october 6, 2015san antonio, texas 2015 attorneys section meeting ifta dispute resolution process...
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October 6, 2015 San Antonio, Texas2015 Attorneys Section Meeting
IFTA DISPUTE RESOLUTION PROCESS
Lonette L. Turner, CEOIFTA, Inc.
October 6, 2015 San Antonio, Texas2015 Attorneys Section Meeting
is it necessary?
October 6, 2015 San Antonio, Texas2015 Attorneys Section Meeting
1) The Intermodal Surface Transportation Efficiency Act (ISTEA) was signed into law in December 1991.
2) The provisions of the Act reflect these important policy goals. Some of the major features included:
• State uniformity in vehicle registration and fuel tax reporting was required. This was meant to ease the recordkeeping and reporting burden on businesses and contribute substantially to increased productivity of the truck and bus industry.
A Bit of History
October 6, 2015 San Antonio, Texas2015 Attorneys Section Meeting
A Bit of History
3) ISTEA of 1991 required states to collect highway use taxes in conformity with IFTA by September 30, 1996
4) ISTEA also established a working group that was tasked with • proposing procedures for resolving disputes among States
participating in the International Registration Plan and among States participating in the International Fuel Tax Agreement including designation of the Department of Transportation or any other person for resolving such disputes; and
• providing technical assistance to States participating or seeking to participate in the Plan or in the Agreement
October 6, 2015 San Antonio, Texas2015 Attorneys Section Meeting
A Bit of History
5) IFTA, Inc. requested funding from the Federal Highway Administration (FHWA) to look at the peer review process that existed at the time. The funding was granted to IFTA, Inc.
6) During the work on the peer review process, IFTA, Inc. found that dispute resolution and peer review were closely related and new procedures should be developed together.
October 6, 2015 San Antonio, Texas2015 Attorneys Section Meeting
And I thought
October 6, 2015 San Antonio, Texas2015 Attorneys Section Meeting
DRC
• 11 voting jurisdiction members – 2 from each geographical plus the chair
• 2 non-voting industry representatives
VOTE
• Actions taken by 2/3 quorum
DISPUTES
• Member jurisdiction v. member jurisdiction• Licensee v. member jurisdiction• IFTA Program Compliance Review Committee
DISPUTE RESOLUTION COMMITTEE
October 6, 2015 San Antonio, Texas2015 Attorneys Section Meeting
• Parties to complaint must make good faith effort to resolve dispute before raising issue to DRC
• If DRC finds complaint filed in bad faith it shall be dismissed.
October 6, 2015 San Antonio, Texas2015 Attorneys Section Meeting
1 •Complaint is filed with IFTA, Inc. CEO and “Respondent”
2 •Respondent has 35 days to answer
3 •Complaint and Answer may be amended once within 30 days of filing
4 •Within 30 days after receipt of filings, DRC sets a hearing date
DISPUTE RESOLUTION PROCESS
October 6, 2015 San Antonio, Texas2015 Attorneys Section Meeting
5 •At least one party required to request hearing
6 •Briefs submitted if no hearing
7 •If hearing scheduled, discovery may be requested
HEARING
October 6, 2015 San Antonio, Texas2015 Attorneys Section Meeting
8 •Witness lists and other documentation to be provided by each party
9 •Burden of proof is on Complainant; burden is preponderance of the evidence
10 •Complainant argues first, respondent may cross-examine
October 6, 2015 San Antonio, Texas2015 Attorneys Section Meeting
11 • Respondent presents, Complainant may cross-examine
12 • DRC may ask questions or request clarifications at any time
13• After both parties complete
arguments and responses, floor is open to anyone else wishing to be heard
October 6, 2015 San Antonio, Texas2015 Attorneys Section Meeting
14 •Upon conclusion of hearing, DRC will discuss among themselves
15 •Industry advisors have discretion to issue an opinion to the DRC
16 •DRC issues a decision in 60 days
October 6, 2015 San Antonio, Texas2015 Attorneys Section Meeting
SOME LIMITATIONSR1555
R1555 COMPLIANCE MATTERS
.100 Dispute Resolution Process Disputes concerning issues of compliance with the International Fuel Tax Agreement may be resolved pursuant to the IFTA Dispute Resolution Process. The IFTA Dispute Resolution Process may be utilized to resolve only:
.005 Compliance disputes between member jurisdictions;
October 6, 2015 San Antonio, Texas2015 Attorneys Section Meeting
.010 disputes between member jurisdictions and IFTA licensees in those matters where no administrative remedy to the IFTA licensee is available within the member jurisdiction involved in the dispute. Compliance disputes subject to this section shall not include disputes between member jurisdictions and IFTA licensees over matters of substantive jurisdiction law, including but not limited to, laws governing the imposition, assessment, and collection of jurisdiction motor fuel use taxes collected pursuant to the International Fuel Tax Agreement; and
October 6, 2015 San Antonio, Texas2015 Attorneys Section Meeting
.015 Compliance matters where (i) the Program Compliance Review Process, including follow-up and/or reassessment, has been completed; (ii) a Final Determination Finding of Non-Compliance has been issued by the Program Compliance Review Committee related to Sections R970, R1210, R1230, R1260, R1270, P1040, A310, A320, or A690; and (iii) a recommendation for initiation of a dispute from the Program Compliance Review Committee has been approved by the member jurisdictions as defined in Article R1555.300.
October 6, 2015 San Antonio, Texas2015 Attorneys Section Meeting
An affirmative vote in writing of at least two-thirds of the total written votes cast is required to initiate a dispute based on a Final Determination Finding of Non-Compliance.
October 6, 2015 San Antonio, Texas2015 Attorneys Section Meeting
October 6, 2015 San Antonio, Texas2015 Attorneys Section Meeting
Lonette L. TurnerCEO
International Fuel Tax Association, Inc.480.839.4382 X6