Proceedings of the 2001 USCF Annual Meetings

Introduction:

Secretary Doris Barry has had problems with her arm that made it nearly impossible for her to write or type. She went in for surgery to repair the condition on August 30 and I am pleased to report that she is currently recuperating and doing fine. I have been asked to serve as her assistant and prepare the minutes for the USCF Membership Meeting and the USCF Delegates' Meeting. I have elected, in that capacity, to treat the Executive Board / Staff Forum and the Membership Meeting as a single Meeting and include both in the records. I encourage future Executive Boards to consider officially making the Executive Board / Staff Forum part of the Membership Meeting to conform to current practice.

The Delegates' Meeting minutes will cover all ADMs (Advance Delegate Motions published in the 2001 Delegates' Call) and all NDMs (New Delegate Motions) that were brought to the floor. NDMs that were withdrawn before being presented are not included. All Motions are presented in the order in which they were brought to the floor, which may differ from the order in which they were placed on the agenda. They are assigned sequential DM numbers, which are referenced to the corresponding ADM or NDM number. NDM numbers are also listed sequentially and may not be the same as the temporary number assigned to an NDM at the meeting. Speakers may be identified from time to time. Usually participants in a discussion, when listed, are in alphabetical order rather than in order of recognition, but there may be exceptions. Speakers who were not recognized by the chair or who did not approach the microphone are not likely to be mentioned. (Note: The 2001 Delegates' Call is now available in its entirety to everyone on the USCF website.)

Respectfully submitted,

Myron Lieberman - August 2001

Minutes of the 2001 USCF Membership Meeting

Framingham, MA, 08/10/2001

The annual USCF Membership Meeting, as has been the case for the last several years, was called to order immediately after the conclusion of the USCF Executive Board / Staff forum. From a practical standpoint the Executive Board / Staff Forum and the USCF Membership Meeting have, for the last several years, been held in the same room consecutively as if they were a single meeting. This year 28 members from 15 states signed the attendance sheets.

I. Executive Board / Staff Forum

The purpose of the Executive Board / Staff Forum is to introduce the members of the Executive Board and the Staff to all present and to have an exchange of ideas where the Board members and Staff can have a two-way communication with the members. Motions are not made during the Executive Board / Staff Forum, but any issues can be brought up before the Board and Staff for comment. Motions can then be made during the Membership business meeting that follows.

The USCF Executive Board / Staff Forum was called to order at 4:00PM EDT on Friday, August 10, 2001, by President Tim Redman.

Members of the Executive Board present were introduced to the audience. They were VP for Finance Jim Pechac, Secretary Doris Barry, Member at Large Helen Warren, and President Tim Redman. VP John McCrary and Member at Large Bob Smith arrived later. Member at Large Joe Ippolito was not present. Executive Director George DeFeis then introduced the Staff. Present were Chess Life / School Mates Editor Peter Kurzdorfer, Marketing Director Anne Ashton, Chief Business Officer Judy Misner, Executive Assistant Barbara Vandermark, MIS Director Laura Martz, Chief Financial Officer Jeff Loomis, and Scholastic / National Events Director Tom Brownscombe. Special Programs Director Joan DuBois arrived later.

Questions discussed in the forum were:

A. Processing of rating reports - Tom Brownscombe, George DeFeis, Bruce Draney, Gerry Dullea, Tom Fineberg, Bill Goichberg, Roger Gotschall, Rich Jackson, Myron Lieberman, Jeff Loomis, Laura Martz, John McCrary, Russell Miller, Judy Misner, Mike Nietman, Tim Redman, and Helen Warren, among others, participated in the discussion.

1. Delays in rating tournaments - Introduced by Bruce Draney. The consensus was that there have been problems, but ratings are now close to being up to date and the problems have been resolved.

2. Letters sent to TDs or Affiliates regarding non-members on rating reports. - Introduced by Gerry Dullea as part of the rating delay discussion. Most of the overall discussion focused on this issue. It was suggested that more use should be made of communicating with TDs and affiliates via e-mail when there are problems with a rating report. It was suggested that a place be provided on the rating report form for the organizer’s or sponsor's contact to sign since the TD is not always the organizer. Both the TD and the organizer need to be aware of any problems with a rating report and their responsibilities need to be differentiated.

B. AmericInn program Introduced by Mike Nietman. Executive Director George DeFeis indicated that he wants to do it again next year, with a longer lead-time. He has already contacted AmericInn about continuing the program.

II. Membership Meeting - New Business

George John and Myron Lieberman submitted the following motion, which is also on the Delegate agenda:

Membership Motion 01-01 Advertising for any organization, event, or activity that can be viewed as illegal in one or more states in the US can be accepted only on receipt of a legal opinion as to the liability of the USCF for accepting and distributing that advertisement, approval by the Marketing Manager, the Executive Director, and the Executive Board.

