1. Program Overview for Waller County IX GROUP

2. The Problem: Depending on the State, between 5-30% of all vehicles on the road today are uninsured despite every State now having mandatory insurance laws. An estimated 10-15,000 uninsured vehicles a day pass through Waller County; many from Dallas, Houston and other parts of Texas, putting Waller County Citizens at risk. Law enforcement currently only finds violators during roadside stop for other reasons (speeding, etc.) which involves roughly 5% of the cars on the road annually High uninsured rates have been costly to the people across the United States. Massive economic and personal losses have resulted for individuals, families, and businesses. Bottom line: its easy to cheat the system as it exists today. The solution proposed is a comprehensive public safety support system that will “see” 80% of all vehicles on the road every year – resulting in significantly improved compliance. Fees generated will further support law enforcement in Waller County. Overview 17% 20% 25% 18% 23% 16% 5% 23% 21%

3. In order to identify non-compliant vehicles, the IX Group offers to integrate proven technology into Waller County law enforcement vehicles, as well as provide safety cars. Waller County will not be required to pay for any of the program’s associated expenses. This solution will not only benefit law abiding Citizens who maintain vehicle insurance, it should be viewed as a catalyst for improvement, and a natural “technological” progression for Waller County. The solution proposed is very respectful and consistent with strong, favorable public opinion on this subject. Overview Continued

4. Using the IX Group system, verification occurs in 1.2 seconds or less The identity of the driver is unknown and not relevant during the scanning process. Only non-compliant vehicles are recognized. The system will not reveal any names or addresses to the law enforcement officer without first confirming the vehicle is non-compliant. The system does not store any files related to compliant and “unwanted” vehicles. Overview Continued License plate readers mounted to police cruisers or other law enforcement-controlled locations scan rear license plate numbers, and NEVER identify the driver or occupants. The system verifies the status of a vehicle’s insurance and registration.

5. Violators are then sent a notice by Waller County to pay a pre-court diversion fee. The fee is substantially lower than if cited and fined at a roadside stop. By limiting the number of uninsured vehicles on streets and roads, the IX Group Solution has the potential to positively impact: Law abiding Citizens who are burdened with additional costs including cost of “uninsured motorist” coverage which for many is over $100 annually per policy The health care industry in its effort to minimize millions of dollars lost in uncollectable billings due to a lack of insurance Law enforcement and courts – now frustrated with the time and resources spent in enforcing compliance Overview Continued

6. There are no legitimate privacy concerns with this solution since the identity of the driver is never known. So much so that the system has had support from NAACP and there is an oversight portal for both it and also, for the ACLU. NLETS is the primary data connection to all law enforcement agencies in the United States. The IX Group has an exclusive relationship with NLETS. Texas law enforcement, to support TLETS, relies on NLETS for much of its critical information, and has done so for more than 25 years. Only NLETS, (founded in 1966 as the National Law Enforcement Telecommunications System by all States and still owned and controlled by all the States), connects to every State Police Agency, every DMV, traffic court, and local law enforcement agency. Over 1.6 billion transactions are handled by NLETS annually. NLETS is the premier provider of interstate query responses for law enforcement, connections to all Federal Law Enforcement Agencies, Homeland Security, Amber Alerts, via CPIC to all Canadian Provinces, and to both EUROPOL and INTERPOL. It also hosts the FBI’s recovery system. Privacy

7. NLETS has never been compromised in 48 years of operation. It is widely regarded as the most secure and efficient law enforcement data system in the world. Data is NEVER handled outside of Law Enforcement. IX Group employees are never granted access to driver information or even vehicle owner data prior to an officer determining probable cause and then, only to assist with Help Desk functions. When dismissed or adjudicated, the file is purged. There is no data with commercial value. NLETS does not allow trolling or commercialization of the data Data retention policy is at the Sheriff’s discretion Use of ALPR is endorsed by the International Association of Chiefs of Police (Policy available) Privacy also guaranteed in our Contract Privacy Continued

