HF 1575

as introduced - 92nd Legislature (2021 - 2022) Posted on 02/25/2021 03:23pm

A bill for an act
relating to health; joining interstate compact on curing diseases; requiring reports;
proposing coding for new law in Minnesota Statutes, chapter 152.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

Section 1.

new text begin [152.40] INTERSTATE COMPACT ON CURING DISEASES.
new text end

new text begin ARTICLE I
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new text begin DEFINITIONS
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new text begin For purposes of this compact:
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new text begin 1. "Compacting state" means either of the following:
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new text begin a. any state that has enacted the compact and which has not withdrawn or been suspended
pursuant to Article XIV of the compact;
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new text begin b. the federal government in accordance with the commission's bylaws.
new text end

new text begin 2. "Compact" means the Solemn Covenant of the States to Award Prizes for Curing
Diseases enacted in this section.
new text end

new text begin 3. "Non-compacting state" means any state or the federal government, if it is not at the
time a compacting state.
new text end

new text begin 4. "Public health expenses" means the amount of all costs paid by taxpayers in a specified
geographic area relating to a particular disease.
new text end

new text begin 5. "State" means any state, district, or territory of the United States of America.
new text end

new text begin ARTICLE II
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new text begin ESTABLISHMENT OF THE COMMISSION; MEMBERSHIP
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new text begin 1. Upon the enactment of the compact by six states, the compacting states shall establish
the Solemn Covenant of States Commission.
new text end

new text begin 2. The commission is a body corporate and politic and an instrumentality of each of the
compacting states and is solely responsible for its liabilities, except as otherwise specifically
provided in the compact.
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new text begin 3. Each compacting state shall be represented by one member as selected by the
compacting state. Each compacting state shall determine its member's qualifications and
period of service and shall be responsible for any action to remove or suspend its member
or to fill the member's position if it becomes vacant. Nothing in the compact shall be
construed to affect a compacting state's authority regarding the qualification, selection, or
service of its own member.
new text end

new text begin ARTICLE III
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new text begin POWERS OF THE COMMISSION
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new text begin 1. To adopt bylaws and rules pursuant to Articles V and VI of the compact, which shall
have the force and effect of law and shall be binding in the compacting states to the extent
and in the manner provided in the compact;
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new text begin 2. To receive and review in an expeditious manner treatments and therapeutic protocols
for the cure of disease submitted to the commission and to award prizes for submissions
that meet the commission's standards for a successful cure treatment or therapeutic protocol;
new text end

new text begin 3. To make widely available a cure treatment or therapeutic protocol upon a prize winner
claiming a prize and transferring any intellectual property necessary for the manufacture
and distribution of the cure in accordance with section 3.g.i. of Article VI, including by
arranging or contracting for the manufacturing, production, or provision of any drug, serum,
or other substance, device, or process, provided that the commission does not market the
cure or conduct any other activity regarding the cure not specifically authorized in the
compact;
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new text begin 4. To establish a selling price for the cure, which shall be not more than the expenses
for the cure's manufacturing, distribution, licensing, and any other necessary governmental
requirements for compacting states, or those expenses plus any royalty fees, for
noncompacting states; the price shall not include the expenses of any other activities;
new text end

new text begin 5. In non-compacting states and foreign countries, to establish and collect royalty fees
imposed on manufacturers, producers, and providers of any drug, serum, or other substance,
device, or process used for a cure treatment or therapeutic protocol, for which a prize is
awarded; royalty fees may be added to the sales price of the cure pursuant to section 4 of
this Article; provided that the royalty fees shall cumulatively be not more than the estimated
five-year savings in public health expenses for that state or country, as calculated by actuaries
employed or contracted by the commission;
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new text begin 6. To do the following regarding the collected royalty fees:
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new text begin a. pay or reimburse expenses related to the payment of a prize, which shall include
employing or contracting actuaries to calculate annual taxpayer savings amounts in
compacting states in accordance with section 3.g.iii. of Article VI, and payment of interest
and other expenses related to a loan obtained in accordance with section 3.g.vi. of Article
VI;
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new text begin b. annually disburse any amounts remaining after making payments or reimbursements
under section 6.a. of this article as refunds to compacting states based on the per cent of the
state's prize obligation in relation to the total obligation amount of all compacting states;
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new text begin 7. To bring and prosecute legal proceedings or actions in its name as the commission;
new text end

