STATE OF OKLAHOMA OKLAHOMA LOTTERY COMMISSION OFFICIAL MINUTES June 28, 2013 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 a special meeting June 28, 2013 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 building entrances, in addition to the main internal office window of the Centennial Business Building at 3817 North Santa Fe Avenue, Oklahoma City, Oklahoma on June 26, 2013 at 10:00 a.m. and was mailed or hand delivered to the offices of the Board members on June 25, 2013 and was posted to the website on June 26, 2013. 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; Cindy Ball; Charlotte Edwards. Board members absent were: William Paul. 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, Board Assistant. Others present were: Emily Summars; Mary Martha Ford; Jay Finks; Megan Densow; Scott Moulton; Mike Wilkinson; Jennifer McAfee; Bryan Colbert; John Hayes; Katy Smith; and Sheila Franklin. AGENDA ITEM 2: ANNOUNCEMENT OF FILING OF SPECIAL 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 June 28, 2013 Special 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) Mr. Orbison moved that the reading of the minutes of the March 19, 2013 session be waived and approved as published and distributed. The motion was seconded by Mr. Wymer. The Chair ordered a roll call with the following results: ROLL CALL VOTE: Ms. Ball Yes Mr. Wymer Yes Ms. Edwards Yes Mr. Orbison Yes Mr. Virgin Abstain Mr. Charlton Yes THE RESULT WAS FIVE VOTES IN THE AFFIRMATIVE, ONE ABSTAINED AND NONE OPPOSED. THE MOTION PASSED. AGENDA ITEM 4: EXECUTIVE DIRECTOR’S REPORT: Mr. Redburn gave an oral presentation regarding MUSL updates, physical and informational security upgrades, preparation of the new gaming contract, FY14 budget and operational plans, and an overview of upcoming activities and events in and around the office. No action was taken. AGENDA ITEM 5: LEGISLATIVE UPDATE. Mr. Redburn gave an oral presentation regarding bills amending the Lottery Act, which bill.  One of the bills passed the Legislature and was signed by the Governor.  The other bills did not pass.  Mr. Redburn also discussed the status of the Agency’s proposed rule changes, and the ongoing struggle with the 35% profit restriction, which remains the largest hurdle for the Oklahoma Lottery Commission. No action was taken. AGENDA ITEM 6: REPORT OF AUDIT & FINANCE COMMITTEE. Mr. Wymer offered an oral report regarding the Lottery Commission’s current financial standing, the elimination of Pick 4, and addition of Poker Pick. No action was taken. Agenda Items 9 and 10 were taken out of order, by order of the Chair: AGENDA ITEM 9: DISCUSSION AND POSSIBLE ACTION REGARDING PARTICIPATION BY THE OKLAHOMA LOTTERY IN THE MUSL, MULTI-STATE RAFFLE GAME. (Exhibit C) A motion was made by Mr. Virgin and seconded by Mr. Wymer to approve Oklahoma Lottery participation in the MUSL raffle game as presented. The Chair ordered a roll call with the following results: ROLL CALL VOTE: Ms. Ball Yes Mr. Wymer Yes Ms. Edwards Yes Mr. Orbison 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 THE OKLAHOMA LOTTERY OFFERING A NEW GAME, POKER PICK AND ELIMINATION OF THE PICK 4 GAME. (Exhibit D) A motion was made by Mr. Orbison and seconded by Mr. Wymer to eliminate the Pick 4 game as presented. The Chair ordered a roll call with the following results: ROLL CALL VOTE: Ms. Ball Yes Mr. Wymer Yes Ms. Edwards Yes Mr. Orbison Yes Mr. Virgin Yes Mr. Charlton Yes THE RESULT WAS SIX VOTES IN THE AFFIRMATIVE AND NONE OPPOSED. THE MOTION PASSED. At this point session returned to regular order. AGENDA ITEM 7: DISCUSSION AND POSSIBLE ACTION REGARDING THE FY’2014 BUDGET FOR THE OKLAHOMA LOTTERY COMMISSION. Mr. Wymer made a motion to approve the budget as presented. The motion was seconded by Mr. Orbison. The Chair ordered a roll call with the following results: ROLL CALL VOTE: Ms. Ball Yes Mr. Wymer Yes Ms. Edwards Yes Mr. Orbison Yes Mr. Paul 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 CONTRACT RENEWALS: a. A motion was made by Mr. Wymer and seconded by Mr. Virgin to approve the renewal of the Hudson Alley Software, Inc. contract as presented, not to exceed $48,000 for FY2014. The Chair ordered a roll call with the following results: ROLL CALL VOTE: Ms. Ball Yes Mr. Wymer Yes Ms. Edwards Yes Mr. Orbison Yes Mr. Virgin Yes Mr. Charlton Yes THE RESULT WAS SIX VOTES IN THE AFFIRMATIVE AND NONE OPPOSED. THE MOTION PASSED. AGENDA ITEM 11: NEW BUSINESS. No new business. AGENDA ITEM 12: 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, 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 D. Minutes Approved by Board of Trustees on September 17, 2013. 4 | Page Lottery Commission Minutes June 28, 2013