0001 1 TRANSCRIPT OF PROCEEDINGS 2 BEFORE THE 3 BINGO ADVISORY COMMITTEE 4 (TEXAS LOTTERY COMMISSION) 5 AUSTIN, TEXAS 6 QUARTERLY MEETING OF THE ? BINGO ADVISORY COMMITTEE ? 7 WEDNESDAY, APRIL 28, 2010 ? 8 9 COMMITTEE MEETING 10 WEDNESDAY, APRIL 28, 2010 11 12 BE IT REMEMBERED THAT on Wednesday, the 13 28th day of April 2010, the Bingo Advisory Committee 14 meeting was held from 10:00 a.m. to 10:55 a.m., at the 15 Offices of the Texas Lottery Commission, 611 East 6th 16 Street, Austin, Texas 78701, before KIMBERLY ROGERS, 17 Chair. The following proceedings were reported via 18 machine shorthand by Lorrie A. Schnoor, a Certified 19 Shorthand Reporter of the State of Texas, and the 20 following proceedings were had: 21 22 23 24 25 0002 1 APPEARANCES 2 BINGO ADVISORY COMMITTEE: 3 Ms. Kimberly Rogers, Chair 4 Mr. Earl Silver, Vice Chair Mr. Emile S. Bourgoyne 5 Mr. Francis M. Ciancarelli Ms. Pat Gifford 6 Ms. Markey Weaver (Not present) Mr. Thomas "Tom" Weekley 7 Mr. Joe Williams Ms. Melissa Young (Not present) 8 CHARITABLE BINGO OPERATIONS DIVISION DIRECTOR: 9 Mr. Philip Sanderson 10 11 MANAGER LICENSING SERVICES: 12 Mr. Bruce Miner 13 14 15 16 17 18 19 20 21 22 23 24 25 0003 1 TABLE OF CONTENTS PAGE 2 3 AGENDA ITEM NO. 1 - The Bingo Advisory Committee will call the meeting to order.......... 5 4 AGENDA ITEM NO. 2 - Consideration of 5 and possible discussion and/or action on the minutes of the February 10, 2010 Bingo 6 Advisory Committee meeting........................ 5 7 AGENDA ITEM NO. 3 - Report, possible discussion and/or action on revised 8 Bingo Public Service Announcement................. 6 9 AGENDA ITEM NO. 4 - Report, possible discussion and/or action on calendar year 10 2009 bingo conductor information.................. 9 11 AGENDA ITEM NO. 5 - Report and possible discussion on new products that may help 12 licensed authorized organizations................. 12 13 AGENDA ITEM NO. 6 - Report, possible discussion and/or action on the request for 14 a Bingo Advisory Committee study and report on the impact of legal and illegal amusement 15 machines on bingo................................. 12 16 AGENDA ITEM NO. 7 - Consideration of and possible discussion and/or action on the 17 2009 BAC Annual Report and Work Plan Update Workgroup.................................. 28 18 AGENDA ITEM NO. 8 - Report and possible 19 discussion and/or action on the workgroup - Nomination Subcommittee........................... 36 20 AGENDA ITEM NO. 9 - Report and possible 21 discussion and/or action on the workgroup - Business Plan Workgroup........................... 37 22 AGENDA ITEM NO. 10 - Report and possible 23 discussion and/or action on the workgroup - Market Conduct Workgroup.......................... 39 24 25 0004 1 TABLE OF CONTENTS (continued) 2 PAGE 3 AGENDA ITEM NO. 11 - Report and possible discussion and/or action on the workgroup - 4 Prize Board Management Workgroup.................. 41 5 AGENDA ITEM NO. 12 - Report, possible discussion and/or action on the workgroup - 6 Licensing Workgroup............................... 48 7 AGENDA ITEM NO. 13 - Report, possible discussion and/or action on the workgroup - 8 Books and Records Requirements Workgroup.......... 49 9 AGENDA ITEM NO. 14 - Public comment.............. 49 10 AGENDA ITEM NO. 15 - Consideration of and possible action on future Bingo Advisory 11 Committee meeting dates and/or items to be considered for future meetings.................... 50 12 AGENDA ITEM NO. 16 - Adjournment.................. 56 13 REPORTER'S CERTIFICATE............................ 57 14 15 16 17 18 19 20 21 22 23 24 25 0005 1 P R O C E E D I N G S 2 WEDNESDAY, APRIL 28, 2010 3 (10:00 a.m.) 4 AGENDA ITEM NO. 1 5 MS. ROGERS: Good morning, ladies and 6 gentlemen. It is now ten o'clock. This meeting will 7 be called to order. We do have a quorum. Our members 8 that we are missing today would be Markey Weaver and 9 Ms. Melissa Young. Everyone else is in attendance. 10 AGENDA ITEM NO. 2 11 MS. ROGERS: First item on the agenda is 12 No. 2, "Consideration of and possible discussion 13 and/or action on the minutes of the February 10th, 14 2010 Bingo Advisory Committee meeting." 15 Remember these are the meeting minutes 16 that are online. So if I have a motion to accept 17 these minutes and have -- 18 MR. BOURGOYNE: So moved. 19 MS. ROGERS: -- them posted? 20 MR. BOURGOYNE: So moved. 21 MS. ROGERS: We have a motion. Do I 22 have a second? 23 MR. SILVER: Second. 24 MS. ROGERS: Thank you. Those meeting 25 minutes will be accepted. 0006 1 AGENDA ITEM NO. 3 2 MS. ROGERS: No. 3, "Report, possible 3 discussion and/or action on revised Bingo Public 4 Service Announcement." 5 Mr. Phil Sanderson. 6 MR. SANDERSON: Good morning, members. 7 We have revised the Public Service Announcement that 8 we make available on our website as well as to any 9 individual or organization that would like to obtain a 10 copy. Mr. Bates is in the process of putting it up on 11 the screen for your enjoyment and pleasure. 12 (Video plays, as follows) 13 "It's called the most charitable game in 14 Texas, and for good reason. Last year, more than 17 15 million people in Texas played Charitable Bingo and 16 won a total of $518 million dollars in prizes. 17 But the biggest winners of all were the 18 charitable organizations that collected more than $36 19 billion from the conduct of bingo. Well, what are you 20 waiting for? You'll find a bingo hall near you at 21 T-X-Bingo, dot, o-r-g-slash-hall." 22 (Video ends) 23 MS. ROGERS: Wow. 24 MR. SANDERSON: We also have a Spanish 25 version, if you want to play that one? 0007 1 (Video plays, as follows) 2 "Le llaman el juego m?s caritativo en 3 Texas, y por buena raz?n. M?s de 17 millones de 4 aficionados del bingo caritativo jugaron el a?o pasado 5 en Texas, y ganaron un total de premios que llega a 6 $quinientos-18- millones de d?lares. 7 Pero los ganadores mayores fueron las 8 organizaciones caritativas que lograron m?s de $36 9 millones de d?lares del bingo. Pues, ?qu? esperas? 10 Encontraras la sala de bingo m?s cercana a ti en 11 t-x-bingo-punto-o-r-g." 12 (Video ends) 13 MR. SANDERSON: As I mentioned earlier, 14 we've had -- several individuals have asked for copies 15 of this, both in different formats depending on what 16 the TV stations require, as well as it's also uploaded 17 on our website and can be downloaded in most any 18 format, I believe. So if anybody has any questions, 19 I'll be glad to answer those. 20 MS. ROGERS: I would just like to say 21 that's awesome. Now, they can -- people of the public 22 and the members can all call you and get a copy, and 23 then they distribute it to their local TV station. 24 Correct? 25 MR. SANDERSON: That is correct. 0008 1 MS. ROGERS: I think -- members, anyone 2 have a comment? 3 (No response.) 4 MS. ROGERS: Do we have any public 5 comment at this time? Yes, sir? 6 MR. BRESNEN: I'm sorry. I didn't put 7 it on my list. 8 MS. ROGERS: That's fine. 9 MR. BRESNEN: But I just thought of 10 something. 11 Steve Bresnen on behalf of the Bingo 12 Interest Group. 13 Phil, can you have your media people see 14 if, No. 1, they can get that out on the web in a 15 YouTube format, and then see what they might be able 16 to do to make it viral and send it out to a lot of 17 people that way it costs zero to do it -- virtually 18 zero to do it and, you know, you might get a lot of 19 play out of it instead of just the standard mainstream 20 media, as they say on some channels. 