new text begin 8. To issue subpoenas requiring the attendance and testimony of witnesses and the
production of evidence;
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new text begin 9. To establish and maintain offices;
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new text begin 10. To borrow, accept, or contract for personnel services, including personnel services
from employees of a compacting state;
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new text begin 11. To hire employees, professionals, or specialists, and elect or appoint officers, and
to fix their compensation, define their duties and give them appropriate authority to carry
out the purposes of the compact, and determine their qualifications; and to establish the
commission's personnel policies and programs relating to, among other things, conflicts of
interest, rates of compensation, and qualifications of personnel;
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new text begin 12. To accept any and all appropriate donations and grants of money, equipment, supplies,
materials, and services, and to receive, utilize, and dispose of the same; provided that at all
times the commission shall strive to avoid any appearance of impropriety;
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new text begin 13. To lease, purchase, or accept appropriate gifts or donations of, or otherwise to own,
hold, improve, or use, any property, real, personal, or mixed; provided, that at all times the
commission shall strive to avoid any appearance of impropriety;
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new text begin 14. To sell, convey, mortgage, pledge, lease, exchange, abandon, or otherwise dispose
of any property, real, personal, or mixed;
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new text begin 15. To monitor compacting states for compliance with the commission's bylaws and
rules;
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new text begin 16. To enforce compliance by compacting states with the commission's bylaws and rules;
new text end

new text begin 17. To provide for dispute resolution among compacting states or between the commission
and those who submit treatments and therapeutic protocols for the cure of disease for
consideration;
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new text begin 18. To establish a budget and make expenditures;
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new text begin 19. To borrow money;
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new text begin 20. To appoint committees, including management, legislative, and advisory committees
comprised of members, state legislators or their representatives, medical professionals, and
such other interested persons as may be designated by the commission;
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new text begin 21. To establish annual membership dues for compacting states, which shall be used for
daily expenses of the commission and not for interest or prize payments;
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new text begin 22. To adopt and use a corporate seal;
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new text begin 23. To perform such other functions as may be necessary or appropriate to achieve the
purposes of this compact.
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new text begin ARTICLE IV
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new text begin MEETINGS AND VOTING
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new text begin 1. The commission shall meet and take such actions as are consistent with the compact,
bylaws, and rules.
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new text begin 2. A majority of the members of the commission shall constitute a quorum necessary in
order to conduct business or take actions at meetings of the commission.
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new text begin 3. Each member of the commission shall have the right and power to cast one vote
regarding matters determined or actions to be taken by the commission. Each member shall
have the right and power to participate in the business and affairs of the commission.
new text end

new text begin 4. A member shall vote in person or by such other means as provided in the commission's
bylaws. The commission's bylaws may provide for members' participation in meetings by
telephone or other means of communication.
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new text begin 5. The commission shall meet at least once during each calendar year. Additional meetings
shall be held as set forth in the commission's bylaws.
new text end

new text begin 6. No decision of the commission with respect to the approval of an award for a treatment
or therapeutic process for the cure of a disease shall be effective unless two-thirds of all the
members of the commission vote in favor thereof.
new text end

