AGENDA. DAY August 8, General. Session #1. Page 1 of. Staff Briefing. Will commencee. Industry Advisory Committee Meeting. Reception.

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1 August 9-10, 2017 Chandler, Arizona AGENDA Presiding: Chuck Ulm (MD), President of the IFTA, Inc. Board of Trustees Assisting: Lonette L. Turner, CEO, International Fuel Tax Association, Inc. Meeting Check-In and Assistance PRE-MEETING DAY August 8, Pipai Kave Foyer :00 pm 5:00 pm Industry Advisory Committee Meeting Dennis Vanderslice, ARI Fleet, Chair IFTA, Inc. Board and Staff Briefing Mr. Ulm and Ms. Turner Opening Reception Sponsored By Pipai Kave 2 Pipai Kave 1 Pipai Kave 3 1:30 pm 5:000 pm Will commencee immediately following Industry Advisory Committee Meeting discussions of IFTArelated issues 6:00 pm 8:000 pm Meeting Check-In and Assistance Day 1 - August 9, 2017 Pipai Kave Foyer Agenda Color Legend: VOTE MAY BE TAKEN VOTE REQUIRED Continental Breakfast Pipai Kave 3 General Session #1 Pipai Kave 1 and 2 1) Call to Order - Mr. Ulm 2) National Anthems 3) Roll Call of Voting Delegates - Ms. Turnerr 4) Welcome TBA 5) President s Report - Mr. Ulm 7:00 am 5:00 pm BREAK OR MEAL 7:00 am 8:30 am 8:30 am 9:15 am Page 1 of 5

2 6) Approval of 2016 Meeting Minutes - Mr. Ulm 7) Election Committee Report Antoinettee Tannous (QC), IFTA, Inc. Board of Trustees 8) Election of Board Members - Mr. Ulm 9) IFTA, Inc. Update Ms. Turner 10) AAMVA - Motor Carrier Services Anne Ferro, President & CEO (AAMVA) 9:15 am 9:30 am 9:30 am 9:45 am 9:45 am 10:00 am 10:00 am 10:30 am Networking Break Sponsored By: Pipai Kave 3 10:30 am 10:45 am General Session #1 continued Jurisdiction Sponsored Ballots: 11) FTPBP # R625 - Pa Pipai Kave 1 and 2 10:45 am 12:00 pm atrick Harrison (VA), Motor Carrier Servicess Director The inten of this ballot is to amend the IFTA Articles of Agreement to allow carriers using a qualified motor vehicle under a short-term motor vehiclee rental of 29 days or less whereby the lessee has assumed responsibility for reporting and paying the fuel use tax pursuant to Section R510 of the IFTA Articles of Agreement to temporarily display the IFTA decals rather than permanently affix them to the vehicle. 12) FTPBP # R620 and R650 - Jay Sween (WisDot) and Lt. Michael Klingenberg (WI State Police) The inten of this ballot is to amend the Agreement to allow licensees and base jurisdictionss flexibility in issuing and presenting the license. The ballot adds language clarifying that base jurisdictions may issue licenses in paper or as an electronic image. The ballot adds language requiring jurisdictions to accept a paper original, legible paper copy or legible electronic image of the license, at the option of the licensee, regardless of the method by which the license was initially issued by the base jurisdiction. Richard L. Reeves IFTA Leadership Award Luncheon Sponsored By: Pipai Kave 3 12:00 pm 1:00 pm Page 2 of 5

3 General Session #2 Pipai Kave 1 and 2 1:00 pm 1:45 pm Committee Sponsored Ballots 13) FTPBP # R Law Enforcement Committee - David Bales (KS State Police), Chair The intent of this ballot is to amend the IFTA Articles of Agreement to require that jurisdictions track and upload serialized decal numbers issued to carriers. This would be done by adding serialized decal numbers to Licensee demographic data in Section R of the IFTA Articles of Agreement. 14) FTPBP # P Agreement Procedures Committee - Marie Stark (MT), Chair The intent of this ballot is to amend the IFTA Procedures Manual to align with the Bank of Canada s new procedure in publishing exchange rates once each business day by 4:30 PM Eastern Time. With the elimination of the published noon day rate, to allow for timely Canadian jurisdictional transmittals, if a conversion takes place before 4:30 PM Eastern Time the prior day s rate will be used. A fund conversion at 4:30 PM Eastern Time or after will be converted using the current day s rate. 15) FTPBP # P Agreement Procedures Committee - Marie Stark (MT), Chair The intent of this ballot is to amend the IFTA Articles of Agreement to clarify that the upload done on a daily basis for each business day is an upload of the full demographic data. Membership would benefit from this procedure change by allowing all jurisdictions access to the latest status of accounts when licensing new accounts and would give roadside enforcement more accurate data to utilize when enforcing IFTA. By distributing the licensee demographic data and inter-jurisdictional audit reports to participating jurisdictions via the IFTA, Inc. Clearinghouse, this will ensure jurisdictional compliance according to the applicable provisions of the IFTA Audit Manual. This change would require the full demographic data to be uploaded to the Clearinghouse each business day for accuracy and timely information. Regional Breakouts Location 1:45 pm 2:30 pm Canadian Region Northeast Region Southeast Region Midwest Region Western Region Buzzard Coyote Eagle Gila Monster Rattlesnake Networking Break Sponsored By: Pipai Kave 3 2:30 pm 3:00 pm General Session #2 continued Pipai Kave 1 and 2 3:00 pm 5:00 pm 16) Town Hall Meeting - Moderator: Ms. Turner Closing Announcements Mr. Ulm Meeting in Recess until 8:30 a.m. tomorrow morning. Page 3 of 5

