0001 1 * * * * * * * * * * * * * * * * * 2 3 BINGO ADVISORY COMMITTEE 4 MEETING 5 6 AUGUST 11, 2004 7 8 * * * * * * * * * * * * * * * * * 9 10 11 12 13 14 15 16 BE IT REMEMBERED that the BINGO ADVISORY 17 COMMITTEE meeting was held on the 11TH of AUGUST, 18 2004, from 10:00 a.m. to 11:10 a.m., before Brenda J. 19 Wright, RPR, CSR in and for the State of Texas, 20 reported by machine shorthand, at the Offices of the 21 Texas Lottery Commission, 116 East Sixth Street, 22 Austin, Texas, whereupon the following proceedings 23 were had: 24 25 0002 1 APPEARANCES 2 3 Vice Chairperson, Chairperson: 4 Ms. Suzanne Taylor (Corpus Christi, Commercial Lessor 5 Committee Members: 6 Mr. Mario Manio (Garland, Commercial Lessor) 7 Mr. Pete Pavlovsky 8 (Rosenberg, Charity) 9 Mr. Larry Whittington (Dallas, Charity) 10 (NOT PRESENT) 11 Mr. Daniel Moore (Houston, Manufacturer/Distributor) 12 Ms. Kimberly Rogers 13 (San Antonio, Charity/Lessor) 14 Mr. John "Jack" Dougherty (Austin, General Public) 15 16 Charitable Bingo Operations Director: Mr. Billy Atkins 17 18 19 20 21 22 23 24 25 0003 1 INDEX 2 3 Appearances...................................... 2 4 AGENDA ITEMS 5 Item Number 1.................................... 4 6 Item Number 2.................................... 4 Item Number 3.................................... 5 7 Item Number 4.................................... 5 Item Number 5.................................... 11 8 Item Number 6.................................... 16 Item Number 7.................................... 18 9 Item Number 8.................................... 19 Item Number 9.................................... 22 10 Item Number 10................................... 35 Item Number 11................................... 44 11 Item Number 12................................... 48 Item Number 13................................... 51 12 Item Number 14................................... 51 Item Number 15................................... 55 13 Amendment Sheet.................................. 56 14 Reporter's Certificate........................... 57 15 16 17 18 19 20 21 22 23 24 25 0004 1 AUGUST 8, 2004 2 VICE CHAIR TAYLOR: I will call the 3 meeting to order. We do have a quorum. 4 The second item on our agenda is 5 consideration of and possible discussion and/or 6 action, including approval, of the minutes of the 7 April 29, 2004, Bingo Advisory Committee meeting. 8 These were posted online. Do I hear a motion to 9 approve? 10 MR. PAVLOVSKY: So moved. 11 VICE CHAIR TAYLOR: Second? 12 MR. MANIO: I second the motion. 13 VICE CHAIR TAYLOR: Okay. I'll take a 14 vote, then. All in favor? Opposed? Okay. That 15 was -- 16 MR. DOUGHERTY: I didn't have my mike 17 on. Yes, I approve. I'll get my mike on. 18 VICE CHAIR TAYLOR: Okay. Then that 19 was no opposition. 20 We would like to introduce Kimberly 21 Rogers. She's the newest member of the Bingo Advisory 22 Committee. She's from San Antonio. 23 Did you want to say a few words? 24 MS. ROGERS: Thank you, and I look 25 forward to helping out with anything I can. I'm 0005 1 excited, nervous, but I think this is going to be a 2 fun venture. Thank you. 3 VICE CHAIR TAYLOR: Commissioner Clowe 4 is not going to be here, but later on, we do expect to 5 see Commissioner Cox here. 6 Okay. We'll move on to item number 7 three, which is report and possible discussion and/or 8 action to select a new chair of the Bingo Advisory 9 Committee. And my name is on here. However, I wasn't 10 on this particular work group. I think Patricia 11 Green -- Patricia Greenfield was, and I can't recall 12 who else. 13 MR. MOORE: Pete and myself. 14 VICE CHAIR TAYLOR: So do you have a 15 recommendation? Or a motion? 16 MR. PAVLOVSKY: I -- I move we 17 nominate, elect, or whatever the terminology is -- 18 select Suzanne Taylor as chairman -- chairperson. 19 Excuse me. 20 MR. MANIO: I second the motion. 21 VICE CHAIR TAYLOR: Is there any other 22 discussion? Okay. All in favor? Opposed? Okay. 23 Everybody is in favor. 24 Moving on to number four, consideration 25 and possible discussion on the Sunset Commission 0006 1 review of the Texas Lottery Commission. 2 MR. ATKINS: Members, the Sunset 3 Advisory Committee did meet, and it did take action on 4 the staff's report. And I would like to ask Nelda 5 Trevino to provide an update to that. You have in 6 your notebook a copy of the decision material that was 7 used by the -- by the commission at their meeting. 8 MS. TREVINO: Good morning, Madam Chair 9 and members of the Advisory Committee. I am Nelda 10 Trevino, the Director of Governmental Affairs. As 11 Billy mentioned, the Sunset Advisory Commission did 12 meet on July the 14th, and they adopted the Sunset 13 staff recommendations related to the Lottery 14 Commission. And in your packets, again, as Billy 15 indicated, you have the Sunset decision document, and 16 you'll note that there are 20 recommendations that the 17 Commission considered and adopted that are directly 18 related to the agency. They also adopted the 19 across-the-board recommendations that are applicable 20 to all the agencies under Sunset review. 21 And then, if you look towards the last 22 part of the document, on page 19, there is a listing 23 of new issues that were provided by a public citizen. 24 And these are all related more to the lottery side of 25 the business of the agency. And out of these new 0007 1 issues, the Commission also adopted a modified version 2 of new issue number eight, that would require the 3 Commission to comply and adhere with all applicable 4 and relevant laws regarding consumer information and 5 protection. 6 The next step in the Sunset review 7 process will be for a Sunset bill to be filed when the 8 legislature convenes in January of 2005. So, again, 9 at -- at this point the review process has taken 10 place. The hearings have completed related to our 11 agency. They have adopted these recommendations. So 12 at this point we look to January of 2005 when the 13 legislature convenes and considers our Sunset 14 legislation. 15 That concludes my report, and I'll be 16 happy to answer any questions that you may have. 17 MR. PAVLOVSKY: What would the Sunset 18 review bill do? Would -- did you just answer that 19 question in your last comment? 20 MS. TREVINO: Typically, what happens 21 in the Sunset legislation, the recommendations that 22 are adopted by the Sunset Commission are put into a 23 bill format. So there will be a bill filed both in 24 the House and the Senate that will incorporate the 25 recommendations of the Sunset Commission. Obviously, 0008 1 once a bill is filed, then it goes through the course 2 of the legislative process, and anything can happen at 3 that point. 4 MR. PAVLOVSKY: Got you. Thank you. 5 MR. ATKINS: Members, in putting the 6 agenda and the notebook together, Suzanne wanted to 7 make sure that you had access to the recommendations 8 that you made at your last meeting, and those are 9 contained in that document for your review, the 10 document being the July 2004 decision material for the 11 Sunset Commission. 12 MR. MOORE: Nelda, the system service 13 provider, they're going to eliminate it if this is 14 passed and signed by the Governor, I guess. Will we 15 fill that position on the BAC with -- if there is no 16 system service providers out there, are we just going 17 to operate with eight people now? 18 MR. ATKINS: No. The statute would 19 still require for nine members. We would just need to 20 revisit the rule and how those positions are 21 distributed. 22 MR. MOORE: Yeah. Didn't we -- did we 23 talk about it? Were we going to do general public? I 24 thought we had a discussion, but maybe not. 25 MR. ATKINS: I -- I don't recall that. 0009 1 MR. MOORE: Okay. So we'll maybe talk 2 about that today during -- when we get into -- 3 MR. ATKINS: I don't think it's ripe 4 for a discussion right now because, as it stands now, 5 the statute still requires that a position be held for 6 an SSP, even though there aren't -- there isn't 7 currently anyone licensed to fill that position. 