1. NAFTA Teamwork At Its Finest

2. Team Members Border State Representatives – Arizona, California, New Mexico, Texas – Both IFTA and IRP US Department of Transportation – Federal Motor Carrier Safety Administration and Supporting Contractors The Federal Government of Mexico – Various Agencies

3. Team Members Transport Canada IRP, Inc. IFTA, Inc. Industry Partners AAMVA Motor Carrier Services

4. Discussion Points Ballots Pass Working Group Meeting – May 3, 2005 Request for Proposals: FY2005 Border Enforcement Grants Program for IRP and IFTA – July 18, 2005 Issue Brief – Posted by NGA

5. BORDER STATES BALLOTS All Effective January 1, 2006

6. STFBP #7-2004 Will amend Articles of Agreement Section R325 to clarify that an IFTA member jurisdiction may license a Mexican motor carrier and that such motor carrier must either pay audit expenses or make the records available in the base jurisdiction at the discretion of the base jurisdiction. Will amend Articles of Agreement Section 960 to authorize the use of any national postmark to determine timely filing.

7. STFBP #8-2004 Will amend the Articles of Agreement Section R340 to allow a member jurisdiction to require a bond when licensing a carrier under R325 thereby making a Border State its IFTA base jurisdiction.

8. STFPB #9-2004 Will amend the Articles of Agreement Sections R1010 and R1020 and the Procedures Manual Section P570 to clarify that credit may be taken only for tax paid fuel purchased in member jurisdictions and to make the provisions of the two governing documents consistent.

9. Working Group 2005

10. Meeting – May 3, 2005 All border states were represented for both IFTA and IRP – held at IFTA, Inc. offices First meeting since FHwA handed over program to FMCSA FMCSA representative indicated that FMCSA is committed to working with the border states While funding had not yet been committed, FMCSA will work to assist border states in meeting costs of licensing Mexican motor carriers

11. Meeting – May 3, 2005 Funding might include Uniform activities – educational materials, training, train-the-trainer for Mexican government representatives Individual jurisdiction costs Border Crossing Update Mexico remains concerned that US regulations treat Mexican motor carriers differently than US and Canadian carriers Mexico believes that the regulations give a Mexican carrier a different access to direct markets

12. Meeting – May 3, 2005 The President of the United States, the President of Mexico and the Prime Minister of Canada had met recently to review the concerns of the Mexican government The US wants an MOU to allow US inspectors into Mexico to do an initial safety audit of the Mexican carriers – this is required by US law Awaiting response from Mexico concerning how the border should open

13. Meeting – May 3, 2005 Trip permits remain the short term option should the border open immediately Border state representatives agree that the key to the success of this effort will be education and training

14. Request for Proposal Issued by FMCSA on July 18, 2005 Specific Eligible State Activities Personnel expenses, including recruitment and screening, training salaries, fringe benefits and supervision Equipment and software development expenses Travel Expenses associated with training and coordinating training efforts Expenses related to improvement of real property

15. Request for Proposal Funds will be available from the date granted until September 30, 2006 No further funding guaranteed Deadline for proposals: August 26, 2005 Conference calls held August 5 th and August 11, 2005 for border states to coordinate efforts to submit proposals

16. Issue Brief The Issue Brief prepared on behalf of the working group has been posted by the National Governors Association (NGA) on its Center for Best Practices Website www.nga.org

20. QUESTIONS