4 Meeting Assistance Agenda Color Legend: VOTE MAY BE TAKEN Continental Breakfast Day 2- August 10, 2017 Pipai Kave Foyer VOTE REQUIRED Pipai Kave 3 7:00 am 5:000 pm BREAK OR MEAL 7:00 am 8:30 am General Session #3 17) The IFTA Chronicles - Yesteryear Pipai Kave 1 and 2 8:30 am 10:30 8:30 am 9:10 am Panel: Motor Carrier Industry: Donna Burch (Ryder) Jurisdiction: Iowa implemented in 1983 Karen Smith (IA) Transportation Servicee Provider: - Kerrie L Stouffer-Herd (All Vehicle Registration Services) 18) The IFTA Chronicles Success Story 9:10 am 9:50 am Panel: Motor Carrier Industry - Gary Bennion (XPO Logistics) Jurisdiction - Helen Varcoe and Marie Stark (Montana) Reporting Services - Connie Owen (J J Keller & Associates) 19) The IFTA Chronicles Yet to Come? 9:50 am 10:300 am Panel: Jurisdiction Perspective - Dawn Lietz (NV) Future of Transportation Charles Ledig (Penske) and Robert Pitcher (ATA) Vehicle Mileage Tax and Fuel Marking Mike Albin (SICPA North America) Networking Break Sponsored By: Pipai Kave 3 10:300 am 11:000 am 20) Preparing for the Long Haul. A Futurist Toolkit. Mike Courtney (Aperio Insights) 11:000 am 12:00 pm Lunch Sponsored By: Pipai Kave 3 12:000 pm 1:15 pm General Session #4 21) Electronic Credential Pilot Jay Sween (WI) Lt. Michael Klingenbergg (WI) Pipai Kave 1 and 2 1:15 pm 4:000 pm 1:15 pm 1:45 pm Page 4 of 5

5 22) Program Compliance Review Process 1:45 pm 2:30 pm Panel: Tim Ford (CA), Chair, Program Compliance Review Committee John Szilagyi (CT), Chair, Program Compliance Review Committee Working Group Rick LaRose (CT), IFTA, Inc. Board of Trustees, Board Liaison PCRC 23) IRP, Inc. Update Tim Adams, CEO, IRP, Inc. 24) Committee Chair Update 2:30 pm 2:45 pm 2:45 pm 3:15 pm Panel: Ron Hester (ON), Clearinghouse Advisory Committee Paul Nilsen (WI), Attorneys Section Steering Committee Helen Varcoe (MT), Audit Committee Grab n Go Break Pipai Kave 3 3:15 pm 3:30 pm 25) ELD Mandate What you need to know 3:30 pm 4:00 pm Panel: Audit Perspective: Beth Duda (AZ) Transportation Provider Perspective: David Gray (Glostone Trucking Solutions) Carrier Perspective: Mahlon Gragen (ATC Leasing) 26) Industry Advisory Committee Report Dennis Vanderslice (ARI Licensing & Compliance), Chair 27) New Business Steve Nutter (VA), IFTA, Inc. Board of Trustees 4:00 pm 4:30 pm 4:30 pm 4:45 pm 28) Closing Remarks Mr. Ulm 4:45 pm 5:00 pm Page 5 of 5

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7 ANNUAL IFTA BUSINESS MEETING INDIANAPOLIS, INDIANA AUGUST 17 18, 2016 Call to Order Mr. Stuart Zion, Colorado Department of Revenue IFTA Commissioner and IFTA, Inc. Board of Trustees (Board) President, called the meeting to order. Mr. Zion welcomed everyone to the business meeting and recognized the meeting sponsor Legatus who sponsored the previous evening s reception. Additional meeting sponsors will be Xerox, Fast Enterprises, Explore, EROAD, and RSI. Roll Call Ms. Lonette Turner, IFTA, Inc. CEO, conducted a roll call of membership. Ms. Turner announced that there was a quorum to conduct the business of the association. A total count of the voting jurisdictions represented, either in person or by proxy, was fifty six (56). Following the roll call, self introductions were made by the attendees. One hundred and twenty four (124) attendees representing fifty (50) member jurisdictions and twenty (20) companies from industry were all in attendance. Welcome Mr. Andrew Kossack, Commissioner of Revenue for the Indiana Department of Revenue, welcomed the attendees to the business meeting and to Indianapolis. With 2016 being the bicentennial of Indiana s statehood, Mr. Kossack informed the delegates that there were several exciting events happening throughout the State, all culminating with the special celebration on December 11 th. Mr. Kossack also acknowledged the service of all member jurisdictions and thanked them for their public service, noting that it is essential to their jurisdictions and their jurisdictions futures. President s Report Following the welcome, Mr. Zion offered the President s report. Mr. Zion commented that one of the reasons for IFTA s success is the participation of those members serving on various committees. Identifying some of the highlights since the August 2015 Annual IFTA Business Meeting, Mr. Zion noted that the Board has been discussing how best to improve the voting process, redesigning the IFTA, Inc. website, decal specifications and the funds netting calendar, the timing of the Board elections, the consideration of several jurisdiction submitted projects and proposals for funding by the organization, and the Strategic Plan review and discussions that have continued. Concluding his report, Mr. Zion informed membership that the Board looks forward to the success and results from the electronic credentials pilot project, changes to the program compliance review process, and implementing more of the Strategic Plan. Approval of the 2015 Meeting Minutes The 2015 Annual IFTA Business Meeting minutes were reviewed. Amendments were recommended by membership. Mr. Zion then asked for a motion to approve the minutes as amended. Motion: Mr. Richard LaRose, Connecticut Assistant IFTA Commissioner, moved to accept the minutes from the 2015 Annual IFTA Business Meeting as amended. Mr. Scott Greenawalt, Assistant IFTA Commissioner for Oklahoma, seconded the motion. The motion passed Annual IFTA Business Meeting Minutes Page 1 of 8