The motion was prompted by advertisements online and in Chess Life for what appear to be chess sites, but are actually sites where bets are placed on chess games. People under 18 cannot participate and participation is illegal in a number of states. The motion failed. Note: It was subsequently discussed in the Delegates' Meeting where it was referred to the Executive Board and the Legal Task Force.

Bruce Draney moved and Rich Jackson seconded the following motion:

Membership Motion 01-02 There should be a four-month moratorium on the sending of letters regarding problems with rating reports, so that a way of restoring good relations between Affiliates, Organizers, Tournament Directors, and the Office can be established. As the Office has agreed to do this anyway, the motion did not come to a vote.

The Membership Meeting adjourned at 4:45PM EDT with no motions to carry forward as Membership motions for the Delegates' Meeting.

Minutes of the 2001 USCF Delegates' Meeting

August 11-12, 2001 - Framingham, MA

SATURDAY SESSION

CALL TO ORDER - President Tim Redman called the meeting to order at 9:00AM EDT on Saturday, August 11, 2001.

ROLL CALL AND DELEGATE CERTIFICATION - Secretary Doris Barry certified the following Delegates. Please note that this list includes all Delegates certified to participate in the meeting regardless of whether they were certified before, during, or after the roll call.

STATE	DELEGATES
Alabama	Frank Camaratta, Jack Mallory (full)
Alaska	None (1 vacancy)
Arizona	Denis Barry, Myron Lieberman, Rachel Lieberman, Robert Tanner, Sophia Rohde (1 vacancy)
Arkansas	None (1 vacancy)
N. California	Richard Koepcke, Mike Goodall, James Eade, Bruce Draney (2 vacancies)
S. California	Jerome Hanken, Randy Hough, John Hillery, Dewain Barber, Joseph Wagner, Elie Hsiao, Beatriz Marinello, Tom Fries (1 vacancy)
Colorado	Doris Thackrey, Joseph Behlmeyer (full)
Connecticut	Richard Bauer, Fred Townsend (Jeff Lawrence later replaced Fred Townsend per Rich Jackson) (full)
DC	None (1 vacancy)
Delaware	None (1 vacancy)
Florida	Bob Smith, Don Schultz, Arnold Denker, Kay McCrary, Shane Samole, Rich Jackson (2 vacancies)
Georgia	Barbara DeMaro, Laura Jones (full)
Hawaii	None (1 vacancy)
Idaho	None (1 vacancy)
Illinois	Helen Warren, Harold Winston, Tim Just, Jim Warren, Lawrence Cohen, Howard Cohen, Walter Brown, David Knudson (1 vacancy) Note: Tom Fineberg had to leave before the start of the meeting.
Indiana	Gary Fox, Thomas Byers (1 vacancy)
Iowa	Roger Gotschall (full)
Kansas	Ron Pasik (full)
Kentucky	None (2 vacancies)
Louisiana	None (1 vacancy)
Maine	James Dubois (full)
Maryland	Allen Beadle, Larry Kaufman, Ed Westing (full)
Massachusetts	Harold Dondis, Wiliam Kelleher, Peter Sherwood, Michael Gosselin (full)
Michigan	Fred Lindsay, Peter Nixon, Hohainan Truong (full)
Minnesota	David Kuhns, Philip Smith (full)
Mississippi	None (1 vacancy)
Missouri	None (2 vacancies)
Montana	None (1 vacancy)
Nebraska	Mike Nolan (full)
Nevada	None (1 vacancy)
New Hampshire	Hal Terrie (full)
New Jersey	Doris Barry, Joe Ippolito, Steve Doyle, Leroy Dubeck, Michael Somers, Roger Inglis, Todd Lunna, Tony Cottell, George Krauss, Ronald Groseible (full)
New Mexico	None (1 vacancy)
Upstate NY	Bill Goichberg, Al Lawrence, Brenda Goichberg, Walter Buehl, Gerard Dullea, Bruce Steffek, Sunil Weeramantry (full)
Downstate NY	Joel Benjamin, Steve Immitt, Phyllis Benjamin, Harold Stenzel, Joseph Felber, Frank Brady, Polly Wright, Jim Mennella (full)
North Carolina	Pat Hoekstra (1 vacancy)
North Dakota	None (1 vacancy)
Ohio	James Pechac, Grant Perks, Joel Berez, Don Randolph, Amy Sullivan (full)
Oklahoma	None (1 vacancy)
Oregon	Carl Haessler (full)
Pennsylvania	Steve Shutt, Bob Ferguson, Stan Booz, Andrew Read, Sam Sloan (1 vacancy)
Rhode Island	Don Colbert (full)
South Carolina	John McCrary (1 vacancy)
South Dakota	De Knudson (full)
Tennessee	Harry Sabine, Ken Sloan (2 vacancies)
Texas	Tim Redman, Luis Salinas, George John, Katie Stone, Enrique Rios, Frank Niro, Steve Dann, Julie Nahlen (1 vacancy)
Utah	None (1 vacancy)
Vermont	None (1 vacancy)
Virginia	Woody Harris, Helen Hinshaw, J. Allen Hinshaw, Ernie Schlich (full)
Washington	Russell Miller, Murlin Varner (1 vacancy)
West Virginia	None (1 vacancy)
Wisconsin	Mike Nietman, Guy Hoffman (full)
Wyoming	None (1 vacancy)

