California Entertainment Machine Association CEMA Board Meeting Minutes June 27, 2013 Teleconference

1.0 Welcome Michael Martinez welcomed all attendees: Michael Martinez - N2 Industries, Jack Thomas - Stylish Games, Jason Shearer Pelican, Jim Wyatt - National Entertainment Network, John Lemieux - Dandy, Ron Hunt Betson, Heidi Olsen-Hughey - Specialty Coin, Ron Westphal - Newport Diversified. Not present; John English Stylish Games, Lawrence Coelho West Coast Amusements. 2.0 Legal and Banking status CEMA is set up as a Public Benefit Corporation (much thanks to Ron Westphal). Michael Martinez and Ron Westphal are set up as the signers on the bank account and will add the sec/treasurer as the third when we vote on officers. 3.0 Election of officers We need some people to volunteer or nominate board members to be officers. We need two or three vice presidents and a sec/treasurer. Please think about that during the meeting. 4.0 Status of AB 1103 and the Trust Lobbying efforts are under way right now. Assemblyman Hall has the bill. Some progress has been made but more needs to be me quickly. The bill may be shelved for another year; this would give time needed to work on the bill. Support (financial) has been weak and across the country it has been lighter than expected. As an association we need to reach out to AAMA and AMOA, (Richard Shearer has done this already) for financial support. Heidi suggested adding NBVA to that list. Jason Shearer spoke said Safeway got a letter stating that cranes were illegal by the DOJ. Safeway promptly shut down their cranes. AB 1103 was really set up to stop gambling at Internet cafes. Cranes and Merchandisers got lumped into it. The trust fund that Richard Shearer, (Pelican Group) and Jim at NEN set up (Defense of Amusement Games Trust) has been lobbying to get the language changed but they need funds to pay for lobbying efforts. Their goal is to get the language changed so the protocol will be to protect California and all states by setting a precedent that better defines our equipment from gambling devices. The trust has received some contributions, there needs to be more. Right now 24 companies are supporting it, only 8 of which are from California. 500 were emailed, only 24 responded. We are trying to get a good start; we need people to help the Trust ie: Operators, Distributors, Mfg, locations, and customers because it effects all of us. We may need to consolidate efforts with other organizations (CAAPA, IAAPA, etc) There is not a lot of time to rally the troops. We have to get immediate fires put out while at the same time laying the groundwork for long-term change for Californias future which will set a precedent for
1

the other states. 5.0 CEMAs Role With The Trust So far we have 27 paid members and $16,000 in paid memberships. We have spent under $1,000 so far on legal fees to set up our corporation. There is no more pressing matter than AB 1103. It was moved that CEMA donate $10,000 to the Trust fund immediately to help in the efforts. Passed unanimously by the board. At a later date, we can vote again for more funds to go to the Trust as needed. 6.0 Officer Nominations and Elections It was also moved that Ron Westphal, Ron Hunt, John Lemieux be vice Presidents and focus first on membership and fund raising. (Possibly having one VP over membership and one over fundraising). It was also moved that Heidi Olsen-Hughey by Secretary-Treasurer. Mike Martinez said that John English was interested in an officer position as well. John Lemieux: If we are going to send out memoslets get everyone and everything sent out including customers. Customers will also be impacted directly by this legislation. Ron Westphal will contact the bowling industry group for a donation. 7.0 Miscellaneous Jason on the Trust strategy o This may be a two-year bill. Legislation in 2014 and voted on in 2015. Until then, the DOJ opinion will rule. We want to get some language passed in August of 2013 making it legal to operate our equipment for the two years to protect us. During that two years we need to organize for victory, become united, collect information, members and funds. o The strongest strategy is to continue to use a lobbyist. Encouraging the sending out letters to state assemblymen and senators in August, once we have a little more time for people to join, get a good mailing list organized, and see whose PAC funds have come in etc. o We need time to think and organize - we want to look very united, organized and cohesive. We do not want to be disjointed or create any sense of confusion in our ranks. We need to be very professional. We need to make sure that all information is getting out to the board and make sure all members are on a board mailing list. 8.0 Proposed Officers: President - Michael Martinez Vice-presidents - Ron Westphal, Ron Hunt and John Lemiuex Secretary / Treasurer - Heidi Olsen-Hughey Please let me know if I missed anyone 9.0 Next Meeting We will be meeting again in 2 weeks July 11, 2013. 10.0 Meeting adjourned at 10:45 am. Minutes respectfully submitted by Heidi Olsen-Hughey, July 1, 2013.
2