2016 ABM August 17 2016 Indianapolis IN August

2016 ABM August 17, 2016 Indianapolis, IN August 17 -18 2016 Annual Business Meeting Indianapolis, Indiana

How many jurisdictions are allowing IFTA, Inc. to provide their IFTA data to SAFER? How many jurisdictions are allowing IFTA, Inc. to provide their IFTA data to Nlets. August 17 -18 2016 Annual Business Meeting Indianapolis, Indiana

How many jurisdictions cancel out accounts at the end of the year (those that don’t renew)? August 17 -18 2016 Annual Business Meeting Indianapolis, Indiana

How many jurisdictions are moving to scanning technology (rather than hand keying of IFTA returns into their computer systems)? What challenges/efforts have you undertaken to get service providers and carriers using their own “close” copies/reasonable facsimiles of the return to upgrade in order to become scan-able? August 17 -18 2016 Annual Business Meeting Indianapolis, Indiana

The “Illinois Issue” Lessons Learned From Not Funding Funds Netting

Time without a budget 399: 15: 01: 41 Days Hrs Mins Secs

At issue: Illinois could not pay its liabilities because of a State Budget Impasse: we could not pay our Annual Membership Dues we could not pay our “owe” months as a result of the monthly Clearinghouse Funds Netting Process

Why Not? • Our expenditures must be appropriated.

Illinois’ Appropriation • Funds that are used to pay IFTA jurisdictions as a result of the Clearinghouse Funds Netting Process are tied directly to an annual appropriation. • This appropriation is tied to the annual State budget. • Each fiscal year’s State budget must be passed by the General Assembly. • Governor: Republican (1 st Term, non-politician) • Senate Majority: Democrat (37 yr career politician) • House Majority: Democrat (40 yr career politician)

Sorry folks, Illinois is closed. Politicians can’t finalize a budget

Illinois’ Response? • Let’s ride this out: a budget will soon be passed. • Sorry folks, Illinois is closed. • Officially sorry via letter to all jurisdictions December 29, 2015

Budget FY-16 • Horror Stories – State Museum and parks closed – Mental Health facilities closed – Colleges and Universities layoffs – No student grants approved – Epilepsy, Autism, Meth programs – Road construction halted – State’s credit rating falls – Numerous others… Google it sometime

Options No options were immediately identified. – IDOR’s Legal Services could find nothing statutorily – IDOR’s Budget Office relied upon Legal Services

And Time Goes On 399: 15: 01: 43 Days Hrs Mins Secs

Top Priority: Find funding!

The Plan: Full Disclosure – – – Reach out to IFTA, Inc for guidance and advice Keep the Board up-to-date Keep the jurisdictions up-to-date Keep our trucking associations up-to-date Keep our carriers up-to-date

Numerous communications transpired: • • • between Illinois and IFTA, Inc between IFTA, Inc and jurisdictions between IFTA, Inc and various committees between the IFTA, Inc and the Board between the Board and Illinois between the Board without Illinois between the Board and some jurisdictions between the Board and IFTA, Inc and the CAC between the Board and IFTA, Inc and the DRC from Illinois during the PCRC Meeting Regional Calls March 1 st from Illinois during the Board Liaison Regional Calls March 15 th, 16 th, and 17 th

The Board’s Official Action – Directed IFTA, Inc to send a letter to IDOR’s Director and to Illinois’ governor on behalf of the Board of Trustees April 21 st

The Tone of the Letters? • Direct. Certain. Professional. Appropriate. • Federal involvement could result • Expulsion from the Agreement could result

Our Top Priority Remains: Find funding! • Still nothing found by IDOR’s Legal Services • Still nothing found by IDOR’s Budget Office

Finally-- A Temporary Solution Found! • IDOR’s Revenue Accounting found the solution. June 9 th • IL sent an email to the Commissioners and Funds Netting contacts informing them a solution has been found and payment will soon be on the way. June 9 th

Illinois’ Permanent Solution Remove the statutory language that ties this expenditure to an annual appropriation.