21 MR. SANDERSON: We can certainly look at 22 that. 23 MR. BRESNEN: Okay, thanks. 24 MS. ROGERS: Wonderful idea. Thank you, 25 Mr. Bresnen. 0009 1 Any other public comment? 2 (No response) 3 AGENDA ITEM NO. 4 4 MS. ROGERS: Okay. We will now move on 5 to Item No. 4, "Report, possible discussion and/or 6 action on calendar year 2009 bingo conductor 7 information." 8 Mr. Bruce Miner. 9 MR. MINER: Good morning, BAC members. 10 For the record, my name is Bruce Miner, and I'm the 11 manager of the Taxpayer Services Department. I'm here 12 to present to you an overview of the 2009 information 13 as reported by our licensed authorized organizations. 14 Let me begin by pointing out that for 15 the second year in a row, Charitable Bingo in Texas 16 was the highest grossing since the game was legalized 17 in 1981. For calendar year 2009, total receipts 18 surpassed $692 million, an $8 million increase over 19 last year, and players won a record $518 million in 20 prizes. 21 Charitable distributions also increased 22 for the sixth conservative year as organizations 23 reported they distributed almost $36 million for their 24 charitable purposes. Total distributions since 1981 25 are now more than $937 million. 0010 1 This chart shows a comparison of gross 2 receipts for each year from 2006 to 2009. As you can 3 see, gross receipts for instant bingo sales have 4 increased each year since 2006 from $253.6 million to 5 $318 million for a 25.7 percent increase. While at 6 the same time, gross receipts for regular bingo card 7 sales dropped from $251.3 million in 2006 to 8 213.7 million in 2009 for a decrease of 15 percent. 9 Gross receipts from electronic sales showed a slight 10 increase of 4.6 percent for the four -- for the same 11 four-year period. The overall total gross receipts 12 for 2009 are approximately 5.3 percent greater than 13 they were in 2006. 14 This chart shows a comparison net 15 receipts for each year from 2006 through 2009; and the 16 slide captures a trend of net receipts, which are 17 gross receipts minus prizes. The total net receipts 18 shown here in green increased 1.4 percent over 2008 19 and 5.2 percent over 2006. 20 These next slides will overlay the 21 comparison between the required distribution based on 22 the 35 percent calculation, the net proceeds, and the 23 actual reported distributions. 24 First, we have the 35 percent required 25 distributions using the calculation prior to 0011 1 October 1st, 2009, and it shows that the required 2 distributions ran just over $10 million for each of 3 the last four years. 4 We can now compare that to the net 5 proceeds as defined in the Revised Bingo Enabling Act 6 from House Bill 1474. This is gross receipts minus 7 prizes and expenses. This is their bottom line and is 8 running right around $35 million. 9 And this is the actual reported 10 charitable distributions. It shows that the 11 organizations continue to show an increase in the 12 amount that they distribute for their charitable 13 purposes. Distributions have risen from $32 million 14 in 2006 to $35.8 million in 2009, an increase of 15 11.9 percent over that four-year period. 16 In your notebook is additional 17 information from an analysis performed by Arlette 18 Taylor, our operational planning and performance 19 coordinator. 20 And that concludes my report for this 21 agenda item. Are there any questions? 22 MS. ROGERS: Members, anyone have any 23 questions? 24 (No response) 25 MS. ROGERS: Thank you, Mr. Miner. Nice 0012 1 report. Thank you. 2 Do we have any public comment at this 3 time? 4 (No response) 5 AGENDA ITEM NO. 5 6 MS. ROGERS: Okay. If not, we move to 7 Item No. 5, "Report and possible discussion on new 8 products that may help licensed authorized 9 organizations." 10 Mr. Earl Silver. 11 MR. SILVER: Again, we don't have 12 anything on that agenda item. We're waiting for 13 manufacturers to give us a few ideas. With Bingo 14 World coming up next week, we may have some other 15 information given to us for the next meeting. 16 MS. ROGERS: Okay. Do we have any 17 public comment at this time? 18 (No response) 19 AGENDA ITEM NO. 6 20 MS. ROGERS: Okay. We will move to Item 21 No. 6, "Report, possible discussion and/or action on 22 the request for a Bingo Advisory Committee study and 23 report on the impact of legal and illegal amusement 24 machines on bingo." 25 Mr. Phil Sanderson. 0013 1 MR. SANDERSON: Members, at the 2 April 8th Commission meeting, the Commissioners heard 3 comments from several individuals that expressed 4 differing views on the impact of amusement machines or 5 8-liners on Charitable Bingo. 6 As part of the statutory charge of the 7 Bingo Advisory Committee to conduct -- the 8 Commission -- to conduct studies on the Commission on 9 the needs and problems of the state's bingo industry 10 and to perform other duties as determined by the 11 Commission, the Commission would like for the BAC to 12 conduct a study and report back to the Commission the 13 impact of legal and illegal amusement devices on the 14 conduct of Charitable Bingo in Texas. 15 Under this agenda item today, you may 16 discuss your plan or the approach you would like to 17 take. For any discussion between now and your next 18 meeting, which is tentatively scheduled for June the 19 23rd, keep in mind that to comply with the Open 20 Meetings Act, no more than four members of the BAC may 21 get together. You may certainly ask or seek out 22 individuals in the public that are not on the BAC to 23 seek assistance and offer information to you in this 24 study. There will also be an agenda item at the next 25 BAC meeting for you to deliberate and develop a report 0014 1 to be presented at the Commission meeting of a future 2 date. More than likely, it will be the August 3 meeting. 4 With that I'd be glad to answer any 5 questions and you can -- in you want to appoint a 6 chair or contact for the BAC to be the gatherer of 7 information. 8 MS. ROGERS: Okay. So, members, we need 9 to form a workgroup. At this time, do we have a 10 volunteer to chair this workgroup? No? Francis? 11 Thank you very much. 12 Francis Ciancarelli will chair the 13 workgroup. 14 You can at this time ask for members to 15 be on your workgroup. 16 MR. CIANCARELLI: Mr. Weekley has 17 indicated that he is. Anyone else? 18 MS. ROGERS: Thomas Weekley will be on 19 there. 20 As I look at the workgroups, I've 21 noticed that a few of them have just one or -- well, 22 two, maybe, individuals from the BAC. I think we 23 really need three to four members on these workgroups. 24 We all have family lives and other things. We need to 25 kind of dole it out a little bit more. 0015 1 Mr. Bourgoyne? 2 MR. BOURGOYNE: Yes. 3 MS. ROGERS: Emile has said he will be 4 on the workgroup. Okay. 5 MR. SANDERSON: I think one thing I 6 would like to also reiterate and point out, I think 7 the whole committee needs to work on this project and 8 not just the workgroup. The workgroup that you formed 9 I think are individuals that could be used to 10 consolidate the information. 11 MS. ROGERS: Okay. 12 MR. SANDERSON: But I think that in 13 order to cover the broad spectrums in the state of 14 Texas and all other areas, that I think each member of 15 the BAC needs to have some input and conduct some 16 research and study. 17 As I mentioned, there's plenty of 18 individuals in the industry that can offer assistance 19 to you in that regard. You can, you know, conduct, 20 you know, interviews or get information from different 21 bingo locations that either have the devices, don't 22 have the devices, or in near proximity of game rooms 23 that are -- you know, may or may not be legal. 