STATE OF MICHIGAN

MICHIGAN GAMING CONTROL BOARD

PUBLIC MEETING

Cadillac Place

3062 W. Grand Blvd., Suite L-700

Detroit, Michigan

TUESDAY, June 8, 2004

11:00 A.M.

MINUTES

On Tuesday, June 8, 2004, the Michigan Gaming Control Board held a public meeting at the Board office in the Cadillac Place, 3062 W. Grand Blvd, Suite L-700, Detroit, Michigan.

Present:        In attendance were the following Board members:

                                                Damian Kassab, Chairman

                                                Judge Benjamin Friedman

                                                Judge Michael Stacey

                                                Donald Robinson

                                                Barbara Rom

                        Also attending were:

                                                Daniel Gustafson

                                                Patty James

                                                Insp. Ellis Stafford

                                                Ben McMakin

                                                Tom Barker

                                                John Page

                                                Jack Cahill

                                                Bethany Scheib

Business:         Board Chairman Damian Kassab called the meeting to order at 11:02 a.m.  Chairman Kassab noted for the record that all Board members were in attendance.

                        Chairman Kassab stated that the Board members have received copies of the minutes from the May 11, 2004 Board meeting and there being no comments, changes or corrections to the minutes, he requested a motion to approve the minutes from the May 11, 2004 meeting.

                        It was moved and seconded that the minutes of the May 11, 2004 meeting be approved.  Motion carried.

                        Dan Gustafson next presented the Executive Director’s report.  In regards to staffing Mr. Gustafson advised the Board that Janet Sudac, a Licensing Division secretary, accepted another position within the Department of Treasury.   Mr. Gustafson further advised the Board that the MGCB staff now total 94 with 8 authorized positions yet to be filled.  He also noted that the Board is in the process of interviewing and hiring for most of these 8 positions. 

                        Mr. Gustafson proceeded to give an update regarding the Board’s budget.  Mr. Gustafson reported that for the fiscal year 2004, from October 1, 2003 through May 31, 2004, the Board has incurred expenditures in the amount of $7,752,101, leaving the unexpended balance of $9,577,099 in appropriated funding for FY 2004.   Mr. Gustafson further advised that the unexpended balance includes year-end reimbursements to the Attorney General and State Police.

                        Mr. Gustafson next reported that the aggregate revenue in taxes for all three Detroit casinos was up 5 percent compared to the same month last year.   The gaming taxes for the three Detroit casinos for May 2004 were $8.8 million compared to $8.3 million for the same period last year.

                        Mr. Gustafson then proceeded to update the Board on the status of the issuance of temporary supplier licenses, full supplier licenses, vendor registrations, and supplier licensing exemptions, as well as the status of the issuance of temporary and permanent occupational licenses for the three casinos.

                        Upon conclusion of Mr. Gustafson’s report Chairman Kassab announced that the matters to be considered at today's meeting and all future Board meetings would be consolidated by subject matter and presented to the Board as one motion.  Also, all members of the public would be given the opportunity to address the Board prior to the motion in which the Board would consider their case. 

                        The Board next considered the Licensing Division staff's recommendations regarding 113 pending Level 1 and Level 2 occupational license applications. 

It was moved by Judge Stacey and seconded by Judge Friedman that the Board enter an order accepting and adopting the Licensing Division staff's recommendations regarding the 113 Level 1 and Level 2 occupational license applications as summarized in Exhibit 1, and directing that the Executive Director issue occupational licenses or notices of denial to the named applicants in accordance with the staff’s written recommendations.  The following roll call vote was then taken on the motion:

      Chairman Kassab:      Aye

      Judge Friedman:      Aye

      Donald Robinson:      Aye

      Barbara Rom:      Aye     

      Judge Stacey:      Aye

                        Motion carried.

                        The Board next considered the Licensing Division's staff recommendations regarding the pending applications for approval of transfer of interest in a supplier license.  The applications for transfer to be considered are The United States Playing Card Company from Bicycle Holdings, Inc. to Jarden Corporation, Board's File No. SL000288-04-001; Happ Controls, Inc. from Frank L. Happ to Pfingsten Executive QP Fund III, L.P. and Pfingsten Executive Fund III, L.P., Board File No. SL000543-04-002, and Traffic & Safety Control Systems, Inc. from Jack R. Wiitala to Keith E. Hay and Deborah S. Cantlon, Board File No. SL000878-04-002.