new text begin 7. Guidelines and voting requirements for all other decisions of the commission shall
be established in the commission's bylaws.
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new text begin ARTICLE V
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new text begin BYLAWS
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new text begin The commission shall, by a majority vote of all the members of the commission, prescribe
bylaws to govern its conduct as may be necessary or appropriate to carry out the purposes,
and exercise the powers, of the compact, including but not limited to:
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new text begin 1. establishing the fiscal year of the commission;
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new text begin 2. providing reasonable procedures for appointing and electing members, as well as
holding meetings, of the management committee;
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new text begin 3. providing reasonable standards and procedures:
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new text begin a. for the establishment and meetings of other committees;
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new text begin b. governing any general or specific delegation of any authority or function of the
commission; and
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new text begin c. voting guidelines and procedures for commission decisions;
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new text begin 4. providing reasonable procedures for calling and conducting meetings of the commission
that shall consist of requiring a quorum to be present, ensuring reasonable advance notice
of each such meeting, and providing for the right of citizens to attend each such meeting
with enumerated exceptions designed to protect the public's interest and the privacy of
individuals;
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new text begin 5. providing a list of matters about which the commission may go into executive session
and requiring a majority of all members of the commission vote to enter into such session.
As soon as practicable, the commission shall make public:
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new text begin a. a copy of the vote to go into executive session, revealing the vote of each member
with no proxy votes allowed; and
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new text begin b. the matter requiring executive session, without identifying the actual issues or
individuals involved;
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new text begin 6. establishing the titles, duties, authority, and reasonable procedures for the election of
the officers of the commission;
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new text begin 7. providing reasonable standards and procedures for the establishment of the personnel
policies and programs of the commission. Notwithstanding any civil service or other similar
laws of any compacting state, the commission's bylaws shall exclusively govern the personnel
policies and programs of the commission;
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new text begin 8. allowing a mechanism for:
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new text begin a. the federal government to join as a compacting state; and
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new text begin b. foreign countries or subdivisions of those countries to join as liaison members by
adopting the compact; provided that adopting countries or subdivisions shall not have voting
power or the power to bind the commission in any way;
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new text begin 9. adopting a code of ethics to address permissible and prohibited activities of members
and employees;
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new text begin 10. providing for the maintenance of the commission's books and records;
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new text begin 11. governing the acceptance of and accounting for donations, annual member dues, and
other sources of funding and establishing the proportion of these funds to be allocated to
prize amounts for treatments and therapeutic protocols that cure disease;
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new text begin 12. governing any fund raising efforts in which the commission wishes to engage; and
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new text begin 13. providing a mechanism for winding up the operations of the commission and the
equitable disposition of any surplus funds that may exist after the termination of the compact
after the payment and reserving of all its debts and obligations.
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new text begin ARTICLE VI
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new text begin RULES
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new text begin 1. The commission shall adopt rules to do the following:
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new text begin a. effectively and efficiently achieve the purposes of this compact;
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new text begin b. govern the methods, processes, and any other aspect of the research, creation, and
testing of a treatment or therapeutic protocol for each disease for which a prize may be
awarded.
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new text begin 2. The commission shall also adopt rules establishing the criteria for defining and
classifying the diseases for which prizes shall be awarded. The commission may define and
classify subsets of diseases, for example, tubular carcinoma of the breast. For purposes of
sections 3.a. and c. of this article, a subset of a disease shall be considered one disease. The
commission may consult the most recent edition of the international classification of diseases
as published by the World Health Organization or other definitions agreed to by a two-thirds
vote of the commission.
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new text begin 3. The commission shall also adopt rules regarding prizes for curing diseases that establish
the following:
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new text begin a. At least ten major diseases for which to create prizes, which shall be determined based
on the following factors:
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new text begin i. the severity of the disease to a human individual's overall health and well-being;
new text end

new text begin ii. the survival rate or severity of impact of the disease;
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new text begin iii. the public health expenses and treatment expenses for the disease.
new text end

