LBD00580-01-1
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1. "COMPACTING STATE" MEANS EITHER OF THE FOLLOWING:
A. ANY STATE THAT HAS ENACTED THE COMPACT AND WHICH HAS NOT WITHDRAWN
OR BEEN SUSPENDED PURSUANT SECTION FORTY-NINE HUNDRED NINETY-NINE-M OF
THIS ARTICLE;
B. THE FEDERAL GOVERNMENT IN ACCORDANCE WITH THE COMMISSION'S BYLAWS.
2. "COMPACT" MEANS THE SOLEMN COVENANT OF THE STATES TO AWARD PRIZES
FOR CURING DISEASES ENACTED IN THIS ARTICLE.
3. "NON-COMPACTING STATE" MEANS ANY STATE OR THE FEDERAL GOVERNMENT,
IF IT IS NOT AT THE TIME A COMPACTING STATE.
4. "PUBLIC HEALTH EXPENSES" MEANS THE AMOUNT OF ALL COSTS PAID BY
TAXPAYERS IN A SPECIFIED GEOGRAPHIC AREA RELATING TO A PARTICULAR
DISEASE.
5. "STATE" MEANS ANY STATE, DISTRICT, OR TERRITORY OF THE UNITED
STATES OF AMERICA.
§ 4999-A. ESTABLISHMENT OF THE COMMISSION; MEMBERSHIP. 1. UPON THE
ENACTMENT OF THE COMPACT BY SIX STATES, THE COMPACTING STATES SHALL
ESTABLISH THE SOLEMN COVENANT OF STATES COMMISSION.
2. THE COMMISSION IS A BODY CORPORATE AND POLITIC AND AN INSTRUMENTAL-
ITY OF EACH OF THE COMPACTING STATES AND IS SOLELY RESPONSIBLE FOR ITS
LIABILITIES, EXCEPT AS OTHERWISE SPECIFICALLY PROVIDED IN THE COMPACT.
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 RESPONSI-
BLE 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 QUALI-
FICATION, SELECTION, OR SERVICE OF ITS OWN MEMBER.
§ 4999-B. POWERS OF THE COMMISSION. 1. TO ADOPT BYLAWS AND RULES
PURSUANT TO SECTIONS FORTY-NINE HUNDRED NINETY-NINE-D AND FORTY-NINE
HUNDRED NINETY-NINE-C OF THIS ARTICLE, 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;
2. TO RECEIVE AND REVIEW IN AN EXPEDITIOUS MANNER TREATMENTS AND THER-
APEUTIC 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;
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 SUBDIVISION THREE OF SECTION FORTY-NINE HUNDRED NINETY-
NINE-E OF THIS ARTICLE, 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;
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;
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
SUBDIVISION FOUR OF THIS SECTION; PROVIDED THAT THE ROYALTY FEES SHALL
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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;
6. TO DO THE FOLLOWING REGARDING THE COLLECTED ROYALTY FEES:
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 SUBDI-
VISION THREE OF SECTION FORTY-NINE HUNDRED NINETY-NINE-E OF THIS ARTI-
CLE, AND PAYMENT OF INTEREST AND OTHER EXPENSES RELATED TO A LOAN
OBTAINED IN ACCORDANCE WITH SUBDIVISION THREE OF SECTION FORTY-NINE
HUNDRED NINETY-NINE-E OF THIS ARTICLE;
B. ANNUALLY DISBURSE ANY AMOUNTS REMAINING AFTER MAKING PAYMENTS OR
REIMBURSEMENTS UNDER PARAGRAPH A OF THIS SUBDIVISION 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;
7. TO BRING AND PROSECUTE LEGAL PROCEEDINGS OR ACTIONS IN ITS NAME AS