8 MR. MOORE: Okay. I was just curious. 9 Okay. 10 MR. ATKINS: Yeah. 11 MS. TREVINO: Any other questions? 12 MR. DOUGHERTY: Yes, I have -- I have 13 one. On that page 19, item 14, as a lottery user, 14 does -- does this mean that I couldn't take a ticket 15 that I don't know what it's worth and -- and they will 16 not check it for me? Is that too strong? 17 MS. TREVINO: And -- and you're looking 18 at the new issues. Correct? 19 MR. DOUGHERTY: Yeah. It's a new 20 issue, item 14, that keeps retailers from checking 21 players' ticket -- tickets as a courtesy. Only 22 winning tickets. I thought part of the idea is to 23 find out if you have a winning ticket. 24 MS. TREVINO: Well, just -- just, 25 again, to clarify, the only new issue that was adopted 0010 1 by the Sunset Commission on this page was new issue 2 number eight, in -- in a modified version. So all the 3 other ones were not adopted by the Sunset Commission, 4 so the only one on that page, again, was item number 5 eight. 6 MR. DOUGHERTY: Oh, I see. Okay. So 7 it's still up for discussion and -- 8 MS. TREVINO: No, sir. Not at this 9 point. As far as the Sunset Commission is concerned, 10 they have adopted their recommendations. 11 MR. DOUGHERTY: I see. I see. Okay. 12 Thank you. No questions. 13 MS. TREVINO: Madam Chair, anything 14 else? 15 CHAIR TAYLOR: Nothing for me unless 16 anybody else had any other questions or any public 17 comment. 18 MR. MANIO: Just one question. The 19 name Dawn Nettles appears throughout the report. Who 20 is Dawn Nettles? Forgive my ignorance. 21 MS. TREVINO: And -- and I did indicate 22 when -- when -- she is a public citizen and has come 23 before our Commission before. And these are 24 recommendations that she provided through the public 25 hearing process for the Sunset Commission. There was 0011 1 an opportunity for the public to provide any sort of 2 feedback to the Sunset Commission. And she is one 3 individual that provided these recommendations for the 4 Sunset Commission to consider. 5 MR. MANIO: Are there no other 6 individuals that provided information to the 7 Commission? Is -- is she the only -- was she the only 8 one or -- 9 MS. TREVINO: She was the only one, to 10 my knowledge, based on the public hearing that was 11 held, that these were put forth before the Commission 12 to consider. 13 MR. MANIO: Thank you. 14 MS. TREVINO: You're welcome. 15 CHAIR TAYLOR: Thank you, Nelda. 16 We would like to go ahead and recognize 17 Commissioner Cox at this time. We appreciate you 18 coming, and if you have anything to insert, please 19 feel free to let us know. And we'd also like to thank 20 our public member for being present. 21 We'll move on to item number five, 22 report and possible discussion and/or action on the 23 member make-up of the existing Bingo Advisory 24 Committee work groups. 25 MR. ATKINS: Members, there are a 0012 1 number of work groups, as you know, working on various 2 issues that the BAC has been considering, and those 3 members are listed on the Web site. At a recent 4 Commission meeting, Patricia Greenfield was removed 5 from the Advisory Committee since she was no longer 6 eligible to hold that position, and it created some 7 vacancies on those work groups. Patricia did indicate 8 at the time that she would be interested in continuing 9 to serve on those work groups. So what the staff did 10 is changed the Web site to identify her as a public 11 member. And what we would like to do is, we would 12 just like to get confirmation from the Advisory 13 Committee that you agree with that change, and also, 14 if you are interested in replacing her, filling 15 another BAC membership on those work groups, to -- to 16 do it at this meeting, also. 17 So if -- the first one that would be 18 affected would be the work group reviewing the 19 Operator Training Program. She had been an -- a 20 member, a BAC member, of that group. She has 21 requested to stay on that work group as a public 22 member. Currently, the only BAC member would be 23 Suzanne. So we are asking if -- since work groups 24 generally consist of at least two BAC members, if 25 there is another BAC member that would like to serve 0013 1 on that work group. 2 MR. MANIO: Yes, I would be interested 3 in serving. 4 MR. ATKINS: The next one would be the 5 work group reviewing charitable bingo forms and 6 applications. Mario already serves on that. Patricia 7 was serving. And I'm guessing that Patricia was 8 serving as the chair? 9 MR. MANIO: That's correct, Bill. 10 MR. ATKINS: So on this work group, 11 again, we would ask the same question, if there is 12 another member that would like to serve, and also if 13 there is a member that would like to serve as chair. 14 CHAIR TAYLOR: Kimberly, would you be 15 interested in that? 16 MS. ROGERS: Yes. Yes, I would be 17 interested in serving, maybe not as chair, but as a 18 member. 19 CHAIR TAYLOR: Mario, you're going to 20 take the chair position for that committee? 21 MR. MANIO: Yes. 22 MS. ROGERS: Thank you. 23 MR. ATKINS: The next one is the review 24 of the Operations Manual. Again, Mario already serves 25 on that. Patricia has asked to serve as a public 0014 1 member. So we would be seeking another BAC member, as 2 well as the chair of that work group. 3 MR. PAVLOVSKY: I will. 4 CHAIR TAYLOR: Who would -- which one 5 of you wanted to be the chair of that group? 6 MR. PAVLOVSKY: Mario. 7 MR. ATKINS: Okay. That will make 8 Mario the chair of one, two, three, and depending -- 9 we have a question about the last one -- possibly four 10 work groups. And you're okay with that, Mario? 11 MR. MANIO: That might -- that might be 12 an overload. Let me see. 13 MR. ATKINS: Okay. 14 MR. MANIO: I might ask someone to help 15 me out and take over. 16 MR. ATKINS: And that is, I believe, 17 the only action that we were asking on that item. 18 I -- I do just raise to your attention 19 the work group on the administrative penalty rule. 20 We've had a hiccup with the -- with the Web site, as 21 you can see, and it lists three chairs. We're 22 researching that to see who was actually named the 23 chair, unless y'all can remember. 24 MR. MOORE: I'll take the lead on 25 that -- 0015 1 MR. ATKINS: Okay. 2 MR. MOORE: -- if that's all right. 3 I'm sure Mario is happy with that. 4 MS. ROGERS: And if I could say one 5 thing. If Mario would be kind enough to give me some 6 background, I would be happy to take chair on that 7 one, the forms applications. I'm backing up a little 8 bit. If you want to give me a little -- 9 MR. MANIO: I -- I would be happy to. 10 MS. ROGERS: Okay. 11 MR. MANIO: The -- the only problem is, 12 the work is almost completed and -- 13 MS. ROGERS: Oh, okay. Okay. Then 14 I'll -- 15 MR. MANIO: So that -- that work group 16 is -- is probably going to go away in the next couple 17 of months. 18 MS. ROGERS: Okay. Okay. 19 CHAIR TAYLOR: Okay. So Mario is going 20 to continue to be the chair of the charitable bingo 21 forms work group, and Kimberly will serve on that with 22 you. 23 MR. DOUGHERTY: Madam Chair, did we 24 clarify that the rule work group has three chairmen? 25 MR. ATKINS: Yes, we did. Danny Moore 0016 1 is -- is going to serve as the chair. 2 MR. DOUGHERTY: Danny? Oh, okay. All 3 right. 4 CHAIR TAYLOR: Any other discussion on 5 the work groups? 6 Okay. If not, we'll move on to item 7 number six, report and possible discussion on calendar 8 year 2004, second quarter, and/or calendar year 2004 9 bingo financial information and statistics. 