new text begin b. The criteria a treatment or therapeutic protocol must meet in order to be considered
a cure for any of the diseases for which a prize may be awarded, which shall include the
following requirements:
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new text begin i. it must be approved by the federal Food and Drug Administration or have otherwise
obtained legal status for the compact to immediately contract to manufacture and distribute
in the United States;
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new text begin ii. except as provided in section 4. of this article, it must yield a significant increase in
survival with respect to the diseases if early death is the usual outcome;
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new text begin iii. it requires less than one year of the treatment or protocol to completely cure the
disease.
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new text begin c. The procedure for determining the diseases for which to award prizes, which includes
the option to award prizes for more than ten diseases that meet the above criteria, if agreed
to by two-thirds vote of the commission, and a requirement to update the list every three
years.
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new text begin d. The submission and evaluation procedures and guidelines, including filing and review
procedures, a requirement that the person or entity submitting the cure bears the burden of
proof in demonstrating that the treatment or therapeutic protocol meets the above criteria,
and limitations preventing public access to treatment or protocol submissions.
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new text begin e. The estimated five-year public health savings that would result from a cure, which
shall be equal to the five-year public health expenses for each disease in each compacting
state, and a procedure to update these expenses every three years in conjunction with the
requirements in section 3.c. of this article. The estimated five-year public health savings
amount shall be calculated, estimated, and publicized every three years by actuaries employed
or contracted by the commission.
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new text begin f. The prize amount with respect to cures for each disease, which shall be equal to the
most recent estimated total five-year savings in public health expenses for the disease as
calculated in section 3.e. of this article in all of the compacting states; amounts donated by
charities, individuals, and any other entities intended for the prize; and any other factors
that the commission deems appropriate.
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new text begin g. The prize distribution procedures and guidelines, which shall include the following
requirements:
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new text begin i. Upon acceptance of a cure, the prize winner shall transfer to the commission the patent
and all related intellectual property for the manufacture and distribution of the treatment or
therapeutic protocol in exchange for the prize, except in the case that the prize money is
considered by the commission to be too low, and that a prize will be awarded only to the
first person or entity that submits a successful cure for a disease for which a prize may be
awarded.
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new text begin ii. Donation amounts intended for the prize shall be kept in a separate, interest-bearing
account maintained by the commission. This account shall be the only account in which
prize money is kept.
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new text begin iii. Each compacting state shall have the responsibility to pay annually the compacting
state's actual one-year savings in public health expenses for the particular disease for which
a cure has been accepted. The compacting state shall make such an annual payment until it
has fulfilled its prize responsibility as established in section 3.f. of this article. Each
compacting state's payment responsibility begins one year after the date the cure becomes
widely available. The commission shall employ or contract with actuaries to calculate each
state's actual one-year savings in public health expenses at the end of each year to determine
each state's responsibility for the succeeding year.
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new text begin iv. Compacting states may meet prize responsibilities by any method including the
issuance of bonds or other obligations, with the principal and interest of those bonds or
obligations to be repaid only from revenue derived from estimated public health expense
savings from a cure to a disease. If the compacting state does not make such revenue available
to repay some or all of the revenue bonds or obligations issued, the owners or holders of
those bonds or obligations have no right to have excises or taxes levied to pay the principal
or interest on them. The revenue bonds and obligations are not a debt of the issuing
compacting state.
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new text begin v. A compacting state may issue bonds or other debt that are general obligations, under
which the full faith and credit, revenue, and taxing power of the state is pledged to pay the
principal and interest under those obligations, only if authorized by the compacting state's
constitution or, if constitutional authorization is not required, by other law of the compacting
state.
new text end

new text begin vi. Upon acceptance of a cure, the commission shall obtain a loan from a financial
institution in an amount equal to the most recently calculated total estimated five-year public
health expenses for the disease in all compacting states, in accordance with section 3.f. of
this article. The commission reserves the right to continuously evaluate the cure in the
interim and rescind a prize offer if the commission finds that the cure no longer meets the
commission's criteria.
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new text begin 4. The commission may award a prize for a treatment or therapeutic protocol that yields
a survival rate that is less than what is established in the cure criteria through at least five
years after the treatment or protocol has ended. In that case, the prize amount awarded for
that treatment or therapeutic protocol shall be reduced from the prize amount originally
determined by the commission for a cure for that disease. The reduction shall be in proportion
to the survival rate yielded by that treatment or protocol as compared to the survival rate
established in the cure criteria.
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new text begin 5. The commission also shall adopt rules that do the following:
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new text begin a. Establish the following regarding commission records:
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new text begin i. conditions and procedures for public inspection and copying of its information and
official records, except such information and records involving the privacy of individuals
or would otherwise violate privacy laws under federal law and the laws of the compacting
states;
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new text begin ii. procedures for sharing with federal and state agencies, including law enforcement
agencies, records and information otherwise exempt from disclosure;
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new text begin iii. guidelines for entering into agreements with federal and state agencies to receive or
exchange information or records subject to nondisclosure and confidentiality provisions.
new text end

