Clearinghouse Access Agreement

1. Clearinghouse Access Agreement Proposed Revisions

2. Clearinghouse Access Agreement • One of the objectives of the CH was to eventually replace paper transmittals • To do this we had to ensure that data going into the CH was of a high quality so that users could rely upon it in a paperless world.

3. Clearinghouse Access Agreement Created standardized file definitions for each of the three required files, the Licensee Demographic Data, the Transmittal Data and the Summary Transmittal Data (new file required for data verification).

4. Clearinghouse Access Agreement Article III, Section I, Exchange…. • D) IFTA, Inc. shall create Clearinghouse field formats and definitions for Licensee Demographic Data, Transmittal Data and Summary Transmittal Data and make them available to Participating Members for purposes of uploading data.

5. Clearinghouse Access Agreement • E) Participating Members must transmit Licensee Demographic, Transmittal and Summary Transmittal Data in the required field formats created by IFTA, Inc. • Failure to transmit all required data may result in the suspension of the Participating Member’s privilege to participate in the Clearinghouse.

6. Clearinghouse Access Agreement • Article III, Section IV - Funds Netting • Each Participating Member agrees to participate in the netting of funds due among the Participating Members. • IFTA, Inc. shall establish a funds netting process whereby each Participating Member either pays or receives the net amount of funds due to or from the other Participating Members.

7. Clearinghouse Access Agreement 2) A Participating Member owing funds shall timely transmit its funds to the account established by IFTA, Inc. with a secure financial institution (Clearinghouse Account). • Timeliness of the transmittal of funds shall be based on the funding schedule established by IFTA, Inc. • The timely receipt of a Participating Member’s funds into the Clearinghouse Account satisfies the Participating Member’s obligation to send funds to other member jurisdictions pursuant to P1040 of the IFTA Procedures Manual.

8. Clearinghouse Access Agreement 3) IFTA Inc. shall distribute funds from the Clearinghouse Account to the recipient Participating Members by the first business day following the end of the month in which the funds were received. • In the event that a Participating Member fails to timely remit its funds, IFTA Inc. shall distribute available funds on a pro rata basis. • Upon receipt of any late funds, IFTA Inc. shall distribute the funds to the recipient Participating Members. • Any additional cost due to a late distribution shall be borne by the Participating Member that failed to timely remit its funds.

9. Clearinghouse Access Agreement Removed Definitions: • Base Jurisdiction • District • Licensee Demographic Data (long list of data changed to Demographic Data def’n • Licensee Identity • Person • Province • State

10. Clearinghouse Access Agreement Added Definitions: • Governing Documents • Funds Netting • Transmittal Data – added reference to additional required data • Summary Transmittal Data

11. Clearinghouse Access Agreement • Removed Unnecessary language from Article IV (Procedures For Exchange of Information) and reworded Article V (Termination and Modification). Changes were not substantive.

12. Clearinghouse Access Agreement • What’s Next? If you haven’t reviewed the changed document, please do so and provide the Committee with comments. Article V provides • CH members have 90 days from the date of notice (after comments are reviewed) to accept the amendments. • If the member refuses to accept the amendment(s) they may withdraw from the agreement.

13. Questions Or Comments? Thank You