STATE OF OKLAHOMA OKLAHOMA LOTTERY COMMISSION OFFICIAL MINUTES December 4, 2012 Date The Oklahoma Lottery Commission, established pursuant to the provisions of the Oklahoma Education Lottery Act, Sections 701 et seq. of Title 3A of the Oklahoma Statutes, held its regularly scheduled meeting December 4, 2012 at 1:30 p.m. The Meeting was held in the Conference Room of the offices of the Oklahoma Lottery Commission at 3817 North Santa Fe Avenue, Oklahoma City, Oklahoma. In compliance with the Open Meetings Act, 25 O.S. § 301 et seq., the agenda for this meeting was posted at the main and side entrances of the Centennial Business Building at 3817 North Santa Fe Avenue, Oklahoma City, Oklahoma on December 4, 2012 at 8:00 a.m. and was mailed or hand delivered to the offices of the Board members on November 30, 2012 and was posted to the website on December 3, 2012. The agenda is attached as Exhibit A. AGENDA ITEM 1: CALL TO ORDER. Chairperson George R. Charlton Jr. called the meeting to order 1:30 p.m. The roll of Board members was called to establish quorum. Board members present were: George R. Charlton Jr.; Blake Virgin; James Orbison; R. Deane Wymer; William Paul; Charlotte Edwards. Board members absent were: Cindy Ball. Based on the result of the roll call, a quorum was declared present by the Chair. Others in attendance were: Rollo Redburn, Executive Director; Lyn Martin-Diehl, Assistant Attorney General; and Shannon N. Gabbert, Executive Assistant. Others present were: Emily Summars; Mary Martha Ford; Paulette Minshall; Katy Smith; Megan Densow; Susan Christian; Bryan Colbert; John Hayes; and Sheila Franklin. AGENDA ITEM 2: ANNOUNCEMENT OF FILING OF REGULAR MEETING NOTICE AND POSTING OF THE AGENDA IN ACCORDANCE WITH THE OPEN MEETINGS ACT. The Chair called upon Ms. Gabbert to verify that proper public notice was made with regard to the December 4, 2012 Board meeting, in accordance with the Open Meetings Act. Ms. Gabbert verified that all necessary steps had been taken to remain in compliance with the Act. AGENDA ITEM 3: READING AND APPROVAL OF MINUTES. (Exhibit B) Ms. Edwards moved that the reading of the minutes of the September 18, 2012 session be waived and approved as published and distributed. The motion was seconded by Mr. Paul. The Chair ordered a roll call with the following results: ROLL CALL VOTE: Mr. Wymer Yes Ms. Edwards Yes Mr. Orbison Yes Mr. Paul Yes Mr. Virgin Yes Mr. Charlton Yes THE RESULT WAS SIX VOTES IN THE AFFIRMATIVE AND NONE OPPOSED. THE MOTION PASSED. AGENDA ITEM 4: EXECUTIVE DIRECTOR’S REPORT: Mr. Redburn gave an oral presentation regarding profit restriction constraints and reduced sales as a result of lesser prize payouts, this being a direct result of said profit restriction. He also provided a budget update and an overview of upcoming activities and events in and around the office. No action was taken. AGENDA ITEM 5: REPORT OF AUDIT & FINANCE COMMITTEE. Mr. Wymer offered an oral report regarding the Lottery Commission’s current financial standing. No action was taken. Agenda Items 6 and 7 were combined, by order of the Chair: AGENDA ITEM 6: DISCUSSION AND POSSIBLE ACTION REGARDING THE FY’2012 BUDGET FOR THE OKLAHOMA LOTTERY COMMISSION. See Agenda Item 7 for vote results. AGENDA ITEM 7: DISCUSSION AND POSSIBLE ACTION REGARDING THE FY’2014 BUDGET AND STRATEGIC PLAN FOR THE OKLAHOMA LOTTERY COMMISSION. (Exhibit C) A motion was made by Mr. Wymer and seconded by Mr. Virgin to approve the budget as presented. The Chair ordered a roll call with the following results: ROLL CALL VOTE: Mr. Wymer Yes Ms. Edwards Yes Mr. Orbison Yes Mr. Paul Yes Mr. Virgin Yes Mr. Charlton Yes THE RESULT WAS SIX VOTES IN THE AFFIRMATIVE AND NONE OPPOSED. THE MOTION PASSED. AGENDA ITEM 8: DISCUSSION AND POSSIBLE ACTION REGARDING OKLAHOMA PARTICIPATION IN MULTI-STATE LOTTERY GAMES: HOT LOTTO, POWERBALL AND MEGAMILLIONS. (Exhibit D) A motion was made by Ms. Edwards and seconded by Mr. Wymer to approve