24 You've got the information on the Bingo 25 Services Center that can give you the sales detail of 0016 1 the organizations that are playing at different 2 locations. So you can see, you know, if a game room 3 opened up in the vicinity, how it impacted sales; if 4 it was shut down, how it impacted sales; if there's a 5 location that has, you know, devices within the bingo 6 hall before or after they were installed, how they 7 impacted the, you know, Charitable Bingo and the 8 profits and the distributions. 9 So I think it's very important. The 10 Commission is looking for, you know, some very good 11 information to make, you know, future determinations 12 on how to proceed with some of these actions. 13 MS. ROGERS: And I can see where that 14 will really assist us. 15 Is it possible to do this: Francis is 16 going to chair; Mr. Weekley and Emile stay on the 17 workgroup, which they can help Francis compile the 18 information. But since all the board members are from 19 different areas of the state, each one of us make a 20 commitment to look at our own area, maybe, and see 21 what we can find, how many halls, how they've been 22 affected, all the things that Phil's talking about. 23 Is it breaking any of the rules, the 24 Open Acts Rules, if each one of us email our 25 information or contact Francis with our information 0017 1 and then the three of them compile it with public 2 members, of course? 3 MR. SANDERSON: As long as the email 4 just goes to no more than three BAC members. 5 MS. ROGERS: Okay. What if each one -- 6 like let's just say myself and Joe. We email our 7 information straight to Francis, so we've only done 8 one person, and then Francis is in charge of taking 9 care of -- in the workgroup there, compiles the 10 information together and puts it -- 11 MR. SANDERSON: Yes. 12 MS. ROGERS: Is that -- 13 MR. SANDERSON: That's fine. 14 MS. ROGERS: Okay. So, Mr. Williams, 15 you understand? 16 MR. WILLIAMS: Yes. 17 MS. ROGERS: And that will also put it 18 on -- Mr. Weekley, Emile, to put it together for your 19 area, also. But, Pat, we would appreciate if you 20 would put some information together, and then you 21 would get it to Francis; Earl, you would do the same 22 thing; and myself. 23 So we will all be emailing you our 24 information, and then you take your workgroup and you 25 compile it altogether. 0018 1 At this time, on this workgroup, should 2 we have some public members, also, that maybe could 3 assist? 4 MR. SANDERSON: You can definitely 5 assign public members to the workgroup. But I think 6 that in the -- in your best interest, input from any 7 public member would be welcome because it's going to 8 be a very, very broad -- 9 MS. ROGERS: Right. 10 MR. SANDERSON: -- spectrum to cover and 11 a large area, and so I think that any input from any 12 individual that wants to supply that, if you're 13 willing to accept that information. I don't know if 14 I'd limit it to just certain individuals or just 15 select a few people to be responsible for gathering 16 that. 17 Apparently, it's a good day today. We 18 got a lot of people here in attendance. I thank 19 Mr. Bresnen for bringing them all in or most all of 20 them, I think. 21 MS. ROGERS: Wonderful. And public 22 members would be -- I would say, compile your 23 information, also get it to Francis, and then let his 24 workgroup go over it and put it together so we -- 25 MR. SANDERSON: That would be fine. 0019 1 MS. ROGERS: -- have correct 2 information. 3 Is there any public member that would 4 like to volunteer to assist us with this? Okay. 5 Steve Bresnen and Jeff Mitch. Okay. And 6 Mr. Fenoglio -- oh, I'm sorry. 7 MR. SILVER: Richard Bunkly. 8 MS. ROGERS: Okay. And Mr. Fenoglio? 9 MR. FENOGLIO: Yes, please. For the 10 record, my name is Stephen Fenoglio, and I filled out 11 an appearance slip. 12 It would help if we knew the format that 13 would be most beneficial. I've attended all the 14 Commission meetings, and I've been a member of the 15 Market Conduct Group. There's a lot of information 16 that can be obtained. 17 But if someone would provide a template 18 as to what type of data, Phil, you need or your staff 19 needs, that would, I think, help in -- as opposed to 20 we cover up Francis with different formats of data and 21 he's now starting to guess as to which box to put what 22 particular piece of data in. So that would 23 immeasurably help and, I think, simplify some of the 24 process. 25 MR. SANDERSON: Okay. I'll get 0020 1 something together and send it to Francis, then. 2 MR. FENOGLIO: Okay, great. Thank you. 3 MS. ROGERS: So that would -- thank you, 4 Mr. Fenoglio. That's a great idea. Are you 5 volunteering to be a public member? 6 MR. FENOGLIO: Yes. 7 MS. ROGERS: Okay. Thank you. So 8 that's Stephen Fenoglio. 9 I -- I think that's a great idea, and so 10 if you -- well, BAC members, you have the 11 responsibility to contact Francis. He's not going to 12 contact you. Contact him so he's not overwhelmed and 13 get the format, which he's going to receive from Phil, 14 and then we will get that together. 15 MR. SILVER: Phil, is there going to be 16 any type of timetable -- not timetable, but dates of 17 reference that the Commissioners would need? Like go 18 back six months if there was an effect or go back nine 19 months? It goes back to what Mr. Fenoglio said, some 20 type of format. 21 MR. SANDERSON: Well, I don't know if 22 there's actual -- I know there's some data that goes 23 back. I know Mr. Heinlein had performed some study. 24 I don't know how far back. Was that 2006 or '7, 25 somewhere in there? And, you know, that might be a 0021 1 little bit old, but I still think it would be good. 2 You've also got some studies that were 3 done in the Kingsville area when some 8-liner machines 4 opened up there. There was also a study that was done 5 in El Paso when the Tiguas opened their bingo hall in 6 '94 and what the impact it had on -- opened their 7 casino in '94 and the impact it had on the bingo in 8 El Paso County. 9 And, you know, then there's recent 10 information from, I believe, the Amarillo area as well 11 as Abilene area. That's in the last couple of years. 12 There was a -- I don't know how many bingo halls are 13 in the area. There was another 8-liner raid in 14 Trinity County over the weekend. So I don't know if 15 there's anything out in that area that you could, you 16 know, look at bingo. 17 But, you know, I don't know if I would 18 limit it to six months or a year. I think just, you 19 know, gathering information, there's several locations 20 that have been utilizing the devices or had the 21 devices in their location for the last couple of 22 years. And so you may have to go back a couple years 23 prior to that to see what their sales and how their 24 information was reported prior to those devices and 25 how it was reported after the devices. 0022 1 Another area that you're going to have 2 to really take into consideration as well is, you 3 know, the impact of the instant tickets and the event 4 tickets. You know, those sales have continued to 5 increase over the years. So I -- you know, it's -- 6 there's the, you know, need to perform some form of 7 analysis as to, you know, the -- if the increase 8 bottom line was as a result of those activities or 9 some other activities. 