8 Election Committee Report and Election of Board Members Mr. Chuck Ulm, Maryland IFTA Commissioner, Chair of the Election Committee, and First Vice President of the Board, offered this report to membership. The outgoing Board members not eligible for reelection are Mr. Garry Hinkley (ME) and Mr. Hugh Hughson (BC). Other seats open for election are those held by Ms. Cindy Arnold (NV) and Ms. Joy Prenger (MO), both seeking re election. The committee presented Ms. Arnold, Ms. Prenger, Mr. LaRose, and Ms. Antoinette Tannous (QC) to the Board. Following the presentation of the committee s slate of nominees, Mr. Zion asked for nominations from the floor. There were none. Motion: Mr. Hugh Hughson, Assistant IFTA Commissioner for British Columbia, moved to close the nominations. Mr. David Helton, Florida IFTA Commissioner, seconded the motion. The motion passed. Motion: Mr. Scott Bryer, New Hampshire IFTA Commissioner, moved to accept the slate of candidates by acclamation. Mr. Ulm seconded the motion. The motion passed. Both Ms. Arnold and Ms. Prenger were re elected to the Board and Mr. LaRose, and Ms. Tannous terms will begin January 1, IFTA, Inc. Financial Report Mrs. Amanda Koeller, IFTA, Inc. Comptroller / Treasurer, presented the financial report and informed membership that IFTA, Inc. remains financially sound. A financial audit and a SOC II audit have been completed. Additionally, a security audit of the organization was also completed. Mrs. Koeller informed membership that the IFTA, Inc. office building located in Chandler, AZ, has officially been put on the market for sale. IFTA, Inc. Website Modernization Following the financial report, Mr. Thomas King, IFTA, Inc. Webmaster, provided a demonstration of the modernization of the IFTA, Inc. website. He reviewed, in depth, the upcoming release of the new website and reviewed the various levels, web pages, and login to the website. IFTA, Inc. Strategic Plan Progress Report Board members Ms. Prenger and Mr. Stephen Nutter (VA) offered a review of the IFTA, Inc. Strategic Plan progress. During this presentation it was explained that additional travel for 2018 had been approved. Member jurisdictions can choose to send a single delegate to one of the various IFTA related functions and the related fees would be paid for by IFTA, Inc. An Annual Report Working Group was recently established to review and update the IFTA Annual Report. The Board has also evaluated current real estate pertaining to the sale of the office building. Perspective buyers have reviewed the location. A salary and position study of the IFTA, Inc. personnel was also approved by the Board. Agreement Procedures Committee Report Ms. Marie Stark (MT), Agreement Procedures Committee (APC) Chair, presented IFTA Full Track Preliminary Ballot Proposal (FTPBP) for discussion. The intent of this ballot is to allow carriers to display their IFTA renewal credentials two months prior to the effective date shown on the license and decals. Carriers would still be required to carrie the current, active credentials. Following a straw vote showing favor for this ballot, Ms. Stark asked for a motion to move this ballot to the short track ballot process Annual IFTA Business Meeting Minutes Page 2 of 8

9 Motion: Ms. Belinda MacKinnon, Manitoba Assistant IFTA Commissioner, moved to have FTPBP move to the short track ballot process. Ms. Arnold seconded this motion. Following discussions, Ms. MacKinnon withdrew the motion and Ms. Stark chose to allow the ballot to remain as a full track ballot. It was offered that the effective date should be moved to a July 2017 effective date. Jurisdiction Sponsored Ballot Mr. Trent Knoles (IL) and Ms. Arnold presented FTPBP The intent of this ballot is to ensure that a vote s final outcome is representative of the eligible jurisdictions voting position as truly intended. An in depth review of this ballot proposal was provided. Comments from some jurisdictions were against the adoption of this ballot due to the fact of a fewer number of jurisdictions could pass a ballot. However, it was also expressed that any member jurisdiction that is restricted from voting should not be counted towards the active votes as either a positive or negative vote for the issue in question. The ballot sponsors appreciated membership s input on this ballot and it will continue as a full track ballot. Richard L. Reeves IFTA Leadership Award The 2016 Richard L. Reeves IFTA Leadership Award was presented during a special luncheon. The award was presented by Ms. Lonette Turner, IFTA, Inc. CEO, Mr. Sam Losavio, Fast Enterprises, Mr. Robert Pitcher, American Trucking Associations, Inc., and Mr. Dennis Vanderslice, ARI Fleet, Industry Advisory Committee Vice Chair. The recipient of this award was Mr. Gary Bennion, XPO Logistics. Regional Breakout Sessions Regional breakout sessions were held wherein attendees could discuss issues relative to their regions. When the open session of the business meeting resumed, a review of these discussions was offered by a regional Board representative. Some of the regional issues discussed are shown below. 1) Canadian Region Implementing a carbon tax for all Canadian provinces Varying rates of fuel between single, dual, and triple trailers Electronic data sharing problems and finding solutions Inconsistencies with farming equipment, road building equipment, and colored fuel Determining a means to provide additional audit credits to jurisdictions with larger audits 2) Midwest Region Updating and utilizing the exemption database Annual report filings Price per gallon used in audits Clearinghouse changes and recent correspondence regarding returning to standardization ELDs and the number of vendors not providing valid information to consumers 3) Northeast Region Illinois issue and a possible solution Value of the regional calls with the Board Maryland issue regarding submission of late returns Wisconsin pilot project and the elimination of paper credentials Future IFTA projects and the elimination of the IFTA decal Weigh stations and enforcement efforts 2016 Annual IFTA Business Meeting Minutes Page 3 of 8

