 officer of its holding company, Boyd Gaming 23 Corporation, pursuant to NJSA 5:12-85(d)(1). 24 Miss Richardson? 25 MS. RICHARDSON: Good morning again. 31 ITEM NO. 12 1 A draft resolution has been circulated 2 on this item. 3 And appearing for Petitioner is Mr. Joe 4 Corbo and for the Division is DAG Jim Fogarty. 5 MR. CORBO: Thank you, Chair, 6 Commission. 7 There is nothing to add to the petition, 8 and I've had the opportunity to see the draft 9 resolution, and we are in accord with it. 10 Thank you. 11 CHAIR KASSEKERT: Thank you. 12 Mr. Fogarty? 13 MR. FOGARTY: Good morning. 14 This is a petition seeking waiver for 15 Ron Frye, Boyd Gaming Corporation, Vice 16 President of Design and Construction. 17 We filed a response dated January 12th, 18 2010, wherein I indicated the Director will 19 concur in a waiver. We took particular note of 20 the certifications of Paul Chakmak and Thomas 21 Ballance in coming to that conclusion, and 22 we've noted that in the letter. 23 I've seen the draft resolution and have 24 no objection to its entry. 25 CHAIR KASSEKERT: Thank you. 32 ITEM NO. 13 1 Any questions for the parties? 2 COMMISSIONER SOMMELING: No questions, 3 Madame Chair. 4 VICE CHAIR HARRINGTON: I move that we 5 adopt the draft resolution and waive the 6 qualification pursuant to NJSA 5:12-85d(1) as 7 to Ron Frye in his capacity as Vice President 8 of Design and Construction. 9 COMMISSIONER EPPS: Second. 10 CHAIR KASSEKERT: The motion is made and 11 seconded. This is a roll call vote. 12 MR. NANCE: Commissioner Sommeling? 13 COMMISSIONER SOMMELING: Yes. 14 MR. NANCE: Commissioner Epps? 15 COMMISSIONER EPPS: Yes. 16 MR. NANCE: Vice Chair Harrington? 17 VICE CHAIR HARRINGTON: Yes. 18 MR. NANCE: Chair Kassekert? 19 CHAIR KASSEKERT: Yes. 20 MR. NANCE: The record will reflect that 21 the motion is unanimous. 22 MR. CORBO: Thank you very much. 23 CHAIR KASSEKERT: Thank you. 24 MR. FOGARTY: Thank you. 25 MR. NANCE: Item No. 13, petition of the 33 ITEM NO. 13 1 Trustee and Conservator for Adamar of New 2 Jersey, Inc., to extend the sale period and for 3 other relief. 4 Miss Richardson? 5 MS. RICHARDSON: Chair and 6 Commissioners, would counsel please enter their 7 appearances? 8 MR. MACK: Good morning, Chair and 9 Commissioners. Sean Mack with the law firm of 10 Pashman Stein on behalf of the Trustee/ 11 Conservator. 12 MR. BROOKS: Good morning, Madame Chair, 13 members of the Commission. Gil Brooks on 14 behalf of the Secured Lenders. 15 MR. ADAMS: Jack Adams, Deputy Attorney 16 General, on behalf of the Division of Gaming 17 Enforcement. 18 CHAIR KASSEKERT: Thank you. 19 Mr. Mack? Are you prepared to proceed? 20 MR. MACK: Thank you, Chair. 21 Commissioners, last month I was before 22 you asking for an extension. At that time we 23 had told you that there was various regulatory 24 approvals that we needed to obtain -- or the 25 buyer needed to obtain in order to close this 34 ITEM NO. 13 1 transaction. At that time we were all hopeful 2 and expected that with a 30-day extension we 3 were going to complete this by the end of this 4 month. I know Commission Epps, in particular, 5 I think voiced a lot of the concerns that you 6 all had that I might be back here again today. 7 A lot of work has been accomplished over 8 the last 30 days since I was last year here, 9 but as you know from my petition, we're not 10 done. We have gotten the clearance from the 11 Securities and Exchange Commission. We have 12 clearance from the Federal Trade Commission 13 now. As you know, and there were five 14 jurisdictions in which the buyer in Tropicana 15 Entertainment needed to get their gaming 16 approvals. As of today, they have it in 17 Mississippi. I believe they got it yesterday 18 in Louisiana, the approvals they needed. 19 Indiana ruled last giving them the approval 20 they needed. And there's a hearing scheduled 21 tomorrow before the Nevada Commission, and 22 everybody's expectation is that they will get 23 that approval in Nevada tomorrow. That, 24 obviously, leaves New Jersey, which is of most 25 concern to us. 35 ITEM NO. 13 1 On January 11, the Secured Lenders filed 2 their formal petition seeking ICA approval. It 3 was nine days ago. And, as you understand, we 4 could not hold an ICA hearing today. I will 5 leave -- Mr. Brooks is here on behalf of the 6 Secured Lenders and Mr. Adams. And they sort 7 of have more acknowledgment of the status of 8 those petitions, and I'll leave it to them to 9 address those and to any particular questions 10 you may have in terms of the details. But at 11 this point, it's -- all that's left to close is 12 to complete the ICA process here in New Jersey. 13 Unlike certain things that have gone on 14 in this process, this now is a lot more under 15 your control. You'll have a lot more 16 visibility into what needs to be done, what the 17 timing of it is, and what needs to be -- when 18 things can be accomplished. So we've asked for 19 an extension through March 31. 20 I know the statute under the Casino 21 Control Act gives the Division and the 22 Commission 120 days from, you know, January 23 11th to when a completed application is filed. 24 Based on my discussions with your staff and 25 with the Division, I know everyone's going to 36 ITEM NO. 13 1 do everything they can to expedite this 2 process. And I -- we certainly appreciate 3 that. My hope is that another 60 days will 4 give you all enough time to review the 5 information and to complete the investigations 6 and review the Division's report in order to 7 close this transaction. 