A MOMENT OF SILENCE -The Delegates paused in a moment of silence in memory of Marsha Adams, Alan Benjamin, David Burris, Gerbrand van Dyk, and Edith Kellner.

DM01-01 - ADM01-01 (Harold Winston, IL) - The Delegates re-elect as Delegates at Large those whose terms are expiring or have expired and who are present at this meeting. PASSED. Those re-elected were Tony Cottell, Arnold Denker, and Gerard Dullea.

ADM 01-02 regarding a proposed change of Alaska's State Affiliate was withdrawn. An election will be held.

DM01-02 - ADM01-03 - Doris Barry (NJ), Tim Redman (TX) The Delegates approve the advance agenda. PASSED with a modified schedule.

DM01-03 - ADM01-04 - Tim Redman (TX) The Delegates approve the Standing Rules. PASSED. The adopted rules included limits of 5 minutes for the maker of the motion, 3 minutes for all other speakers to each motion, and 30 minutes total time for discussion of a motion (although these limits could be extended at the discretion of the chair).

DM01-04 - ADM01-05 - Tim Redman (TX) The Delegates affirm the appointment of Mike Nolan as the Parliamentarian for the 2001 Delegates' Meeting. PASSED.

Discussion of ratification and related motions was deferred until later in the meeting

ADM01-08 regarding availability of the Games Parlor contract was withdrawn. Transcripts of the Executive Board discussion of the contract were available at the meeting.

DM01-05 - ADM01-09 - Doris Barry (NJ) Moved, that the minutes of the 2000 Delegates' Meeting be accepted as published. PASSED.

DM01-06 - ADM01-10 - Moved, that the election of Executive Board Members for the 2001-2005 term be certified. PASSED

The results of the election are listed below. Candidates are listed with their vote totals.

Candidates elected are: Steve Shutt (PA) 244, John McCrary (SC) 232, Frank Camaratta (AL) 231,and Frank Brady (NY) 212. Candidates not elected are: George John (TX) 190, De Knudson (SD) 171, Bob Holliman (MO) 133, Jim Pechac (OH) 125, Bruce Draney (NE) 73,and Sam Sloan (NY) 22.

Write-ins were received as follows: Luis Salinas (TX) 3, Russell Miller (WA) 2, and 1 vote each for the following 14 candidates: Selby Anderson, Kevin Bachler, Ed Conway, Jim Eade, Bill Goichberg, Karl Heck, Alan Kantor, Rachel Lieberman, Ron Lohrman, Ken Marshall, Ken McBride, Harold Stenzel, Don Schultz, Harold Winston.

There were 533 valid ballots mailed. Ballots were received from 426 voters. Ballots were not received from the following 107 voters. Please note that this does not necessarily mean they didn't vote. As of the time that the ballots were picked up on the morning of the vote count their ballots had not been received. Ballots, if any, received after that time would not be counted.

AL Roy Stanton, Richard Ellis; AK Artem Ratchkovski; AZ Robby Adamson, Ken Larsen, Jim Wilson, Richard Wagner, Scott Freneaux; CA/N Frank Elley, Alan Kirshner, Jordy Mont-Reynaud, Al Hansen, Charles Pigg; CA/S Gerald Blem, Chris Roberts, Richard Rico, Ed Townsend, Steve Hughes, Al Massip, Richard Okubu, Kurt Stenzel; CO Dean Brown, Mary Nelson; CT Dennis Tortora; DC William Barnes; DE Leon Tschantre; FL Marcel Martinez, Eduardo Celorio, Bill Kramer; GA Frank Meyrath, Steve Schneider; HI Guy Ontai; ID Jeffrey Roland; IL Marvin Dandridge, Josh Flores, Leslie Bale, Murrell Rhodes, Bill Reed; IN Jay A. Carr, John Cole, Tom Byers, Steve Steppe, James Dean, Mike Turner; KS Neil Andrews; KY Eric Yussman, Leo McMannis; LA Bob Bistany, Bob Ballard; ME Robert Leach; MD Bernard Davis, Walter Bodhaniw, Sathish Nath; MA Mark Kaprelian, Harvey Reed; MI Pete Nixon, Victor Asbury; MN Dan Voje, Dale Gustafson; MS Leo Wilson; MT Alex Dawson; NE Kevin Fleming; NH Parker Montgomery; NJ Max Dlugy; NM Scott Kerns, Scott Cole, Randall Edmunds; NY/U David Blaisdell, Alan Lecours, Dana Belcher, Don Siegel, Jon Lack, Peter Aravena; NY/D Bruce Pandolfini, John Collins, Gary Sperling, Mark Ritter, Mark Kurtzman, Bill Arluck, Jeremy Graham; NC Gene Davenport, Jeff Jones; OH John Hoffman, David Aldenderfer, Mike Anders; OK Alan Ball; OR Tom Crispin; PA Norman Rogers, Larry Pugh, Keith Kuhn; TN Greg Krog; TX Bill Snead, Katie Stone, Jason Howell, Michael Simpson; UT John Coffey, David Lither; VA Catherine Clark, Ann Marie Allen, Rodney Flores, Merv Clark; WA Paul Barton, Gary Dorfner, Jay Zettervall; WV Markle Butcher; WI Chris Krumenauer, WY Richard Cohen