10 IFTA app and potential problems with tax payer data CNG/LNG vehicles 4) Southeast Region Financial reserve issues IFTA, Inc. paying for travelers to a meeting of their choice Experience levels and turnover and transition for both membership and industry Decals and electronic credentials Communicating with and working alongside service providers in a positive manner Data quality for IFTA Program compliance reviews and the new proposed procedures CNG issues Communicating with IFTA and ensuring all communications are responded to 5) Western Region VMT tax Tribal fuels and tax evasion CNG/LNG Pre paid decals and their value Selling of fuel from unmanned pumps No tax being charged on biodiesel in Texas Exports and bills of lading Electric vehicles using LNG to start the vehicle Testing of platooning with trucks being tested in Utah Passage of IFTA FTFBP and its impact on membership Electronic Credentials Working Group Mr. Hinkley, Chair, reported on the activities of the Electronic Credentials Working Group (ECWG) that was established in 2014 to determine if IFTA licensing documentation is still practical. The group had also been charged with identifying options for the use of technology in relation to licensing and decals. A large concern of the working group is to verify the quality of the provided data. The ECWG has also been working with IFTA, Inc. in relation to the IFTA smart phone app for roadside assistance. This app will be secure and contain licensee data and status relative to the carrier. Additionally, the working group is working with Wisconsin regarding the pilot project for motor carrier electronic credentialing. Motor Carrier Electronic Credential Pilot Mr. Paul Bernander, Wisconsin IFTA Commissioner, reported on the creation and progress of the Motor Carrier Electronic Credentialing pilot project. The objective of this pilot program is to develop a system or process to promote the acceptance and use of electronic motor carrier credentials, instead of paper, at the roadside. The pilot project, which began April 1, 2016, is progressing nicely and has seven confirmed jurisdiction participants including WI, AL, IL, IA, MI, MN, and VA. This project has been extended in order to gather more concrete data and will conclude September 30, The pilot project has two phases to it. The first is the Image Phase. During this first stage both electronic and paper credentials will be maintained. Enrollment is not necessary on behalf of the carrier. When the project enters the Data Phase, the second phase of the project, all carrier credentials will be maintained in a database that would be accessible to those participating in the pilot project. The purpose of this stage is to verify that a vehicle is licensed by IFTA, registered through IRP, and is in good standing with 2016 Annual IFTA Business Meeting Minutes Page 4 of 8

11 both organizations. It is opined that this phase of the project would support the elimination for paper credentials as well as decals as the data would be available to both IFTA and IRP in both the US and Canada. Lessons Learned in Illinois Mr. Knoles offered this presentation regarding the status of Illinois budget. He informed membership that the state of Illinois has been without a budget for almost 400 days; officially since July 1, Currently, no budget has been set for either the fiscal year 2016 or Due to a state budget impasse, Illinois has been unable to pay their liabilities timely. These liabilities include membership dues to IFTA as well as funds netting within the IFTA, Inc. Clearinghouse. In late December 2015, Illinois issued a letter to membership with their apologies requesting that all members exercise patience and understanding. The November 2015 transmittal period was the first time Illinois could not fund and no immediate solutions were identified. The top priority of the Illinois Department of Revenue was to find funding to cover the jurisdiction s liabilities. During this process, Illinois has exercised full disclosure within the IFTA community by seeking guidance and advice from IFTA, Inc., the IFTA, Inc. Board of Trustees, other member jurisdictions, trucking associations, and their carriers of the financial status. In April 2016, the IFTA, Inc. Board issued correspondence to both the IL Department of Revenue s Director as well as the Governor of Illinois. These letters were direct, professional, and appropriate and explained that federal involvement could result as well as expulsion from the Agreement. Despite this communication, neither the governor s office nor the Illinois legal services identified a solution. A solution, albeit temporary, was found by the IL DOR s Revenue Accounting in early June This temporary solution allowed Illinois to begin making payments against its liabilities. Illinois is currently working towards a more permanent solution that would remove the statutory language that ties these expenditures to an annual appropriation. As a community and as a result of this issue, the question was raised as to what could be done to limit or eliminate such an occurrence in the future. Sanctions were considered that included the loss of voting privileges, jurisdictional travel not funded through IFTA, Inc., and applying interest to late invoices and funds netting payments. Town Hall Meeting Mrs. Debora Meise, IFTA, Inc. Senior Director, moderated the Town Hall discussions. Several topics were offered and discussed at length. Some of these topics included: Jurisdictions allowing IFTA, Inc. to provide data to SAFER and Nlets Canceling accounts at the end of the calendar year for non renewal Moving towards scanning technology vs. manual data entry of IFTA returns Lessons learned from the Illinois budget issue Funds netting and possible penalties for non payment Tax rate corrections following the closing and publishing of the matrices Audit Committee representation serving as a possible audit count to the jurisdiction for returning to Canada for a future Annual Business Meeting Effective use of demographic data Uncollectable debts Introduction to the Annual Report Working Group Audit Report Exchange System (ARES) 2016 Annual IFTA Business Meeting Minutes Page 5 of 8

