Agenda Item

Discussion and Notes

Action and Follow-up

Responsible Parties

1. Open Meeting Act, Call to Order and Opening Remarks

Dr. Robert McCaffree announced that the requirements of the Open Meeting Act, including the filing of the meeting and posting of the agenda had been met, and called the meeting to order.

2. Approval of Minutes of the April 14, 2006 Special Board Meeting

Minutes for April 14, 2006 were approved as written.

Motion to approve made by Dr. Cooper and seconded by Dr. Foster.  Motion passed unanimously.  Bill Lissau was not present for the vote.

Dorothy Antwine

3a.  Update on      SB 1091

Dr. McCaffree reported SB 1091 had passed the House and Senate and was awaiting the Governor¿s signature.  The bill includes a requirement that the board establish policies and procedures to define, clarify and implement the allocation of expenditures. It also indicates that the board may develop administrative rules and policies and procedures to govern the grantmaking process.

An expenditure allocation policy and procedures will be developed for board approval. Administrative rules, policies, and procedures will be developed for board approval.

Tracey Strader

Jon¿s Mata

Program Committee

3b.  Upcoming Board Meetings

Dr. McCaffree discussed the need to cancel the August 16th board meeting and joint board meeting, and possibly combine a regular board meeting with the Research Study Group meeting in September.

Motion to cancel the joint Board meeting on August 16, 2006, and move the regular Board of Director¿s meeting to the same date as the research study group made by Casey Killblane and seconded by Dr. Cooper. Motion passed unanimously.  Bill Lissau was not present for the vote.

Dorothy Antwine

3c.  Update on Research Study Group

Dr. McCaffree reported five of the six participants had been confirmed to attend the Research Study Group.  Those confirmed are:

• Mike Cawley, Noble Foundation
• Michael Anderson, Presbyterian Health Foundation
• Marge White, Virginia Tobacco Settlement Foundation
• Dr. Steven Schroeder, University of California at San Francisco
• Ann Gauthier, Commonwealth Fund.

Continue to work toward confirmation of the attendance of a representative from NCI or NIH.

Tracey Strader

3d.  Ethics Commission Filing

Dr. McCaffree reported all Ethics Commission reports had been filed.

W.R. ¿Bill¿ Lissau arrived

4a.  State Treasurer¿s Office and Board of Investor¿s Update

James Wilbanks gave an update and a presentation of the preliminary FY 2007 Board of Investors operating budget request.

Motion to approve a preliminary budget for FY07 of $90,000 to include $2,000 travel for the Board of Investors made by Casey Killblane and seconded by Ken Rowe.  Motion passed unanimously. 

Arrange a meeting with State Treasurer, Board of Directors and staff to discuss the Board of Investors final Operating Budget for FY07.

Tracey Strader

4b.  Earnings Certification Discussion

James Wilbanks gave a presentation on the discussion of spend policy alternatives by looking at what the difference in the fund balance would be and the amount of money that would be generated through various assumptions and comparisons.

5a.  Program Committee Update

Jon¿s Mata reported that the grantees desk audit would begin shortly.  Mr. Mata said they would be making a site visit to the Helpline vendor, Free & Clear, at the end of the month to perform the annual review of both program and fiscal.  Jon¿s said that progress was being made in working with DCS to make awards for the Specific Populations grants.

5b.  Program Recommendations for FY 2007 ¿ FY 2010

Susan Biz¿ discussed the funding availability to accommodate a ¿second wave¿ of Communities of Excellence RFP to be released in late Spring 2007.

Motion to approve made by Susan Biz¿ and seconded by Dr. Cooper.  Motion passed unanimously. 

Work with the State Program Office, OU, and current grantees to get feedback on the successes and lessons learned in the current CX program, before developing the RFP for Wave II.

Jon¿s Mata

6a.  FY 2006, Third Quarter Expenditures, Budget to Actual

Tracey Strader reported on the third quarter expenditures in FY 2006 for both the operating and program budgets. She indicated that any amounts unexpended would be available for use in the subsequent years.

6b.  Revision of Certification of Non-Acceptance of Tobacco Funds Policy

Tracey Strader presented a draft of the revised ¿Certification of Non-Acceptance of Tobacco Funds¿ policy, which combined all types of grantees (community-based, tribal governments, universities, and government agencies) and more clearly defined the types of relationships with the tobacco industry that would be prohibited during the term of the grant or contract.

Motion to approve made by Agency Operations Committee.  Motion passed unanimously. 

This new certification language will be used in future Requests for Proposals and contracts.

6c.  Revision of Waiver of Immunity language

Tracey Strader presented a draft of the revised contract language for the Waiver of Immunity

Motion to approve made by Agency Operations Committee.  Motion passed unanimously. 

This new language will be used in future Requests for Proposals and contracts.

6d.  Revision of Allocation of Funds Policy

Tracey Strader presented a draft of the revised Allocation of Funds policy to set reserves at 10% of the annual amount of certified earnings.

Motion to approve made by Agency Operations Committee.  Motion passed unanimously. 

6g.  Review of Draft Organizational Chart

Tracey Strader discussed two new proposed positions for FY 2007 (the Program Officer and Director of Communications), as well as a long-term view of future positions that may be needed through 2020. She provided draft organizational charts for both of these scenarios.