8 Mr. DiGiacomo pointed out to me that 9 there is a regularly scheduled Commission 10 hearing on April 7th. Just for scheduling 11 purposes, if it makes more sense to extend the 12 sale period to April 7 rather than March 31, if 13 that's administratively easier, I would make 14 that request. I'm okay with that. 15 The second relief we've requested is the 16 approval of the authority for Justice Stein to 17 have Adamar obtain an order from the bankruptcy 18 court further extending our use of cash 19 collateral which is subject to the Senior 20 Lenders' liens. We've submitted a proposed 21 form of order as an attachment to our petition. 22 That proposed form of order in the bankruptcy 23 sought an extension through March 31. As my 24 request has been to have authority to continue 25 to extend that through -- coterminous with 37 ITEM NO. 13 1 whatever extension you give me here today in 2 terms of the sale period. 3 I want to advise you we've been informed 4 by the Senior Lenders that, at least for the 5 bankruptcy court purposes, they're consenting 6 to us getting a one-month extension. So 7 through the end of February, that cash 8 collateral order. If we're not -- if this 9 process isn't done by February, we obviously go 10 back to the bankruptcy court and ask for a 11 further extension. 12 But today I'd still like you to 13 authorize Justice Stein to continue to extend 14 that, if necessary, up to through whatever 15 extension you give me here today for the sale 16 period. 17 I have nothing further. I rely on my 18 papers unless you have particular questions of 19 me. 20 CHAIR KASSEKERT: Let me ask if there 21 are any questions of Mr. Mack before we hear 22 from Mr. Brooks? 23 COMMISSIONER SOMMELING: I have no 24 questions, Madame Chair. 25 CHAIR KASSEKERT: Mr. Brooks? 38 ITEM NO. 13 1 MR. BROOKS: Madame Chair, I would 2 simply join in the request for the extension. 3 Hopefully, it won't take as much time as is 4 being requested. 5 We have filed the ICA petition. The ICA 6 petition will likely be amended to include some 7 information. The process has taken, frankly, a 8 little bit longer than anticipated. Largely 9 because, I think, of the complexity of the 10 matter and the need to deal with certain 11 issues, some of which were late issues, issues 12 that arose late in the process such as the 13 exiting financing. And some of the issues were 14 issues that require coordination, frankly, 15 given the nature of how this thing proceeded. 16 As you know, we were -- we were before 17 you in July. We asked for a ruling. We got a 18 ruling from the Commission in August with 19 respect to the ownership structure. And from 20 that point forward, the concentration was 21 basically on amending the agreement of sale 22 that had been agreed -- approved by the 23 Commission in April to reflect the ownership 24 structure and G Reorganization. We achieved 25 that in November. And after that process, you 39 ITEM NO. 13 1 know, the focus was on trying to complete the 2 ICA petition. Although, also for a host of 3 reasons, the exit financing that would be put 4 in place, which prior to that point in time did 5 not include the New Jersey asset, would have to 6 include the New Jersey asset, the Tropicana 7 Atlantic City. And that required us to deal 8 with the exit financing. There had been a lot 9 of information that was needed in connection 10 with that because it's a material debt 11 transaction approval, although it doesn't -- 12 you know, hopefully, it will leave the facility 13 in such a better position. Shedding about 14 two-point-some-odd billion dollars worth of 15 debt and it's a $150 million credit facility, 16 so it's a better situation for the facility. 17 But, of course, it needs a material debt 18 transaction approval, and there's information 19 that's required in connection with that. 20 We've started that process. I think 21 we're very close to finish getting the process 22 of getting the Division the information it 23 needs so the Division will be in a position to 24 rule or to -- not rule but to recommend with 25 respect to the material debt transaction 40 ITEM NO. 13 1 approval. 2 And then we're finishing up other 3 matters related to some of the things that were 4 before you before. For example, in November 5 you ruled that the Tropicana, AC Sub Corp, 6 which will be the owner of the property not 7 owned by the licensee, Tropicana Atlantic City, 8 Corp., and it will be the, basically, 9 replacement entity for Adamar parking garage, 10 Atlantic Deauville and Manchester Mall. You 11 ruled that it would require a casino license so 12 long as the anticipated amendments to the 13 leases didn't change the nature of that 14 relationship such that it would require a 15 casino license. So that process has been 16 ongoing, and it hasn't been completed yet. But 17 I understand we're just waiting for, I think, a 18 sign-off at this point from the Trustee/ 19 Conservator in terms of the leases. So we're 20 finishing up things along those lines. 