12 Status of the IFTA, Inc. property sale Expanding the definition of an exempt vehicle to government plated vehicles Non receipted fuel or exempt fuel purchases Breakout Sessions On the second day of the Annual IFTA Business Meeting, attendees were divided into three groups in order to attend the different breakout sessions that were provided. All attendees were able to participate in all three breakouts prior to the general session resuming. These sessions included the following: Clearinghouse: an interactive discussion about what data is in the clearinghouse, the quality control of this data, and best practices for use of the data Program Compliance Review: an in depth review of the proposed amendments to the Program Compliance Review Guide License Status: a look at enforcement from pre licensing checks to roadside Program Compliance Review Guide Mr. Richard Wagner (NV), Program Compliance Review Committee (PCRC) Chair, presented the PCRC Guide for discussion and ratification by membership. He thanked membership for their participation during the earlier breakout and asked for a motion to ratify the guide itself, however no motion was made. Concern was expressed by membership that the guide itself was in conflict with current Agreement language and, if passed, a ballot would be required to permit the guide to be functional. Motion: Ms. Mel Horner, IFTA Commissioner of North Dakota, moved to allow an open discussion of the PCRC guide. Mr. Paul Johnson, Washington Assistant IFTA Commissioner, seconded the motion. During this discussion it was noted that a motion was not necessary to discuss the guide. Both Ms. Horner and Mr. Johnson withdrew their motion and second respectively. A consensus of membership indicated that while they were in favor of the concept of the guide they were not supportive of the guide itself. It was explained that, if membership did ratify the guide, it would not become effective until January 1, Motion: motion. Mr. LaRose moved to hold a vote to ratify the PCRC guide. Mr. Johnson seconded the Additional discussions were offered on the ratification of the guide. Motion: Mr. Mark Byrne (NE) moved to table the vote to ratify the guide until the afternoon session of the business meeting. Ms. Arnold seconded the motion. The motion passed with one dissent by Mr. Rick Taylor, Kentucky IFTA Commissioner. When the business meeting resumed for the afternoon session, the issue of the PCRC guide was addressed. Motion: Mr. Bryer moved to un table the Motion to vote for ratification of the PCRC guide. Ms. Marie Stark, Montana Assistant IFTA Commissioner, seconded the motion. The motion passed Annual IFTA Business Meeting Minutes Page 6 of 8

13 Concluding the discussions, the motion to ratify the Guide was withdrawn by both Mr. LaRose and Mr. Johnson. It was noted that the ratification of a PCRC guide could be offered at any time during a calendar year and not be held just to the business meeting. Mr. Wagner will request the Board to submit a new or amended charge to the PCRC regarding the direction for them to pursue. Audit Committee Ballot Audit Committee (AC) Chair, Mr. David Nicholson (OK), presented Short Track Preliminary Ballot Proposal (STPBP) to membership. The intent of this ballot is to allow the audit of any four consecutive quarters to count toward a jurisdiction s total number of audits for compliance with A310. Additionally, it was noted that the audit of all returns would be required to be filed in a license year in order to be counted toward a jurisdiction s total number of audits for compliance. Motion: Mr. Bryer moved to advance IFTA STPBP and have it continue on the short track ballot process. Mr. LaRose seconded this motion. A roll call vote was taken and the Motion passed. with 53 votes in favor. Recognition of Service to IFTA and IFTA, Inc. Ms. Lonette Turner, IFTA, Inc. CEO, recognized the outgoing Board members. Mr. Hughson and Mr. Hinkley were acknowledged for their years of service to the Board. Mr. Hughson had completed six years of service to the Board while Mr. Hinkley concluded eleven years. Both members terms expire December 31, Ms. Turner also recognized Mrs. Meise for her twenty years of service to IFTA, Inc. Dual Fuels Reporting Best Practices Mr. Hughson explained that there had been a change in the recommendation of reporting methodology for dual fuel use vehicles. Originally, it was recommended that dual fuel vehicles be treated and reported separately. Furthermore, dual fuel vehicles must be treated and reported as two vehicles. The revised methodology now recommends that membership not report dual fuel vehicles separately. Dual fuel vehicles fuel purchases and distances travelled, after pro rating, should now be added/combined with other fleets. This change is due to the fact that there are less dual fuel vehicles currently in operation than originally anticipated. Additionally, the new methodology is less complex and offers the chance for fewer errors to be made. Ballots necessitating these changes include FTFBP # , which became effective July 1, 2015, and FTFBP # , which becomes effective July 1, IRP, Inc. Update IRP, Inc. CEO, Mr. Tim Adams, updated membership on the activities of IRP, Inc. Mr. Adams explained that, effective January 1, 2016, charter buses are no longer exempt as outlined in a ballot which was passed by IRP membership in Effective July 1, 2016, new language removed the existing requirement to be registered when a lease company owner has an established place of business. This change reflects a long term lease vehicle ballot approved by IRP membership in Referencing the IRP, Inc. clearinghouse, Mr. Adams announced that fifty six jurisdictions belonged to the clearinghouse and an estimated $800 million was transferred through the IRP clearinghouse. A clearinghouse standardization project is also being considered by the IRP IT committee. During 2015 and part of 2016, sixteen IRP peer reviews have been completed with eleven of these reviews conducted onsite Annual IFTA Business Meeting Minutes Page 7 of 8

14 IRP is also looking into electronic credentials and has a task force charged with developing a white paper to present to the IRP Board regarding what is necessary to move towards a true electronic records capability across the board. Industry Advisory Committee Report Ms. Sandy Johnson (North Star Fleet Solutions, Inc.), Industry Advisory Committee (IAC) Chair, submitted a videotaped report on how technology is changing how things are done in the trucking industry. Ms. Johnson commented on the Unified Registration System (URS), Uniform Carrier Registration (UCR), as well as Electronic Logging Device (ELD). Ms. Johnson noted that education was the best tool a carrier could have when learning how to properly work with these new and upcoming systems and that allowing access to third party providers to assist carriers with the necessary filing and reporting is a step in the right direction. Decal Specifications Mrs. Meise reviewed the decal specifications with membership. It was explained that a three color rotation was permanently approved by the Board. These specifications will be published on the IFTA, Inc. website. However, viewers must have log in credentials to view this data. The color rotation will be as outlined below and then automatically repeat. Year Color Pantone Number 2017 Green 354C 2018 Red 485C 2019 Blue 299C New Business Mr. Bernander advised membership of a survey drafted on behalf of the Motor Carrier Electronic Credential Pilot project. The survey referenced an electronic credential ballot proposal. This fourquestion survey was made available at the business meeting to solicit comments. Those associated with the pilot project are working towards a 2017 ballot. The 2017 Annual IFTA Business Meeting has been contracted and will be held August 9 10 at the Sheraton Grand at Wild Horse Pass in Chandler, Arizona. Adjournment Prior to concluding the business meeting, Ms. Turner and Mr. Zion acknowledged the sponsors and attendees and thanked everyone for attending the 33 rd Annual IFTA Business Meeting. Concluding all discussions, Mr. Zion asked for a motion to adjourn. Motion: Mr. Hughson moved to adjourn the 33 rd Annual IFTA Business Meeting. Mr. Hinkley seconded the motion. The motion passed Annual IFTA Business Meeting Minutes Page 8 of 8