10. Insurance violation is determined by an Officer (Field/NOC), not a camera Network Operating Center (NOC) is located in Texas and staffed by Texas Law Enforcement Officers Citation is not issued until Probable Cause is established Insurance Violations are a Strict Liability Crime, i.e. you either have Insurance or you don’t…it deals with compliance and is deliberate Proposed system enables violators to pay a Pre-Trial Diversion Fee that is far less than a violator would currently be fined for the same violation Financial incentives associated with Pre-Trial Diversion encourage vehicle owners to maintain insurance well into the future The identity of the driver is never known Only the very rear of the vehicle is viewed; never passengers or the driver Insurance Violation vs Red Light Cameras

11. Texas Law Enforcement Officers never relinquish control of the citation process Plate images are instantly sent to Law Enforcement Officers still have the roadside option to stop the vehicle OR let the citation process engage, allowing Officer to continue on patrol ALPR cameras are an additional tool to identify stolen vehicles, BOLOs, Warrants, AMBER Alerts, Silver Alerts, etc. Cameras are a Force Multiplier for all Law Enforcement activities Law Enforcement Tool

12. Technology endorsed by the International Association of Chiefs of Police

13. Significant capital investment in Waller County by IX Group No cost incurred by Taxpayers… no fees, tax or charges of any kind Project is funded by the collection of fines / fees already owed the County Risk is borne by the IX Group Revenue generated stays in Waller County Expense Considerations

14. Conducted by ORC International September 19-23, 2013. Strongly Support 71% Support 88% Somewhat Support 17% Somewhat Oppose 5% Strongly Oppose 5% Don’t Know/No Opinion 3% Overwhelming public support for minimum liability insurance requirements <$25 8% 87%87% $25k to $49k 9% 88%88% $50k - $74k 13% 87% 87% $75k - $100k 10% 89%89%9% >$100k 7% 92%92% Annual Income Oppose Favor

15. 13% Overwhelming public support for using ALPR to enforce minimum insurance requirements Public Policy Polling June 2015

16. The proposed solution addresses compliance and enforcement of existing laws in a highly respectful and privacy-protected way. Identification and verification enables law enforcement to operate more efficiently. There is simply no defensible reason to not properly monitor vehicle insurance compliance. It is Texas law, and a fundamental and necessary role of government to enforce that law. There are no costs to Waller County to implement and maintain this system. The system dramatically reduces costs and increases efficiency for law enforcement, the courts, first responders, healthcare facilities, insurers and the insured. Conclusion

17. Privacy Policy (slides 6-9) Data NEVER handled outside of Law Enforcement Data housed at NLETS Who is NLETS? NLETS security NLETS does not allow trolling/commercialization NLETS and TLETS relationship Data retention policy is the Sheriff’s Data saved for Prosecution only ALPR endorsed by the International Association of Chiefs of Police (Policy available) Privacy also insured in our Contract No Insurance vs Red Light. (Slide 10) Violation is determined by an Officer (Field/NOC), not a camera NOC is in Texas and staffed by Texas LE Officers Citation not issued until PC is established ALPR is a Strict Liability Crime. You either have Insurance, or you don’t IXG approach enables violators to pay a Reduced Fine via District Attorney Diversion Program Law Enforcement tool (Slides 11,12) Officers never relinquish control of the citation process Plate images are instantly sent to Law Enforcement Officers option to stop vehicle OR let the citation process engage, allowing Officer to continue on patrol ALPR cameras are an additional tool to identify wanted vehicles for Warrants, AMBER Alerts, Silver Alerts etc. Cameras are a Force Multiplier for all Law Enforcement activities Fixed Cameras are highly efficient and patrol 24/7 Cost Efficiency (Slide 13) $300,000 to $500,000 investment in Waller County No capital investment by Taxpayers Project is funded by the collection of fines and fees already owed the County Risk is borne by IX Group Revenue generated stays in Waller County Public Support (Slides 14,15) For minimum liability insurance requirements (88%) Use of ALPR to enforce insurance laws (76%) Slide Summary