21 And then I think that the other thing 22 that there needed to be a coordination effort, 23 because of the fact that prior to February, 24 March of 2009, the effort really was to sell 25 the facility, and the lenders were involved in 41 ITEM NO. 13 1 the effort to sell the facility. And at that 2 point, that's when we turned the focus to the 3 credit bid and the lenders taking control 4 because of the fact that we hadn't gotten a 5 satisfactory third-party offer for the 6 property. And so the lenders -- we went down 7 that route. At that point in time, once the 8 lenders crossed over from being participants in 9 terms of a sale to potential owners, 10 qualification issues arose, and we had two 11 entities that were over five percent of the 12 credit facility and would have had to be -- 13 would have to have been qualifiers in any of 14 the structures that were being contemplated in 15 that in time. Those entities, Icahn and Silver 16 Point, retained separate counsel because they 17 needed their own counsel to advise them on the 18 process. Icahn, in particular, retained 19 national gaming counsel because of the fact it 20 had to get licensed in each of the 21 jurisdictions. And so -- and they retained 22 local counsel, the Levine Staller firm. And so 23 they started that process of qualification. 24 Silver Point retained Fox Rothschild, and they 25 ultimately made a decision to sell off its 42 ITEM NO. 13 1 shares, and it got out of the mix so there 2 wasn't a need for them to continue to qualify. 3 But there was -- that process basically 4 going on separately from the process that we're 5 before you. In July the big concern was the 6 ownership structure and how it would be owned. 7 Because after -- after the approval in April, 8 the lenders were in a position to try to 9 evaluate how we would proceed in Atlantic City. 10 In May, early May, the Delaware Court, Delaware 11 Bankruptcy Court, approved the plenary 12 reorganization for Tropicana Entertainment. 13 And so it became feasible at that point in time 14 for, depending what the Commission decides, for 15 the Atlantic City entity to be part of that 16 organization. So we presented you with those 17 proofs, and the focus was on that process in 18 the July time period. 19 Now, before that, we -- before then, 20 Tropicana Entertainment had started its own 21 effort to try to get the -- to become qualified 22 in light of the moves that had been made there 23 or events that had occurred there with respect 24 to Bill Yung and his interest and no longer 25 being involved in Tropicana Entertainment. 43 ITEM NO. 13 1 So there's a lot of coordination of 2 efforts in that time period, given the hearing 3 in July. And so we were pretty much melded at 4 that point in terms of those efforts, and we 5 proceeded forward there. But we really had 6 never gotten -- we really had never coordinated 7 with the Icahn lawyers in terms of the Icahn 8 filings and what exactly would have to be 9 determined in New Jersey. Because there is a 10 difference in the jurisdictions. New Jersey 11 looks in more as a holding company intermediary 12 company situation, whereas in some of the other 13 jurisdictions, it's an indirect ownership test. 14 And so there was a difference a little bit in 15 terms of approach. 16 I think we've coordinated that effort. 17 I think we're prepared now to finalize, you 18 know, what, if anything, else has to be 19 produced for the Division of Gaming Enforcement 20 so they're in a position where they have a 21 completed application for ICA. And I think at 22 this point all the issues, if you will, are 23 under one tent, and we're in a position to 24 complete the process. 25 CHAIR KASSEKERT: Mr. Brooks, let me 44 ITEM NO. 13 1 just ask then, will this time frame that we're 2 discussing here be sufficient? And I know 3 that -- I'm sure that the other commissioners 4 may, you know, discuss some of their 5 frustrations with this process. I know the 6 Division of Gaming Enforcement has worked with 7 our staff in good faith to try to expedite 8 this. The Conservator has worked in good 9 faith. You know, we would like to move forward 10 as quickly as possible. We -- we talked about 11 in, you know, last year about not having any 12 more extensions that -- and everybody's 13 represented that this would be it. Which, I 14 think, had a lot of us concerned that it might 15 not be it. Do you feel that this will now be 16 sufficient time? 17 MR. BROOKS: I do, Madame Chair. 18 CHAIR KASSEKERT: What can I do to you 19 if -- 20 (Laughter.) 21 CHAIR KASSEKERT: -- if it isn't? 22 MR. BROOKS: I don't know what 23 conditions you want to impose. 24 I can tell you this. On my client's 25 end, believe me, they want to get this done as 45 ITEM NO. 13 1 soon as possible. And they are -- made that 2 very well known to me. And so there's a strong 3 desire on our end to wrap it up as well so that 4 we can complete the process and move forward 5 with Tropicana Atlantic City and the designs 6 everyone has for that and making that facility 7 is a stronger facility and just moving forward 8 in terms of this competitive environment. 9 There is a strong desire on our side to finish 10 it up. 11 I believe that for -- I can represent to 12 you, the one thing that I think is different is 13 that all the issues are, I think, under one 14 umbrella, one tent -- however you want to put 15 it -- in the sense that we know what they are 16 now. We know what we got to do to complete 17 them, and there's a total coordination of 18 efforts in that regard. 19 Again, with different lawyer groups, 20 different people coming in to play, it's not 21 the typical transaction. It's created, you 22 know, some synergies, some synergy problems. I 23 think we've solved those, and I think we're in 24 a position now to deal directly with Commission 25 and Division staff to finalize the rest of the 46 ITEM NO. 13 1 issues. And I think they all are, for the most 2 part, captured at least in the amended 3 petition. There are some concepts that we've 4 blended in, and I've got it prepared. We're 5 going to review that today, hopefully, after 6 this hearing in a meeting with counsel so that 7 we can, again, finalize the process. But I 8 think we all know what the issues are at this 9 point. 