10 MS. SHANKLE: Good morning. As you can 11 see from the spreadsheet that I just passed out, that 12 the second quarter of 2004, compared to the last 13 quarter of 2004, is down -- the numbers are down. 14 However, the second quarter, as seen historically, is 15 lower than the first quarter. So this is normal. 16 It's not anything, I think, to be alarmed about. It 17 is the first time that we've seen a decrease in the 18 pull-tab sales since -- since the inception of the 19 event pull-tab tickets. We have approximately 150 20 quarterly reports that are still out. Whether 21 they're -- which I'm hoping will bring that back up. 22 I don't know if it will still show an increase, but I 23 do expect the instant pull-tab sales to come up 24 slightly. 25 If there are any questions at this 0017 1 time, I would be glad to answer them. Yes, Pete? 2 MR. PAVLOVSKY: Terry, on the prizes 3 and awards -- awarded -- prizes awarded. Instant 4 bingo, is that -- is that what you're calling 5 pull-tabs? 6 MS. SHANKLE: Yes, sir, it is. 7 MR. PAVLOVSKY: It doesn't show that to 8 be a minus. 9 MS. SHANKLE: As Far as -- are you 10 looking at the top? 11 MR. PAVLOVSKY: No. 12 MS. SHANKLE: Okay. The top sales -- 13 the prizes awarded -- did you -- 14 MR. PAVLOVSKY: I -- I see it at the 15 top, but it's also on the bottom. And it's a 33 16 percent increase. 17 MS. SHANKLE: Okay. Well, and, Pete, 18 that is comparing last year second quarter to this 19 year second quarter. 20 MR. PAVLOVSKY: '03. 21 MS. SHANKLE: There is an increase, 22 significant increase, from a year ago, but there is a 23 decrease in the last quarter. 24 MR. PAVLOVSKY: Yes, ma'am. I follow 25 you now. Thank you. 0018 1 MS. SHANKLE: And with these figures do 2 change on a daily basis, so... 3 MR. PAVLOVSKY: All right. 4 MS. SHANKLE: Thank you. 5 CHAIR TAYLOR: Thanks, Terry. Is there 6 any other discussion on this topic? 7 Okay. Moving right along. Item number 8 seven, report and possible discussion on an 9 administrative penalty rule. 10 MR. MOORE: That's mine. I -- I talked 11 to Sandra Joseph, maybe two weeks ago, and the staff 12 is still working on the draft of this rule, so we 13 haven't met as a subcommittee on this. So at this 14 time, as Billy mentioned earlier, we're trying to move 15 forward, but we're not quite ready to take action on 16 anything right now. 17 MR. MCDADE: This is Marshall McDade, 18 Senior Audit Manager, and we are currently working to 19 prepare that for the work group real shortly so we can 20 start that process of going through the draft rule. 21 MR. MOORE: Marshall, if you just want 22 to contact me when you're ready, we can set up a 23 meeting or a conference call. When do you think this 24 will be coming around? 25 MR. MCDADE: I plan on having it to you 0019 1 guys next week. 2 MR. MOORE: Okay. Great. 3 MR. MCDADE: We've been able to 4 categorize the violations and put all the violations 5 that we are working with on the chart, so we're just 6 to the point of giving it to the committee members and 7 give you guys a chance to go through -- work through 8 the whole process. 9 MR. MOORE: Okay. Great. 10 MR. ATKINS: This has -- Danny, just so 11 you and the other members know, this has represented a 12 lot of work on behalf of Marshall and his staff. And 13 I just want to make sure, when you do get it, you're 14 not overwhelmed. But they have put a lot of work into 15 it. 16 MR. MOORE: Okay. Yeah. I'm anxious 17 to see what you have. It's -- it's been a few months, 18 and I -- I understand it's been a lot more detailed 19 than you expected. So -- okay. 20 MR. McDADE: Are there any other 21 questions? That's -- that's my report. Thank you. 22 CHAIR TAYLOR: Any other discussion on 23 this topic? 24 Okay. Item number eight, report and 25 possible discussion and/or action on the activities of 0020 1 the alternative styles of bingo games, including 2 Internet gaming subcommittee. Danny? 3 MR. MOORE: Okay. We didn't have any 4 meetings since our last BAC meeting. I did want to 5 ask Billy a question on maybe a direction I could go 6 as far as beginning some process, investigating 7 Internet gaming. I'm not quite sure what I should do 8 or how to start that process. Is there anything you 9 guys can help me with on that? I don't know if I -- 10 if I just tap into gaming on a Web site and start from 11 there, or -- I don't know if there is any background 12 information on this? 13 MR. ATKINS: We have -- it's -- it's 14 been quite a while, and I'm not even sure if we still 15 have the information, but we had at one time gathered 16 some information on Internet bingo. If you would like 17 to get the work group together, we can try and gather 18 that information up, share it with the work group, 19 what we had already done. 20 Also, I'll just -- I'll throw this out. 21 I don't want to, you know, speak on his behalf, but 22 Jack had mentioned earlier that this might be 23 something that he would also be interested in. And, 24 you know, something where we could definitely utilize 25 his assistance in -- in terms of the Internet 0021 1 research, et cetera. 2 MR. MOORE: Sure. We would be glad to 3 have your help, Jack. 4 MR. DOUGHERTY: Who is on the -- who is 5 on the committee now, Danny? 6 MR. MOORE: It is Suzanne and myself 7 and then three or four -- I think, two public members, 8 Shane Woodward -- I'm not sure who the other one is. 9 MR. ATKINS: Jamie McNally. 10 MR. MOORE: Jamie. 11 MR. ATKINS: And then Phil Sanderson 12 and I serve as the staff contacts. 13 MR. DOUGHERTY: I'm glad to join your 14 group for what I can offer. 15 MR. MOORE: Okay. Great. And I'm sure 16 that in our next subcommittee meeting, we would 17 probably be starting to talk about -- we've got a 18 legislative session coming up, so we've talked about 19 progressive bingo and video pull-tabs. So hopefully 20 we'll have some more information for our next meeting. 21 So I'll -- I'll contact the staff and Jack and 22 Suzanne, and we'll try to get a meeting together here 23 in the next few weeks. Thanks, Suzanne. 24 CHAIR TAYLOR: Any other discussion on 25 this topic? 0022 1 I will add one thing, Jack. I tried to 2 look on the Internet to look at some of this Internet 3 gaming. And maybe I don't have enough firewalls up, 4 but I had over 500 viruses that my son had to come 5 clean out of my computer from just going to the Web 6 sites, not actually participating, just going into the 7 individual Web sites. So watch it. 8 MR. DOUGHERTY: Well, that's probably 9 where I got my virus, out of Africa. 10 CHAIR TAYLOR: There was all sorts of 11 things on my computer. It took him many, many hours 12 to clean it back up. So take care. 13 MR. DOUGHERTY: Okay. Glad you -- 14 thank you, Suzanne. 15 CHAIR TAYLOR: Item number nine, report 16 and possible discussion by the Bingo Advisory 17 Committee work group on the review of the Operator 18 Training Program. This is going to be me. 19 I did go to two different operating 20 training -- operator training programs so that I could 21 have the opportunity to compare them because one is 22 not always representative of all. I went to the San 23 Antonio training program in -- on March 31st, and to 24 Weslaco on May 12th. They were very similar in a lot 25 of the aspects. They were more interactive than I 0023 1 remembered them being from the first training program. 2 They were interesting, and they were very informative. 