THE COMMISSION;
8. TO ISSUE SUBPOENAS REQUIRING THE ATTENDANCE AND TESTIMONY OF
WITNESSES AND THE PRODUCTION OF EVIDENCE;
9. TO ESTABLISH AND MAINTAIN OFFICES;
10. TO BORROW, ACCEPT, OR CONTRACT FOR PERSONNEL SERVICES, INCLUDING
PERSONNEL SERVICES FROM EMPLOYEES OF A COMPACTING STATE;
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;
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;
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;
14. TO SELL, CONVEY, MORTGAGE, PLEDGE, LEASE, EXCHANGE, ABANDON, OR
OTHERWISE DISPOSE OF ANY PROPERTY, REAL, PERSONAL, OR MIXED;
15. TO MONITOR COMPACTING STATES FOR COMPLIANCE WITH THE COMMISSION'S
BYLAWS AND RULES;
16. TO ENFORCE COMPLIANCE BY COMPACTING STATES WITH THE COMMISSION'S
BYLAWS AND RULES;
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;
18. TO ESTABLISH A BUDGET AND MAKE EXPENDITURES;
19. TO BORROW MONEY;
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;
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;
22. TO ADOPT AND USE A CORPORATE SEAL;
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23. TO PERFORM SUCH OTHER FUNCTIONS AS MAY BE NECESSARY OR APPROPRIATE
TO ACHIEVE THE PURPOSES OF THIS ARTICLE.
§ 4999-C . MEETINGS AND VOTING. 1. THE COMMISSION SHALL MEET AND TAKE
SUCH ACTIONS AS ARE CONSISTENT WITH THE COMPACT, BYLAWS, AND RULES.
2. A MAJORITY OF THE MEMBERS OF THE COMMISSION SHALL CONSTITUTE A
QUORUM NECESSARY IN ORDER TO CONDUCT BUSINESS OR TAKE ACTIONS AT MEET-
INGS OF THE COMMISSION.
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.
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 COMMU-
NICATION.
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.
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 COMMIS-
SION VOTE IN FAVOR THEREOF.
7. GUIDELINES AND VOTING REQUIREMENTS FOR ALL OTHER DECISIONS OF THE
COMMISSION SHALL BE ESTABLISHED IN THE COMMISSION'S BYLAWS.
§ 4999-D. BYLAWS. 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:
1. ESTABLISHING THE FISCAL YEAR OF THE COMMISSION;
2. PROVIDING REASONABLE PROCEDURES FOR APPOINTING AND ELECTING
MEMBERS, AS WELL AS HOLDING MEETINGS, OF THE MANAGEMENT COMMITTEE;
3. PROVIDING REASONABLE STANDARDS AND PROCEDURES:
A. FOR THE ESTABLISHMENT AND MEETINGS OF OTHER COMMITTEES;
B. GOVERNING ANY GENERAL OR SPECIFIC DELEGATION OF ANY AUTHORITY OR
FUNCTION OF THE COMMISSION; AND
C. VOTING GUIDELINES AND PROCEDURES FOR COMMISSION DECISIONS.
4. PROVIDING REASONABLE PROCEDURES FOR CALLING AND CONDUCTING MEETINGS
OF THE COMMISSION THAT SHALL CONSIST OF REQUIRING A QUORUM TO BE PRES-
ENT, ENSURING REASONABLE ADVANCE NOTICE OF EACH SUCH MEETING AND PROVID-
ING FOR THE RIGHT OF CITIZENS TO ATTEND EACH SUCH MEETING WITH ENUMER-
ATED EXCEPTIONS DESIGNED TO PROTECT THE PUBLIC'S INTEREST AND THE
PRIVACY OF INDIVIDUALS.