new text begin b. Provide a process for commission review of submitted treatments and therapeutic
protocols for curing diseases that includes the following:
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new text begin i. an opportunity for an appeal, not later than thirty days after a rejection of a treatment
or protocol for prize consideration, to a review panel established under the commission's
dispute resolution process;
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new text begin ii. commission monitoring and review of treatment and protocol effectiveness consistent
with the cure criteria established by the commission for the particular disease;
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new text begin iii. commission reconsideration, modification, or withdrawal of approval of a treatment
or protocol for prize consideration for failure to continue to meet the cure criteria established
by the commission for the particular disease.
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new text begin c. Establish a dispute resolution process to resolve disputes or other issues under the
compact that may arise between two or more compacting states or between the commission
and individuals or entities who submit treatments and therapeutic protocols to cure diseases,
which process shall provide for:
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new text begin i. administrative review by a review panel appointed by the commission;
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new text begin ii. judicial review of decisions issued after an administrative review; and
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new text begin iii. qualifications to be appointed to a panel, due process requirements, including notice
and hearing procedures, and any other procedure, requirement, or standard necessary to
provide adequate dispute resolution.
new text end

new text begin d. Establish and impose annual member dues on compacting states, which shall be
calculated based on the percentage of each compacting state's population in relation to the
population of all the compacting states.
new text end

new text begin 6. Recognizing that the goal of the compact is to pool the potential savings of as many
states and countries as possible to generate sufficient financial incentive to develop a cure
for many of the world's most devastating diseases, the compact will respect the laws of each
of these United States by adopting rules that establish ethical standards for research that
shall be followed in order for a prize to be claimed. The compact, in the rules, shall establish
a common set of ethical standards that embodies the laws and restrictions in each of the
states so that to be eligible for claiming a prize the entity submitting a cure must not have
violated any of the ethical standards in any one of the fifty states, whether the states have
joined the compact or not. The compact will publish these common ethical standards along
with the specific criteria for a cure for each of the diseases the compact has targeted.
new text end

new text begin So long as a researcher follows the common ethical standards in effect at the time the
research is done, an entity presenting a cure will be deemed to have followed the standards.
On or before January 1 of each year, the compact shall review all state laws to determine
if additional ethical standards have been enacted by any of the fifty states and the federal
government. Any changes to the common ethical standards rules based on new state laws
shall be adopted and published by the compact, but shall not take effect in cure criteria for
a period of three years to allow for sufficient notice to researchers.
new text end

new text begin 7. All rules may be amended as the commission sees necessary.
new text end

new text begin 8. All rules shall be adopted pursuant to a rule-making process that conforms to the
Model State Administrative Procedure Act of 1981 by the uniform law commissioners, as
amended, as may be appropriate to the operations of the commission.
new text end

new text begin 9. In the event the commission exercises its rule-making authority in a manner that is
beyond the scope of the purpose of this compact, or the powers granted hereunder, then
such rule shall be invalid and have no force and effect.
new text end

new text begin ARTICLE VII
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new text begin COMMITTEES
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new text begin 1. Management Committee
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new text begin a. The commission may establish a management committee comprised of not more than
fourteen members when twenty-six states enact the compact.
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new text begin b. The committee shall consist of those members representing compacting states whose
total public health expenses of all of the established diseases are the highest.
new text end

new text begin c. The committee shall have such authority and duties as may be set forth in the
commission's bylaws and rules, including:
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new text begin i. managing authority over the day-to-day affairs of the commission in a manner consistent
with the commission's bylaws and rules and the purposes of the compact;
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new text begin ii. overseeing the offices of the commission; and
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new text begin iii. planning, implementing, and coordinating communications and activities with state,
federal, and local government organizations in order to advance the goals of the compact.
new text end

