1. REGIONAL ISSUES 2009 Discussions including 2007 & 2008 Findings and Issues

2. REGIONAL ISSUES Overview: An opportunity to breakout into geographic regions to: An opportunity to breakout into geographic regions to: Meet sit down with your jurisdiction’s neighbours Identify /discuss similar issues/problems and potential solutions An opportunity to then share regional issues/solutions with the entire group (select a presenter) An opportunity to then share regional issues/solutions with the entire group (select a presenter) A brief recap of the issues/discussions from last year and ask for examples of implemented solutions Timelines: 75 minutes for regional discussion 75 minutes for regional discussion 15 minutes for coffee 15 minutes for coffee 45 minutes for group discussion to present individual findings and issues to the entire group 45 minutes for group discussion to present individual findings and issues to the entire group

3. REGIONS / JURISDICTIONS

4. Midwest Region – 2009 Recap System Developments New Systems Unpaid Returns and collections Unsigned returns Manual report errors – rejects 30-day decal Extra decals How to audit decals US DOT #’s Can you have two decals on your truck and who reports Checking serial #’s on decals No decals/barcode readers/license plate readers/transponders but what about visual effect and

5. Midwest Continued Trip Permits Integrating Tax Databases XML for IFTA tax returns IA has enforcement officer in the office Web-based online concerns – many transactions are offered online and what is the affect Placement of decals Exemptions

6. Southeast Region – 2009 Recap Dealing with settlements on large audits.Dealing with settlements on large audits. Importance of communication between management and law enforcement.Importance of communication between management and law enforcement. Leased vehicles using another companies DOT #.Leased vehicles using another companies DOT #. Checking the # of decals order against the # of vehicles registered.Checking the # of decals order against the # of vehicles registered. Communicating information on vehicles found with dyed fuel to their base jurisdiction.Communicating information on vehicles found with dyed fuel to their base jurisdiction. Dealing with revoked carriers setting up new accounts under different SS #’s / Fed ID #’s.Dealing with revoked carriers setting up new accounts under different SS #’s / Fed ID #’s. Auditing fuel tax refund.Auditing fuel tax refund. IFTA contractors with operations on military bases may be getting non-tax paid fuel.IFTA contractors with operations on military bases may be getting non-tax paid fuel. Non-military aircraft repair facilities disposal of fuel taken out of aircraft.Non-military aircraft repair facilities disposal of fuel taken out of aircraft.

7. Western Region - 2008 Carriers and civilian vehicles going to Mexico to purchase cheaper fuel and bringing the fuel back across the border – not caring about tax, safety and environmental concerns. Canada same issues Carriers from Wyoming not actually based there due to not sales tax on commercial vehicles

8. Western Region - 2008 Two tiered taxes in Arizona between the heavy vehicles and the light vehicles. Arizona stopping carriers without both decals and license, being told by the carriers that other jurisdictions have approved them. Other jurisdictions not honoring grace period for qualified carriers.

9. Midwest Region – 2008 Closing Accounts - If middle of year-what to do… - Affidavits, return credentials, etc - Unused decals and pieces of used ones Revoked Carriers - Notification to other jurisdictions-no response - Important to use clearinghouse for new applicants Penalties - $50 or 10%, which ever is higher - Waivers-one time vs. multiple - Reinstatement fees

10. Midwest Region – 2008 Farmers-exemptions High MPG’s Delinquent Returns Permitting Services Google-Street Maps

11. Southeast Region - 2008 Budget How are we going to continue to network? What affects has your state endured? DOT Lack of participation during legislation and support in regards to compliance/collections State Agencies Inconstancies with processes (IRP & IFTA) same section. Centralization of processes to assure no credentials are issued if carrier has suspended, inactive or revoked credential

12. Southeast Region - 2008 Training Lack of adequate training for Motor Carriers, DOT, Enforcement and local governments Enforcement Clearinghouse consistency and TACT (Ticketing Aggressive Cars & Trucks) Decals The need for identification/vehicle specific to assure compliance.

13. Northeast Region - 2008 Retail dyed fuel pumps: dyed fuel into propulsion tanks – can’t perform surveillance at all stations Staffing: flux of staff – re-org of staff – need to have dedicated inspections staff - fuel issues Paper trail – lack of trail to ensure that tax is being paid

14. Northeast Region - 2008 Communication between jurisdictions to be improved for inspections Inspections can’t issue Trip Permits on road Fraudulent decals

15. Northeast Region - 2008 Clearinghouse: not all jurisdictions in clearinghouse – not all juris. Entering decal info. Uniformity with decals & license Walk in service needs to be expanded in ON to many different locals – customer service

16. Northeast Region - 2008 Biodiesel: no violation provisions QC – legislation to be revised Manpower being taken from IFTA to cover Tobacco Sighting reports: not being utilized

17. Western Region - 2007 SSN v FEI number Mexican Carriers - Bonding and CDL Mexican v US Operating Authority DOT# - Not always linking to IFTA Dyed Fuel Renewals/Grace Period - Jurisdictions not honoring Decals - Tracking by Decal Number's Trip Permits – Issuing electronically Borders - Not only Mexico/Canada

18. Midwest Region - 2007 Audit Selection - High KPL/MPG Audit Requirements Alternative Motor Fuels – Biodiesel and ethanol Counterfeit Decals Citations for non compliance Decals – Placement and visibility (i.e., colored border) Farm Tags Government vehicles Special Mobilized Equipment Commercial zones

19. Northeast Region - 2007 Roadside Enforcement - Misuse of dyed fuel – Katrina and IRS waiver Biodiesel – Taxation/reporting, ways to catch backyard manufacturers' and ways to determine % alternative fuel in tank Information exchange - Between Law Enforcement and IFTA (using CH and SAFER) Decals and Licenses - Not charging opens doors for base jurisdiction shopping Decals – Companies producing inferior decals, carriers ordering more decals then they need (decal fraud), incorporate IFTA & IRP identification (barcode) on TP license plate to eliminate decals, decal placement education Dyed diesel – IFTA & exempt usage, out of jurisdiction carriers using and how to enforce payment of fines Audit count – reduce for 3% or (1) include certain activities in audits (inspections) or (2) count each period as an audit Buses operating interjurisdictionally under multiple legal entities

20. Southeast Region - 2007 Hurricane Off highway fuel use Early decal display – 2005/2006 December Non-pay Non-file licensees – Bond, Impound Split Tax rates – Rate change mid-quarter Lease issues Alternative fuels - Bio diesel and LPG/CNG Vehicle Specific Decals/License Standardized forms and manuals Enforcement