REPORT OF THE PRESIDENT - President Redman referred the Delegates to his report in the 2001Delegates' Call. (Note: The 2001 Delegates' Call is now available in its entirety to everyone on the USCF website.) He stressed the need for Operations to continue to finish in the black over the next several years and for the Delegates to exercise financial restraint. Motions marked with a $ sign have a financial impact; the CFO at his request has prepared a financial impact statement for those motions and it was included in the final BINFO packet. President Redman pointed out that after successive years of operational losses of $265,000 and $412,000, this year's audited operational surplus of $14,000 represented a major turnaround. He thanked the Executive Board for their support for various austerity measures and commended the entire professional staff, particularly Executive Director, George DeFeis, Chief Financial Officer Jeff Loomis, and Chief Business Officer Judy Misner, for their hard work at achieving the $426,000 turnaround in one year. (Note: The Executive Board and business office only have control over USCF operations, which are described in this report. They do not have control over the market variation of the investments in the LMA fund. Consolidated statements reflect both operations and the LMA fund. The LMA fund showed strong gains in recent years due to a strong stock market and the consolidated statements reflected that gain. The LMA fund decreased in value last year due to a falling stock market and consolidated statements reflect that loss. )

REPORT OF THE EXECUTIVE DIRECTOR - Executive Director George DeFeis gave a slide presentation that reviewed what has been done to improve office operations in each area during the past year and plans for the future. He discussed past financial performance, then turned to corporate issues. Noteworthy were the recommendations of the President's Special Committee, personnel restructuring to get to a "lean and "mean" approach (This included the hiring of a Web Editor, Events Manager, and Director of Marketing), a focus on the US Chess Trust, financial and administrative support for the sales force, weekly senior staff meetings, a team approach to management, management by objectives, an open door policy, and a "can-do” management philosophy. Next he pointed to key decisions that contributed to Operations being in the black. Included were US Chess Live, the Seattle Chess Foundation, AmericInn, TLA enhancements and price restructuring, downsizing of book and equipment sales, management of tournaments, reducing the frequency of publication of School Mates to quarterly, and selling advertising in the catalog. Also of note were the elimination of affiliate commissions, the addition of a voluntary $10 contribution on the membership form, the restructuring of dues, changing renewal reminders (from 4 letters to a letter, a magazine wrapper, and a postcard), a "pulled or paid" TLA policy, and the Olympic application. He recognized the contributions of key office personnel, including CFO Jeff Loomis; Chief Business Officer Judy Misner; Publications Editor Peter Kurzdorfer; Director of Scholastic Programs and Technical Affairs Tom Brownscombe; Director of Marketing and liaison to the US Chess Trust Anne Ashton; Joan Dubois Director of Special Programs; and Management Information Systems Director Laura Martz. He pointed to strategic alliances with AmericInn Hotels, the Seattle Chess Foundation and the US Olympic Committee, in addition to future alliances with a cereal manufacturer, a fast food restaurant, and various affinity programs. Emphasis was placed on the value of the USCF brand. In conclusion he itemized focused vision, fiscal responsibility, management by objectives, investments for the future, dedicated staff, and a unified team approach as needs for effective management of operations.

The FIDE report was moved ahead of the other reports due to scheduling requirements. Because of the FIDE issue of drug testing, which is needed for Olympic competition, there was extensive media interest in this part of the meeting. The motions related to drug testing are being documented in greater detail than other motions because of the need to provide accurate information to the media and others outside the USCF who are interested in chess as an Olympic sport and drug testing in chess competition.