3 But the biggest difference between the two training 4 programs -- I put in the fourth paragraph down here -- 5 is that the enter -- the Internal Revenue Service was 6 on hand at the San Antonio training session, and they 7 distributed a lot of information, very important 8 information for charities conducting bingo, things 9 they needed to know and -- and forms that they needed 10 to be aware of they -- to be filling out. 11 In the Weslaco training program, 12 there -- the IRS was not there. So my suggestion was 13 that -- that I realize sometimes it's a conflict of 14 schedules, that perhaps if they can't be there, at 15 least the information they pass out could be passed 16 out for people to pursue on their own, so that the 17 Lottery Commission is not trying to teach us anything 18 about the Internal Revenue Service or what the taxes, 19 but the information would be there that we could read 20 and hopefully get a better grasp on. The unrelated 21 business income always worries me with new charities 22 with pull-tabs, because they just -- they're not aware 23 of what they need to do. And there was an -- an awful 24 lot of good information that they passed out. So I 25 put a little brief scenario of what I found at the 0024 1 things that is in your booklet, so... 2 MR. PAVLOVSKY: Suzanne, just for 3 information, we had three members from the Knights of 4 Columbus in Rosenberg go to the training session in 5 the Houston area, and all three of them come back and 6 they were just raving about it. They said it was a -- 7 it was a tremendous program. And a couple of them 8 said it was, you know, just a zillion times better 9 than the last one they went to years ago, whenever 10 that was. But the staff -- staff put together a good 11 program, apparently. 12 MR. MANIO: I have a question. 13 MR. PAVLOVSKY: That's definitely my 14 opinion. 15 MR. ATKINS: Actually, what I'll do, 16 Jack, is I'll have Marshall McDade and his staff, the 17 audit section that's responsible for them, and they do 18 work very hard to keep the program updated, as well as 19 interesting. I know you mentioned in your report, 20 Suzanne, they have introduced a practice exercise for 21 the organizations to actually take part in, and we do 22 get a lot of compliments on that. 23 MR. MANIO: I have a question, Suzanne. 24 I'm looking at the second paragraph. And towards the 25 top, you -- you enumerated the topics covered by the 0025 1 training program. And one of them is item number 2 seven, and this is something that is very close to my 3 heart and probably yours too, promoting bingo. Could 4 you give us an idea of what was covered or what -- 5 what materials were in the training program as far as 6 promoting bingo is concerned? 7 CHAIR TAYLOR: Promoting bingo, they 8 didn't actually have any handouts on that. What they 9 mainly discussed was -- were items that you could 10 promote. You know, the -- you could do the TV 11 advertising, and who could -- who could promote bingo, 12 and different things that you would want to promote 13 within your hall. So it wasn't -- it wasn't a session 14 teaching us how to advertise our hall to get more 15 people in. It was mainly just promoting the bingo 16 game within your hall. 17 MR. MANIO: Okay. Well, that was my 18 question, but I -- I think when the board group begins 19 its work, we can probably discuss that subject matter 20 a little bit more widely and see what we can do, 21 because at -- looking at the statistics given, they -- 22 you know, provided by Terry this morning, and I'm 23 looking at attendance, and it's negative 11 percent -- 24 negative 10 percent. So it might be a good idea to 25 include something in the training program that might 0026 1 help the operators and the lessors to, you know, 2 attract more people into the bingo halls. 3 CHAIR TAYLOR: I absolutely agree with 4 you. Once again, the problem comes back to finances. 5 And something that I'm doing is, I joined up with 6 another hall in Corpus Christi, and we're going to do 7 joint advertising, so that we'll -- we're planning to 8 put on, in the next month, 370 commercials between the 9 two halls. Since we're both going to pay for it, that 10 brings the cost back down to half. 11 MR. MANIO: Yes. And that's a good 12 idea, but I'm not just talking about advertising in 13 here. The Lottery Commission has marketing 14 specialists very good at selling lottery tickets. 15 Maybe we can tap them on their skills and apply them 16 to charitable bingo and see what we can teach the 17 operators and lessors on how to improve attendance at 18 the -- at the bingo halls in their sessions. 19 MR. ATKINS: Let me, at the sake of 20 sounding like a broken record, Mario, because you know 21 this has been talked a great detail in the past, 22 regarding the agency's statutory responsibilities with 23 bingo. Something that we would be very interested in, 24 and we have sought from organizations time and time 25 again, is information on what they have done in 0027 1 individual halls that have been successful, so that 2 that can be shared with other organizations. I think 3 what the staff would be more interested in is 4 suggestions from the Advisory Committee on how we can 5 get organizations with successful operations to share 6 that information. Because, as you know, we've asked 7 several times in the Bingo Bulletin for organizations 8 to provide us with that information. I think we've 9 talked about it in Advisory Committees before. But 10 just so you know, we have actually had organizations 11 tell us, we don't want other organizations to know why 12 we're successful because we don't want them to be 13 successful. So, hopefully, we would like to use the 14 Advisory Committee to get some of that information 15 that we can share with other groups. 16 MR. MANIO: And thanks for that 17 reminder, Billy. As I recall, in one of the issues of 18 the Bingo Bulletin, we already have a feature like 19 that, where one hall actually told the editors, this 20 is what we do. And it got into print. So maybe it's 21 something that we can pursue as members of the 22 committee or -- you know. 23 MR. ATKINS: We would be very happy to 24 receive that information. 25 MR. MANIO: Right. But is there any 0028 1 objection for us to consult your marketing specialists 2 and maybe get some ideas? 3 MR. ATKINS: Well, the -- the problem 4 is that -- that our marketing staff isn't charged, 5 under State law, with promoting bingo games. Now, you 6 know, we can -- if there are, you know, specific 7 suggestions that we can get from organizations, you 8 know, of course, you know, we can ask them to -- to 9 look it over and -- and see if they have any -- any 10 suggestions or if they can make any recommendations on 11 it. But I don't know if -- you know, if I feel 12 comfortable, necessarily, going to the marketing 13 division and saying, you know, develop a marketing 14 program for bingo. 15 MR. MANIO: Okay. Well, perhaps the -- 16 the question now, when we get down in this -- in the 17 work group level and we start working, is the 18 Operator's Training Program the appropriate vehicle to 19 train lessors and conductors to promote bingo? I -- I 20 don't know what the answer is, but it's... 21 MR. ATKINS: I think that, you know, we 22 should probably use every avenue that's available to 23 us, whether it's the Bingo Bulletin, the Operator 24 Training Program, whatever else. You know, one thing 25 that may help -- and I'll just let y'all know, I have 0029 1 been meeting with representatives of our media 2 relations group, and they are working on a -- for lack 3 of a better word, I'll call it a press kit that can be 4 provided to organizations that conduct charitable 5 bingo. And it would be directed specifically at new 6 organizations that are getting their license for the 7 first time. And it would include some, you know, 8 template press releases that organizations could just 9 go in and, you know, fill in their name and 10 information specific to their organization and send to 11 the local media in their area. It also includes some 12 blank template press releases that organizations could 13 use if they were going to have some sort of special 14 event, you know, a special bingo game for Valentine's 15 Day or Veterans' Day, anything like that. And 16 finally, I believe it contains a blank press release 17 form that organizations can use if they just want to 18 send information to their local media, highlighting 19 their organizations and what bingo has contributed to 20 their groups. So we are working on putting that type 21 of information together, and that, I think, stems from 22 an earlier recommendation from an Advisory Committee 23 work group. 