AMENDMENTS TO THE PROGRAM COMPLIANCE REVIEW GUIDE July 2006 IFTA Annual Business Meeting

Summary of Changes Strikes language allowing PCRC to seek expulsion after issuance of a Final Determination Finding of Non-Compliance Adds language requiring PCRC to refer matter to DRC within 60 days of issuing a Final Determination Finding of Non-Compliance

Summary of Changes Strikes Section IV Executive Committee Appeal Process

AMENDMENTS TO THE PROGRAM COMPLIANCE REVIEW GUIDE July 2006 IFTA Annual Business Meeting

AMENDMENTS TO THE DISPUTE RESOLUTION PROCESS July 2006 IFTA Annual Business Meeting

General Layout of Current Document Statement of Purpose I: Definitions II: Complaint Process A. General Information B. Complaint Process Penalties Appeals

General Layout of Proposed Document Statement of Purpose I: Definitions and General Procedures A. Definitions B. General Procedures II: Complaint Process A. General Information B. Complaint Process III: Program Compliance Enforcement Process A. General Information B. Referral Process IV: Penalties V: Appeals

Statement of Purpose Language added to reflect that the DRP: Offers opportunity for the PCRC to address compliance issues Provides a means for resolution of continuing compliance issues identified through the PCR process

Revised Definitions Complainant Revised to reflect that the PCRC can be a complainant Respondent Revised to reflect that the PCRC can be the party alleging that a jurisdiction (the respondent) is in non-compliance

Added Definitions Referral: A formal Referral for Enforcement of a Final Determination Finding of Non- compliance from the Program Compliance Review Committee Review: A Program Compliance Review Review Committee: The IFTA Program Compliance Review Committee

Added General Procedures Section Consolidates general procedures applicable to all types of disputes into single section Appropriate provisions moved from the prior General Information section Examples: When actions considered filed Acceptable methods of filing Proof of service Requesting extensions of time on filing dates

Revised Complaint Process/ General Procedures Section Strikes provisions that were moved to the new General Procedures section

Revised Complaint Process/ Complaint Process Section Strikes provisions that were moved to the new General Procedures section Adds language to correct a prior error: “… must be approved by a majority of the voting members of the Committee.” Adds language requiring the distribution of DRC findings to include the Chief Executive of the Respondent to maintain consistency with recipients of the original complaint

Added Program Compliance Enforcement Process Section Subsections General Information Referral Process

Program Compliance Enforcement Process Section General Information Subsection Authorizes PCRC to make a referral for enforcement Outlines how referral is filed Requires review process to be complete and a Final Determination Finding of Non-compliance to be issued Requires PCRC to make referral within 60 days of issuing Final Determination

Program Compliance Enforcement Process Section Referral Process Subsection Requires PCRC to file a Referral when a Final Determination Finding of Non-compliance is issued Outlines documentation PCRC is required to file with a Referral Establishes the findings of the PCRC as prima facie evidence of non- compliance

Program Compliance Enforcement Process Section Referral Process Subsection Outlines process and required documentation for Respondent to protest Referral Establishes the Final Determination Finding as the Compliance Findings and Order of the DRC in the event of no protest Allows a protest to be amended once within 30 days

Program Compliance Enforcement Process Section Referral Process Subsection Requires Executive Director to schedule date and location for DRC to review party submissions Allows Respondent to request and DRC option of granting a hearing Allows Respondent and PCRC to provide briefs and establishes schedule for submission

Program Compliance Enforcement Process Section Referral Process Subsection Requires Respondent to file a Statement of Compliance within 30 days of time scheduled for DRC to consider protest Allows Respondent to request and justify that witness testimony be permitted at a hearing Allows PCRC to respond to Statement of Compliance and to object to proposed witnesses or evidence

Program Compliance Enforcement Process Section Referral Process Subsection Allows DRC to grant permission for oral testimony by majority vote Requires testimony to be informal and confined to actions related to compliance since the review was conducted Respondent carries the burden of proof Allows Respondent and then PCRC to make its argument to the DRC

Program Compliance Enforcement Process Section Referral Process Subsection Allows arguments/counter- arguments to continue until majority of DRC has facts sufficient to make decision Requires findings to be approved by majority of voting members or voting members present in the event of a hearing Findings and Order allows for approval by signature and dissent by signature

Program Compliance Enforcement Process Section Referral Process Subsection Requires findings to include a determination on issues stated in the protest, including grounds for finding Allows for immediate assessment of any or all penalties and/or a resolution for expulsion Allows penalties to be linked to failure to attain certain goals and sets out process for Respondent to report progress

Program Compliance Enforcement Process Section Referral Process Subsection Establishes process for Respondent to petition DRC for relief from imposed penalties

Penalties Section No changes

Appeals Section Adds language to clarify that the Board shall review accepted appeal matters at the next Board meeting Corrects language to require the Board to issue its decision within 45 days of reviewing the appeal rather than receiving the appeal

AMENDMENTS TO THE DISPUTE RESOLUTION PROCESS July 2006 IFTA Annual Business Meeting

Ballot July 2006 IFTA Annual Business Meeting

Ballot Sponsors: Board of Trustees PCRC Intent: Allow PCRC to initiate a compliance matter under R1555 against a jurisdiction that remains out of compliance following a review and reassessment

Ballot R1555 COMPLIANCE MATTERS.100 Dispute Resolution Process Disputes concerning issues of compliance with the International Fuel Tax Agreement may be resolved pursuant to the IFTA Dispute Resolution Process. The IFTA Dispute Resolution Process may be utilized to resolve only:.005Compliance disputes between member jurisdictions; and.010Compliance disputes between member jurisdictions and IFTA licensees …. ; and.015Compliance matters from the Program Compliance Review Committee.

Ballot July 2006 IFTA Annual Business Meeting