new text begin d. The commission annually shall elect officers for the committee, with each having
such authority and duties as may be specified in the commission's bylaws and rules.
new text end

new text begin e. The management committee, subject to commission approval, may appoint or retain
an executive director for such period, upon such terms and conditions, and for such
compensation as the committee determines. The executive director shall serve as secretary
to the commission, but shall not be a member of the commission. The executive director
shall hire and supervise such other staff as may be authorized by the committee.
new text end

new text begin 2. Advisory Committees
new text end

new text begin The commission may appoint advisory committees to monitor all operations related to
the purposes of the compact and make recommendations to the commission; provided that
the manner of selection and term of any committee member shall be as set forth in the
commission's bylaws and rules. The commission shall consult with an advisory committee,
to the extent required by the commission's bylaws or rules, before doing any of the following:
new text end

new text begin a. approving cure criteria;
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new text begin b. amending, enacting, or repealing any bylaw or rule;
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new text begin c. adopting the commission's annual budget;
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new text begin d. addressing any other significant matter or taking any other significant action.
new text end

new text begin ARTICLE VIII
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new text begin FINANCE
new text end

new text begin 1. The commission annually shall establish a budget to pay or provide for the payment
of its reasonable expenses. To fund the cost of initial operations, the commission may accept
contributions and other forms of funding from the compacting states and other sources.
Contributions and other forms of funding from other sources shall be of such a nature that
the independence of the commission concerning the performance of its duties shall not be
compromised.
new text end

new text begin 2. The commission shall be exempt from all taxation in and by the compacting states.
new text end

new text begin 3. The commission shall keep complete and accurate accounts of all of its internal
receipts, including grants and donations, and disbursements of all funds under its control.
The internal financial accounts of the commission shall be subject to the accounting
procedures established under the commission's bylaws or rules. The financial accounts and
reports including the system of internal controls and procedures of the commission shall be
audited annually by an independent certified public accountant. Upon the determination of
the commission, but not less frequently than every three years, the review of the independent
auditor shall include a management and performance audit of the commission. The
commission shall make an annual report to the governors and legislatures of the compacting
states, which shall include a report of the independent audit. The commission's internal
accounts shall not be confidential and such materials may be shared with any compacting
state upon request provided, however, that any work papers related to any internal or
independent audit and any information subject to the compacting states' privacy laws, shall
remain confidential.
new text end

new text begin 4. No compacting state shall have any claim or ownership of any property held by or
vested in the commission or to any commission funds held pursuant to the provisions of the
compact.
new text end

new text begin ARTICLE IX
new text end

new text begin RECORDS
new text end

new text begin Except as to privileged records, data, and information, the laws of any compacting state
pertaining to confidentiality or nondisclosure shall not relieve any member of the duty to
disclose any relevant records, data, or information to the commission; provided, that
disclosure to the commission shall not be deemed to waive or otherwise affect any
confidentiality requirement; and further provided, that, except as otherwise expressly
provided in the compact, the commission shall not be subject to the compacting state's laws
pertaining to confidentiality and nondisclosure with respect to records, data, and information
in its possession. Confidential information of the commission shall remain confidential after
such information is provided to any member. All cure submissions received by the
commission are confidential.
new text end

new text begin ARTICLE X
new text end

new text begin COMPLIANCE
new text end

new text begin The commission shall notify a compacting state in writing of any noncompliance with
commission bylaws and rules. If a compacting state fails to remedy its noncompliance within
the time specified in the notice, the compacting state shall be deemed to be in default as set
forth in Article XIV.
new text end

new text begin ARTICLE XI
new text end

new text begin VENUE
new text end

new text begin Venue for any judicial proceedings by or against the commission shall be brought in the
appropriate court of competent jurisdiction for the geographical area in which the principal
office of the commission is located.
new text end