10 So it's going to take a little bit of 11 work and effort. And, you know, I think that you've 12 got people in this room that have been at bingo for 13 years and years, and I think they can provide valuable 14 information as to trends and analysis of how the 15 activities are impacted, both by the legal and the 16 illegal-type amusement devices. 17 MS. ROGERS: I would just like to say 18 one thing. 19 At the last Commission meeting, I was 20 there. And, Phil, correct me if I'm wrong, please. I 21 know you will. 22 There are different types of machines 23 that -- in other words, there are some that distribute 24 cash. There are some that distribute tickets. 25 There's -- for the tickets, you receive different 0023 1 things. They branch off from there. You can receive 2 bingo paper machines, or you can receive stuffed 3 animals, I guess. I'm just calling off here. 4 I would like to see in this report, we 5 keep it separate. Is that a good thing, would you 6 think? Because I think people have different opinions 7 on different -- in other words, I don't want to lump 8 them all together because I personally do not feel 9 that they should be lumped together. An illegal 10 gambling machine that pays cash or a machine that does 11 different. 12 MR. SANDERSON: Well, I think it would 13 be good to keep them separate myself. I mean, I think 14 that would be -- you know, you would need to look at 15 the method of operation and play and payout of the 16 devices and the proximity. 17 MS. ROGERS: Uh-huh. 18 MR. SANDERSON: You know, there again, 19 it goes back to whether the device is in the hall, in 20 a room in a hall -- 21 MS. ROGERS: Right. 22 MR. SANDERSON: -- next to the hall, in 23 the parking lot of the hall, down the street from the 24 hall, you know, what the -- there's several types of 25 scenarios that you -- I wouldn't lump them all 0024 1 together into one. 2 MS. ROGERS: Right. And I don't think 3 they should be. 4 And, Francis, I'm giving you this 5 information because at the last commissioners meeting, 6 there were quite a few people that stood up. And 7 those that have the machines that distribute tickets 8 and the individuals are able to go and receive a 9 computer or paper or whatever for bingo to play, I 10 believe they will have substantial information to give 11 us that charities have benefited from that. So there 12 may be a side that some have benefited versus there's 13 a side that, maybe -- so I think the Commissioners 14 need to have all of it. They don't need to just have 15 illegal gaming machines. 16 MR. CIANCARELLI: Madam Chair, I guess I 17 would like to approach this by contacting the other 18 two BAC members first and kind of relaying some of 19 this discussion to them. And then with your help and 20 with Mr. Sanderson's help, I'd like to develop a scope 21 of the study so that we have some direction, and from 22 there, then we can start taking the information from 23 the public. 24 And as far as contact information, if 25 you want to get me, you can just go on to the bingo 0025 1 website, and all the BAC members are listed there. My 2 phone and email is there as well. Thank you. 3 MR. SANDERSON: And I think, Fran, also, 4 I've had some templates and reports that you've sent 5 me, and they're very well laid out. And, you know, I 6 might look to you to, you know, be in charge of 7 gathering that information and how to place it 8 altogether. I think that would probably be the best 9 route to go. 10 MR. CIANCARELLI: Yeah, that's no 11 problem. 12 MR. SANDERSON: Okay. 13 MS. ROGERS: And, Francis, it might also 14 assist you a little bit to go back and maybe look over 15 the last -- that was April -- 16 MR. SANDERSON: The April 8th Commission 17 meeting transcript? 18 MS. ROGERS: April 8th. Maybe look over 19 those minutes with -- where Commissioner Schenck was 20 speaking with the public -- the individuals from the 21 public and their comments, and we greatly appreciate 22 you heading this up. Thank you. 23 MR. CIANCARELLI: I have a question for 24 Mr. Sanderson. 25 Would it be in line to contact each 0026 1 Commissioner and just try to get a personal 2 understanding with that Commissioner? 3 MR. SANDERSON: I can -- I'll look into 4 seeing how we can arrange something like that. 5 MR. CIANCARELLI: Thank you. 6 MS. ROGERS: Members, does anyone else 7 have any comment on this? Questions? Do we have any 8 public comment at this time? Mr. Minch, anything to 9 say? No? Mr. Bresnen? 10 Mr. Steve Bresnen. 11 MR. BRESNEN: Very briefly. Steve 12 Bresnen on behalf of the Bingo Interest Group. 13 I appreciate you, Madam Chair, for 14 expressing an interest in having as many categories 15 and descriptors as we can so we can segregate what 16 works from what doesn't work and what's illegal from 17 what's not illegal. I think that's going to be 18 critical. 19 I think one of the things that this 20 study could do is to point out the methodologies that 21 work best or don't work best for the organizations. I 22 know of two of the locations within the group that I 23 represent. One of them as much as 35 percent of their 24 sales is -- of the organization's sales is based on 25 redemption for bingo product alone. And another 0027 1 organization, the organizations there took in $348,000 2 in a single year through redemption for bingo 3 products. That's after all their expenses and 4 everything else were paid out of their normal bingo 5 revenues. So I think it may be helpful. 6 Other places, it's a modest amount of 7 their revenue. Some people are not in as good touch 8 with that point of revenue as they ought to be. So I 9 think it could help the Commissioners to understand 10 that there's more than one way to skin the kitty in 11 this area. 12 Mr. Sanderson, I would -- I'm sure you'd 13 do this anyway, but just so everybody's on the same 14 frame of reference. You've produced some good 15 information about the number of locations around that 16 your personnel report have machines either in the hall 17 or in proximity to the hall, and you have some 18 breakout of those, the organizations involved, 19 etcetera. I think if you'd provide that to them, 20 would be good. 21 The study that was done in response to 22 requests from Representative Kino Flores, the chairman 23 at the time of the House Licensing Committee, about 24 the effect on the halls of the outside of those game 25 rooms that were outside the bingo hall. I think that 0028 1 was made in conjunction with trying to estimate what 2 the impact of video lottery terminals would be on the 3 halls. That would be useful information. 4 I also like the fact that you didn't 5 circumscribe to a given year because you're going to 6 see some of these things may have been different in 7 different years, and to see how things morphed as the 8 law and various jurisdictions have treated the 9 amusement devices one way or the other would be 10 helpful to a comprehensive understand of what's 11 actually occurring in the state. 12 So thank y'all for doing that. I'm 13 happy to serve with you in any way I can and don't 14 hesitate to holler at me. I'll be in touch with the 15 members, so you'll know how to get a hold of me too. 16 Okay. Thank you. 17 MS. ROGERS: Thank you, Mr. Bresnen. 18 Thank you for your time. 19 Any other comments? 20 (No response) 21 AGENDA ITEM NO. 7 22 MS. ROGERS: At this time we'll move on 23 to Item No. 7, "Consideration of and possible 24 discussion and/or action on the 2009 BAC Annual Report 25 and Work Plan Update Workgroup." 