6ji.  FY 2007 contract with Finley & Cook for program audit and review of financial statements associated with grant proposals

Tracey Strader reported that there were no changes with the Finley & Cook contract from last year¿s contract and that it would only be a renewal under the same terms.

Motion to approve made by Agency Operations Committee.  Motion passed unanimously. 

6jii.  FY 2007 contract for graphic design services

Tracey Strader reported that the agency was required to conduct an ¿in-house¿ bidding process for graphic design services, and she provided the RFP for reference.

Motion to approve made by Agency Operations Committee.  Motion passed unanimously. 

6jiii.  FY 2007 renewal and amendment to the contract with the OUHSC Board of Regents for evaluation of TSET programs

Tracey Strader reported that the contract renewal with OUHSC Board of Regents budget had decreased slightly due to the fact that the board had decided not to continue further evaluation of the Helpline promotion efforts. OU would continue evaluating the Helpline in terms of reach and effectiveness.

Motion to approve made by Agency Operations Committee.  Motion passed unanimously. 

6jiv.  FY 2007 contract with the Oklahoma State Department of Health, Tobacco Use Prevention Service for State Program Office services and counter-marketing

Tracey Strader said the contract with the Health Department included services with the State Program Office and services for counter marketing.

Motion to approve made by Agency Operations Committee.  Motion passed unanimously. 

6jv. FY 2007 renewal of the contract with Free & Clear Inc., for the Oklahoma Tobacco Helpline services.

Tracey Strader recommended renewal of the contract with Free & Clear for FY 2007.

Motion to approve made by Agency Operations Committee.  Motion passed unanimously. 

6jvi.  FY 2007 renewal of contract with the Oklahoma State Department of Health to provide funding to the TSET to expand the reach of the Oklahoma Tobacco Helpline.

Tracey Strader reported that the contract allows the Health Department to provide funding to TSET for a continuation of the Helpline services expansion.

Motion to approve made by Agency Operations Committee.  Motion passed unanimously. 

6jvii.  FY 2007 renewal of contract with the Oklahoma Health Care Authority to provide reimbursement to TSET for Oklahoma Tobacco Helpline services to Medicaid members.

Tracey Strader said the contract would allow the Health Care Authority to pay 50% of the cost of the Medicaid beneficiaries who participate in the Helpline program.

Motion to approve made by Agency Operations Committee.  Motion passed unanimously. 

6e.  Proposed Executive Session to discuss salaries for the Executive Director, Director of Grants and Programs, and the Executive Administrative Assistant (As authorized by 25 O.S.¿307(B)(1)

Motion to move into Executive Session made by Casey Killblane and seconded by Dr. Cooper.  Motion passed unanimously. 

Motion to move out of Executive Session made by Dr. Foster and seconded by Susan Biz¿.  Motion passed unanimously. 

Vote on items from Executive Session

Motion to increase the Executive Director¿s salary by 5%, Director of Grants and Programs salary by 8% and the Executive Administrative Assistant salary by 5% and not to exceed these amounts with the potential mandated salary increase for FY 2007 that may come during the legislative session made by Bill Lissau and seconded by Dr. Foster.  Motion passed unanimously.

Tracey Strader left the meeting.

6h.  TSET FY 2007 Preliminary Operating Budget

Ken Rowe opened the discussion among the board about the need for the Director of Communications position.  

Motion to approve TSET FY 2007 preliminary operating budget to reflect the staff¿s salary increases not to exceed the 5% increase for the Executive Director and Executive Administrative Assistant and not to exceed the 8% increase for the Director of Grants and Programs; to reflect the Board of Investor budget at $90,000, and to remove the Director of Communications position to include longevity and fringe; made by Ken Rowe and seconded by Bill Lissau.  Motion passed unanimously.

Ken Rowe suggested having additional discussions about future staffing and proceeding cautiously in adding more staff.

6i.  TSET FY 2007 Preliminary Programs Budget

Casey Killblane said the Programs Budget reflected the Project Officer¿s salary for 10 months, and reflected 75% of the Director of Grants and Programs salary and 10% of the Executive Director¿s salary based on the legislation that passed.

Motion to approve the TSET FY 2007 preliminary programs budget made by Susan Biz¿ and seconded by Casey Killblane.  Motion passed unanimously.

7.  Update on tobacco control legislation and policy

The speaker was not present to provide the update.

8.  Public Comment

Doug Matheny gave an update on SB 1717 and HB 3116 which were pending upon the legislatures.  He said that both bills had similar language dealing with reform and clean-up around the tobacco tax.

Mr. Matheny noted that a controversial proposal still pending before the State Legislature was to lower the price of tobacco at all non-tribal tobacco retailers located within 25 miles of any tribal tobacco retailer. He reported that the Oklahoma Tax Commission recently estimated that the fiscal impact of this proposal would be to reduce state tobacco tax revenue by $61.2 million.

Casey Killblane left the meeting.

Mr. Matheny said the clearest indicator of the public impact of the tobacco tax was the consumption of tobacco products. He provided an update on the total cigarette sales in Oklahoma that reflected tribal and non-tribal combined for fiscal year 2005 and 2006.

9.  Adjournment

Motion to adjourn the meeting made by Dr. Cooper and seconded by Dr. Foster.  Motion passed unanimously.  Casey Killblane was not present for the vote.