24 CHAIR TAYLOR: Any other discussion? 25 Mario? 0030 1 MR. MOORE: I -- I just wanted to add 2 to that. If there was somebody out there that, for 3 instance, a hall that's very successful selling event 4 tabs, if they were willing to maybe go on the road and 5 do this at your Operator Training, would that be a 6 possibility? I mean, if there is no fee involved, 7 it's just offered, I mean, to me, that would be the 8 place to share this information. For us to try to get 9 everybody come here one day every quarter, I'm just 10 saying, I -- I think there may be something out there 11 that is possible that -- we all see the numbers here, 12 and it's been very successful, but it's not successful 13 everywhere. And maybe we need to get it to the people 14 or bring it to them. 15 MR. ATKINS: That -- that might be an 16 option, Danny, but, you know, the -- the first concern 17 that I would have would be -- and this kind of goes 18 back to the -- to the item that Suzanne was talking 19 about with the IRS, and that is, consistency. You 20 know, I don't know if we would have people that would 21 want to go to every Operator Training Program. And 22 then you get in a situation where, you know, some 23 folks might be upset if -- you know, if -- if this 24 Operator Training Program had a great program on the 25 event tickets and how to sell it, whereas we couldn't 0031 1 get anyone for this program. I do know, and I think 2 it was Phil Arnold who provided a lot of information 3 that -- that may be what you're referring to, Mario, 4 provided a lot of information about how his hall sells 5 event tickets. And we got a lot of positive feedback 6 from that. So I think it would be great if we could 7 just get other halls to share that same information 8 that we could also include in the bulletin. 9 MR. MOORE: Maybe even put it into a 10 video form that could be passed out and shown at each 11 one. I don't know. 12 MR. ATKINS: Well, and we did have 13 plans to put the Operator Training Program on a video 14 or a -- or a CD or -- and also eventually make it 15 accessible on the Web site. We've had some staffing 16 issues internally in the division that have put that 17 pretty significantly behind schedule. But we -- we 18 are working on it, and -- and it could be possible 19 that we could even, you know, work on a video -- I 20 think this may be what you're saying -- specific to 21 that issue. 22 MR. MOORE: Right. 23 MR. ATKINS: That then could be shared 24 at Operator Training Programs. 25 MR. MOORE: Yeah. Because it sounds 0032 1 like the -- the Operator Training Program is moving in 2 the right direction. I just think there -- there may 3 be some ways for us to continue to improve, and if 4 there is something like that that we could put out 5 there. It doesn't have to be, you know, 30 minutes, 6 but, I mean they're there six, seven hours, aren't 7 they, I believe? It could be incorporated possibly. 8 It's something that we should talk about. 9 MR. ATKINS: Yeah, we could consider 10 that. 11 MR. MOORE: Okay. 12 MR. ATKINS: Yeah. That's a good idea. 13 MR. MOORE: Okay. 14 MR. SANDERSON: Phil Sanderson, 15 Assistant Director of the Charitable Bingo Operations 16 Division. 17 In relation to what Danny was talking 18 about, promotion of bingo on -- in event-style tickets 19 and pull-tabs, there have been -- I know of one 20 training program, and I believe it was a distributor 21 or a manufacturer who sent a representative in there 22 and talked about event tickets. It was after the 23 training program was officially over, because one 24 thing we've got to be careful of is that we're not 25 promoting a manufacturer or distributor's particular 0033 1 product. So it would have to be a very generic 2 presentation. 3 MR. DOUGHERTY: Phil, are you sort of 4 referring to like satellite bingo and that type of 5 thing that we've heard? That -- that scope? 6 MR. SANDERSON: No. I was referring -- 7 MR. DOUGHERTY: Or was it just 8 individual? 9 MR. SANDERSON: I was just referring to 10 the individual, when the training program takes place, 11 and actually going over particular tickets or styles 12 of tickets, that it needs to be in a broad generic 13 term and not ABC Pull-Tab that you buy from ABC 14 Distributor, that is, you know, specific to one 15 individual company. 16 MR. DOUGHERTY: Thank you. 17 MR. MOORE: I agree. 18 MS. ROGERS: I would just like to say 19 one thing if I could on this. Our charities went to a 20 few different halls and learned different ways to call 21 out the pull-tabs -- you know, the event tickets, 22 different ways to play the games. And I -- I agree, 23 it would be very helpful if in the Operator Training 24 course they could just briefly do something like that, 25 because you do learn a lot at these Operator Training 0034 1 courses. 2 MR. PAVLOVSKY: Madam Chair, one 3 comment on what Billy and Mario were talking about, 4 about how often this subject comes up. And I hope the 5 Bingo Division and the Lottery Commissioners realize, 6 this thing -- this subject comes up over and over and 7 over again. And it -- it's -- something -- something 8 has got to be done to improve charitable bingo. And 9 all you have to do is look at the numbers, you know. 10 Thank you, ma'am. 11 MR. DOUGHERTY: Madam Chair? 12 CHAIR TAYLOR: Yes, sir. 13 MR. DOUGHERTY: On the bottom of the 14 page there, where it talks about the Internal Revenue 15 Service, could you clarify for me this Form 990, which 16 apparently has to do with 600-dollar prize or greater? 17 I was under the impression that in Texas you only paid 18 tax on 1200-dollar single prize or -- or above. 19 CHAIR TAYLOR: Okay. The Form 990 is 20 actually the return that a nonprofit files. The W-2G 21 is the one that, if you have somebody win more than -- 22 600 dollars or more on a pull-tab, then you have to 23 have them fill that out. If -- bingo is 1200 dollars, 24 at a single game of bingo. But the IRS does not 25 consider pull-tabs as part of bingo. Therefore, 600 0035 1 and more on a single tab, and you're going to have to 2 have them fill it out, which is why, if you go to most 3 of the halls, as you probably notice, they go to 599. 4 MR. DOUGHERTY: Well, that certainly 5 clarifies it for me because I -- I've won a lot of 750 6 dollar bingo prizes. And I didn't want to have the 7 IRS people coming to my door come January. 8 CHAIR TAYLOR: 1200 on your bingo game. 9 MR. DOUGHERTY: So it's -- it's only 10 the pull-tabs and not the bingo itself? 11 CHAIR TAYLOR: Correct. 12 MR. DOUGHERTY: Well, thank you. 13 CHAIR TAYLOR: You're welcome. 14 MR. DOUGHERTY: I feel a lot better 15 about that now. 16 CHAIR TAYLOR: Is there any other 17 comment on this topic? 18 Okay. Then we'll go on to item number 19 ten, report and possible discussion by the Bingo 20 Advisory Committee work group on the review of bingo 21 forms and applications. Mario? 22 MR. MANIO: Yes, thank you. This work 23 group was originally chaired by Patricia Greenfield. 24 The other members of the work group are Terry Shankle 25 and Tom Lieck and myself. And we have done -- I would 0036 1 like to recognize the -- the efforts that were put in 2 by Patricia and Terry and Tom Lieck in coming up with 3 new forms. 4 Today there is only one form for the 5 quarterly report, and they are used by the conductors. 