0029 1 Melissa Young was to give this; but 2 Mr. David Heinlein, would you like for -- to present 3 it or... 4 MR. HEINLEIN: David Heinlein 5 representing Charity Trust. I will present the 2009 6 BAC Annual Report. I believe every member has 7 received a copy of that. 8 Turn to Page 2 in that. And, of course, 9 I know that you can read, so I'm not going to repeat 10 all that's in there. But I would like to point out 11 on, B, net receipts, you see the portion that I've 12 highlighted, the last three quarters of 2009 were down 13 over $5-and-a-half million from the same period of 14 2008. I wanted to call that to your attention because 15 as you look at the information that is in the pages 16 that are at the end, you see that in -- as Bruce had 17 on the screen for the 2009, the increase was -- there 18 was an increase in gross revenue. 19 But if you look at the net, the first 20 quarter was great. As we started out the first 21 quarter of 2009, I thought this is going to be a year 22 that exceeds 2008, which was also a really good year. 23 We had good distributions, and there was good net 24 revenue. But the last three quarters of 2009, if you 25 look at the detail, you'll see that they were down 0030 1 each quarter for a total of a little over 2 $5-and-a-half million. 3 I'm always reminded of something that 4 Tom Clowe has spoken to us a lot about when I hear him 5 listening to people that testify, and he'd ask some of 6 the staff, you got to dig a little deeper. Well, this 7 is one of those items I think you need to dig a little 8 deeper and take a look at because also you'll see in 9 the charts that the expenses as a percentage went up, 10 and that's something that will have to be looked at. 11 Of course, we're happy to report that 12 the charitable distributions increased to a high of -- 13 I don't know how many years. All the years from 2002, 14 it's the highest since that time that we've been 15 posting that. 16 If you look on Page 3, I've noted the 17 expense increases in 2009 over 2008 of $5,104,000 of 18 adjusted gross revenue. 83 percent from 2002 to 2005, 19 81 percent in 2008, and 83 percent in 2009. Then I 20 notice -- I note in here that advertising in 2008 was 21 300,000 more than in 2007, and possibly an increase in 22 advertising for 2010 should be considered while 23 reducing other costs. The increase sales of event 24 tickets contributed to the increase of payroll and 25 costs sold. 0031 1 But there are some percentages that you 2 need to look at that are -- can be a problem. 2008, 3 the expenses were only 81 percent, and we had a real 4 good year. They were 82 in prior years, but then they 5 went up to 83, and that 1 percent was a lot. So it 6 means that if the -- if there's a decline in revenue 7 for the year 2010, the conductors are going to have to 8 be very careful to look at their expenses because when 9 we're really going well and sales are increasing, we 10 increase staff and we increase a lot of different 11 areas without realizing suddenly that they've gone 12 down and you've got to modify those expenses. So we 13 need to be careful of that. 14 And I posted a concluding comment that 15 "with the decline in net proceeds over the last three 16 quarters of 2009, it seems that Charitable Bingo is 17 not recession proof. If this decline continues, many 18 conductors will be at risk of falling short of the 19 mandate of House Bill 1474. The bingo activity must 20 result in positive net proceeds over the previous four 21 quarters. Expenses should be managed to be in line 22 with any revenue decline." 23 And the halls that I do the books for, I 24 have noticed that in the first quarter of 2010, we had 25 positive net revenue in all the halls, but it was far 0032 1 less than it was in 2009. And so it indicates to me 2 that we are being affected by the recession because as 3 I talk with hall managers, I learn that the attendance 4 is about the same, but the people that are coming are 5 not spending the same amount of money that they spent 6 in years past. 7 One other thing I should point out, too, 8 that Bruce and I have talked about, and Phil mentioned 9 this at the last BAC meeting. Another thing to be 10 careful to look at is your regular bingo prize payout. 11 That's been going up over the last few years from 12 70 percent to 72 percent, and last year it was 13 77 percent. That works if the prize payout is being 14 replayed into event tickets. 15 And so with halls that are selling a lot 16 of event tickets, they can sustain that prize payout 17 of 77 percent. In fact, I've seen them be able to 18 sustain 83 to 85 percent prize payout because all the 19 playback is coming into the event tickets. But if it 20 gets higher than that, I've seen where the regular 21 bingo becomes a negative revenue source. So I think 22 you need to pay attention to your prize payout 23 percentage and see for sure that you're not going 24 negative. 25 That's all I had to say. And I'd be 0033 1 glad to answer any questions that you might have on 2 that report. 3 MS. ROGERS: Mr. Heinlein, greatly 4 appreciate it, and this report is wonderful. Thank 5 you so much. You and Melissa and those who worked on 6 it with you did a great job. 7 I have one question for you. 8 MR. HEINLEIN: Sure. 9 MS. ROGERS: What your opinion is. 10 Do you think that bingo players are 11 tending to play event tabs more -- and that is going 12 higher. We see that increase -- because they have a 13 higher chance of winning a greater amount of money 14 than regular bingo is still held by that $2,500 cap, 15 that individuals are going -- 16 MR. HEINLEIN: Absolutely. 17 MS. ROGERS: -- towards that? 18 MR. HEINLEIN: Absolutely. We see times 19 when event ticket sales are -- I've seen them as high 20 as $120,000 in a weekend, and that is because it's 21 exciting and they continue to play. If it hadn't have 22 been for our event tickets coming onboard where we 23 could sell them, we'd be out of business today. 24 And it's time for Earl to get serious 25 about the new styles of play that you might be able to 0034 1 get going because we need something new to entice the 2 players to continue to play because we need new 3 players. We need to increase attendance. That's 4 always an issue. That's always the thing that we note 5 at the bottom of every one of these reports, 6 attendance is a major concern to increase. And it 7 continues to goes down, and that's the wrong 8 direction. 9 MS. ROGERS: I agree with you. And I 10 can say for our hall, that we have seen that increase 11 in excitement. Increase larger jackpots, if that's 12 what you want to call them, really entice those 13 players to play. 14 And so once again, this goes back to my 15 personal opinion. I've said it over the years. We 16 need to definitely look into the $2,500 cap that we're 17 bound by with the Bingo Enabling Act. I understand 18 that we cannot change that and that's legislative and 19 not rule; but it has to start somewhere, that we can 20 up that or change that. 21 MR. HEINLEIN: I think you'd want to 22 keep in focus, too, the prize limit on that. If 23 you're going to increase -- 24 MS. ROGERS: Right. 25 MR. HEINLEIN: -- the prize payout, you 0035 1 ought to increase the amount of that prize because 2 that's what would be -- 3 MS. ROGERS: Because that's bound by 4 IRS. Correct? Well -- 5 MR. HEINLEIN: Well, we can give up to 6 $1,200 prize payout without having to W-2G. So it's 7 something that could stand increase without a burden 8 on the recordkeeping of it. 9 MS. ROGERS: Thank you. 10 Any other questions, Members? No? 11 Mr. Sanderson. 