15 FOR DISCUSSION AT THE 2017 ANNUAL IFTA BUSINESS MEETING AUGUST 9-10, 2017 Sponsor IFTA FULL TRACK PRELIMINARY BALLOT PROPOSAL FTPBP # Jurisdictions of Alabama, Maine, Virginia and Wisconsin Date Submitted December 13, 2016 Proposed Effective Date January 1, 2018 Manual Sections to be Amended IFTA Articles of Agreement (January 1996 Version, Effective July 1, 1998, as revised) R625 DISPLAY OF DECALS Subject Display of decals for short-term motor vehicle rentals. History/Digest Section R625 of the IFTA Articles of Agreement requires IFTA vehicle identification decals to be placed on the exterior portion of both sides of the cab of a qualified vehicle. Recognizing the unique nature of operations for certain types of operators, the Agreement provides an exception to this requirement for transporters, manufacturers, dealers, or driveaway operations. In these cases the decals are not required to be permanently affixed, but rather are allowed to be temporarily displayed in a visible manner on both sides of the cab. A utility contractor asked the Virginia Department of Motor Vehicles to seek an amendment to the Agreement to extend the decal display exception to rental equipment. As a utility contractor the company rents equipment from time to time as a result of equipment failures or peak demand. IFTA Full Track Preliminary Ballot Proposal # Page 1 of 3 June 8, 2017

16 Intent The intent of this ballot is to amend the IFTA Articles of Agreement to allow carriers using a qualified motor vehicle under a short-term motor vehicle rental of 29 days or less whereby the lessee has assumed responsibility for reporting and paying the fuel use tax pursuant to Section R510 of the IFTA Articles of Agreement to temporarily display the IFTA decals rather than permanently affix them to the vehicle. The proposed change would provide carriers using rental equipment greater flexibility and in some cases lower costs in managing the requirement to display IFTA decals on qualifying motor vehicles. The change could also reduce the number of circumstances in which a lessee fails to remove its IFTA decals from rental equipment upon termination of the rental, potentially jeopardizing law enforcement efforts. The ballot also corrects a misspelling that exists within Section R625. IFTA Full Track Preliminary Ballot Proposal # Page 2 of 3 June 8, 2017

17 Interlining Indicates Deletion; Underlining Indicates Addition ARTICLES OF AGREEMENT *R625 DISPLAY OF DECALS Each licensee shall be issued a minimum of two vehicle identification decals for each qualified vehicle in its fleet. The decals must be placed on the exterior portion of both sides of the cab. In the case of transporters, manufacturers, dealers, or driveway driveaway operations, or in the case of a short-term motor vehicle rental of 29 days or less whereby the lessee has assumed responsibility for reporting and paying the fuel use tax pursuant to R510, the decals need not be permanently affixed, but may be temporarily displayed in a visible manner on both sides of the cab. NO REVISIONS FOLLOWING THE FIRST COMMENT PERIOD IFTA Full Track Preliminary Ballot Proposal # Page 3 of 3 June 8, 2017

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19 FTPBP # : 31 Oppose: 0 Undecided: 2 ALABAMA ALBERTA BRITISH COLUMBIA CONNECTICUT ILLINOIS INDIANA KANSAS MAINE MANITOBA MICHIGAN Undecided Currently, we utilize and encourage our carriers to obtain a Temporary Decal Permit (R650), which adequately addresses this issue. The temporary decal permit is vehicle specific and provides a document trail for audit. We are not necessarily opposed to the ballot at this time, but would like to evaluate it's necessity. MINNESOTA Minnesota is supportive of the ballot proposal and the effective date. MISSISSIPPI FTPBP # Page 1 of 3

20 FTPBP # MONTANA if ballot #2 passes requiring serialized decals. NEVADA NEW BRUNSWICK NEW HAMPSHIRE NORTH CAROLINA Undecided By not affixing the decal to the vehicle, there is concern carriers could move unaffixed decals between vehicles and not properly report. It may be more difficult to track vehicles and mileage that should be reported. NOVA SCOTIA ONTARIO PENNSYLVANIA PRINCE EDWARD ISLAND QUEBEC RHODE ISLAND SASKATCHEWAN SOUTH CAROLINA Stakeholders FTPBP # Page 2 of 3

21 FTPBP # ATA Robert Pitcher This seems like common sense, but only given that IFTA requires decals at all. Decals no longer make any sense. TENNESSEE UTAH VERMONT VIRGINIA WASHINGTON WEST VIRGINIA WISCONSIN FTPBP # Page 3 of 3

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23 FOR DISCUSSION AT THE 2017 ANNUAL IFTA BUSINESS MEETING AUGUST 9-10, 2017 Sponsors IFTA Law Enforcement Committee IFTA Agreement Procedures Committee Date Submitted April 13, 2017 Proposed Effective Date January 1, 2019 Manual Sections to be Amended IFTA FULL TRACK FINAL BALLOT PROPOSAL FTPBP # IFTA Articles of Agreement *R2110 IFTA, INC. Clearinghouse Subject An amendment to the IFTA Articles of Agreement to: Require jurisdictions to record and upload decal license years and serialized IFTA decals issued to carriers. History/Digest Currently IFTA jurisdictions are not required to issue keep track of their decals. In trying to keep up with technology of today, the IFTA community is moving toward accepting an electronic image of an IFTA license. Our goal is to make the carriers serialized decal numbers available for enforcement personnel and ensure that the data being received by enforcement is accurate. The IFTA LEC wants to accomplish this before we move toward pursuing an electronic image of an IFTA credential. In order to accommodate IFTA, enforcement we would like all jurisdictions participating in the IFTA Clearinghouse to include the decal license years and serialized decal numbers specific to a carrier in their uploads. P320 in the IFTA Procedures Manual currently requires decals to be serialized. We understand that the decals are not required to be vehicle specific. The IFTA LEC does not want decals to be vehicle specific. All, serialized decals IFTA Full Track Preliminary Ballot Proposal # Page 1 of 3 June 8, 2017

