OKLAHOMA LOTTERY COMMISSION Minutes of Meeting February 23, 2005 3:00 pm Members present: Ms. Cindy Ball Mr. George R. Charlton, Jr. Dr. Linda Dzialo Mr. Ron Norick Mr. James Orbison Mr. William Paul Mr. Thomas Riley, Jr. Governor Brad Henry Ms. Susan Perry, Office of State Finance, recording secretary The Oklahoma Lottery Commission met on February 23, 2005 at approximately 3:00 pm, in the Governor’s Large Conference Room at the State Capitol. The meeting was held in accordance with the Open Meeting Act. Governor Henry presided over the meeting since this was the first meeting of the Lottery Commission and officers had not been elected. ITEM 1 Announcement of filing of special meeting notice and positing of the agenda in accordance with the Open Meeting Act The Governor called on Lisa Davis, General Counsel for the Governor, to confirm that the agenda was posted in accordance with the Open Meeting Act. Ms. Davis did confirm the agenda was posted with 48 hours notice. The Governor asked if there were any questions or concerns about the posting and there were none. ITEM 2 Oath of Office The Governor introduced Chief Justice Watts to administer the oath to the commissioners. Chief Justice Watts then administered the oath to all the commissioners. Lisa Davis said that the commissioners needed to sign the written oath and asked the commissioners to be sure and execute them before they left. ITEM 3 Call to Order Governor Henry asked Susan Perry to call the roll. Susan called roll and the Governor declared that everyone was present. ITEM 4 Introductions Governor Henry asked the commissioners to tell who they are, and a little about themselves. Each commissioner spoke briefly about themselves, and what profession they are in presently and in the past. Also Scott Meacham, Director of the Office of State Finance introduced himself and stated that the Office of State Finance will be the commission’s staff until they have employed their own. ITEM 5 Governor’s Comments Governor Henry thanked the commissioners for their willingness to serve and made general comments concerning the lottery. ITEM 6 Authorizing Legislation Governor Henry asked that Scott Meacham, Director of the Office of State Finance, to talk about the authorizing legislation. Mr. Meacham talked about the packet before the commissioners that contained several documents put together by his staff, in particularly Rollo Redburn, Deputy Director. Mr. Meacham summarized the bill that created the commission and outlined their roles and duties. ITEM 7 Overview Mr. Meacham handed out an insert for the commissioner’s packets which showed the commission’s budgetary requirements that Mr. Redburn put together. Mr. Meacham went over the timeline of starting the scratch-off by October 1st and then electronic lottery 3-6 months after that. He stated that the commission’s primary role right now is getting the Executive Director hired and also the need to go through the Request for Proposal (“RFP”) process for major vendors. Mr. Meacham stated that there were some sample RFPs from other states to review in the packet and there is a sample job description for a lottery executive director. Mr. Meacham explained that they have asked the legislature to provide a supplemental appropriation of $500,000 for FY05. He stated that these funds will serve the commission until July 1st which is the beginning of the FY06 fiscal year. Mr. Meacham stated that in the Governor’s Executive Budget they asked for a regular appropriation of an additional $500,000 to get the commission from July 1st until the lottery was up and running on October 1st. After that they believe the commission will generate sufficient revenues from the lottery to be self-funding but the commission needs some interim funds until that time. ITEM 8 Officers The Governor explained the responsibilities of officers and stated that the secretary and treasurer could be the same person but no other two offices could be held by one person. Then Governor Henry opened it up for nominations for Chairman. Mr. Charlton nominated Jim Orbison and Mr. Paul seconded that nomination. The Governor recognized the nomination of Jim Orbison and it was seconded. The Governor asked if there were any more nominations and there were none. There was a motion to cease nomination and it was seconded without objection so nominations were closed for Chairman. Governor asked Susan Perry to call roll. Ms. Perry then called roll and all were in