6 The changes -- with the -- with the amendments of the 7 Bingo Enabling Act, we did -- did revise those forms 8 to include the unit, as well as for charities that 9 belong to a unit. And what the -- the work group has 10 done is come up with two quarterly reports. The first 11 one would be -- oh, did -- did we give handouts to the 12 committee? We did not. Okay. But the members of the 13 committee have a copy in their -- in their folder. 14 There are two reports. There is a Texas Bingo 15 Quarterly Report for conductors and conductor lessors 16 and the unit. And then there is a quarterly report 17 only for charities that belong to a unit. 18 The new ones -- the new forms that were 19 introduced by the work group are the schedule A, and 20 schedule B, which is nothing more just -- more than 21 just a journal of the charitable contributions made 22 either by the unit or by a charity. 23 And with that introduction, I would 24 like to pass it over to you, Terry. 25 MS. SHANKLE: Thank you, Mario. 0037 1 I would just like to say that we were 2 hoping that you will approve these forms as is so that 3 we can start the programming for them to have them 4 ready for January 1st, 2005, which would be the first 5 quarter of 2005. 6 MR. ATKINS: Terry? 7 MS. SHANKLE: Yes, sir? 8 MR. ATKINS: Identify yourself. 9 MS. SHANKLE: I'm sorry. My name is 10 Terry Shankle, S-h-a-n-k-l-e. I'm the Accounting 11 Services Manager of the Bingo Division. 12 So we would like to have these forms 13 ready and available to our conductors and units the 14 first quarter 2005. And in the meantime, we will be 15 revising all of the -- the bingo -- the automated 16 Bingo Forms Manual that will go into this and also the 17 Operator Training Program. We'll start as soon as 18 possible explaining to our conductors how to fill out 19 these forms correctly. 20 If you have any questions specific to 21 the forms themselves, I'll defer to Tom Lieck. 22 CHAIR TAYLOR: I -- I do have one 23 question. I know that it's not actually listed in the 24 Bingo Enabling Act, but something that is a bingo 25 expense are the supplies that you use. And it's not 0038 1 necessarily a bingo supply -- pens, pencils, copies of 2 the forms. Where would that fall in there? 3 MR. LIECK: Tom Lieck, I'm the Regional 4 Audit Manager of San Antonio. 5 That would probably fall under the 6 bookkeeping/legal/accounting services line, because 7 forms, pencils and that would be something you would 8 do in -- I would consider that an expense of the 9 bookkeeping. 10 CHAIR TAYLOR: I just think that's 11 something that -- I wouldn't think it would fall -- I 12 mean, I truly looked on each one of these to see where 13 I could put that particular item, okay, because it is 14 not really mentioned in here, but there is no way we 15 can conduct bingo without the paper to -- the forms 16 and stuff. And -- 17 MS. SHANKLE: And Patricia had the same 18 concerns regarding stamps, things like that that you 19 have to have to conduct your business. And so we were 20 looking at line 42, the security, bookkeeping, legal, 21 or accounting services, for that category. 22 CHAIR TAYLOR: Okay. 23 MS. ROGERS: I have -- I have one 24 question. On line 44, utilities, supplies and 25 services, what would the services -- what would that 0039 1 be? 2 MR. MANIO: Garbage collection might be 3 one. 4 MS. ROGERS: Okay. Water, things of 5 that -- like that? 6 MR. LIECK: Right. And even utility 7 expenses, like water -- 8 MS. ROGERS: Because you could get 9 confused and put your office supplies even under that 10 if you think that's services. 11 MS. SHANKLE: I think that -- on line 12 44, I think it's straight out of the Act where it says 13 utilities, supplies and services. That's why we put 14 it in like that. 15 MS. ROGERS: Okay. Okay. 16 MR. LIECK: And once these forms get 17 approved, then we'll have some detailed instructions 18 to -- to help with some of that. 19 MS. ROGERS: Okay. 20 MR. MANIO: I might add that the new 21 form is not more complex than the old one. It's just 22 longer, because now the -- the items that were allowed 23 by the amendments to the Bingo Enabling Act are 24 itemized in here, the allowable expenses. And that's 25 what made the form a little bit longer. 0040 1 MS. SHANKLE: So, Madam Chair, what 2 we're asking for you today is to approve these forms 3 as is so that we can start the programming and other 4 changes necessary to implement this. 5 CHAIR TAYLOR: I don't believe we can 6 do that because it's not on the agenda. We can only 7 discuss it. 8 MR. ATKINS: It wasn't posted as an 9 action item on the agenda. 10 MS. SHANKLE: May I ask for approval of 11 that? 12 MR. ATKINS: I think what you should do 13 is ask for the comments that you've received, ask if 14 there are other comments, suggestions, et cetera, 15 relating to these forms that you and the work group 16 have been -- been working on, and let the Committee 17 know that, given -- given those comments, suggestions, 18 et cetera, it's your -- it's the work group's intent 19 to move forward. 20 MS. SHANKLE: Yes. That is correct. 21 We do. 22 CHAIR TAYLOR: Any other comments? 23 MR. PAVLOVSKY: I think anything 24 that -- any -- any form that -- that explains or 25 itemizes the -- the expenses -- and that's just one 0041 1 example that -- I think it's -- it's great. It's -- 2 it's got to be a lot better. It's got to be in a 3 group. 4 MR. ATKINS: I think -- I think one of 5 the things that I was most impressed with, and I would 6 really compliment the work group on, is combining the 7 conductor and the lessor form -- 8 MR. MANIO: And the unit. 9 MR. ATKINS: -- on the -- well, I'm -- 10 I'm thinking specifically, as you mentioned, the one 11 form, that now, even if you have an organization 12 that's not in a unit, but you have an organization 13 that's both a conductor and a lessor, they now only 14 have to fill out the one form as opposed to two. 15 And -- and I think that's -- that -- I think that's a 16 real benefit to the groups, and, Mario, I appreciate 17 y'all thinking of that. 18 MR. MANIO: And the work group is -- I 19 might add that the work group is aware of the fact 20 that there are so many forms out there. So we did not 21 really want to introduce a new one that will 22 complicate matters. So consolidation is probably 23 the -- the trend that the work group took into 24 consideration. 25 CHAIR TAYLOR: I have -- I've one 0042 1 question. I haven't actually -- I looked over this, 2 but I didn't sit down and try and do a practice one to 3 see how it works out. When you pay -- let's say that 4 somebody is paying the -- the late penalty. Does it 5 show up under expenses somewhere on your expenses 6 side? 7 MR. LIECK: You -- we consider that 8 part of the prize fees and rental tax. That's where 9 it's always gone historically. 10 CHAIR TAYLOR: Okay. So the -- so a 11 penalty becomes a prize fee? 12 MR. LIECK: For reporting purposes, 13 that's where we've always put it in the past. 14 CHAIR TAYLOR: I -- I want to -- 15 because I asked about that the other day when I was at 16 one of the charities while they were doing their 17 interview. And the auditor wasn't sure where that 18 would go. So I didn't know, you know, how that 19 becomes -- where you put that in the expense. 20 MR. DOUGHERTY: Terry, I have a 21 question. 22 MS. SHANKLE: Yes, sir. 23 MR. DOUGHERTY: Under item 43, is that 24 where you put salaries paid? 25 MS. SHANKLE: Yes, sir. For your -- 0043 1 MR. DOUGHERTY: Is that -- that what 2 you were paying people to work there, workers, that's 3 where -- that's where they have their salaries? 4 MS. SHANKLE: Yes, sir. That is 5 correct. 6 MR. DOUGHERTY: They don't use the word 7 "salary" or "income" or whatever you call it? 8 MS. SHANKLE: No. Again, I believe 9 it's straight out of the Bingo Enabling Act, the 10 wording. 11 MR. DOUGHERTY: Callers, cashiers and 12 ushers? 