24 should be assigned to a specific carrier. Jurisdictions should record and update the decal numbers specific to an IFTA licensee. Then, when a QMV (qualified motor vehicle) is stopped, enforcement can confirm the decal matches the licensed carrier. This would be a tool used to combat/deter/detect fraudulent decals by confirming the decal is valid and associated to the licensed carrier. Accepting an electronic image of an IFTA license is being encouraged and pressured by industry, and some jurisdictions, the LEC is merely preparing to accept the technology. Intent The intent of this ballot is to amend the IFTA Articles of Agreement to require that jurisdictions track and upload serialized decal numbers issued to carriers. This would be done by adding license year and serialized decal numbers to Licensee demographic data in Section R of the IFTA Articles of Agreement. IFTA Full Track Preliminary Ballot Proposal # Page 2 of 3 June 8, 2017

25 Underlining indicates addition; strikethrough indicates deletion *R2110 IFTA, INC. CLEARINGHOUSE There is established the IFTA, Inc. Clearinghouse (hereafter referred to as the clearinghouse ) which is responsible for the maintenance and administration of licensee demographic and transmittal data transmitted by participating members. The clearinghouse is also responsible for providing a mechanism for the exchange of Interjurisdictional Audit Reports. The participating members may electronically view and retrieve the clearinghouse data..100 Participating members are those jurisdictions that have entered into an agreement with IFTA, Inc. to access the clearinghouse and that have submitted licensee demographic or transmittal data to the clearinghouse..200 Licensee demographic data includes licensee name, address, IFTA license number, license status, decal year, serialized decal numbers and other information identified in the IFTA, Inc. Clearinghouse Access Agreement. REVISIONS FOLLOWING THE FIRST COMMENT PERIOD decal year was added to compliment the original addition of serialized decal numbers to Licensee demographic data in the proposed revision to R This addition reflects a necessary change pointed out by IL during the initial comment period. This will ensure that a carrier displaying a serialized decal number is not confused with a separate carrier displaying the same decal number issued from the previous year during the IFTA Grace Period. Terminology used in the History/Digest section was changed from electronic credential to electronic image of an IFTA license. This was done to match the terminology in FTPBP # It was determined that the term electronic credential was leading jurisdictions to believe enforcement would have immediate access to a carrier s license status, which is misleading. The term electronic image of an IFTA license accurately reflects FTPBP # , which is not a live document, but only a saved image of an IFTA license stored on an electronic device. IFTA Full Track Preliminary Ballot Proposal # Page 3 of 3 June 8, 2017

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27 FTPBP # : 18 Oppose: 7 Undecided: 8 ALABAMA ALBERTA Undecided Alberta generally supports the ballot but has concerns. We have agents requesting decals to be distributed to their various client licensees as listed by the agents. While Alberta keeps track of serialized decals and can update the serialized decal information for those decals Alberta issued directly to licensees, we do not have information on which specific serialized decals are distributed by the agents to the specific licensees. Since Alberta cannot update the serialized decal information for decals distributed through these agents, there continues to be a need to call Alberta for verification of decal information for those cases. We are, therefore, wondering about the value of the proposed ballot. BRITISH COLUMBIA Already doing. CONNECTICUT Connecticut is in support of this ballot. While IFTA is expressly not vehicle specific, nothing prevents jurisdictions from maintaining information on what serial numbers have been issued to specific carriers. By providing this information as part of the Clearinghouse demographics, law enforcement can readily identify what decal numbers a carrier has in their possession. This will make things easier for law enforcement to identify the misuse of decals. Once IFTA goes to full electronic credentialing we will in fact be vehicle specific; until such time this is a good measure to undertake to assist law enforcement. ILLINOIS Oppose Oppose as written. One very important component that must be required with this ballot language is the decal year must be identified with the serial number. It is possible that decal number IL is valid for two different companies at the same time: carrier ABC could have decal IL issued for 2017, while carrier DEF could have decal IL issued to them for 2018: both decals (could be) valid from December through the end of the grace period. A roadside search of "serial number" could provide a false hit if that decal serial number is not tied to a specific year. FTPBP # Page 1 of 5

28 FTPBP # INDIANA Oppose Indiana does not support this ballot as it does not provide a complete solution. If passed this ballot would require programming changes, continual updates, and still would not verify that the credential is valid through this change alone. To expend resources to comply with this ballot when we are on the doorstep of a very different future verification process that would also require allocation of scarce resources is inefficient. As an alternative, Indiana supports the concept of electronic records as a safe, accurate, inclusive, economical, and effective validation of credentials. KANSAS MAINE Undecided While Maine currently seializes its decals, we see limited value in requiring jurisdictions to send their serial numbers to the CH. This option exists today fo rany jurisdiction wishing to avail themselves of the service. Making this a requirement at this late date would seem superfluous. MANITOBA MICHIGAN MINNESOTA Minnesota is supportive of the ballot proposal and the effective date. MISSISSIPPI MONTANA NEVADA Nevada supports this ballot as we already serialize our decals. That said, what does this ballot really accomplish? It will require costly changes for system programming and a new field in the clearinghouse. Decals and copies of licenses in the cab are little more than a false sense of security for law enforcement and have been for years. A decal (serialized or not) on the cab of the truck does not ensure that vehicle is being reported for IFTA. The license is only a piece of paper that states the "company" the vehicle belongs to licensed for IFTA. It doesn't mean the returns were received, all the vehicles were reported on FTPBP # Page 2 of 5