REPORT OF THE FIDE DELEGATE AND ZONAL PRESIDENT - Due to involvement with the International Olympic Committee, FIDE has required drug testing at their events. Certain USCF events could lead to FIDE competition where drug testing becomes an issue. There was some concern that FIDE could expand the requirement for drug testing to include chess events held within its member nations as well. This not only involves an expense but it raises the question of how appropriate drug testing would be for chess competition. It would seem to imply that there is a drug problem in chess (which does not exist) and it is seen as an invasion of privacy. ADMs 01-61, 62, 63, and 64 all were aimed at prohibition of drug testing in chess tournaments. The first motion to be considered was ADM01-61, sponsored by Mike Goodall (CA/N), which was worded "Move that drug tests at chess tournaments be prohibited." Joel Benjamin (NY) was recognized to present a substitute motion for ADM 61. Mike Goodall accepted and co-sponsored the substitute, which passed as DM01-07.

FIDE Zonal Vice President Jim Eade was then recognized. He wanted to amend ADM01-61 to establish a committee to study the issue. The motion was not amended. Discussion ensued. Speakers who participated include FIDE Medical Commission representative Dr. Stephen Press, former USCF President and former FIDE Delegate Don Schultz, Sam Sloan, Frank Camaratta, US Co-Champion Grandmaster Joel Benjamin, Hal Terrie, FIDE Delegate Bill Kelleher, Woody Harris, USCF President-elect John McCrary, Jerry Hanken, FIDE Vice President and former USCF President Steve Doyle, Mike Gosselin, and Bill Goichberg.

DM01-07 NDM 01-117 (Substitute for ADM01-61) - Joel Benjamin (NY), Mike Goodall (CA/N) - The Delegates believe that drug testing is unnecessary in chess and urge FIDE to limit testing only to events where it is absolutely essential for qualification into the Olympic Games. PASSED.

Despite the previous passage of DM01-07, discussion continued. Hal Terrie objected to not hearing discussion on ADMs 01-62 and 63 even though a position was established with DM01-07. ADM01-62 co-sponsor Sam Sloan spoke for the motion. Hal Terrie was waiting to speak next, but Enrique Rios called the question. There was objection expressed by Hal Terrie but the question was called by vote of the Delegates. The motion failed.

DM01-08 ADM01-62 - Mike Goodall (CA/N), Sam Sloan (NY / PA) - That the United States Chess Federation shall not require, participate in or be in any way involved in any program which involves the drug testing of chess-players. No chessplayer shall ever be required to submit to any drug or anti-doping test as a condition for participating in or receiving a prize in any chess event rated, conducted or reported by the United Chess Federation. No chess event held anywhere within the territorial jurisdiction of the United States of America shall require or be involved in the drug testing of chessplayers in any way whatever. FAILED

Hal Terrie then spoke regarding ADM01-63. Elie Hsiao, Steve Shutt, and Sunil Weeramantry joined the discussion. Questions were asked of Dr. Stephen Press of the FIDE Medical Commission, who explained the details of drug testing. The question was then called and the motion failed. Jerry Hanken asked for the no votes to be noted. The chair ruled that it was not necessary. The ruling of the chair was appealed and the Delegates upheld the ruling of the chair.

DM01-09 ADM 01-63 - Bill Goichberg, ( NY), Joel Benjamin, (NY) - Mandatory or random drug testing is prohibited at all USCF-rated events. FAILED

Co-sponsor Bill Goichberg then spoke to ADM01-64, after which Enrique Rios called the question. There was no objection and the motion passed.

DM01-10 ADM01-64 - Bill Goichberg (NY), and Joel Benjamin (NY) - USCF's FIDE representatives are instructed to actively campaign at all FIDE meetings against the practice of requiring drug testing at any chess tournament or match. PASSED

The meeting recessed at 12:00 Noon for lunch, during which time the annual Awards Luncheon was held. The meeting resumed at 2:00PM at which time additional reports were heard.

REPORT OF THE US CHESS TRUST - US Chess Trust Chairman Harold Winston presented the report. He referred to the US Chess Trust report on page 13 of the 2001 Delegates' Call. He emphasized that better results are needed in obtaining donations to the US Chess Trust and that the names of donors should be listed in Chess Life. The US Chess Trust supports publication of the "Chess Coach Newsletter" and has given out 1200 chess sets and 176 USCF memberships. He emphasized that the program to donate sets and memberships to schools needs to be publicized better than it is. The scholar-chessplayer program has been increased from $2500 to $5000 in scholarships available. Corporate sponsorship is being sought. Harold Winston asked that the USCF Executive Board consider a requirement of a five-vote minimum or consultation with the Trust when naming new Trustees to the US Chess Trust. A program to help pay exhibition fees for USCF State Chapters to exhibit at state and local educational conventions has been implemented. A $1000 donation from Harold Dondis was acknowledged and additional contributions were solicited.