5. PROVIDING A LIST OF MATTERS ABOUT WHICH THE COMMISSION MAY GO INTO
EXECUTIVE SESSION AND REQUIRING A MAJORITY OF ALL MEMBERS OF THE COMMIS-
SION VOTE TO ENTER INTO SUCH SESSION. AS SOON AS PRACTICABLE, THE
COMMISSION SHALL MAKE PUBLIC:
A. A COPY OF THE VOTE TO GO INTO EXECUTIVE SESSION, REVEALING THE VOTE
OF EACH MEMBER WITH NO PROXY VOTES ALLOWED; AND
B. THE MATTER REQUIRING EXECUTIVE SESSION, WITHOUT IDENTIFYING THE
ACTUAL ISSUES OR INDIVIDUALS INVOLVED.
6. ESTABLISHING THE TITLES, DUTIES, AUTHORITY, AND REASONABLE PROCE-
DURES FOR THE ELECTION OF THE OFFICERS OF THE COMMISSION;
7. PROVIDING REASONABLE STANDARDS AND PROCEDURES FOR THE ESTABLISHMENT
OF THE PERSONNEL POLICIES AND PROGRAMS OF THE COMMISSION. NOTWITHSTAND-
ING ANY CIVIL SERVICE OR OTHER SIMILAR LAWS OF ANY COMPACTING STATE, THE
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COMMISSION'S BYLAWS SHALL EXCLUSIVELY GOVERN THE PERSONNEL POLICIES AND
PROGRAMS OF THE COMMISSION;
8. ALLOWING A MECHANISM FOR:
A. THE FEDERAL GOVERNMENT TO JOIN AS A COMPACTING STATE; AND
B. FOREIGN COUNTRIES OR SUBDIVISIONS OF THOSE COUNTRIES TO JOIN AS
LIAISON MEMBERS BY ADOPTING THE COMPACT; PROVIDED THAT ADOPTING COUN-
TRIES OR SUBDIVISIONS SHALL NOT HAVE VOTING POWER OR THE POWER TO BIND
THE COMMISSION IN ANY WAY.
9. ADOPTING A CODE OF ETHICS TO ADDRESS PERMISSIBLE AND PROHIBITED
ACTIVITIES OF MEMBERS AND EMPLOYEES;
10. PROVIDING FOR THE MAINTENANCE OF THE COMMISSION'S BOOKS AND
RECORDS;
11. GOVERNING THE ACCEPTANCE OF AND ACCOUNTING FOR DONATIONS, ANNUAL
MEMBER DUES, AND OTHER SOURCES OF FUNDING AND ESTABLISHING THE PROPOR-
TION OF THESE FUNDS TO BE ALLOCATED TO PRIZE AMOUNTS FOR TREATMENTS AND
THERAPEUTIC PROTOCOLS THAT CURE DISEASE;
12. GOVERNING ANY FUNDRAISING EFFORTS IN WHICH THE COMMISSION WISHES
TO ENGAGE; AND
13. PROVIDING A MECHANISM FOR WINDING UP THE OPERATIONS OF THE COMMIS-
SION 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.
§ 4999-E. RULES. 1. THE COMMISSION SHALL ADOPT RULES TO DO THE
FOLLOWING:
A. EFFECTIVELY AND EFFICIENTLY ACHIEVE THE PURPOSES OF THIS ARTICLE;
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.
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 PARAGRAPHS A AND C OF
SUBDIVISION THREE OF THIS SECTION, A SUBSET OF A DISEASE SHALL BE
CONSIDERED ONE DISEASE. THE COMMISSION MAY CONSULT THE MOST RECENT
EDITION OF THE INTERNATIONAL CLASSIFICATION OF DISEASE AS PUBLISHED BY
THE WORLD HEALTH ORGANIZATION OR OTHER DEFINITIONS AGREED TO BY A TWO-
THIRDS VOTE OF THE COMMISSION.