12 MR. SANDERSON: This report is presented 13 to the Commission annually. You've got four members 14 of the BAC that were on the workgroup, yourself, Earl 15 and Melissa, and Markey along with David Heinlein. I 16 think at if the committee -- if the workgroup 17 recommends to the committee to adopt this report, then 18 you would be able to make the presentation at the May 19 Commission meeting and present them with this report, 20 but that's entirely up to you. 21 MS. ROGERS: I think that's a wonderful 22 idea. Do I have a motion to accept this as our 23 report? 24 MR. CIANCARELLI: Make a motion to 25 accept it. 0036 1 MS. ROGERS: Motion made by Francis. 2 Second? 3 MR. BOURGOYNE: Second. 4 MS. ROGERS: Seconded by Emile. So we 5 will accept this report, and I will present this at 6 the May 8th. 7 MR. SANDERSON: Probably be the third 8 week in May. 9 MS. ROGERS: The third week in May, at 10 the next Commissioner meeting whenever it is made. 11 Do we have any public comment at this 12 time on this item? No? 13 (No response) 14 AGENDA ITEM NO. 8 15 MS. ROGERS: Okay. Then at this time, 16 we'll move to Item No. 8, "Report and possible 17 discussion and/or action on the workgroup - nomination 18 subcommittee." 19 And this was to be done by Markey 20 Weaver, but I will refer it to Mr. Joe Williams. 21 MR. WILLIAMS: Thank you, Madam Chair. 22 As a sub sub-chair of the committee, not 23 a whole lot to report. The application deadline is 24 fast approaching, and those are still being collected 25 and distributed. And interviews are being taken and 0037 1 phoned back in, so that will continue until the 2 application deadline closes. 3 MS. ROGERS: Okay. Do we have an idea 4 at this time, Phil, how many we have received? 5 MR. SANDERSON: 13 to 15, somewhere in 6 there. 7 MS. ROGERS: Somewhere in there. And 8 the deadline would be Friday? 9 MR. SANDERSON: This Friday. 10 MS. ROGERS: So for anyone out there, 11 deadline is Friday, April 30th. 12 Members, any questions or comments? 13 (No response) 14 MS. ROGERS: Do we have any public 15 comment at this time on nominations? 16 (No response) 17 AGENDA ITEM NO. 9 18 MS. ROGERS: Okay. Then we will move to 19 Item No. 9, "Report and possible discussion and/or 20 action on the workgroup - Business Plan Workgroup." 21 Mr. Earl Silver. 22 MR. SILVER: We had four rules to look 23 at, which one was 402.450, request for waiver; 24 402.451, operating capital; 402.452, net proceeds; 25 402.453, request for operating capital increase. The 0038 1 work has been done and completed on this workgroup. 2 MS. ROGERS: Okay. 3 MR. SANDERSON: Those rules were 4 presented to the Commission at their March Commission 5 meeting. There was a public hearing that was held on 6 I want to say April the 14th. Monday was the last day 7 for comment, and they should be on the agenda for the 8 Commission meeting in May for adoption. 9 MS. ROGERS: Very good. Members, any 10 comment? Questions? 11 (No response) 12 MS. ROGERS: Do we have any public 13 comment at this time? 14 (No response) 15 MS. ROGERS: So at this time, Phil, it 16 will be appropriate to disband this workgroup? 17 MR. SANDERSON: I believe so, yes. 18 MS. ROGERS: Okay. Thank you very much 19 to those members who served on this workgroup. We 20 appreciate your time. We will dismember the Business 21 Plan Workgroup at this time. 22 MR. SILVER: And there were a lot of 23 members on there: Emile Bourgoyne, Stephen Fenoglio, 24 Kris Keller, Paul Collins, Steve Bresnen, David 25 Heinlein, Glenn Deshields, Jamie McNally, and I'm sure 0039 1 there were a few others in that meeting. 2 MS. ROGERS: Thank you very much -- 3 MR. SILVER: Thank you. 4 MS. ROGERS: -- to those who assisted. 5 Steve Bresnen was also on there. 6 MR. BRESNEN: I would like to be 7 disbanded but not dismembered. 8 (Laughter) 9 MS. ROGERS: Oh, did I say that? I'm 10 sorry. I apologize. Thanks, Steve. I appreciate 11 that. 12 AGENDA ITEM NO. 10 13 MS. ROGERS: We'll move to Item No. 10, 14 "Report and possible discussion and/or action on the 15 workgroup - Market Conduct Workgroup." 16 Mr. Earl Silver. 17 MR. SILVER: We are looking at three 18 current rules or rules that are coming up. One is 19 402.515, lease and rental payments; 402.211, other 20 games of chance; 402.516, lessor involvement. 21 Pretty much the only rule we've been 22 working on at this stage of the game is "other games 23 of chance," and Phil has been very instrumental in 24 keeping the group together and keeping everything 25 moving right along and keeping everything focused. 0040 1 And I'd like Phil to update, please. 2 MR. SANDERSON: To provide you a brief 3 update on the -- especially the "other game of chance" 4 rule, 402.211, after the workgroup meetings and 5 discussion, it became clear that there were divergent 6 views on whether an 8-liner machine that issues 7 coupons that are either redeemed for a gift 8 certificate, issued by an organization that's licensed 9 to conduct bingo that is then redeemed for bingo 10 paper, electronic card minding devices, and/or 11 pull-tabs or the coupons are redeemed directly for 12 bingo paper, card minding devices or pull-tabs, if 13 that device is a gambling device and, therefore, 14 prohibited from the exhibition and play during a bingo 15 occasion. 16 At the last workgroup meeting we had, 17 which was last Friday the 23rd, there was a suggestion 18 of requesting an Attorney General's opinion that was 19 discussed. I believe that an opinion from the 20 Attorney General would be helpful in this matter, and 21 the TLC Chairman Williamson has submitted a request to 22 the Attorney General for an opinion that I've sent to 23 the members of the workgroup. And I'll make it 24 available upon request if anybody else would like to 25 get a copy of that. 0041 1 And, therefore, until an AG opinion is 2 issued in response to this request, I think it would 3 be premature to proceed with any "other game of 4 chance" rulemaking at this time, and so we're going to 5 cease discussions on that rule until we get the 6 response from the Attorney General. 7 MS. ROGERS: Sounds good. 8 Members, any questions? 9 (No response) 10 MS. ROGERS: Do we have any public 11 comment at this time? Questions? No? 12 (No response) 13 MS. ROGERS: Thank you, Phil, and thank 14 you to Commissioner Williamson. 15 AGENDA ITEM NO. 11 16 MS. ROGERS: We'll move on to Item 17 No. 11, "Report and possible discussion and/or action 18 on the workgroup - Prize Board Management Workgroup." 19 Mr. Earl Silver. 20 MR. SILVER: We haven't done anything on 21 this particular rule yet or this particular 22 subcategory or workgroup, but what we would like to do 23 is make a few modifications to it as far as the 24 members. 25 What I'd like to do is step down as 0042 1 chair and appoint Mr. Emile Bourgoyne as chair. This 2 workgroup was started by a manufacturer distributor, 3 and I'd like it continuing, especially with 4 Mr. Bourgoyne's experience in state and out of state. 5 And different methods of bingo, it could be very 6 helpful that we have somebody like that leading the 7 workgroup. 