Alan Benjamin, Frank Camaratta, Steve Doyle, and Woody Harris were recognized for their contributions to the development of the concept of a chess Hall of Fame and its implementation. US Chess Trust President Frank Niro emphasized the value of the Hall of Fame as an asset. Trustee Shane Samole then provided a video introduction to the World Chess Hall of Fame and Sidney Samole Chess Museum, which will have its grand opening in Miami, FL on October 4, 2001, with its first annual inductee dinner. Note: At the US Chess Trust meeting held earlier in the week it was pointed out that the mayor of Miami was going to be a keynote speaker and that members of the Florida Marlins will be on hand. The World Chess Hall of Fame and Sidney Samole Chess Museum was a gift from the Samole family and is sponsored by Excalibur Electronics with the support of the US Chess Trust. Al Lawrence, who was named Executive Director of the World Chess Hall of Fame and Sidney Samole Museum, addressed the Delegates on plans for the future and membership possibilities. He introduced Sharon Samole and Susan Samole to the Delegates. Charter memberships are being offered. The names of charter members will be on permanent display there. Contact Al Lawrence for details. President Redman noted that the formation of a US Chess Hall of Fame was the idea of former Executive Director Gerry Dullea in the early eighties.

REPORT OF THE EDITOR OF CHESS LIFE - Editor Peter Kurzdorfer described the changes in Chess Life. He noted that that it is impossible to please everybody since our members, and chess players in general, are such a tremendously diverse group. The most controversial changes were the elimination of the Annual Rating List and the Yearbook. Note: Motions relating to the Annual Rating List and the Yearbook were considered by the Delegates later in the meeting. Chess Life contains more human interest and less technical information and a new look. Letters are encouraged regardless of point of view. An editorial calendar enables advertisers to select which issues are most appropriate for their ads based on expected content for each issue.

REPORT OF THE VICE PRESIDENT OF FINANCE - Vice President of Finance Jim Pechac presented a financial report and the budget with the assistance of CFO Jeff Loomis and Finance Committee chairman Leroy Dubeck. Among the points emphasized were:

2001 FINANCIAL RESULTS, 2002 BUDGET - For 2001 Operations gained $14K and LMA lost $171K for a Consolidated (overall) loss of $157K. The Executive Board proposed a budget that included a surplus of $35K. Note: The budget ultimately passed by the Delegates had a surplus of $17.1K.

OFFICE STAFF AND ORGANIZATION - The upgrading of staff, including the in-house CFO, Purchasing Manager, and Systems Manager, was based on Finance initiatives.

QUARTERLY REPORTING - Operations has mailed packets of information including financial reports, Executive Board initiatives, and management status reports to the Delegates quarterly for the last year.

SYSTEMS DEVELOPMENT - In-house information systems are being redeveloped on a modular basis using current staff in a manner consistent with the recommendations of the President's Special Task Force on Finance presented to the Executive Board in May, 2000.

INVENTORY MANAGEMENT - The product line offered for sale is being evaluated for the purpose of restricting purchases to those items that have a reasonable likelihood of sale.

ONLINE PLAY - Online play on US Chess Live is being developed as a membership benefit.

TOURNAMENTS - In-house management of National Tournaments such as the US Open and National Scholastics are expected to have a substantial effect on profits, which is reflected in the 2002 budget. The awarding of the US Championship to the Seattle Chess Foundation was instrumental in reducing net tournament loss from $104K in 2000 to $2K in 2001. A net tournament gain of $168K is projected for 2002 due primarily to these two factors. This will have a considerable impact on cash flow but only in the second half of the fiscal year.

LMA AND BANK LOANS - The USCF line of credit was closed by the bank in December 2000. USCF Operations was forced to borrow from the LMA fund to pay the bank. This action increased the indebtedness of Operations to the LMA fund to $665K, which would be repaid to LMA by Operations over a 7-year period. The repayment would be made by foregoing quarterly transfers from LMA to Operations. Please note that payments were made in fiscal 2001 on both the LMA and bank line of credit.

CASH FLOW - A detailed cash flow analysis was presented by Jim Pechac and Finance Committee Chairman Leroy Dubeck at the financial workshop. It is expected that USCF will experience a cash flow problem during the next few months. Summer months normally result in a reduction in book and equipment sales, tournament activity, and membership sales; less revenue is expected in the summer. At the same time expenses are expected to be higher since inventory purchases must be increased to meet sales demands for the Holiday season.

USCF owed a substantial amount to vendors in 2001. These accounts payable have been paid down and accounts receivable have increased. Note: While this looks good on a balance sheet (you owe less and are owed more), it makes the cash flow problem worse since you can't spend accounts receivable, but paying debts results in decreased available cash. Furthermore, USCF cannot use its line of credit with the bank and may not be able to borrow from the LMA due to restrictions in the USCF Bylaws. Among the ways to address this problem are: a Bylaw change to allow further funding by the LMA fund, contributions, reducing expenses, cutbacks on services, and raising dues or other prices.

