STATE OF OKLAHOMA OKLAHOMA LOTTERY COMMISSION OFFICIAL MINUTES September 22, 2015 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 September 22, 2015 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 September 21, 2015 at 8:00 a.m. and was mailed or hand delivered to the offices of the Board members on September 18, 2015 and was posted to the website on September 21, 2015. The agenda is attached as Exhibit A. AGENDA ITEM 1: CALL TO ORDER. Chairperson Blake Virgin called the meeting to order at 1:30 p.m. The roll of Board members was called to establish quorum. Board members present were: Blake Virgin; David Ostrowe; George R. Charlton, Jr.; Nevyle Cable; James Orbison; R. Deane Wymer; Matthew Felty. 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 Nikki Phipps, Board Assistant. Others present were: Jay Finks; Greg Fields; Brandie Reisman; Barbara Hoberock; 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. Phipps to verify that proper public notice was made with regard to the September 22, 2015 regular meeting, in accordance with the Open Meetings Act. Ms. Phipps 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. Cable moved that the reading of the minutes of the June 9, 2015 regular meeting 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: Mr. Ostrowe Yes Mr. Wymer Yes Mr. Felty Yes Mr. Orbison Yes Mr. Cable Yes Mr. Virgin Yes Mr. Charlton Yes THE RESULT WAS SEVEN VOTES IN THE AFFIRMATIVE AND NONE OPPOSED. THE MOTION PASSED. AGENDA ITEM 4: EXECUTIVE DIRECTORÕS REPORT. (Exhibit C) Mr. Redburn gave an oral presentation regarding Commission activities: * Legislation to be requested: o Legislative relief to allow the Lottery to increase prize payouts and profits for education; o The ability for investigative staff to purchase tickets to enhance investigations designed to protect the public; o Law changes to allow partnerships with charitable organizations; * Declining lottery sales and profits, and the need for legislative relief to stop the decline in profits that go to Oklahoma education programs and allow the Lottery to increase profits for education; * The status of bringing a new chain on board as retail partners (Walmart Neighborhood Markets); and * The PowerBall game change that will take effect with October 4 sales for the October 7 drawing. No action was taken. AGENDA ITEM 5: REPORT OF AUDIT & FINANCE COMMITTEE. Mr. Cable offered an oral report regarding the Lottery CommissionÕs current financial standing. No action was taken. AGENDA ITEM 6: DISCUSSION AND POSSIBLE ACTION REGARDING FYÕ2015 FINANCIAL STATEMENTS. (Exhibit D) Mr. Cable moved that the FYÕ2015 financial statements draft be accepted as presented. The motion was seconded by Mr. Wymer. The Chair ordered a roll call with the following results: ROLL CALL VOTE: Mr. Ostrowe Yes Mr. Wymer Yes Mr. Felty Yes Mr. Orbison Yes Mr. Cable Yes Mr. Virgin Yes Mr. Charlton Yes THE RESULT WAS SEVEN VOTES IN THE AFFIRMATIVE AND NONE OPPOSED. THE MOTION PASSED. AGENDA ITEM 7: DISCUSSION AND POSSIBLE ACTION REGARDING FYÕ2015, FYÕ2016 AND FYÕ2017 REVENUES. Mr. Charlton moved that the FYÕ2017 budget estimates be accepted as presented. The motion was seconded by Mr. Cable. The Chair ordered a roll call with the following results: ROLL CALL VOTE: Mr. Ostrowe Yes Mr. Wymer Yes Mr. Felty Yes Mr. Orbison Yes Mr. Cable Yes Mr. Virgin Yes Mr. Charlton Yes THE RESULT WAS SEVEN VOTES IN THE AFFIRMATIVE AND NONE OPPOSED. THE MOTION PASSED. AGENDA ITEM 8: REVIEW OF ELIGIBILITY FOR OFFICES AND GUIDANCE TO THE NOMINATING COMMITTEE. The Board discussed open offices and the Nominating Committee members agreed to set up a conference call and to present nominations at the December 8, 2015 Board meeting. No action was taken. AGENDA ITEM 9: NEW BUSINESS. No new business. AGENDA ITEM 10: 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 December 8, 2015. 3 | Page Lottery Commission Minutes September 22, 2015