favor so Mr. Orbison was elected Chairman and the Governor turned the meeting over to Mr. Orbison. Mr. Orbison expressed his appreciation and honor to be the Chairman. Mr. Orbison asked for nominations for Vice Chairman. Mr. Paul asked the Chairman to be recognized. Mr. Paul nominated Ron Norick for Vice Chairman. Dr. Dzialo seconded the nomination. There was a motion to cease nomination and it was seconded without objection so nominations were closed for Vice Chairman. Mr. Orbison asked Susan Perry to call roll. Ms. Perry then called roll and all were in favor so Mr. Norick was elected the Vice Chairman. Mr. Orbison discussed the two remaining offices and that they could be separate or together. Mr. Orbison asked if there was a motion to have them separate or together. Mr. Riley moved for the offices to be held separate and Mr. Paul seconded the motion. Mr. Orbison asked if there was any discussion. Mr. Orbison stated that the motion on the floor is that we elect the Secretary and Treasurer as separate offices. Mr. Orbison asked for a roll call. Ms. Perry called roll and all were in favor of having the Secretary and Treasurer office be held separately. Mr. Orbison asked for nominations for Secretary and Ms. Ball nominated Dr. Dzialo. Mr. Norick seconded the nomination. There was a motion to cease nomination and it was seconded without objection so nominations were closed for Secretary. Mr. Orbison asked Susan Perry to call roll. Ms. Perry called roll and all were in favor so Dr. Dzialo was elected as Secretary. Mr. Orbison asked for nominations for Treasurer. Mr. Paul nominated Mr. Riley and Mr. Charlton seconded the nomination. There was a motion to cease nomination and it was seconded without objection so nominations were closed for Treasurer. Mr. Orbison asked Susan Perry to call roll. Ms. Perry called roll and all were in favor so Mr. Riley was elected as Treasurer. ITEM 9 Interim Committees Discussion was had between the members and Mr. Meacham on which committees needed to be appointed quickly. A recommendation of a Search Committee and Board Operation and Structure Committee was had along with a suggestion of having three members on each committee. Mr. Norick suggested that if the committees did not need to be appointed today, that such action wait until the Chairman has time to discuss with Mr. Meacham and others what committees need to be appointed. Mr. Paul suggested that the search committee be appointed first and also moved that the Chairman be authorized to appoint committees after conclusion of the meeting today. Mr. Charlton seconded the motion with a comment that this should fall under new business rather than committee appointments. Mr. Orbison agreed. ITEM 10 New Business Mr. Orbison repeated the motion that allowed the Chairman to appoint the committees after the meeting today. Mr. Paul made the motion and Mr. Charlton seconded. Mr. Orbison agreed with Mr. Paul that a priority needs to go to the Search Committee although he will be quick on the other committees too. Mr. Orbison expressed that he would be contacting everyone soon. Mr. Orbison asked Susan Perry to take roll call. Ms. Perry called roll and all were in favor of the Chairman appointing the committees after the meeting today. Mr. Orbison asked if there was any other new business. Mr. Riley asked if everyone on the Commission could exchange contact information. It was agreed that everyone would give their information to Susan Perry and she would send out an email to the commissioners with everyone’s contact information. ITEM 11 Discussion and possible Announcement of Next Special Meeting Discussion was had on possible dates for the next meeting. It was agreed that everyone would send Susan Perry dates that would not work for them in the month of March to meet and from that list a date would be set. Further discussion was had on the contents of the packet given to the commissioners today to help them in their duties. It was agreed that the Office of State Finance would get other state’s job descriptions for the Executive Director of the Lottery Commission and salary ranges for the Commission to review. ITEM 12 Adjournment There being no further business the Chairman asked if there was a motion to adjourn. Mr. Riley moved for adjournment and Dr. Dzialo seconded the motion. Roll was called and all were in favor so meeting was adjourned. Submitted by: Linda Dzialo, Secretary Approved by: Jim Orbison, Chairman Linda Dzialo, Secretary