Motions with a possible significant financial impact were marked with a $ and considered prior to voting on the budget. The following motions were so marked.

OMOV - Bill Goichberg (NY) then introduced ADM 106 on OMOV. The OMOV task force, chaired by Bill Goichberg, was not renewed officially for 2001. They have, however, continued active deliberation on OMOV throughout the year. ADM01-106 resulted from the discussions held by the OMOV task force.

Due to the earlier dates of the US Open, several deadline dates were changed to reflect earlier deadlines when the motion was presented. The new dates can be found in the final version listed below.

The preference of the task force was to have no age limits for full adult, sustaining, or life members, however a minority preferred a minimum age. Rather than proposing a separate ADM, an option of a minimum age of 16 for full adult, sustaining, and life members was presented as part of ADM01-106 in the advance agenda. It took the form of an amendment proposed by George John and Luis Salinas. The original wording of ADM01-106 and the John-Salinas Amendment can be found on pages 27-29 of the 2001 Delegates' Call, which is available online at www.uschess.org. A straw poll was taken to indicate preference between OMOV with no age limit, OMOV with minimum adult age of 16, and no OMOV. The result of a show of credentials in the straw poll was very close. Rather than take a count, the chair opted to return to the discussion of the motion, at which time Luis Salinas introduced the Salinas-John amendment. As Bill Goichberg was presenting a motion offered by the task force, rather than his own, he did not accept the amendment. A question was raised regarding whether not having a minimum age for voting members could conflict with IL not-for-profit laws. Mike Nolan indicated that this was not a problem. Harold Winston spoke in favor of a minimum age. With no further debate the amendment passed. Luis Salinas and George John then spoke in favor of OMOV.

Frank Camaratta proposed an amendment to require voter registration. Discussion ensued. Two amendments to the registration amendment were considered. Steve Doyle offered an amendment that would require members who want to vote to pay an additional $10 annual registration fee with their annual membership. It would also lower the age limit to 14. Stan Booz offered an amendment that would require registration in the previous year in order to vote in the subsequent year. Stan Booz, Howard Cohen, Larry Cohen, Leroy Dubeck, Steve Doyle, Jim Eade, David Kuhns, Bill Goichberg, Mike Goodall, Jerry Hanken, Guy Hoffman, Larry Kaufman, Myron Lieberman, James Mennella, Pete Nixon, Ron Pasik, Tom Randolph, Hal Terrie, and Harold Winston participated in the discussion. The amendments to the registration amendment failed, after which the registration amendment failed. Howard Cohen then offered an amendment, which failed, to set the age limit at age 18.

Leroy Dubeck pointed out the difficulties inherent with recall provisions in an OMOV system and proposed an amendment, which passed, to eliminate Article VI Section 10 (Removal and Recall) from the proposed OMOV Bylaws.

Bill Goichberg requested a roll call vote on the main motion, which was denied by the chair. The motion then passed by a very substantial margin. Jerry Hanken requested a vote count due to the historical significance of the vote. The vote was not counted, but the motion passed by a substantial margin.

DM01-11 ADM01-106 - Bill Goichberg (NY), Mike Nolan (NE) - The Bylaws are changed as follows:

ARTICLE IV: Voting Members

Section 1. Responsibility. The Voting Members are responsible for electing the Executive Board, and the Delegates and Alternate Delegates that represent their state. An insert containing nominees and voting instructions shall be inserted in an appropriate issue of Chess Life.

Section 2. Definition. Any member residing in the USA who is 16 years of age or older at the time of the election, and whose membership is current through the end of a month in which an election is held, is a Voting Member. Any member of any age who is a full adult, Sustaining or Life Member is also a Voting Member. Members not receiving Chess Life who are 16 years of age or older at the time of the election may request a ballot by sending a self-addressed stamped envelope to the USCF, 3054 U.S. Route 9W, New Windsor, NY 12553, before May 20 of an election year. Members not receiving Chess Life who wish to vote must furnish their date of birth to the USCF office. The ballot shall contain the signature of the voter certifying that the voter is eligible to vote.

ARTICLE V Section 9. Deleted

ARTICLE VI: Executive Board

Section 4. Nomination. Any USCF member shall be eligible for nomination to the Executive Board upon submitting to the Secretary both of the following by January 15 of an election year:

1. A valid petition containing the signatures of thirty or more Voting Members.

2. A filing fee of $250 made payable to USCF.

No full-time employee of the USCF is eligible to serve on the Executive Board. The Secretary shall have advertised a call for nominations in the issue of Chess Life published no later than November 20 of the year prior to an election year and shall publish a list of all duly-submitted nominations in the issue published not later than April 10th of an election year.