13 MS. SHANKLE: Yes, sir. 14 MR. DOUGHERTY: Okay. 15 CHAIR TAYLOR: I do -- I -- I agree 16 with Pete, that I'd love to have -- I like having the 17 expenses itemized like that instead of a big old clump 18 of expenses. This is great to see it so that you can 19 do a little bit of comparison with your -- your 20 organization to other organizations. Up until this 21 point, you didn't know where the expenses were coming 22 from, but now you can pretty much compare what it's 23 costing you for your payroll or for your rent. I 24 mean, rent has been separate, but the payroll and some 25 of the other expenses, this is a great idea. 0044 1 MR. MANIO: It also eliminates a lot of 2 gray areas that might be conflict between the auditors 3 and the charity. That has been minimized. 4 MS. SHANKLE: Thank you. We'll see you 5 in January 2005. 6 CHAIR TAYLOR: So no other discussion 7 on this topic? 8 That would take us down to item number 9 11, report and possible discussion on the Bingo 10 Advisory Committee work group on review of the 11 Operations Manual. Mario? 12 MR. MANIO: Yeah, that would be me 13 again. Since this is a work group that was chaired by 14 Patricia, Pete Pavlovsky has agreed to replace 15 Patricia as -- it is not in this work group. Patricia 16 also has agreed to stay with this work group as a 17 public member. 18 Here is the background. There was 19 already an Operations Manual in existence. It was 20 circa 1992, 1993. And just because of the changes in 21 the last 10, 11 years, the -- the old Operations 22 Manual needs to be revised, reorganized, maybe change 23 the content. 24 Oh, I -- I forgot to mention that the 25 other members of the work group are Marshall, in here, 0045 1 and Jody Mahaffey out of the Dallas office of the 2 Texas Lottery Commission. 3 It's too early to report anything to 4 the BAC at this point, but I just wanted to let you 5 know that the work group has met a couple of times. 6 And the work group is very sensitive to the fact that 7 the Bingo Enabling Act is 90 pages, the 8 administration -- admin rules is about 60, 70 pages 9 and still growing. So we would like to limit the size 10 of this Operations Training -- Operations Manual to 11 maybe 60, 70 pages. Don't make it too overwhelming to 12 the readers. And with that, I would like to pass it 13 over to you, Marshall. 14 MR. MCDADE: Okay. This is Marshall 15 McDade, Senior Audit Manager. As Mario mentioned, we 16 are conscious of the fact that we want to make sure 17 that the Operation Manual is not too overbearing or 18 too long-winded. But we want to make sure that we 19 have all the proper information in the manual that 20 will help the organizations run their bingos legally 21 and in compliance with the law and enable them to make 22 some appropriate decisions regarding their bingo 23 operations. 24 MR. MOORE: Does every charity get this 25 manual when they get a license or renewal or -- I've 0046 1 never seen one. Not that I would get one as a 2 distributor, but I'm just curious. 3 MR. ATKINS: Well, what -- what we have 4 now, I guess, is being referred to as the Bingo Forms 5 Manual. I don't think there is a current Operations 6 Manual that we provide. 7 MR. MCDADE: Correct. There is not a 8 current manual. I think the one that we have now is 9 several years old. It's -- things have -- things have 10 changed so dramatically over those years that we've 11 not been providing that. 12 MR. ATKINS: Now -- now, there is, 13 again, a Bingo Forms Manual that is provided to -- to 14 new licensees. And I think that manual has evolved, 15 you know, from what the old Operations Manual was to 16 what we have now. And that forms manual is provided 17 to new organizations when they're getting licensed and 18 as part of -- the auditors go over that manual with 19 the organizations in their prelicensing conference. 20 MR. MOORE: So the Operation Manual is 21 a -- what is the goal here? Is this distributed to 22 everybody? 23 MR. MANIO: Uh-huh. 24 MR. MOORE: Okay. 25 MR. MANIO: The -- the main audience 0047 1 for the Operations Manual are the -- the operators. 2 The secondary audience would be the workers and 3 commercial lessors. And the -- I was not aware myself 4 of the existence of an Operations Manual until I got 5 a -- a soft copy from Jody Mahaffey, but it goes back 6 to 1993. It's 11 years old. And there is a lot of 7 irrelevant and no longer up-to-date information in 8 that. 9 MR. MCDADE: And I really think it's -- 10 it's going to be -- you know, an add-on to what we 11 currently do as far as the Operator Training Program. 12 They get information right there, and that's great. 13 And it's -- it's good information. But when you get 14 back to your local organization, this Operation 15 Manual -- Operations Manual will help you on an 16 ongoing basis so you can find some information that's 17 in there. 18 MR. MOORE: Well, it sounds like it's 19 time to update it and get it out there. 20 MR. MANIO: That's true. And we -- 21 we -- the document that we have right now is just a -- 22 a section on general information, like how many 23 sessions can be done in one day in a bingo hall, how 24 many sessions can one charity do in one -- one day, 25 what -- you know, who -- who needs to be present 0048 1 during the session, and that kind of thing. So 2 essentially, it's a -- a -- coincides version of the 3 Bingo Enabling Act, in layman's language, not 4 legalese. 5 And the -- the next section that we 6 will be working on is, how -- the -- the conduct of 7 bingo. 8 CHAIR TAYLOR: Okay. Great. Any 9 other -- any other discussion on this topic? 10 Okay. I will move on to item number 11 12, possible discussion and/or action on the 12 appointment of a nominating committee to submit 13 recommendations on new members of the Bingo Advisory 14 Committee to the Texas Lottery Commission. 15 MR. ATKINS: Members, this would be to 16 fill the position of Virginia Brackett, who, as you 17 know, resigned her position on the Bingo Advisory 18 Committee when she retired from her position with the 19 South Plains Children's Shelter. You have in your 20 notebook the nomination forms that we have received 21 from the mail-out that we did to all licensees. We 22 would request that you consider forming a committee to 23 review these nominees and contact the individuals and 24 discuss further their interest in serving on the 25 Advisory Committee. I am going to be so bold as to 0049 1 speak for the members of the Commission, and if I get 2 out of line, I know that Commissioner Cox will be more 3 than happy to correct me. But I believe the 4 information that the nominating committee put together 5 and provided to the Commissioners when Kimberly's 6 position was available was very beneficial to them. 7 And they were able to review that information, get 8 a -- a much keener sense of the individuals before 9 they were able to sit down and actually meet with 10 them. So I would encourage this work group, as they 11 get together to -- to consider these individuals, to 12 strongly consider using that same or -- or very 13 similar format for the benefit of the Commissioners as 14 they -- as they make their decisions. 15 CHAIR TAYLOR: Do we have any 16 volunteers for this work group? Danny, I know you 17 served on it last time. Are you interested in serving 18 again? 19 MR. MOORE: Sure. 20 CHAIR TAYLOR: Kimberly? 21 MS. ROGERS: Yes, I'll serve. 22 CHAIR TAYLOR: And do we have another? 23 Do we want to have another person or -- 24 MR. MOORE: Pete was on that too. 25 CHAIR TAYLOR: Pete, you wanted to 0050 1 serve again? 2 MR. MOORE: Kimberly, will you be 3 chair? We'll help you out. 4 MR. PAVLOVSKY: Oh, no -- 5 MS. ROGERS: Thank you. 6 MR. PAVLOVSKY: -- you're the chair. 7 First -- first appointed. 8 CHAIR TAYLOR: Okay. So the work group 9 consists of Kimberly, Danny, and Pete. Kim will be 10 chair. She will be chair. 