10 So I think that the time period that 11 we're asking for should be more than 12 satisfactory. I would hope that we're done a 13 lot sooner than that. 14 CHAIR KASSEKERT: Let me ask if any of 15 the commissioners have any questions? 16 COMMISSIONER SOMMELING: I have no 17 questions, Madame Chair. 18 CHAIR KASSEKERT: Commissioner Epps? 19 COMMISSIONER EPPS: I don't have a 20 question as much as I have a comment, I guess. 21 And that is, I'm embarrassed that we've got 22 this petition here because just last month -- 23 and Mr. Adams even made the recommendation -- I 24 mean the representation, and I asked the 25 question. I said, we were -- January 31st, I 47 ITEM NO. 13 1 think it was. Is that enough time? And we 2 were emphatically told the only things that are 3 left to be done are approvals in several 4 jurisdictions. And Mr. Mack just represented 5 that the last jurisdiction that we need will do 6 it tomorrow. And here we are again. We're 7 still pushing it out. 8 And I'm not blaming you. You're the 9 messenger. I mean, you have to take it because 10 you're standing there. 11 But it's absolutely frustrating and it's 12 embarrassing to the Commission because -- and 13 no offense to Mr. Wittkowski. He's sitting 14 there. He's going to write an article to go in 15 tomorrow that says the Commission extends the 16 sale for the Tropicana for the 18th time. 17 Whatever the number is. I don't even know what 18 the number is. And we have to deal with that, 19 and we eat that. You know, do I want to extend 20 it? No. Do I want to vote no? Absolutely. 21 But you know what stops me? The 2,000 or some 22 people that work at Tropicana. Because my 23 voting no puts them out of work, and I'm not 24 doing going to do that. So I'm struck. 25 I can't even show you how frustrated I 48 ITEM NO. 13 1 am other than to rant and rave sitting here, 2 and them going to vote yes and agree with you, 3 which makes me look kind of like an idiot. 4 I've got egg on my face again. I mean, it's 5 just -- it's just terribly, terribly 6 frustrating and embarrassing. And we could 7 have prevented this by just extending it until 8 April 7th if we -- in January if we knew we 9 needed the time to get the jurisdictions done 10 plus all the ICA paperwork in the proper form 11 and get it submitted. If we had just spelled 12 that out and done it that way, we avoid this. 13 We keep doing this. And it just makes us all 14 look like idiots. And that -- that -- we know 15 we're not. And we understand the process. And 16 I don't, by any means, belittle the mammoth 17 proportions of this kind of transaction and the 18 uniqueness because it's -- never really 19 happened like this before. And I get all of 20 that. But if we could have just given 21 ourselves enough time for any missteps so we 22 wouldn't have to deal with this again, I think 23 we would have done this. 24 And now we're going to say April 7th is 25 absolutely enough time. And I -- and the Chair 49 ITEM NO. 13 1 asked the question I just have to ask the 2 question. Is it? 3 MR. BROOKS: Commissioner Epps, believe 4 me, I have a pint of blood in this ICA 5 petition. I understand what you're saying, and 6 if I would have known some of the things I knew 7 when I was here before you last time, I would 8 have said, no, let's go for more time. I'm not 9 interested in embarrassing anyone, including 10 myself. I'm the person standing here before 11 you, and I'm getting it on both sides, frankly. 12 My clients want to finish this process just as 13 much as the Commission wants to finish the 14 process. I can assure you that. 15 I can't imagine that April 7th wouldn't 16 be enough time. I really couldn't imagine 17 that. I mean, the Division could have a 18 different position on this, I suppose. But it 19 seems to me that there's only a couple filings 20 left. I think the bulk of everything that 21 needs to be before the -- or submitted has been 22 submitted. It's just a function of finishing 23 up this process. I think most of the 24 information on all the issues is before -- is 25 at -- has been submitted. And then I think 50 ITEM NO. 13 1 it's just a question of us then at that point 2 analyzing, taking positions, and then 3 finalizing the process. 4 COMMISSIONER EPPS: I mean, there are -- 5 MR. BROOKS: And this is the ICA 6 petition. Okay? 7 COMMISSIONER EPPS: Right. 8 MR. BROOKS: This is the ICA -- 9 COMMISSIONER EPPS: Let's speak to that 10 for a second. There are terms of art that we 11 use, and particular terms of art that give me 12 pause. And one of the terms of art you use 13 today, and that's "amended," which means that 14 which you've already submitted is yet -- still 15 going to be amended. And, see, that's where we 16 always get stuck. We say, okay. Go forth. Do 17 your work. But really what you're saying is we 18 still have some other tinkering to do. And 19 once we start tinkering, like you said, 20 everybody has to look at it. And they don't 21 like what they said, and then there's red 22 lines, and there's documents and then we're at 23 April 7th, and we're going, we're almost there. 