8 MR. BOURGOYNE: Does anyone have any 9 information on how the workgroup got started? What 10 its mission was? 11 MR. SANDERSON: Several meetings ago -- 12 and I want to say Knowles Cornwell was the one -- 13 started talking about prize board management, and I 14 think it kind of goes in what Mr. Heinlein was 15 discussing as far as regular bingo prizes. The 16 percentage continually is increasing over the years 17 and how the organizations need to develop a more 18 manageable approach at the regular bingo prizes and 19 how they can best utilize the -- you know, staying 20 within the prize limits, you know, utilize the prize 21 board to keep and maintain customers as well as try to 22 bring in new customers. 23 MR. BOURGOYNE: So you're talking about 24 your session payout schedule, basically? 25 MR. SANDERSON: Yes. 0043 1 MR. BOURGOYNE: That's not at all what 2 we thought it was, but -- 3 MR. SANDERSON: That's my understanding 4 from his comments. And I don't know if there's 5 anybody that was on the BAC at that point in time 6 because I want to say it was probably two years ago 7 when he started talking about it. 8 MR. SILVER: It was a while. 9 MR. SANDERSON: Yeah, and I don't know 10 if there's anybody in the attendance today, in the 11 general public, that recalls his comments or -- but 12 that's my recollection of what he was talking about. 13 MR. SILVER: Well, there's two members 14 on it, myself and Emile; and one public member, Darrin 15 Peters. But I would like to have one additional BAC 16 member to give some input on this as well as any other 17 public member. 18 MS. ROGERS: Mr. Joe Williams. 19 MR. SILVER: Joe? 20 MS. ROGERS: Yes. Joe Williams will be 21 added to the Prize Board Management Workgroup. Emile 22 Bourgoyne will become chair. And, Earl, yourself, you 23 will stay on it? 24 MR. SILVER: Yes. 25 MS. ROGERS: Okay. And, Emile, you 0044 1 could feel welcome to call Mr. Cornwell. 2 MR. BOURGOYNE: I plan on doing that. 3 MS. ROGERS: Yes. And ask him -- 4 MR. BOURGOYNE: Just as soon as I get 5 out of here. 6 MS. ROGERS: I'm sure he can give you 7 all kinds of information. 8 At this time, do we have some others 9 that would like to be a public member? You have to 10 state your name. 11 MR. SMITH: Trace Smith. 12 MS. ROGERS: Trace Smith? Trace Smith. 13 Yes, sir. 14 MR. GENTRY: Greg Gentry. 15 MS. ROGERS: Greg Gentry. 16 MR. GENTRY: Yes. 17 MS. ROGERS: And, gentlemen, you'll need 18 to contact Emile so he has all your information. 19 Members, does anyone else have anymore 20 comments or questions on this? 21 (No response) 22 MS. ROGERS: Any public comment at this 23 time? 24 Yes, sir. Mr. Steve Bresnen. 25 MR. BRESNEN: I'd like to -- Steve 0045 1 Bresnen on behalf of the Bingo Interest Group. 2 I'd like to make a suggestion that the 3 workgroup add to its consideration, and that is the -- 4 how the organizations communicate to the public what 5 their prize offerings are. I think it's important 6 that we not be deceptive and that the community and 7 the industry not countenance deceptive advertising 8 about the prizes that might be awarded at a given 9 location, and it's not in the interest, I think, of 10 the organizations. Once they pay proper attention to 11 their Prize Board Management, it's not in their 12 interest and certainly not the interest of the larger 13 competitive community for people to be communicating 14 in a way that's deceptive to the bingo players out 15 there. 16 I've been hearing some disturbing 17 reports of people offering -- apparently offering 18 through their advertising far more payout than could 19 possibly be legal and be sustained unless they're, you 20 know, just selling instant tickets or event tickets in 21 a way that the population of Texas wouldn't sustain. 22 So something to think about as part of that 23 organization. 24 And, Phil, at some point you might be 25 able to give them some guidance about what, if any, 0046 1 rules there are, what the statute says about offering 2 prizes that are either beyond the limits or can't 3 effectively be paid. 4 MS. ROGERS: So I have a question for 5 you. So you're basically -- just maybe so I can 6 understand this better. 7 You're basically saying a hall may be 8 advertising, "We're giving away $50,000 at night." 9 They're adding up all of -- that's a random number I'm 10 just pulling out of the sky. 11 MR. BRESNEN: Right. 12 MS. ROGERS: They're adding up all of 13 their gross events plus everything, and you're saying 14 for them to check into that because -- 15 MR. BRESNEN: I'm saying -- I have no 16 idea how they're arriving at this these numbers. 17 MS. ROGERS: Okay. 18 MR. BRESNEN: I'm just saying what I'm 19 hearing is, the numbers can't possibly be justified in 20 reality. 21 MS. ROGERS: They're advertising huge 22 numbers. 23 MR. BRESNEN: And the players -- right. 24 And the objective, obviously -- you know, you put your 25 finger on it when you talked a moment ago about the 0047 1 event tickets and the higher payouts and that sort of 2 thing, drawing, you know, people into playing and 3 gravitating in that direction. We thought the same 4 thing would have happened with progressive bingo had 5 the governor not vetoed it twice. 6 MS. ROGERS: Yes, sir. 7 MR. BRESNEN: And I think people are -- 8 some people may be trying to achieve the same 9 result -- excuse me -- by offering a prize to the 10 public or a level of prize that can't be sustained in 11 the absence of new games like that. 12 I think we need to be careful not to 13 countenance deceptive advertising in the industry. 14 There's a -- it's an anti-competitive thing to do. 15 It's unfair for the -- unfair to the players and the 16 general public, and I think it's ultimately going to 17 come back to bite us. There may not be something that 18 this workgroup committee -- there may not be anything 19 they can recommend in the legal arena, but if some 20 communications out to organizations and locations that 21 that's not a good thing and is frowned on by the 22 industry, we might be able to do a little 23 self-policing if -- to the extent that the agency can. 24 MS. ROGERS: Okay. Thank you. Thank 25 you. 0048 1 Members, does anyone else have any 2 comments on that? 3 (No response) 4 MS. ROGERS: Any other public comments 5 at this time? 6 (No response) 7 AGENDA ITEM NO. 12 8 MS. ROGERS: Okay. Then we will move on 9 to Item No. 12, "Report, possible discussion and/or 10 action on the workgroup - Licensing Workgroup." 11 Mr. Earl Silver. 12 MR. SILVER: We have four rules to look 13 at. Lessor license transfer, which is 402.443; 14 402.444, which is common roof, common foundation; 15 402.411, which is the sources of funds; and 402.506 -- 16 507, collection of rent. 17 Phil, did 411 go forward? 402.411? 18 MR. SANDERSON: I don't believe it has, 19 no. 20 MR. SILVER: Okay. These are the rules 21 we're looking at. And now that some of the other 22 pressure has been let off on other workgroups, we'll 23 start focusing back on the Licensing Workgroup. But 24 nothing forward on these rules right now. I do have 25 copies of the current rules, and we'll start moving 0049 1 forward on these workgroups as well as the market 2 conduct. 3 MR. SANDERSON: Okay. 4 MS. ROGERS: Thank you. Members, any 5 questions? Comments? Do we -- 6 MR. SILVER: Glenn Deshields, he -- I 7 think he's still -- I think he's on the Licensing 8 Workgroup. And if there was anybody else who was on 9 there that I missed -- the public members I have is 10 Stephen Fenoglio, Steve Bresnen, Richard Bunkly, Jamie 11 McNally, and I think I have Glenn Deshields on there. 12 If there's any other ones, let me know so I can get 13 you on the list to keep you updated. 14 MS. ROGERS: Okay. And, Earl, you said 15 that's Glenda. Correct? 16 MR. SILVER: Glen, G-L-E-N. 17 MS. ROGERS: Oh, G-L-E-N. 18 MR. SILVER: Deshields. 