CALIFORNIA STATE LOTTERY COMMISSION Minutes Sacramento, California 1. Call to Order Chairman Nate Kirtman called the public meeting of the California State Lottery Commission to order at 10:00 a.m. at the California State Lottery Headquarters, 700 North 10 th Street, Sacramento, CA 95811. 2. Pledge of Allegiance Kirtman led the Pledge of Allegiance. 3. Roll Call Kirtman acknowledged that Acting Director Paula LaBrie was joining the meeting by phone. Kirtman asked Elisa Topete to call the roll. Commission Members Present: Chairman Nate Kirtman Vice Chair Gregory Ahern Commissioner Connie Perez CSL Staff and presenters: Paula LaBrie, Acting Director (via phone) Nicole Soluri, Chief Counsel Ed Fong, Chief of Product Marketing & Promotions Christopher Riesen, Deputy Director of Information Technology Services David Cole, Deputy Director of Sales Terry Murphy, Deputy Director of Operations Jim Hasegawa, Deputy Director of Business Planning Nicholas Buchen, Deputy Director of Finance Elisa Topete, Assistant to the Commission Kim Crestelo, Recording Secretary 4. Closed Session No Closed Session scheduled. 5. Election of Chair and Vice Chair of the California State Lottery Commission 2015-16 Kirtman called upon Nicole Soluri, Chief Counsel, to review the rules and commission elections. Soluri stated the rules according to the California Lottery Act. Kirtman stated that he was interested in continuing to serve as Chairperson for Fiscal Year 2015-16 and nominated Ahern for re-election of Vice Chair of the
Page 2 Commission. With no other nominations for both positions, Kirtman was approved as Chairperson (3-0) and Ahern was approved as Vice Chair (3-0). 6. Consider Approval of the Agenda Chairman Kirtman asked if any of the Commissioners wanted to make changes to the agenda as proposed. Ahern made the motion to approve the agenda. Seconded by Perez. The agenda passed unanimously (3-0). 7. Approval of Minutes Kirtman asked if there were any additions or corrections to the May 28, 2015 minutes. Ahern made the motion to approve the minutes. Seconded by Perez. The minutes passed unanimously (3-0). 8. Director s Report 9. Consent Calendar 10. Action Items a. Amended Lottery Regulations - Powerball Staff requested approval of a regulation amendment to update existing claim procedures and initiate a matrix change that will allow the continued sale of Powerball lottery tickets in California after October 4, 2015. Presented by Ed Fong, Chief of Product Marketing & Promotions. 10(a). No one came forward so he proceeded to the motion of approval. Ahern made the motion to approve Action Item 10(a). Seconded by Perez. The b. Amended Lottery Regulations Fantasy 5 Staff requested approval of a regulation amendment revising Fantasy 5 prize pool allocations to increase the amount of the Estimated Top Prize. Presented by Ed Fong, Chief of Product Marketing & Promotions. 10(b). No one came forward so he proceeded to the motion of approval. Ahern made the motion to approve Action Item 10(b). Seconded by Perez. The c. Amended Lottery Regulations Fuel Pump Sales Program Staff requested approval to amend the regulations for the Fuel Pump Sales Program (FPSP) to enhance player engagement and interaction with the FPSP.
Page 3 Presented by Christopher Riesen, Deputy Director of Information Technology Services. 10(c). No one came forward so he proceeded to the motion of approval. Ahern made the motion to approve Action Item 10(c). Seconded by Perez. The d. Route Service Model Staff requested approval for a Route Service Business Model (RSBM) program. The RSBM is an alternative model for servicing select Lottery retailers. Under the RSBM, Lottery self-service vending machines, which distribute Scratchers and draw game tickets, are fully serviced by Lottery representatives rather than the retailer employees. Presented by David Cole, Deputy Director of Sales. 10(d). No one came forward so he proceeded to the motion of approval. Perez made the motion to approve Action Item 10(d). Seconded by Ahern. The e. Vehicle Purchase for Fiscal Year 2015-16 Staff requested approval to purchase 29 new replacement vehicles for the Sales and Marketing Division and Security/Law Enforcement Division. Presented by Terry Murphy, Deputy Director of Operations. 10(e). No one came forward so he proceeded to the motion of approval. Ahern made the motion to approve Action Item 10(e). Seconded by Perez. The f. Purchase of Real Property to Replace the East Bay District Office Staff requested approval to purchase a property to serve as the replacement location for the currently leased East Bay District Office. Once a suitable property is acquired, the Lottery would perform improvements to the property to meet operational needs. Presented by Terry Murphy, Deputy Director of Operations. 10(f). No one came forward so he proceeded to the motion of approval. Ahern made the motion to approve Action Item 10(f). Seconded by Perez. The
Page 4 g. Purchase of Real Property to Replace the San Francisco District Office Staff requested approval for the purchase of property to serve as the replacement location for the currently leased San Francisco District Office. Once a suitable property is acquired, the Lottery would perform improvements to the property to meet operational needs. Presented by Terry Murphy, Deputy Director of Operations. 10(g). No one came forward so he proceeded to the motion of approval. Ahern made the motion to approve Action Item 10(g). Seconded by Perez. The h. Advertising Research Contract Amendment Staff requested approval to amend the contract with Hall & Partners that will add to the current expenditure authority and extend the term of the contract. Hall & Partners conducts research measuring the effectiveness of the Lottery s television commercials. Presented by Jim Hasegawa, Deputy Director of Business Planning. 10(h). No one came forward so he proceeded to the motion of approval. Perez made the motion to approve Action Item 10(h). Seconded by Ahern. The i. Fiscal Year 2015-16 Budget Staff requested approval of the proposed budget for FY 2015-16. Both the level of sales and the contribution to education projected in the budget are the highest in the Lottery s history. Presented by Nicholas Buchen, Deputy Director of Finance. 10(i). No one came forward so he proceeded to the motion of approval. Perez made the motion to approve Action Item 10(i). Seconded by Ahern. The 11. Commissioner General Discussion 12. Scheduling Next Meetings The next Commission Meeting is tentatively scheduled for September 24 and November 19, 2015 in Sacramento.
Page 5 13. Public Discussion Kirtman asked if anyone from the public had anything to discuss. No one had signed up prior to the meeting and no one came forward so he proceeded to the next item on the agenda. 14. Adjournment Meeting adjourned at 10:44 a.m.