24 We just have to -- if we need one more -- if we 25 have one more month, we can get all the 51 ITEM NO. 13 1 paperwork done, and we'll fix it as soon as we 2 amend it again. You know, it's just -- where 3 does it stop? 4 MR. BROOKS: Well, the amendment that 5 I'm talking about would be the amendment that 6 would be done because we've all now looked at 7 the initial petition and said, okay. This is 8 the information we need to complete the 9 process. It's not a situation where you're 10 exchanging black lines of documents and 11 negotiating a deal. This is -- this is, okay. 12 Yes. That -- that makes sense. Let's do it 13 this way. We need a little more information 14 here. The process -- the amendment I'm talking 15 about is already a result of discussions and 16 efforts that have taken place since the initial 17 filing. And I think based on -- you know, once 18 we have a chance to sit down and go over it, it 19 will finalize it. And that at that point we 20 know what has to be done, finalize or complete 21 the application and then have people make 22 decisions. 23 COMMISSIONER EPPS: So there are -- 24 MR. BROOKS: There are a lot of issues 25 that have to be decided. The Division has to 52 ITEM NO. 13 1 make recommendations. I'm not sure what 2 they're going to do on a couple of issues. 3 They have to make recommendations, and then, 4 ultimately, the Commission will have to decide 5 a number of issues. 6 COMMISSIONER EPPS: But we don't get to 7 start deciding our issues until the documents 8 that we're deciding on is completed and 9 submitted to us. That's what we need to 10 happen. If -- at that point, it's in our laps. 11 Then the embarrassment is really on us. But 12 right now we're embarrassed, and it's not even 13 on us. We need to you put it in our laps and 14 let us and our staffs do what we do. 15 The question I have is, what -- the 16 meeting that you've referred to today that's 17 going to happen, will you go away from that 18 meeting with all the answers you need to 19 complete the document and then get it us in a 20 short turnaround so that we can start doing 21 what we do? 22 MR. BROOKS: Yeah. I believe the answer 23 to that is yes. I would say from my 24 perspective, the answer is absolutely yes. 25 Because I think we've now t'd this up, and now 53 ITEM NO. 13 1 it's just a function of, frankly, the Division 2 of Gaming Enforcement and the Commission saying 3 yes, no, yes, no. And then we will finalize 4 it. 5 COMMISSIONER EPPS: And I don't want to 6 stick you with any other time lines, but do you 7 have any idea what the turnaround would be on 8 the completed document? 9 MR. BROOKS: We have the amended 10 petition today. It's here. Depending on what 11 we find out, then we would be in a position to 12 file it. 13 COMMISSIONER EPPS: Okay. 14 MR. BROOKS: I have to get an agreement 15 that what we're filing is something that is 16 supportable, so that when it's presented to 17 you, it's supportable. But the document itself 18 is prepared. 19 COMMISSIONER EPPS: Okay. 20 MR. BROOKS: And, again, I think most of 21 the filings are done. You know, there may -- 22 depending on what happens today, we may agree 23 that there has been to be an additional filing 24 here or there. But I don't think there are 25 anything that would require a lot of time. And 54 ITEM NO. 13 1 I know it won't require a lot of time because, 2 you know, we are -- we -- 3 COMMISSIONER EPPS: We don't have a lot 4 of time. 5 MR. BROOKS: And we want to finish it on 6 our end. 7 CHAIR KASSEKERT: Any other questions 8 before we hear from Mr. Adams? 9 COMMISSIONER SOMMELING: No questions, 10 Madame Chair. 11 CHAIR KASSEKERT: Jack? 12 MR. ADAMS: Thank you, Chair and 13 Commissioners. 14 Commissioner Epps has stated a lot of 15 things that I probably would have said, but I 16 am as frustrated and the Division is as 17 frustrated. 18 Part of what we try to do here, I think, 19 as regulators is sometimes people say, oh, you 20 know, keep the pedal to the metal. Keep 21 everything moving forward, et cetera, et 22 cetera, and that's what we've been trying to do 23 here consistently. But I think, as 24 Commissioner Epps had mentioned, I think I had 25 mentioned last time we were here, which was 55 ITEM NO. 13 1 last month, that depending on what is filed, 2 depending on what is presented, depending on 3 what is asked for, that dictates it. There's a 4 reason the statute says "completed 5 application." It's not just thrown out there. 6 And then you work around things by saying, oh, 7 yeah. We'll get it done quicker. We'll get it 8 done quicker. Everybody, of course, and I can 9 assure you that the Division and myself will 10 work on this diligently. I've been working on 11 this diligently right down the line. But 12 there's certain things that are out of the 13 hands of the regulators, both the Division and 14 the Commission. There's an applicant and 15 there's a process the applicant has to go 16 through. And that's why I expressed last month 17 that, depending on when things get filed, 18 depending on when the application is truly 19 complete, that's -- that's how everything 20 spills out from there. I don't throw it out 21 there because I'm -- I say as a regulator, oh, 22 I have to have that 90 days. Or you have to 23 have the 120 days. No. If we can get it done 24 faster, of course we would get it done faster. 