19 MS. ROGERS: Okay. Very good. 20 Any public comments at this time? 21 (No response) 22 AGENDA ITEM NOS. 13 and 14 23 MS. ROGERS: Okay. Then we will move to 24 Item No. 13, "Report, possible discussion and/or 25 action on the workgroups - Books and Records 0050 1 Requirements Workgroup." 2 Markey Weaver, which Markey is not here 3 at this time, and Earl -- 4 MR. SILVER: Nothing to move forward. 5 MS. ROGERS: Nothing has moved forward 6 with this workgroup, so there is nothing to report at 7 this time. We will move it to the next meeting. 8 At this time we'd like to open it up for 9 public comment. Is there anyone who has anything? 10 (No response) 11 MS. ROGERS: Members, anything at this 12 time? 13 (No response) 14 AGENDA ITEM NO. 15 15 MS. ROGERS: Okay. Item No. 15, 16 "Consideration of and possible action on future Bingo 17 Advisory Committee meeting dates and/or items to be 18 considered for future meetings." 19 At this time, our next meeting is set 20 for June 23rd. Is that still correct, Phil? 21 MR. SANDERSON: That's the date y'all 22 discussed earlier in the -- or I guess back in 23 February, when you were setting the dates out. 24 There's not going to be -- or I've been told there is 25 not planning to be a Commission meeting in July, and 0051 1 the next Commission meeting would be probably late 2 August or middle to late August. And if that's the 3 case, I would recommend maybe moving that June 23rd 4 meeting back to July to give the workgroup and the 5 committee a chance to gather as much information as 6 they can for the report to the Commission. That's 7 entirely up to you, if that's -- you know, if that's 8 your desire. 9 But right now, it is scheduled for 10 Wednesday, June the 23rd. 11 MS. ROGERS: Okay. Any comment on that? 12 Members, what would y'all like to say or see, or how 13 are your schedules in July? 14 MR. BOURGOYNE: For what date are you 15 looking at? 16 MS. ROGERS: We're talking about moving 17 the June 23rd meeting to July. And, of course, the 18 first Sunday in July is July 4th, which I think that 19 week should not be considered. 20 MR. SILVER: As late in July as possible 21 just to give Francis enough time to compile some data 22 to see if we can bring it back together for that 23 meeting. 24 MS. ROGERS: Okay. 25 MR. SILVER: Just give him as much time 0052 1 as possible. 2 MR. SANDERSON: The only other date in 3 July to keep -- be mindful of is July the 26th is the 4 due date for quarterly reports. So I don't know if 5 you want to, you know, have the meeting shortly, you 6 know, thereafter, maybe the 28th. You know, that or 7 27th, 28th, 29th, you know, those three days -- one of 8 those three days in there. Or if you want to have it 9 a couple of weeks prior to that, around the 14th. 10 MS. ROGERS: Francis, would you prefer 11 the 14th or the 28th? 12 MR. CIANCARELLI: Madam Chair, how about 13 the 28th, please, of July. 14 MS. ROGERS: Pat? Emile? 15 Twenty-eighth? Joe? Tom? 16 Okay. So our next meeting will be set 17 for July 28th, 2010. 18 MR. SANDERSON: Agenda items that I know 19 for sure will be on there will be the approval of your 20 draft work plan to present to the Commission and how 21 you accomplished the current work plan. 22 MS. ROGERS: Okay. 23 MR. SANDERSON: You'll also have the 24 Nominations Committee; and then, of course, any of the 25 other workgroups that have reports. 0053 1 MS. ROGERS: We will move -- the Books 2 and Records Requirement Workgroup will hopefully have 3 something, some information. 4 So Nomination Committee, you should have 5 your nominees at that time. 6 Anyone else -- Earl, any of your 7 workgroups that you'd like to see put on there? 8 MR. SILVER: Market Conduct, Market 9 Conduct Prize Board -- oh, well, we'll maybe add the 10 Prize Board. 11 MR. BOURGOYNE: We'll maybe add that 12 one. 13 MR. SILVER: The Licensing Workgroup, we 14 should have movement on that workgroup also. 15 MR. BOURGOYNE: I'd like to be added to 16 that new product workgroup, if I could. 17 MR. SILVER: That's -- we're going to 18 probably put that with the Prize Board Management, to 19 look for new products and just incorporate it so we 20 don't have to have another workgroup. 21 MR. BOURGOYNE: Okay. 22 MR. SILVER: So it's another thing we'd 23 look at. 24 MS. ROGERS: Did I miss -- we want to 25 put -- Francis, that one -- did I miss that one? We 0054 1 want that on there, don't we? 2 MR. SILVER: Yeah, well, did we come up 3 with a name for that workgroup or... 4 MS. ROGERS: We didn't. 5 MR. SILVER: Impact of illegal -- 6 MR. SANDERSON: The impact of the 7 amusement devices? There's not really a name that's 8 stuck because it's a whole committee. 9 MR. SILVER: Yeah, it's the whole -- 10 MR. SANDERSON: It's the whole 11 committee, and it's just that Francis has graciously 12 volunteered to incorporate all the data and 13 information that's received along with the two other 14 members. 15 MS. ROGERS: I think he volunteered 16 prior to us knowing that we were going to get the 17 whole committee after, you know... 18 (Laughter) 19 MS. ROGERS: But that's okay. 20 MR. SILVER: Same agenda item as 6, 21 "Report, possible discussion or action on requests for 22 Bingo Advisory Committee study and report on the 23 impact of legal and illegal amusement machines on 24 bingo." 25 MS. ROGERS: So that will also be added 0055 1 to the agenda? 2 MR. SILVER: Yes. 3 MR. SANDERSON: Yes. 4 MS. ROGERS: Item No. 6? 5 MR. SANDERSON: Yes. 6 MS. ROGERS: Okay. Members, anyone see 7 anything else at this time that needs to be added? 8 MR. CIANCARELLI: Madam Chair, I have 9 one question. 10 MS. ROGERS: Yes, sir. 11 MR. CIANCARELLI: This is Francis 12 Ciancarelli. 13 On the nominations, will the nominations 14 slate be provided to the BAC members prior to the 15 meeting so we could read the nominations? I know -- 16 because we're going to have to make a recommendation 17 to send them forward, and it would be helpful to see 18 their work before we came into the room. 19 MR. SANDERSON: We can certainly send it 20 out, yes. 21 MS. ROGERS: Usually, most of the time, 22 they will bring it to the meeting, and we'll discuss 23 it there. But if we get it before, that's fine too, 24 and then we'll discuss it. Thank you. 25 Anything else at this time, Members? 0056 1 2 AGENDA ITEM NO. 16 3 MR. CIANCARELLI: I move that we 4 adjourn. 5 MS. ROGERS: It is now 10:55, and this 6 meeting is adjourned. Thank you. 7 (Meeting adjourned: 10:55 a.m.) 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 0057 1 C E R T I F I C A T E 2 STATE OF TEXAS ) 3 COUNTY OF TRAVIS ) 4 I, Lorrie A. Schnoor, Certified 5 Shorthand Reporter in and for the State of Texas, 6 Registered Merit Reporter and Texas Certified Realtime 7 Reporter, do hereby certify that the above-mentioned 8 matter occurred as hereinbefore set out. 9 I FURTHER CERTIFY THAT the proceedings 10 of such were reported by me or under my supervision, 11 later reduced to typewritten form under my supervision 12 and control and that the foregoing pages are a full, 13 true, and correct transcription of the original notes. 14 IN WITNESS WHEREOF, I have hereunto set 15 my hand and seal this 7th day of May 2010. 16 17 _______________________________ 18 LORRIE A. SCHNOOR, RMR, TCRR Certified Shorthand Reporter 19 CSR No. 4642 - Expires 12/31/11 20 Firm Registration No. 276 Kennedy Reporting Service, Inc. 21 Cambridge Tower 1801 Lavaca Street, Suite 115 22 Austin, Texas 78701 512.474.2233 23 24 25