Gaming Advisory Council Meeting Minutes

APRIL 20, 2001
SCOTT HART BUILDING AUDITORIUM
HELENA, MONTANA

Please note: This is a brief summary of the Council meeting. The meeting in its entirety is on tape at the Gambling Control Division office at 2550 Prospect Avenue, Helena Montana. Exhibits are on file in the office of the Gambling Control Division.

COUNCIL MEMBERS PRESENT

Chair, Senator Dale Mahlum
Tim Carson
Steve Morris
S. Kevin Howlett
Tom Scott
Representative John Witt
Bill Thomas
John Tooke

DIVISION STAFF PRESENT

Gene Huntington, Rick Ask, Ben Kamerzel, Lore Morgan

SUMMARY OF COUNCIL ACTION

• John Tooke was elected Vice-Chairman to the council
• Received report from Attorney General Mike McGrath
• Received Division report from Gene Huntington
• Received Tribal Gaming Report from Gene Huntington
• Received liquor licensing report from Gene Huntington

CALL TO ORDER AND ROLL CALL

Chairman Dale Mahlum called the meeting to order at approximately 10:00 a.m. Roll call was taken and all members were present except Randall Gray, who was excused.

Chairman Dale Mahlum requested a Vice-Chairman be elected, as he was unable to be present for the entire meeting. Representative Witt nominated John Tooke; Steve Morris seconded the nomination, all in favor motion passed.

REPORT BY ATTORNEY GENERAL MIKE MCGRATH

Attorney General Mike McGrath began by expressing the importance of the Gaming Advisory Council for communication with the industry, Legislature, and with the public at large.

Attorney General McGrath told the council of major issues he has committed himself to. The list included resolving the AARS issues and streamlining the licensing process.

Attorney General McGrath described one of the main problems between the gaming industry and the Department is communication and would like to use the council to resolve the problem.

Mr. McGrath's goal is to change the culture to one where the regulatory agencies and industry groups work together.

GAMBLING CONTROL DIVISION REPORT

Gene Huntington, Administrator for Gambling Control Division, gave a brief presentation of the history of the Gambling Control Division as well as the issues the Division is faced with.

AUTOMATED ACCOUNTING AND REPORTING SYSTEM REPORT

Mr. Huntington gave an update on the status of the AARS.

Mr. Huntington told the council that the Division expected delivery of product and a work plan. Mr. Huntington explained the Division has not received any functioning products or a work plan to date. The Division is continuing to work with LGS in trying to get adequate delivery.

Mr. Huntington told the council the next step would most likely be legal and the Division would pursue the process to provide notice of a breach of contract.

Senator Mahlum asked Ben Kamerzel, Technical Service Section Supervisor, to describe the AARS parts LGS had delivered to date and the problems associated with them.

Mr. Kamerzel described what has been received to date from LGS which is 30 boards - 24 SIBS & 6 short haul modems. Mr. Kamerzel explained the voltage supply to the boards "fell off the charts" after the fourth board and that no documentation has been received making it difficult to develop anything from what has already been received.

MAKING MANUFACTURERS DATA PUBLIC

Gene Huntington asked the council for guidance on what manufacturer information should be made public. Dee Scott, a VLC representative, requested Gambling Control division to provide to her the data reflecting the performance of VLC machines.

Mr. Huntington explained the data is powerful depending on how it is used and the concern of the Division is if this information should be made public and in what formats.

John Tooke asked Tim Carson and Tom Scott to review the issue and explore possible solutions.

TRIBAL GAMING REPORT

Gene Huntington updated the council on the tribal compacts. Mr. Huntington reported that he met with Governor Judy Martz along with the Attorney General and Sarah Bond to discuss negotiations with the Confederated Salish Kootenai Tribe. He continued to report the compact was extended for one year and will expire this November. Mr. Huntington expects to have an initial meeting with the Tribe in May.

Kevin Howlett offered to meet with each Tribe along with the Administrator to establish communications.

Rick Ask, Operations Bureau Chief, explained the past issues centered around revenue options.

LIQUOR LICENSING PROCESS

Mr. Huntington briefly described the relationship between Revenue and Gambling Control Division to the council. Mr. Huntington explained the Division investigates the suitability of applicants for liquor licenses for the Department of Revenue.

He reported that the Legislative Auditor is currently reviewing the liquor licensing process.

PUBLIC COMMENT

Rich Miller, President of the Gaming Industry Association, asked that the Gambling Control Division in cooperation with the GIA review all the rules, specifically those relating to Bingo, Keno, and record keeping.

The council asked that Mr. Miller summarize for the next meeting what rules specifically cause problems and what changes need to be made.

Mr. Miller agreed to provide a summary for the next meeting.

FINAL BUSINESS

The next meeting was set for July 13, 2001.

The meeting adjourned at 2:15 p.m