25 And, of course, everybody is going to work to 56 ITEM NO. 13 1 do that. But I can only respond, as you can 2 only respond, to what's filed and what's 3 presented and what's asked for. 4 And I just throw that all out there 5 because I know we're going to talk about dates 6 that are less than that 120-day period. And I 7 don't want to sound like I did a month ago by 8 saying, well, yeah. I share the optimism or I 9 share what Mr. Brooks said as far as getting it 10 done quicker because we're all going to work on 11 it quicker. I'm not so sure that it will 12 happen that way. I am hopeful and optimistic 13 that it will happen that way, but it may not. 14 That's just the reality of -- there are 15 issues in here, novel issues, that you're going 16 to have to consider, and I'm not even sure 17 standing here today what our recommendations 18 going to be about some of those issues. And 19 that's for the information that we already have 20 before us. 21 Now, there has been a lot of information 22 supplied. There have been a lot of filings 23 made. But it all has to be put together and 24 presented to the regulators, and that's out of 25 our hands to a certain extent. We push. And, 57 ITEM NO. 14 1 boy, I've been pushing. I think Mr. Brooks 2 will attest to that, as well as anybody else. 3 But we are where we are right now. 4 You have the response that I gave you in 5 writing. The only thing I didn't specifically 6 address in there was the cash collateral. Of 7 course, we don't oppose that, and we don't 8 oppose an extension. 9 CHAIR KASSEKERT: Thank you. 10 Any questions for the Division? 11 COMMISSIONER SOMMELING: I have no 12 questions, Madame Chair. 13 CHAIR KASSEKERT: All right. Why don't 14 we take a brief recess. 15 (A recess was taken from 11:19 to 11:38 16 a.m.) 17 CHAIR KASSEKERT: We're going to 18 continue on with the agenda as some remarks get 19 tweaked, so we're going to defer Item 13 and 20 move on to Item 14. 21 MR. NANCE: Yes. 22 Item No. 14, proposed publication of 23 amendment to NJAC 19:45-1.43, 1.54, and new 24 rule NJAC 19:45-1.37D. 25 MR. MONCRIEF: Good morning, Madame 58 ITEM NO. 14 1 Chair and members of the Commission. 2 Before you is a proposal to publish 3 amendments to NJAC 19:45-1.43 and 1.54. And 4 new rule 19:45-1.37D. The new rule governs 5 procedure that will be in place for all casino 6 licensees to follow for the testing of slot 7 machines and related equipment that's located 8 on the casino floor. The amendments basically 9 just take the existing regulations and make 10 them work with the text of the new rule. It's 11 before you to consider for publication. 12 If you have any questions, let me know. 13 CHAIR KASSEKERT: Thank you. 14 Any questions? 15 COMMISSIONER SOMMELING: No questions, 16 Madame Chair. 17 Move to approve for publication. 18 COMMISSIONER EPPS: Second. 19 VICE CHAIR HARRINGTON: 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: Motion carries. 59 ITEM NO. 15 1 MR. MONCRIEF: Thank you. 2 MR. NANCE: Item No. 15, proposed 3 publication and temporary adoption of amendment 4 to NJAC 19:45-1.8. 5 Mr. Briliant? 6 MR. BRILIANT: Good morning, Madame 7 Chair and Commissioners. 8 This is a proposal which is part of the 9 wish list that was submitted by the Casino 10 Association of New Jersey, and it would permit 11 a casino licensee to destroy redeemed verified 12 and cancelled gaming vouchers immediately after 13 all audits have been completed. That would be 14 a speed-up from the present situation which 15 involves retaining them for a minimum of seven 16 days. 17 The matter is now before you for 18 publication and temporary adoption. 19 CHAIR KASSEKERT: Thank you. 20 Any questions? 21 COMMISSIONER SOMMELING: No questions, 22 Madame Chair. 23 COMMISSIONER EPPS: Move to approve for 24 publication and temporary adoption. 25 VICE CHAIR HARRINGTON: Second. 60 ITEM NO. 16 1 CHAIR KASSEKERT: The motion has been 2 made and seconded. All in favor? 3 (Ayes.) 4 CHAIR KASSEKERT: Opposed? 5 (No response.) 6 CHAIR KASSEKERT: Motion carries. 7 MR. NANCE: Item No. 16, proposed 8 publication and temporary adoption of 9 amendments to NJAC 19:45-1.10, 1.33A, and 1.54. 10 Mr. Briliant? 11 MR. BRILIANT: This is another wish list 12 item. It would permit a main bank or a master 13 coin bank cashier or count team member to 14 perform the functions of the supervisor of the 15 casino accounting department during the bill 16 validator drop. This would provide casino 17 licensees with more flexibility in selecting 18 personnel to perform the drop while continuing 19 to ensure that persons conducting the drop do 20 not have any incompatible functions. 21 Again, for publication and temporary 22 adoption. 23 CHAIR KASSEKERT: Thank you. 24 Any questions? 25 COMMISSIONER SOMMELING: No questions, 61 ITEM NO. 17 1 Madame Chair. 2 VICE CHAIR HARRINGTON: I move that we 3 adopt -- we approve for publication and 4 temporary adoption, this proposal. 5 COMMISSIONER EPPS: 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: Motion carries. 12 MR. NANCE: Item No. 17, proposed 13 temporary adoption to amendments to NJAC 14 19:46-1.19B. 15 Mr. Briliant? 16 MR. BRILIANT: Yet another wish list 17 item. This would permit a casino licensee to 18 assemble new sets of pai gow tiles from 19 incomplete used sets provided that certain 20 procedures are followed to help ensure the 21 integrity and security of the game. 22 For temporary adoption so that we can 23 have a test in these procedures, see how things 24 work out on the floor. 25 CHAIR KASSEKERT: Thank you. 62 ITEM NO. 18 1 Any questions? 2 COMMISSIONER SOMMELING: No questions, 3 Madame Chair. 4 COMMISSIONER EPPS: I move that we 5 approve this for temporary adoption. 6 COMMISSIONER SOMMELING: Second. 7 CHAIR KASSEKERT: The motion has been 8 made and seconded. All in favor? 9 (Ayes.) 10 CHAIR KASSEKERT: Opposed? 11 (No response.) 