continued participation in Hot Lotto, Powerball and MegaMillions for FY’2013. The Chair ordered a roll call with the following results: ROLL CALL VOTE: Mr. Wymer Yes Ms. Edwards Yes Mr. Orbison Yes Mr. Paul Yes Mr. Virgin Yes Mr. Charlton Yes THE RESULT WAS SIX VOTES IN THE AFFIRMATIVE AND NONE OPPOSED. THE MOTION PASSED. AGENDA ITEM 9: DISCUSSION AND POSSIBLE ACTION REGARDING RENEWAL OF THE ALCHEMY3, LLC CONTRACT. A motion was made by Mr. Virgin and seconded by Mr. Orbison to renew the contract as presented. The Chair ordered a roll call with the following results: ROLL CALL VOTE: Mr. Wymer Yes Ms. Edwards Yes Mr. Orbison Yes Mr. Paul Yes Mr. Virgin Yes Mr. Charlton Yes THE RESULT WAS SIX VOTES IN THE AFFIRMATIVE AND NONE OPPOSED. THE MOTION PASSED. AGENDA ITEM 10: DISCUSSION AND POSSIBLE ACTION REGARDING RENEWAL OF THE MDI CONTRACT. A motion was made by Mr. Orbison and seconded by Mr. Paul to approve the contract for the final option period, through April 8, 2013. The Chair ordered a roll call with the following results: ROLL CALL VOTE: Mr. Wymer Yes Ms. Edwards Yes Mr. Orbison Yes Mr. Paul Yes Mr. Virgin Yes Mr. Charlton Yes THE RESULT WAS SIX VOTES IN THE AFFIRMATIVE AND NONE OPPOSED. THE MOTION PASSED. AGENDA ITEM 11: DISCUSSION AND POSSIBLE ACTION REGARDING PROPOSED RULE CHANGES. (Exhibit E) A motion was made by Mr. Paul and seconded by Mr. Orbison to approve the proposed rule changes, as presented, and move forward with the process. The Chair ordered a roll call with the following results: ROLL CALL VOTE: Mr. Wymer Yes Ms. Edwards Yes Mr. Orbison Yes Mr. Paul Yes Mr. Virgin Yes Mr. Charlton Yes THE RESULT WAS SIX VOTES IN THE AFFIRMATIVE AND NONE OPPOSED. THE MOTION PASSED. AGENDA ITEM 12: DISCUSSION AND POSSIBLE ACTION ON THE SELECTION OF BOARD OFFICERS FOR CALENDAR YEAR 2013. A motion was made by Ms. Edwards and seconded by Mr. Virgin to maintain the current officer positions through CY’2013. The Chair ordered a roll call with the following results: ROLL CALL VOTE: Mr. Wymer Yes Ms. Edwards Yes Mr. Orbison Yes Mr. Paul Yes Mr. Virgin Yes Mr. Charlton Yes THE RESULT WAS SIX VOTES IN THE AFFIRMATIVE AND NONE OPPOSED. THE MOTION PASSED. AGENDA ITEM 13: DISCUSSION AND POSSIBLE ACTION ON APPOINTMENT BY CHAIR OF COMMITTEES AND CHAIRS OF COMMITTEES AND APPROVAL BY BOARD OF TRUSTEES. (Exhibit F) A motion was made by Ms. Edwards and seconded by Mr. Orbison to maintain the current committee chairs and rosters. The Chair ordered a roll call with the following results: ROLL CALL VOTE: Mr. Wymer Yes Ms. Edwards Yes Mr. Orbison Yes Mr. Paul Yes Mr. Virgin Yes Mr. Charlton Yes THE RESULT WAS SIX VOTES IN THE AFFIRMATIVE AND NONE OPPOSED. THE MOTION PASSED. AGENDA ITEM 14: DISCUSSION AND POSSIBLE ACTION REGARDING CALENDAR YEAR 2013 BOARD MEETING DATES AND FREQUENCY OF MEETINGS FOR THE LOTTERY COMMISSION BOARD OF TRUSTEES. A motion was made by Mr. Virgin and seconded by Mr. Wymer to approve the dates, as presented, and to select June 11, 2013 from the two available meeting date options proposed for the month of June 2013. The Chair ordered a roll call with the following results: ROLL CALL VOTE: Mr. Wymer Yes Ms. Edwards Yes Mr. Orbison Yes Mr. Paul Yes Mr. Virgin Yes Mr. Charlton Yes THE RESULT WAS SIX VOTES IN THE AFFIRMATIVE AND NONE OPPOSED. THE MOTION PASSED. AGENDA ITEM 15: NEW BUSINESS. No new business. AGENDA ITEM 16: ADJOURNMENT. The Board adjourned by general consent. OFFICIAL MINUTES: The action taken by the Oklahoma Lottery Commission on the items for consideration after motion duly made and seconded has been noted herein and made a part of these minutes. The Board caused the entire proceeding of the meeting, excepting any executive sessions (none during this meeting), to be recorded on a digital audio recording device to be retained as a record in the office of the Board. Exhibits are A through F. Minutes Approved by Board of Trustees on March 19, 2013. 6 | Page Lottery Commission Minutes December 4, 2012