Attorney’ Meeting IFTA Amendments October 6, 2015 Presented by: Ed Beaudette Montana Department of Transportation and Lonette L. Turner, CEO IFTA, Inc. In this section we are going to discuss how IFTA amendments work. The goal here is to provide you with information as to the amendment process as well as to prepare you for some current amendments that will be discussed in the meeting. There will be some voting taking place at the meeting so this segment is meant to familiarize you with what the process is and what your role will be. Feel free to ask questions as we go along. Managed by the International Fuel Tax Association, Inc.

Managed by the International Fuel Tax Association, Inc. IFTA Amendments The IFTA Articles of Agreement, R1600 provides that proposals for amendments to the Agreement, Procedures Manual or Audit Manual can be made by: Any Member Jurisdiction Committees: Agreement Procedures, Audit, Clearinghouse Advisory, Law Enforcement, Program Compliance Review The IFTA, Inc. Board of Trustees Read slide Managed by the International Fuel Tax Association, Inc.

Managed by the International Fuel Tax Association, Inc. IFTA Ballot Process Sponsors submit Proposals Proposals distributed for comment period Proposals discussed at Annual Business Meeting Sponsors review proposals and may submit revisions Proposals distributed for second comment period Sponsors review and may submit revisions Ballots distributed for vote All comments and votes are submitted through IFTA, Inc. website This is how the IFTA amendment process works. Discuss the points. Managed by the International Fuel Tax Association, Inc.

IFTA Ballot Time Frames Full Track Proposals First comment period – 45 days Sponsor review after ABM (unless moved to Short Track at the ABM) – 45 days Second comment period – 45 days Voting period – 60 days This year there are 3 FT ballots. First comment period ended June 17/11 & July 15/11 comments were distributed for review. Ballots will be presented discussed during the meeting. Sponsors have until Sep 30/11 to submit changes following ABM.* Second comment period starts approx Oct 7/11 and ends on Nov 14/11.* Ballot proposals are submitted for a vote on Nov 21/11. Voting period ends on Jan 5/12* *Approximate dates Managed by the International Fuel Tax Association, Inc.

IFTA Ballot Time Frames Short Track Proposals First comment period – 30 days Sponsor review after ABM (provided the ballot received sufficient votes to move forward) – 30 days Second comment period – 30 days Voting period – 30 days This year there is 1 ST ballot which is sponsored by the IFTA Board. There will be a presentation, discussion & then a vote on whether the ballot should continue. Managed by the International Fuel Tax Association, Inc.

Annual Business Meeting Protocol Full Track Ballot Proposals Full track ballot proposals may be moved to short track – must receive an affirmative vote of ¾ of the member jurisdictions to move to short track – if not, ballot stays on full track and moves forward Straw Votes: Ballot sponsors may request a straw vote to determine the level of support for a ballot proposal Not a binding vote Short Track Ballot Proposals Short track ballot proposals must receive an affirmative vote of ¾ of the member jurisdictions to continue on the short track – if not, ballot proposal dies The 1 Short track ballot will be voted on in the ABM & must have an affirmative vote of ¾ of the member jurisdictions to continue or this ballot will die. Full Track Voting Requirement: : R1620.100 (need 44 affirmative votes to pass) Short Track Voting Requirement: : R1620.200 (need 44 affirmative votes to pass) Managed by the International Fuel Tax Association, Inc.

Consensus Board Interpretations (CBI’s) A process through which provisions of the IFTA governing documents may be interpreted/clarified and commentary added to the affected provisions Managed by the International Fuel Tax Association, Inc.

Consensus Board Interpretations (CBI’s) A jurisdiction, committee or Board member may request an interpretation of IFTA requirements as stated in the Agreement, Procedures Manual or Audit Manual The Board may issue a proposed interpretation A proposed interpretation must be ratified by ¾ affirmative vote of the membership at an Annual Business Meeting If ratified, commentary is added to the affected IFTA governing document & is binding on all jurisdictions This year we have one CBI proposed by the Board. This CBI came from a request for clarification from a member jurisdiction. This CBI will be voted on and must receive an affirmative vote of ¾ of the member jurisdictions to continue or this CBI will die. If ratified, this CBI will be added as commentary to the IFTA Agreement – R1230. Voting Requirement: R1720 Managed by the International Fuel Tax Association, Inc.

Managed by the International Fuel Tax Association, Inc. IFTA Bylaws IFTA Bylaws require an annual meeting to conduct business, elect trustees to the Board IFTA Bylaws govern voting requirements (along with the IFTA Agreement) Amendments to the Bylaws require a majority of votes (per the IFTA Articles of Incorporation) IFTA Bylaws are located on the IFTA Inc. site – bottom of home page. Amendments to Bylaws - voting requirements: IFTA Articles of Incorporation Amendments to the Bylaws are being tabled for a vote at this year’s meeting. These amendments have been proposed to allow for better consistency within the bylaws and for the election of Board members. Managed by the International Fuel Tax Association, Inc.

Managed by the International Fuel Tax Association, Inc. Questions? Managed by the International Fuel Tax Association, Inc.