Positive Offshoots • Non-timely Payment of Membership Dues was addressed • We now have new language on our dues invoice to include interest. “Any dues paid more than 90 days past the due date shall incur a 1% per month interest charge, and that member shall lose their voting privileges until the account is paid in full and/or brought into active status. ” • A chink in the Agreement surfaced. – There are no short-term consequences for non-payment to jurisdictions.

So Now What? • We, as a community, need to talk about this NOW. • What happens if this situation comes up again? • Should sanctions be imposed? – – • • What? (Voting privileges revoked? Travel not funded? Interest applied? ) When? (after 2 non-payments? 4 non-payments? ) Should the CH/Funds Netting process have a contingency for this? What steps do we need to take today to prepare for a situation like this event in the future?

Thank You • IFTA, Inc staff • IFTA Board of Trustees • IFTA Community “I want to thank the entire IFTA community for their unprecedented tolerance, understanding, empathy, and the desire to resolve problems “within the community”. But having said that, I realize this issue was pressed about as far as it could be. In an effort to avoid this in the future, we continue to work diligently towards a funding solution that does not rely upon an annual appropriation. I truly appreciation your understanding. ” -Constance Beard, Director of Revenue-

Final Thoughts “If someone gave me six hours to chop down a tree, I would spend four hours sharpening the axe. ” Abraham Lincoln

Another famous Springfieldian: Ryan Held, Olympic Gold Medalist 4 x 100 m Relay. Freestyle Aug 7, 2016 Rio de Janeiro

Funds Netting ü What is a Base Jurisdiction’s Obligation? ü What are the transmittal funding requirements ü Discussion of how lateness (data and/or funding) has been historically treated by the PCR process (e. g. jurisdictions have been cited) August 17 -18 2016 Annual Business Meeting Indianapolis, Indiana

Funds Netting ü Present current interest and penalty rules as an option (we impose these upon licensees that are delinquent or deficient in making payments) ü Possible Ballot? Discuss whether this should be a full or short track ballot. ü Would you be wiling to sponsor a Ballot? August 17 -18 2016 Annual Business Meeting Indianapolis, Indiana

OPEN DISCUSSION P 1120 Tax Rate Reporting - less than 60 days Correcting the tax rate matrix when a jurisdiction initially reports an incorrect tax rate August 12 -13 2015 Annual Business Meeting San Antonio, Texas

Audit Committee Membership Count as audits towards 3% Requirement 12 Months = 1 Audit August 17 -18 2016 Annual Business Meeting Indianapolis, Indiana

ABM Locations ? Canada? Last ABM held in Canada was 2010 in Toronto August 17 -18 2016 Annual Business Meeting Indianapolis, Indiana

Alternative Fuel Types Issues with Reporting or Processing August 17 -18 2016 Annual Business Meeting Indianapolis, Indiana

Effective Use of IFTA Demographics What are you using the Data for (Carrier Verification) Is there other data that should be collected August 17 -18 2016 Annual Business Meeting Indianapolis, Indiana

Uncollectable Debts Is your jurisdiction requesting money back from members? What is the criteria you are using (procedures)? How old of a debt do you collect (timeframe)? August 17 -18 2016 Annual Business Meeting Indianapolis, Indiana

ARWG Annual Report Working Group Ron Hester, (ON) Chair Who are we? What are we working on? August 17 -18 2016 Annual Business Meeting Indianapolis, Indiana

ARES What is the Audit Report Exchange System (ARES)? and Why does it produce revenue for IFTA, Inc. ? August 12 -13 2015 Annual Business Meeting San Antonio, Texas

IFTA, Inc. ? What is the status of the sale of the IFTA, Inc. property? What are the future plans for staff if/when the property sells? August 12 -13 2015 Annual Business Meeting San Antonio, Texas

Exemptions Who is in favor of expanding the definition of an exempt vehicle to government plated vehicles? Are you willing to co-sponsor a ballot? August 12 -13 2015 Annual Business Meeting San Antonio, Texas

Old Business Non-receipted fuel or exempt fuel purchases Has this issue been effectively resolved? August 17 -18 2016 Annual Business Meeting Indianapolis, Indiana

Open Discussion August 17 -18 2016 Annual Business Meeting Indianapolis, Indiana

August 17 -18 2016 Annual Business Meeting Indianapolis, Indiana