12 CHAIR KASSEKERT: The motion carries. 13 MR. NANCE: Item No. 18, proposed 14 temporary adoption of amendment to NJAC 15 19:47-2.4 and 2.5. 16 Mr. Briliant? 17 MR. BRILIANT: The last wish list item 18 for today would provide a casino licensee with 19 the option to pre-shuffle playing cards at the 20 gaming tables after they have been inspected by 21 casino personnel and prior to the arrival of 22 any players. This option -- excuse me -- may 23 reduce the amount of time required to shuffle 24 the cards prior to their use since only a 25 shorter strip shuffle or riffle shuffle and a 63 ITEM NO. 19 1 cut of the cards would be required once the 2 cards have been pre-shuffled. 3 Again, a temporary adoption for test on 4 the floor. 5 CHAIR KASSEKERT: Any questions? 6 COMMISSIONER SOMMELING: No questions, 7 Madame Chair. 8 VICE CHAIR HARRINGTON: I'll move that 9 we approve for temporary adoption. 10 COMMISSIONER SOMMELING: 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: Motion carries. 17 MR. NANCE: Item No. 19, petition of 18 Shuffle Master, Inc., and Bally's Park Place, 19 Inc., for approval of "6 Card Bonus," an 20 additional optional wager in the game of 21 three-card poker pursuant to NJAC 19: -- excuse 22 me -- NJAC 5:12-5 and NJAC 19:45-8.4, and 23 proposed temporary adoption of amendments to 24 NJAC 19:46-1.10A and 19:47-20.1, 20.6, 20.10, 25 and 20.11; and proposed new rule NJAC 64 ITEM NO. 19 1 19:47-20.5 pursuant to NJ -- 2 MR. HENEGHAN: Fifteen. 3 MR. NANCE: Excuse me? 4 MR. HENEGHAN: You said "5." 5 MR. NANCE: Sorry. Recall that. 6 19:47.20.5 and pursuant to NJSA 5:12 -- 7 CHAIR KASSEKERT: One-five, Daryl. 8 Fifteen. 9 MR. NANCE: Oh, one-five, .15. Okay. 10 CHAIR KASSEKERT: Thank you. 11 Mr. Briliant? 12 MR. BRILIANT: Marie Jones is here on 13 behalf of Petitioner, Shuffle Master. 14 I will simply indicate for the record 15 that I did circulate a draft of the proposed 16 amendments. She has had a chance to review 17 them with her client indicated to me that they 18 would satisfactory. And I have had discussions 19 with both Shuffle Master personnel and also the 20 Division of Gaming Enforcement's slot lab 21 confirming the house advantage for the game. 22 It was somewhat of an involved calculation. 23 CHAIR KASSEKERT: Thank you. 24 Miss Jones? 25 MS. JONES: Good morning again. 65 ITEM NO. 19 1 You have the petition. The regulation's 2 in front of you. 3 I'll be happy to answer any questions 4 you have. 5 CHAIR KASSEKERT: Thank you. 6 Any questions? 7 COMMISSIONER SOMMELING: No questions, 8 Madame Chair. 9 Move to approve for temporary adoption. 10 COMMISSIONER EPPS: 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: Motion carries. 17 We'll go back into recess. 18 MR. BRILIANT: Thank you. 19 Good luck. 20 MS. FAUNTLEROY: Do you want to recess 21 until a particular time? 22 CHAIR KASSEKERT: You tell me. How 23 long, do you think? 24 It's quarter to 12 now. 25 MS. FAUNTLEROY: It's up to you now. 66 ITEM NO. 13 1 It's up to you. 2 CHAIR KASSEKERT: 1:00? 3 MS. FAUNTLEROY: You think that's 4 sufficient? 5 CHAIR KASSEKERT: Yeah. 6 Recess until 1:00. If people want to 7 grab lunch, they can. 8 (A recess was taken from 11:44 a.m. to 9 1:06 p.m.) 10 CHAIR KASSEKERT: We'll go back on the 11 record. 12 Let me ask at this point if any of the 13 Commissioners have any additional questions? 14 COMMISSIONER SOMMELING: No questions at 15 this time, Madame Chair. 16 CHAIR KASSEKERT: Okay. Let me ask if 17 the parties have any other matters that need to 18 be brought to us at this time? 19 MR. MACK: Nothing further. 20 MR. ADAMS: No. 21 MR. BROOKS: No. Nothing further, 22 ma'am. 23 CHAIR KASSEKERT: All right. 24 Once again, the Commission finds itself 25 facing another request for an extension of the 67 ITEM NO. 13 1 deadline by which Justice Stein is required to 2 dispose of Adamar's property for purposes of 3 Subsection 95.14e of the Act. When ruling on 4 the request before us last month for an 5 extension through January 31st, 2010, we 6 expressed an appropriate level of skepticism 7 regarding whether that deadline was overly 8 ambitious. In part, we were concerned at that 9 time since we had not yet received what we were 10 told would be one or more petitions seeking 11 various types of relief that would be essential 12 for the new Tropicana Entertainment entities to 13 acquire the assets of the former casino 14 licensee, Adamar. 15 In large part, the pending request for a 16 further extension has been generated by the 17 recent filing, on January 11th, 2010, to be 18 exact, of the Tropicana Entertainment petition, 19 to which I just referred. 20 While that petition endeavors to be 21 comprehensive, there are nevertheless matters, 22 some of which were technical but others that 23 are more substantive that require both the 24 Division and our staff to have legitimate 25 questions that make it impossible for the 68 ITEM NO. 13 1 Commission to consider that petition under the 2 current meeting schedule for January. As that 3 became apparent, Justice Stein acted promptly 4 to seek a further extension. 5 Although the relief sought, if granted, 6 would run through early April, I viewed that or 7 any later date as purely precautionary, because 8 a sooner ruling and a closing shortly 9 thereafter may well very well be possible. 10 Aside from venting frustration over the current 11 delay, no good comes from pointing fingers for 12 its cause. 