new text begin ARTICLE XII
new text end

new text begin QUALIFIED IMMUNITY, DEFENSE, AND INDEMNIFICATION
new text end

new text begin 1. The members, officers, executive director, employees, and representatives of the
commission shall be immune from suit and liability, either personally or in their official
capacity, for any claim for damage to or loss of property or personal injury or other civil
liability caused by or arising out of any actual or alleged act, error, or omission that occurred,
or that such person had a reasonable basis for believing occurred within the scope of the
person's commission employment, duties, or responsibilities; provided, that nothing in
section 1. of this article shall be construed to protect any such person from suit or liability
for any damage, loss, injury, or liability caused by the intentional or willful and wanton
misconduct of that person.
new text end

new text begin 2. The commission shall defend any member, officer, executive director, employee, or
representative of the commission in any civil action seeking to impose liability arising out
of any actual or alleged act, error, or omission that occurred within the scope of the person's
commission employment, duties, or responsibilities, or that such person had a reasonable
basis for believing occurred within the scope of commission employment, duties, or
responsibilities; provided, that nothing in the compact or commission bylaws or rules shall
be construed to prohibit that person from retaining his or her own counsel; and provided
further, that the actual or alleged act, error, or omission did not result from that person's
intentional or willful and wanton misconduct.
new text end

new text begin 3. The commission shall indemnify and hold harmless any member, officer, executive
director, employee, or representative of the commission for the amount of any settlement
or judgment obtained against the person arising out of any actual or alleged act, error, or
omission that occurred within the scope of the person's commission employment, duties,
or responsibilities, or that such person had a reasonable basis for believing occurred within
the scope of commission employment, duties, or responsibilities; provided, that the actual
or alleged act, error, or omission, did not result from the intentional or willful and wanton
misconduct of that person.
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new text begin ARTICLE XIII
new text end

new text begin COMPACTING STATES, EFFECTIVE DATE, AND AMENDMENT
new text end

new text begin 1. Any state is eligible to become a compacting state.
new text end

new text begin 2. The compact shall become effective and binding upon legislative enactment of the
compact into law by two compacting states; provided, the commission shall only be
established after six states become compacting states. Thereafter, the compact shall become
effective and binding as to any other compacting state upon enactment of the compact into
law by that state.
new text end

new text begin 3. Amendments to the compact may be proposed by the commission for enactment by
the compacting states. No amendment shall become effective and binding until all compacting
states enact the amendment into law.
new text end

new text begin 4. If funding is requested or required, the legislative authority of each compacting state
shall be responsible for making the appropriations it determines necessary to pay for the
costs of the compact, including annual member dues and prize distributions.
new text end

new text begin ARTICLE XIV
new text end

new text begin WITHDRAWAL, DEFAULT, AND EXPULSION
new text end

new text begin 1. Withdrawal
new text end

new text begin a. Once effective, the compact shall continue in force and remain binding upon each
and every compacting state; provided, that a compacting state may withdraw from the
compact by doing both of the following:
new text end

new text begin i. repealing the law enacting the compact in that state;
new text end

new text begin ii. notifying the commission in writing of the intent to withdraw on a date that is both
of the following:
new text end

new text begin I. at least three years after the date the notice is sent;
new text end

new text begin II. after the repeal takes effect.
new text end

new text begin b. The effective date of withdrawal is the date described in section 1.a.ii. of this article.
new text end

new text begin c. The member representing the withdrawing state shall immediately notify the
management committee in writing upon the introduction of legislation in that state repealing
the compact. If a management committee has not been established, the member shall
immediately notify the commission.
new text end

new text begin d. The commission or management committee, as applicable, shall notify the other
compacting states of the introduction of such legislation within ten days after its receipt of
notice thereof.
new text end

new text begin e. The withdrawing state is responsible for all obligations, duties and liabilities incurred
through the effective date of withdrawal, including any obligations, the performance of
which extend beyond the effective date of withdrawal. The commission's actions shall
continue to be effective and be given full force and effect in the withdrawing state.
new text end

new text begin f. Reinstatement following a state's withdrawal shall become effective upon the effective
date of the subsequent enactment of the compact by that state.
new text end