3. THE COMMISSION SHALL ALSO ADOPT RULES REGARDING PRIZES FOR CURING
DISEASES THAT ESTABLISH THE FOLLOWING:
A. AT LEAST TEN MAJOR DISEASES FOR WHICH TO CREATE PRIZES, WHICH SHALL
BE DETERMINED BASED ON THE FOLLOWING FACTORS:
I. THE SEVERITY OF THE DISEASE TO A HUMAN INDIVIDUAL'S OVERALL HEALTH
AND WELL-BEING;
II. THE SURVIVAL RATE OR SEVERITY OF IMPACT OF THE DISEASE;
III. THE PUBLIC HEALTH EXPENSES AND TREATMENT EXPENSES FOR THE
DISEASE.
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:
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;
II. EXCEPT AS PROVIDED IN SUBDIVISION FOUR OF THIS SECTION, IT MUST
YIELD A SIGNIFICANT INCREASE IN SURVIVAL WITH RESPECT TO THE DISEASES IF
EARLY DEATH IS THE USUAL OUTCOME;
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III. IT REQUIRES LESS THAN ONE YEAR OF THE TREATMENT OR PROTOCOL TO
COMPLETELY CURE THE DISEASE.
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.
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 LIMITA-
TIONS PREVENTING PUBLIC ACCESS TO TREATMENT OR PROTOCOL SUBMISSIONS.
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 REQUIRE-
MENTS IN PARAGRAPH C OF THIS SUBDIVISION. 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.
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 PARAGRAPH E OF
THIS SUBDIVISION IN ALL OF THE COMPACTING STATES; AMOUNTS DONATED BY
CHARITIES, INDIVIDUALS, AND ANY OTHER ENTITIES INTENDED FOR THE PRIZE
UNDER THIS ARTICLE; AND ANY OTHER FACTORS THAT THE COMMISSION DEEMS
APPROPRIATE.
G. THE PRIZE DISTRIBUTION PROCEDURES AND GUIDELINES, WHICH SHALL
INCLUDE THE FOLLOWING REQUIREMENTS:
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.
II. DONATION AMOUNTS INTENDED FOR THE PRIZE SHALL BE KEPT IN A SEPA-
RATE, INTEREST-BEARING ACCOUNT MAINTAINED BY THE COMMISSION. THIS
ACCOUNT SHALL BE THE ONLY ACCOUNT IN WHICH PRIZE MONEY IS KEPT.
III. EACH COMPACTING STATE SHALL HAVE THE RESPONSIBILITY TO PAY ANNU-
ALLY 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 PARAGRAPH F OF THIS
SUBDIVISION. 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.
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 REVEN-
UE 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
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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.
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 CONSTI-
TUTION OR, IF CONSTITUTIONAL AUTHORIZATION IS NOT REQUIRED, BY OTHER LAW
OF THE COMPACTING STATE.
VI. UPON ACCEPTANCE OF A CURE, THE COMMISSION SHALL OBTAIN A LOAN FROM
A FINANCIAL INSTITUTION IN AN AMOUNT EQUAL TO THE MOST RECENTLY CALCU-
LATED TOTAL ESTIMATED FIVE-YEAR PUBLIC HEALTH EXPENSES FOR THE DISEASE
IN ALL COMPACTING STATES, IN ACCORDANCE WITH PARAGRAPH F OF THIS SUBDI-
VISION. 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.
4. THE COMMISSION MAY AWARD A PRIZE FOR A TREATMENT OR THERAPEUTIC
PROTOCOL THAT YIELDS A SURVIVAL RATE THAT IS LESS THAN WHAT IS ESTAB-
LISHED IN THE CURE CRITERIA THROUGH AT LEAST FIVE YEARS AFTER THE TREAT-
MENT 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.
5. THE COMMISSION ALSO SHALL ADOPT RULES THAT DO THE FOLLOWING:
A. ESTABLISH THE FOLLOWING REGARDING COMMISSION RECORDS:
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;
II. PROCEDURES FOR SHARING WITH FEDERAL AND STATE AGENCIES, INCLUDING
LAW ENFORCEMENT AGENCIES, RECORDS AND INFORMATION OTHERWISE EXEMPT FROM
DISCLOSURE;
III. GUIDELINES FOR ENTERING INTO AGREEMENTS WITH FEDERAL AND STATE
AGENCIES TO RECEIVE OR EXCHANGE INFORMATION OR RECORDS SUBJECT TO
NONDISCLOSURE AND CONFIDENTIALITY PROVISIONS.