13 Although the Justice stands ready and 14 has stood ready to sell, certain regulatory 15 prerequisites are necessary before the buyer 16 can buy. In that regard, both by statute and 17 under the current purchase contract, no closing 18 is allowed to occur until the Division and 19 Commission have had sufficient time to review 20 the materials in furtherance of the buyer's 21 pursuit of the interim casino authorization. 22 Even assuming that a complete ICA filing 23 occurred on January 11th, and no one can 24 seriously contends that it did, certainly, it's 25 unrealistic to expect that the 90 days afforded 69 ITEM NO. 13 1 the Division under the ICA statute would be 2 truncated so as to accommodate a closing this 3 month. 4 However, what is critical is that we are 5 now told by the affected parties that there 6 will be a timely filing of any outstanding 7 materials so that the Division will be able to 8 report on ICA promptly. Towards that end, it 9 might be beneficial for the ICA candidate, once 10 it submits all materials, to seek a separate 11 ruling on the completedness of its application 12 so as to remove any doubt on when the ICA clock 13 begins to run. However, pursuing such a 14 separate ruling should not be at the expense of 15 a further delay in this process. 16 As with other extension requests, the 17 Division reiterates its call for the 18 continuation of the current version of the cash 19 balance requirement, and I would be prepared to 20 move forward on that basis. 21 The amended petition also seeks a 22 further extension of the liens regarding 23 Adamar's use of its cash collateral. Although 24 the expectation was that Justice Stein would 25 seek such an extension to coincide with 70 ITEM NO. 13 1 whatever length we afforded on the deadline for 2 the sale period, it now appears that the 3 lenders will accommodate, at most, only a 4 month-by-month extension. Given that the 5 Commission has granted similar requests in the 6 past, for my part at least, I am prepared to 7 permit Justice Stein on behalf of Adamar to 8 seek one or more continuations of the liens 9 under the cash collateral order, but subject 10 to -- but subject to them not extending past 11 the deadline we would impose for the sale to 12 occur. On that point, the Division has noted 13 that the 90- and 120 -- 120-day periods that 14 are intrinsic to the ICA process and emphasize 15 that each of them only begins to run once an 16 ICA application is complete. As earlier noted, 17 there can be no serious contention that the 18 application is complete, so any future date 19 that we might pick today is not guaranteed to 20 capture the length of time mandated by the 21 statute. 22 Nevertheless, I believe we should 23 endeavor to select a date that meaningfully 24 attempts to include those statutory time lines. 25 Thus, I would be prepared to recommend that the 71 ITEM NO. 13 1 Commission extend the sale period through June 2 4th, 2010, recognizing that: One, that we 3 are -- that we fully expect a much sooner 4 disposition of the matter; and, two, that such 5 date is in no way indicative that we view the 6 pending ICA application to be complete at the 7 present time. 8 Subject to my earlier comments and the 9 conditions therein recommended, I would then 10 move to adopt the draft resolution and: One, 11 extend the sale period through June 4th, 2010; 12 and, two, authorize Justice Stein on behalf of 13 Adamar to seek one or more continuations of the 14 liens for the purposes of the cash collateral 15 order, and I so move. 16 Is there a second? 17 COMMISSIONER SOMMELING: Second. 18 CHAIR KASSEKERT: A motion has been made 19 and seconded. This is a roll call vote. 20 MR. NANCE: Commissioner Sommeling? 21 COMMISSIONER SOMMELING: Yes. 22 MR. NANCE: Commissioner Epps? 23 COMMISSIONER EPPS: Yes. 24 MR. NANCE: Vice Chair Harrington? 25 VICE CHAIR HARRINGTON: Yes. 72 ITEM NO. 13 1 MR. NANCE: Chair Kassekert? 2 CHAIR KASSEKERT: Yes. 3 MR. NANCE: The record will reflect that 4 the record is unanimous. 5 CHAIR KASSEKERT: Thank you. 6 MR. BROOKS: Thank you. 7 MR. MACK: Thank you, Madame Chair. 8 MR. NANCE: In accordance with 9 Resolution 09-12-16-20, the next closed session 10 of the Commission shall be held on Wednesday, 11 February 3rd, 2010, at 9:15 a.m. in the 12 Commission office. 13 It is now time for the public 14 participation portion of the meeting. 15 CHAIR KASSEKERT: Is there anyone from 16 the public that wishes to be heard? 17 (No response.) 18 CHAIR KASSEKERT: Seeing no one, I'll 19 declare this portion of the meeting closed and 20 entertain a motion to adjourn. 21 COMMISSIONER SOMMELING: Motion to 22 adjourn. 23 COMMISSIONER EPPS: Second. 24 CHAIR KASSEKERT: The motion has been 25 made and seconded. All in favor? 73 1 (Ayes.) 2 CHAIR KASSEKERT: Opposed? 3 (No response.) 4 CHAIR KASSEKERT: Motion carries. 5 The meeting is adjourned. 6 (Public Meeting 10-01-20 was adjourned 7 at 1:13 a.m.) 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 74 1 2 C E R T I F I C A T E 3 4 5 I, DARLENE SILLITOE, a Certified Court 6 Reporter and Notary Public of the State of New 7 Jersey, certify that the foregoing is a true 8 and accurate transcript of the proceedings. 9 10 11 I further certify that I am neither 12 attorney, of counsel for, nor related to or 13 employed by any of the parties to the action; 14 further that I am not a relative or employee of 15 any attorney or counsel employed in this case; 16 nor am I financially interested in the action. 17 18 19 DARLENE SILLITOE CCR 20 License No XI01023 21 22 Dated: January 23, 2010 23 My Notary Commission Expires July 22, 2014 24 ID No 2062871 25