new text begin 2. Default
new text end

new text begin a. If the commission determines that any compacting state has at any time defaulted in
the performance of any of its obligations or responsibilities under the compact or the
commission's bylaws or rules, then, after notice and hearing as set forth in the bylaws, all
rights, privileges, and benefits conferred by this compact on the defaulting state shall be
suspended from the effective date of default as fixed by the commission. The grounds for
default include failure of a compacting state to perform its obligations or responsibilities,
and any other grounds designated in commission rules. The commission shall immediately
notify the defaulting state in writing of the suspension pending cure of the default. The
commission shall stipulate the conditions and the time period within which the defaulting
state shall cure its default. If the defaulting state fails to cure the default within the time
period specified by the commission, the defaulting state shall be expelled from the compact
and all rights, privileges, and benefits conferred by the compact shall be terminated from
the effective date of the expulsion. Any state that is expelled from the compact shall be
liable for any cure prize or prizes for three years after its removal. The commission shall
also take appropriate legal action to ensure that any compacting state that withdraws from
the compact remains liable for paying its responsibility towards a prize for a cure that was
accepted while the compacting state was a member of the commission.
new text end

new text begin b. The expelled state must reenact the compact in order to become a compacting state.
new text end

new text begin 3. Dissolution of Compact
new text end

new text begin a. The compact dissolves effective upon the date of either of the following:
new text end

new text begin i. the withdrawal or expulsion of a compacting state, which withdrawal or expulsion
reduces membership in the compact to one compacting state;
new text end

new text begin ii. the commission votes to dissolve the compact.
new text end

new text begin b. Upon the dissolution of the compact, the compact becomes null and void and shall
be of no further force or effect, and the business and affairs of the commission shall be
wound up and any surplus funds shall be distributed in accordance with the commission's
bylaws, provided, that the commission shall pay all outstanding prizes awarded before the
dissolution of the compact, as well as any other outstanding debts and obligations incurred
during the existence of the compact. Any unawarded funds donated to be a part of a prize
shall be returned to the donor, along with any interest earned on the amount.
new text end

new text begin ARTICLE XV
new text end

new text begin SEVERABILITY AND CONSTRUCTION
new text end

new text begin 1. The provisions of the compact shall be severable; and if any phrase, clause, sentence,
or provision is deemed unenforceable, the remaining provisions of the compact shall be
enforceable.
new text end

new text begin 2. The provisions of the compact shall be liberally construed to effectuate its purposes.
new text end

new text begin ARTICLE XVI
new text end

new text begin BINDING EFFECT OF COMPACT AND OTHER LAWS
new text end

new text begin 1. Other Laws: Nothing herein prevents the enforcement of any other law of a compacting
state, except as provided in section 2.b. of this article.
new text end

new text begin 2. Binding Effect of the Compact
new text end

new text begin a. All lawful actions of the commission, including all commission rules, are binding
upon the compacting states.
new text end

new text begin b. All agreements between the commission and the compacting states are binding in
accordance with their terms.
new text end

new text begin c. Except to the extent authorized by the compacting state's constitution or, if
constitutional authorization is not required, by other law of the compacting state, such state,
by entering into the compact does not:
new text end

new text begin i. commit the full faith and credit or taxing power of the compacting state for the payment
of prizes or other obligations under the compact;
new text end

new text begin ii. make prize payment responsibilities or other obligations under the compact a debt of
the compacting state.
new text end

new text begin d. Upon the request of a party to a conflict over the meaning or interpretation of
commission actions, and upon a majority vote of the compacting states, the commission
may issue advisory opinions regarding the meaning or interpretation in dispute.
new text end

new text begin e. In the event any provision of the compact exceeds the constitutional limits imposed
on any compacting state, the obligations, duties, powers, or jurisdiction sought to be conferred
by that provision upon the commission shall be ineffective as to that compacting state, and
those obligations, duties, powers, or jurisdiction shall remain in the compacting state and
shall be exercised by the agency thereof to which those obligations, duties, powers, or
jurisdiction are delegated by law in effect at the time the compact becomes effective.
new text end