B. PROVIDE A PROCESS FOR COMMISSION REVIEW OF SUBMITTED TREATMENTS AND
THERAPEUTIC PROTOCOLS FOR CURING DISEASES THAT INCLUDES THE FOLLOWING:
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 PROC-
ESS;
II. COMMISSION MONITORING AND REVIEW OF TREATMENT AND PROTOCOL EFFEC-
TIVENESS CONSISTENT WITH THE CURE CRITERIA ESTABLISHED BY THE COMMISSION
FOR THE PARTICULAR DISEASE;
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.
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:
I. ADMINISTRATIVE REVIEW BY A REVIEW PANEL APPOINTED BY THE COMMIS-
SION;
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II. JUDICIAL REVIEW OF DECISIONS ISSUED AFTER AN ADMINISTRATIVE
REVIEW; AND
III. QUALIFICATIONS TO BE APPOINTED TO A PANEL, DUE PROCESS REQUIRE-
MENTS, INCLUDING NOTICE AND HEARING PROCEDURES, AND ANY OTHER PROCEDURE,
REQUIREMENT, OR STANDARD NECESSARY TO PROVIDE ADEQUATE DISPUTE RESOL-
UTION.
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.
6. RECOGNIZING THAT THE GOAL OF THE COMPACT IS TO POOL THE POTENTIAL
SAVINGS OF AS MANY STATES AND COUNTRIES AS POSSIBLE TO GENERATE SUFFI-
CIENT FINANCIAL INCENTIVE TO DEVELOP A CURE FOR MANY OF THE WORLD'S MOST
DEVASTATING DISEASES, THE COMPACT WILL RESPECT THE LAWS OF EACH OF THE
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.
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 FIRST OF
EACH YEAR, THE COMPACT SHALL REVIEW ALL STATE LAWS TO DETERMINE IF ADDI-
TIONAL 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.
7. ALL RULES MAY BE AMENDED AS THE COMMISSION SEES NECESSARY.
8. ALL RULES SHALL BE ADOPTED PURSUANT TO A RULEMAKING 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.
9. IN THE EVENT THE COMMISSION EXERCISES ITS RULEMAKING AUTHORITY IN A
MANNER THAT IS BEYOND THE SCOPE OF THE PURPOSE OF THIS ARTICLE, OR THE
POWERS GRANTED HEREUNDER, THEN SUCH RULE SHALL BE INVALID AND HAVE NO
FORCE AND EFFECT.
§ 4999-F. COMMITTEES. A. THE COMMISSION MAY ESTABLISH A MANAGEMENT
COMMITTEE COMPRISED OF NOT MORE THAN FOURTEEN MEMBERS WHEN TWENTY-SIX
STATES ENACT THE COMPACT.
B. THE COMMITTEE SHALL CONSIST OF THOSE MEMBERS REPRESENTING COMPACT-
ING STATES WHOSE TOTAL PUBLIC HEALTH EXPENSES OF ALL OF THE ESTABLISHED
DISEASES ARE THE HIGHEST.
C. THE COMMITTEE SHALL HAVE SUCH AUTHORITY AND DUTIES AS MAY BE SET
FORTH IN THE COMMISSION'S BYLAWS AND RULES, INCLUDING:
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;
II. OVERSEEING THE OFFICES OF THE COMMISSION; AND
III. PLANNING, IMPLEMENTING, AND COORDINATING COMMUNICATIONS AND
ACTIVITIES WITH STATE, FEDERAL, AND LOCAL GOVERNMENT ORGANIZATIONS IN
ORDER TO ADVANCE THE GOALS OF THE COMPACT.
S. 2123 9
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.