Section 5. Delegates’ Meeting. Delete and Replace with: Election. Executive Board members shall be elected by the Voting Members. Ballots for that purpose shall be included in an issue of Chess Life to be mailed prior to June 10 with ballots to be returned no later than July 5 of a year in which there is an election so that the ballots can be counted no later than July 20. Ballots shall be authenticated by use of official mailing labels provided with the ballots. The ballot shall list all duly submitted nominations. Each voting member may vote for as many persons as there are Executive Board positions to be filled. The persons receiving the largest vote totals shall be elected to the available Executive Board positions. The ballots shall be returned by mail to an independent agency and counted by an independent agency or by the Secretary or his or her designee and by tellers appointed by the Executive Board prior to the Annual Meeting of the Board of Delegates. Ties, if any, shall be broken by a secret ballot vote of the Delegates present in person at that year's Delegates meeting, taken at the time that election results are certified. The election of Executive Board members shall take place in odd-numbered years starting in 2003.

ARTICLE VI Section 8. Duties.

Secretary. USCF Operations, with the approval of the Secretary, shall engage a stenographic service to attend and record each meeting of the Executive Board. The stenographic service shall be directed to prepare a full official transcript and a summarized official transcript of each Regular and Special Meeting. Members of the Executive Board shall be provided with a copy of the full transcript through the BINFO system, and all Delegates and Alternate Delegates shall be provided with a copy of the summarized transcript in an Executive Board Newsletter distributed by the Secretary not more than six weeks after each Regular Meeting of the Executive Board. Transcripts of Special Meetings may be included with and distributed with the transcript of the next Regular Meeting. The Secretary shall review the summarized transcript of each Executive Board meeting and post the summarized transcript of Executive Board meetings, Membership Meetings, and Annual Meetings on the USCF Internet web page. The Secretary shall act as custodian of the corporate seal, preside over Federation elections, ensure that the annual report is filed with the Secretary of State of the state of Illinois, and perform such other duties as are prescribed by these Bylaws. The Secretary shall officially publish and mail and also post on the USCF Internet web page a summary of the minutes of Membership Meetings, Annual Meetings, and Executive Board meetings. USCF members may purchase a copy of the complete transcript of Executive Board meetings at a reasonable cost.

ARTICLE VI Section 11. Candidate statements and advertising. Each duly nominated candidate who has met the requirements established in Section 4 is entitled to a 150 word statement plus photo in the issue of Chess Life published no later than April 10 of the election year, plus reasonable and equitable space on the USCF website. Election supplements shall accompany or be inserted in issues of Chess Life published no later than May 10 and June 10 of the election year. Each duly nominated candidate who has met the requirements established in Section 4 is entitled to one-half page of space in each election supplement. The purchase of additional campaign space in the election supplements or other USCF publications is prohibited.

ARTICLE VI Section 12. Effective date. Revisions to the bylaws relating to the election of the Executive Board take effect on January 1, 2003. PASSED AS AMENDED

Due to the passage of the previous motion, ADM01-107 was withdrawn by its sponsor.

The report of the Vice President of Finance continued with questions from the Delegates, after which other motions of potential financial impact were considered.

RATING LIST AND YEARBOOK PUBLICATION IN CHESS LIFE - Next to be discussed were motions related to restoring the Rating List and Yearbook to publication in Chess Life. There was considerably more discussion regarding the Yearbook than the Rating List.

DM01-12 ADM01-11 - Mike Goodall (CA/N) - Moved, that the Annual Rating List be restored to the December issue of Chess Life. FAILED

Enrique Rios proposed an amendment to ADM01-12 which would put the Yearbook on the website and make a hard copy available to those who want it at cost. It failed by a vote of 33-36. Mike Goodall accepted an amendment to ADM01-12 proposed by Michael Gosselin and perfected by George John to allow the Yearbook to be published in either the March, April, or May issues of Chess Life to allow some flexibility to the Editor. The amendment was accepted and the motion passed.

DM01-13 ADM01-12 - Mike Goodall (CA/N) - Moved, that the Annual Yearbook be restored to either the March, April, or May issue of Chess Life. PASSED AS AMENDED.

ADM01-13, which also addressed restoration of the Rating List and Yearbook to Chess Life was withdrawn.

Elie Hsiao objected to the consideration of ADM01-14. The Delegates voted to consider ADM01-14. George John offered an amendment to allow publication in the issue that appears in March, April, or May. Harold Winston accepted the amendment and an amendment from Sophia Rohde to change "addresses" to "contact information". The motion then passed.

DM01-14 ADM01-14 - Harold Winston (IL) The issue of Chess Life that appears in March, April, or May shall contain the names and contact information of current USCF Delegates and Alternate Delegates. PASSED AS AMENDED.