11 MR. MOORE: Could I ask you a question? 12 I -- I looked through these, and we've got -- we've 13 got general public in there, some conductors, and 14 conductor lessors. We're only looking at the 15 conductor? 16 MR. ATKINS: That's correct. 17 MR. MOORE: That's it? 18 MR. ATKINS: That's correct. 19 MR. MOORE: Okay. 20 MR. ATKINS: And these -- you know, 21 with -- with the one exception of the redaction of the 22 social security number, we provided this to you as we 23 got it, whether they submitted supplemental 24 information, you know, whether or not the individuals 25 are even eligible. There was -- there was one 0051 1 application that came in very early on that caught our 2 attention. And we contacted that individual, and it 3 turns out that they were not eligible, so they -- they 4 had withdrawn their applications. Otherwise, we just 5 collected them and provided them to you as we received 6 them. 7 MR. MOORE: Okay. At least it's given 8 us a few more to look at this time. So we'll try to 9 get together with these people as soon as possible and 10 get some recommendations. 11 CHAIR TAYLOR: Any other discussion? 12 We'll move on to item 13, public 13 comment. Is there any public comment? 14 I'll make one comment. I actually 15 printed the minutes, and I should have brought this up 16 on the minutes. I printed the minutes, and I really 17 like the fact there is a -- an index in the minutes. 18 And it told us exactly which page to go -- go to to 19 each item number. It makes it so much easier to try 20 and look up individual topics in the minutes, instead 21 of just going through pages trying to figure out what 22 page it might be on. Really nice. I love the index. 23 Okay. If there is no public comment, 24 we go on to item number 14, consideration of and 25 possible action on future Bingo Advisory Committee 0052 1 meeting dates and/or items to be recommended to the 2 Commission for consideration at a future Bingo 3 Advisory Committee meeting. 4 Any dates? Is there -- is there 5 anything coming up that we need to meet any time in 6 the -- before a quarter? 7 MR. ATKINS: Can you think of anything, 8 Marshall? 9 MR. MCDADE: Not outside the penalty 10 chart. 11 MR. ATKINS: The penalty chart? Yeah. 12 And -- and actually, I think that may take some time 13 for y'all to review. So while we would definitely 14 like to move forward on that, I didn't -- you know, 15 that's one of those that I wouldn't necessarily want 16 to rush the group. 17 CHAIR TAYLOR: Okay. So we're looking 18 at October for the next meeting? October or November? 19 MR. ATKINS: Probably September or 20 October, either one. 21 CHAIR TAYLOR: What would the group 22 like to do? 23 MR. MANIO: My suggestion would be 24 probably middle of November, before Thanksgiving Day, 25 and the reason being, there are some -- well, the -- 0053 1 the forms work group, we need to get this out to the 2 organizations as soon as possible. So I'm hoping that 3 in the next meeting we can probably, you know, if 4 we -- in the agenda, that that form be -- you know, be 5 published in the Texas Register for public comments. 6 MR. PAVLOVSKY: November 17th? 7 CHAIR TAYLOR: Is that agreeable to the 8 Committee? What day is that? 9 MR. ATKINS: It's -- it's a Wednesday. 10 CHAIR TAYLOR: Wednesday? Is that 11 agreeable to everybody? Okay. Then it'll be 12 tentatively scheduled for November 17th. 13 MR. ATKINS: 10:00 a.m.? 14 CHAIR TAYLOR: 10:00 a.m. 15 MR. ATKINS: And I -- you know, I -- I 16 guess, members, just in the event there is anything 17 that comes up, well, you know, I'll contact you. And 18 we can see if we need to try and schedule something 19 sooner. But, you know, right now, anyway, we don't 20 see anything. 21 CHAIR TAYLOR: So besides items that we 22 discussed today, which we'll have the minutes and can 23 read through, there's -- if there is anything else 24 that you would like to have added to the agenda at 25 this time? 0054 1 MR. MANIO: Just one question. As I 2 mentioned, the Texas Register. Do -- do forms need to 3 be published in the Texas Register? 4 MS. MORRIS: No. 5 MR. MANIO: No? 6 MS. MORRIS: Not necessarily. 7 MR. MANIO: Not necessarily, you think? 8 MS. MORRIS: I don't think in these 9 kind of issues. 10 MR. ATKINS: That was Diane Morris, 11 Assistant General Counsel. 12 MS. MORRIS: Thank you. 13 MR. ATKINS: Not just a voice in the 14 audience. 15 CHAIR TAYLOR: Okay. Anything else? 16 MR. MOORE: I just hope that we can get 17 these work groups going again. I feel like things 18 kind of fell off over the summer, and I think that we 19 really need to be conscious about bringing a little 20 more to the next meeting. I don't think anybody is to 21 blame, whether staff or ourselves. I think it was 22 just a matter of losing some members of the BAC and 23 just normal summertime vacations and what -- whatever. 24 So, hopefully, we can get things going in a positive 25 direction here. 0055 1 CHAIR TAYLOR: One note of a personal 2 nature. If you're trying to get ahold of me, pick up 3 a phone and call me. I don't check the e-mail that 4 often. If it's something that's important and you 5 need to talk to me, feel free to call me anytime. 6 MR. MOORE: I'm terrified of your 7 e-mail, by the way. It comes back to me with virus 8 after virus. 9 CHAIR TAYLOR: I -- I want you to know, 10 I even got an e-mail from Terry with a virus, and I 11 turned around and sent it right back again to show you 12 that it had removed a virus on the way. So it's 13 grabbing -- I mean, it's not ours in particular. I 14 mean, it's everybody. 15 Anyway, if there is no further items, 16 then this meeting is adjourned, at 11:08. 17 18 19 20 21 22 23 24 25 0056 1 AMENDMENT SHEET 2 BINGO ADVISORY COMMITTEE MEETING - AUGUST 11, 2004 3 4 Page/Line Correction Reason for Correction 5 ______________________________________________________ 6 ______________________________________________________ 7 ______________________________________________________ 8 ______________________________________________________ 9 ______________________________________________________ 10 ______________________________________________________ 11 ______________________________________________________ 12 ______________________________________________________ 13 ______________________________________________________ 14 ______________________________________________________ 15 ______________________________________________________ 16 ______________________________________________________ 17 ______________________________________________________ 18 ______________________________________________________ 19 ______________________________________________________ 20 ______________________________________________________ 21 ______________________________________________________ 22 ______________________________________________________ 23 ______________________________________________________ 24 ______________________________________________________ 25 ______________________________________________________ 0057 1 REPORTER'S CERTIFICATION 2 3 STATE OF TEXAS ) 4 COUNTY OF TRAVIS ) 5 6 I, BRENDA J. WRIGHT, Certified Shorthand 7 Reporter for the State of Texas, do hereby certify 8 that the above-captioned matter came on for hearing 9 before the TEXAS LOTTERY COMMISSION CHARITABLE BINGO 10 DIVISION as hereinafter set out, that I did, in 11 shorthand, report said proceedings, and that the above 12 and foregoing typewritten pages contain a full, true, 13 and correct computer-aided transcription of my 14 shorthand notes taken on said occasion. 15 Witness my hand on this the 15TH day of 16 AUGUST, 2004. 17 18 19 20 BRENDA J. WRIGHT, RPR, 21 Texas CSR No. 1780 Expiration Date: 12-31-04 22 1801 N. Lamar Boulevard Mezzanine Level 23 Austin, Texas 78701 (512) 474-4363 24 JOB NO. 040811BJW 25