STATE OF OKLAHOMA OKLAHOMA LOTTERY COMMISSION OFFICIAL MINUTES December 3, 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 its regularly scheduled meeting December 3, 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 December 2, 2013 at 10:00 a.m. and was mailed or hand delivered to the offices of the Board members on November 29, 2013 and was posted to the website on December 2, 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; 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, Board Assistant. Others present were: Emily Summers; Jim Reazer; Mary Martha Ford; Scott Moulton; Bryan Colbert; Katy Smith; Greg Fields; John Hayes; and Barbara Hoberock. 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 3, 2013 regular 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. Wymer moved that the reading of the minutes of the September 17, 2013 Regular Meeting be waived and approved as published and distributed. The motion was seconded by Mr. Orbison. 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 Mega Millions operational updates; the new SGI contract; and the new Internal Control System, which has more capabilities and will bring the Lottery into compliance with new MUSL mandates. Ms. Mary Martha Ford, Director of Sales and Operations, then gave a Sales department overview, followed by discussion about the decrease of Sales Representatives and the reallocation of duties as a result of the decrease. 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 ITEM 6: DISCUSSION AND POSSIBLE ACTION REGARDING THE FY’2014 BUDGET, THE FY’2015 BUDGET AND THE STRATEGIC PLAN FOR THE OKLAHOMA LOTTERY COMMISSION. (Exhibit C) A motion was made by Mr. Paul and seconded by Mr. Virgin to adopt the FY’2014 budget, FY’2015 budget, and strategic plan and approve 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 7: DISCUSSION AND POSSIBLE ACTION REGARDING CONTRACT RENEWALS: a. A motion was made by Mr. Virgin and seconded by Mr. Orbison to approve the MDI Entertainment, LLC renewal contract as presented, appending that the amount not exceed $90,000 for calendar year 2014. 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. b. A motion was made by Mr. Virgin and seconded by Mr. Paul to approve the Alchemy3, LLC renewal contract as presented, appending that the amount not exceed $75,000 for calendar year 2014. 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 CHANGES TO LOTTERY COMMISSION RULES. (Exhibit D) Ms. Edwards made a motion to approve the proposed rule changes as presented. The motion was seconded by Mr. Wymer. 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 ON THE SELECTION OF BOARD OFFICERS FOR CALENDAR YEAR 2014. A motion was made by Mr. Paul and seconded by Mr. Orbison to approve the board officer selections, 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 ON APPOINTMENT BY CHAIR OF COMMITTEES AND CHAIRS OF COMMITTEES AND APPROVAL BY BOARD OF TRUSTEES. A motion was made by Mr. Paul and seconded by Mr. Orbison to approve the committee selections, 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 11: DISCUSSION AND POSSIBLE ACTION REGARDING CALENDAR YEAR 2014 BOARD MEETING DATES AND FREQUENCY OF MEETINGS FOR THE LOTTERY COMMISSION BOARD OF TRUSTEES. A motion was made by Mr. Paul and seconded by Mr. Orbison to approve the dates of March 18, 2014; June 17, 2014; September 16, 2014; and December 2, 2014. 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: NEW BUSINESS. No new business. AGENDA ITEM 13: 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 March 18, 2014. 5 | Page Lottery Commission Minutes December 3, 2013