                        After questions presented by the Board were answered, it was moved by Judge Friedman and seconded by Ms. Rom that the Board enter an order approving the proposed transfer of 100 percent ownership interest in The United States Playing Card Company from Bicycle Holdings, Inc. to Jarden Corporation, also approving the proposed transfer of 90 percent ownership interest in Happ Controls, Inc. from Frank L. Happ to Pfingsten Executive QP Fund III, L.P. and Pfingsten Executive Fund III, L.P., as well as approving the proposed transfer of 75 percent ownership interest in Traffic & Safety Control Systems, Inc. from Jack R. Wiitala to Keith E. Hay and Deborah S. Cantlon, subject to final Board determination of the eligibility, qualifications and suitability of each of the qualifiers under the supplier licensing requirements of the Act and Administrative Rules of the Board and the full compliance of each qualifier with the requirements of Part 5 of the Rules.  The following roll call vote was then taken on the motion:

                                    Chairman Kassab:            Aye

                                    Judge Friedman:            Aye

                                    Donald Robinson:            Aye

                                    Barbara Rom:            Aye

                                    Judge Stacey:            Aye

                        Motion carried.

                        Chairman Kassab next presented agenda items E, F and G for Board consideration.  However, Judge Friedman requested that item E be considered separate, so that he could recuse himself from the vote.  Judge Friedman explained that the corporate counsel for Gold Star Products, Inc. is an attorney in the office where he rents. 

                        Chairman Kassab consented to Judge Friedman's request and presented the application of Gold Star Equipment, d/b/a, Gold Star Products for renewal of its nongaming supplier license, Board File No. SL000146-04-001.

                        It was then moved by Mr. Robinson and seconded by Judge Stacey that the Board enter an order finding and concluding that Gold Star Equipment, Inc. and its qualifiers are eligible and suitable for licensure under the licensing standards and requirements of the Act and Rules of the Board and accordingly granting the request by Gold Star Equipment, Inc. for renewal of its annual nongaming-related supplier license for a new one-year period beginning June 8, 2004, based upon the background investigation report and recommendation of the Executive Director and the Board's Licensing Division staff.  The following roll call vote was then taken on the motion:

                                    Chairman Kassab:            Aye

                                    Judge Friedman:            Recuse

                                    Donald Robinson:            Aye

                                    Barbara Rom:            Aye

                                    Judge Stacey:            Aye

                        Motion carried.

                        The Board next considered the Executive Director's Reports and the Licensing Division staff's recommendations regarding the pending nongaming-related supplier license renewal applications of The Berline Group, Inc., Board File No. SL000353-04-001 and Del Bene Produce, Inc., Board File No. SL000620-04-001.

                        It was moved by Ms. Rom and seconded by Judge Friedman that the Board enter an order finding and concluding that The Berline Group, Inc. and its qualifiers and Del Bene Produce, Inc. and its qualifiers are eligible and suitable for licensure under the licensing standards and requirements of the Act and Rules of the Board and accordingly granting the requests of The Berline Group, Inc. and Del Bene Produce, Inc. for renewal of their annual nongaming related supplier licenses for a new one year period beginning June 8, 2004, based upon the background investigation reports and recommendations of the Executive Director and the Board's Licensing Division staff.  The following roll call vote was then taken on the motion:

                                    Chairman Kassab:            Aye

                                    Judge Friedman:            Aye

                                    Donald Robinson:            Aye

                                    Barbara Rom:            Aye

                                    Judge Stacey:            Aye

                        Motion carried.

                        The next item on the agenda was the consideration of the Proposal for Decision in the matter of the denial of Steven Hermiz, Board File No. OLH-2004-06.

                        Chairman Kassab invited Assistant Attorney General, Bethany Scheib to give a brief synopsis of this case.

                        Upon completion of Ms. Scheib's summary and questions from Board members, it was moved by Judge Friedman and seconded by Ms. Rom that the Board enter a final decision and order in the matter of the denial of Steven Hermiz's application for an occupational license, accepting and adopting and incorporating the May 4, 2004 hearing transcript which contains the hearing officer's oral Proposal for Decision in the matter in its entirety and denying the occupational license for which Mr. Hermiz made application.  It is further moved in accordance with the hearing officer's recommendation that the Board grant a waiver of Board Rule 432.1340(2) whereby Steven Hermiz will be eligible to reapply for an occupational license after August 11, 2004.  The following roll call vote was then taken on the motion:

            Chairman Kassab:            Aye

            Judge Friedman:            Aye

            Donald Robinson:            Aye

            Barbara Rom:            Aye

            Judge Stacey:            Nay

Motion carried.

There being no questions or comments from the public, Chairman Kassab adjourned the meeting, at 11:36 a.m.

                              ______

                                Patricia S. James

                                Board Secretary