29 FTPBP # the return, or the information on the return is even accurate. Only real time information which may also be available through ASPEN, NLETS, SAFER, PRISM, CVIEW, etc., will tell you if the company is still active and in good standing with IFTA. Perhaps rather than trying to fit the electronic credentials into a box that is rapidly becoming obsolete, it is time to think outside the box and find long term solutions that will fit the changing transportation industry, i.e. in 2035 when driversless vehicles are the norm. It's time to consider piloting a few states to go totally electronic, no paper license and no decals, or perhaps build an app through IFTA that will provide realtime status of the company for roadside enforcement to view if it provides greater value to the officer coming directly from IFTA. NEW BRUNSWICK Undecided We support the idea of including the decal numbers, however we will need to investigate the capability of our IT system to provide this information. NEW HAMPSHIRE Undecided NORTH CAROLINA Undecided There is concern with the system changes needed and costs associated with those changes. NOVA SCOTIA Undecided We are unclear about operational and IT implications. ONTARIO PENNSYLVANIA PRINCE EDWARD ISLAND Undecided We would need to confirm with our IT department that the information we already have in our system could easily be reported on. QUEBEC Oppose Even if Quebec is not part of the clearinghouse, we think this proposal will require a significant system development and it will be costly. FTPBP # Page 3 of 5

30 FTPBP # RHODE ISLAND RI currenty already does this SASKATCHEWAN SOUTH CAROLINA Stakeholders Oppose ATA Robert Pitcher Although more thorough and timely sharing of IFTA licensees demographic data by the states and provinces is necessary, the sharing of serialized decal numbers is not, and would be bound to cause problems for compliant carriers. TENNESSEE UTAH Oppose We feel it's not worth the effort to have our system changed, and decals serialized, if decals are going to be obsolete in the next few years.. VERMONT VIRGINIA Undecided Virginia already does this voluntarily, but to require it of all jurisdictions seems at odds with the long-term goal of moving to electronic credentials. We look forward to the discussion of this ballot. WASHINGTON Oppose This proposal would require a significant system development. We have IFTA accounts without IRP and IRP accounts with foreign jurisdiction IFTA. An IFTA account without vehicle information would be difficult to track decals by vehicle. WEST VIRGINIA FTPBP # Page 4 of 5

31 FTPBP # WISCONSIN Oppose Wisconsin does not support. We currently maintain serial numbers internally but do not feel the juice is worth the squeeze. Reprogramming our system to upload serialized decal numbers to the clearinghouse would require funding and energy that we feel would be better spent elsewhere (electronic records). If decals were going to be around for another decade or longer, I would fully support vehicle specific decals. That being said, I believe the decal's days are numbered. Wisconsin is supportive of allocating resources to electronic records concept and level 8 (moving) roadside inspections. FTPBP # Page 5 of 5

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33 FOR DISCUSSION AT THE 2017 ANNUAL IFTA BUSINESS MEETING AUGUST 9-10, 2017 Sponsor Agreement Procedures Committee Date Submitted April 12, 2017 Proposed Effective Date Upon Passage IFTA FULL TRACK BALLOT PROPOSAL FTPBP # Manual Sections to be Amended (January 1996 Version, Effective July 1, 1998, as revised) IFTA Procedures Manual *P1030 U.S. and Canadian Funds Transfers Subject A change in the reference to be used if a conversion from Canadian to U.S. dollars is required for the transmittal reports. History/Digest Currently, if a conversion is required from Canadian to U.S. dollars for transmittal purposes, the procedures state that it shall be done using the Bank of Canada noon day spot rate quoted at 12:00 PM Eastern Time. The Bank of Canada has traditionally published two daily foreign exchange rates, one of which was a noon day rate. However, effective May 1, 2017, there will only be one foreign exchange rate published by 4:30 PM Eastern Time each business day. Intent The intent of this ballot is to amend the IFTA Procedures Manual to align with the Bank of Canada s new procedure in publishing exchange rates once each business day by 4:30 PM Eastern Time. With the elimination of the published noon day rate, to allow for timely Canadian jurisdictional transmittals, if a conversion takes place before 4:30 PM Eastern Time the prior day s rate will be used. A fund conversion at 4:30 PM Eastern Time or after will be converted using the current day s rate. IFTA Full Track Preliminary Ballot Proposal # Page 1 of 2 June 8, 2017

34 Interlining Indicates Deletion; Underlining Indicates Addition *P1030 U.S. AND CANADIAN FUNDS TRANSFERS.200 Transmittals from Canada Transmittal reports submitted by a Canadian jurisdiction to a U.S. jurisdiction will be in either U.S. customary measures and U.S. dollars, or International customary measures and Canadian dollars. All funds transmitted by Canadian jurisdictions to U.S. jurisdictions will be in U.S. dollars. If a conversion is required from Canadian to U.S. dollars it shall be done using the Bank Of Canada noon day spot rate quoted at 12:00 PM Eastern Timeexchange rate that was posted by 4:30 PM Eastern Time. A fund conversion prior to 12:00 4:30 PM Eastern Time will be converted using the prior day s spot rate and a fund conversion at 12:00 4:30 PM Eastern Time or after will be converted using the current day s spot rate. The amount to be converted into U.S. dollars will be net the cost of converting. [SECTIONS P and P REMAIN UNCHANGED] NO REVISIONS FOLLOWING THE FIRST COMMENT PERIOD IFTA Full Track Preliminary Ballot Proposal # Page 2 of 2 June 8, 2017