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 COMMIT-
TEE.
2. THE COMMISSION MAY APPOINT ADVISORY COMMITTEES TO MONITOR ALL OPER-
ATIONS 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:
A. APPROVING CURE CRITERIA;
B. AMENDING, ENACTING, OR REPEALING ANY BYLAW OR RULE;
C. ADOPTING THE COMMISSION'S ANNUAL BUDGET;
D. ADDRESSING ANY OTHER SIGNIFICANT MATTER OR TAKING ANY OTHER SIGNIF-
ICANT ACTION.
§ 4999-G. FINANCE. 1. THE COMMISSION ANNUALLY SHALL ESTABLISH A BUDG-
ET 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.
2. THE COMMISSION SHALL BE EXEMPT FROM ALL TAXATION IN AND BY THE
COMPACTING STATES.
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 INDEPEND-
ENT 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 INDE-
PENDENT AUDIT AND ANY INFORMATION SUBJECT TO THE COMPACTING STATES'
PRIVACY LAWS, SHALL REMAIN CONFIDENTIAL.
4. NO COMPACTING STATE SHALL HAVE ANY CLAIM OR OWNERSHIP OF ANY PROP-
ERTY HELD BY OR VESTED IN THE COMMISSION OR TO ANY COMMISSION FUNDS HELD
PURSUANT TO THE PROVISIONS OF THE COMPACT.
§ 4999-H. RECORDS. EXCEPT AS TO PRIVILEGED RECORDS, DATA, AND INFOR-
MATION, 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 OTHER-
S. 2123 10
WISE 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 CONFI-
DENTIALITY AND NONDISCLOSURE WITH RESPECT TO RECORDS, DATA, AND INFORMA-
TION 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.
§ 4999-I. COMPLIANCE. 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 SPEC-
IFIED IN THE NOTICE, THE COMPACTING STATE SHALL BE DEEMED TO BE IN
DEFAULT AS SET FORTH IN SECTION FORTY-NINE HUNDRED NINETY-NINE-M OF THIS
ARTICLE.
§ 4999-J. VENUE. VENUE FOR ANY JUDICIAL PROCEEDINGS BY OR AGAINST THE
COMMISSION SHALL BE BROUGHT IN THE APPROPRIATE COURT OF COMPETENT JURIS-
DICTION FOR THE GEOGRAPHICAL AREA IN WHICH THE PRINCIPAL OFFICE OF THE
COMMISSION IS LOCATED.
§ 4999-K. QUALIFIED IMMUNITY, DEFENSE, AND INDEMNIFICATION. 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 THIS SECTION 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.
2. THE COMMISSION SHALL DEFEND ANY MEMBER, OFFICER, EXECUTIVE DIREC-
TOR, 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 NOTH-
ING 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.
3. THE COMMISSION SHALL INDEMNIFY AND HOLD HARMLESS ANY MEMBER, OFFI-
CER, 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.
§ 4999-L. COMPACTING STATES, EFFECTIVE DATE, AND AMENDMENT. 1. ANY
STATE IS ELIGIBLE TO BECOME A COMPACTING STATE.
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
S. 2123 11
BINDING AS TO ANY OTHER COMPACTING STATE UPON ENACTMENT OF THE COMPACT
INTO LAW BY THAT STATE.
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.
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.
§ 4999-M. WITHDRAWAL, DEFAULT, AND EXPULSION. 1. 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:
I. REPEALING THE LAW ENACTING THE COMPACT IN THAT STATE;
II. NOTIFYING THE COMMISSION IN WRITING OF THE INTENT TO WITHDRAW ON A
DATE THAT IS BOTH OF THE FOLLOWING:
A. AT LEAST THREE YEARS AFTER THE DATE THE NOTICE IS SENT;
B. AFTER THE REPEAL TAKES EFFECT.
B. THE EFFECTIVE DATE OF WITHDRAWAL IS THE DATE DESCRIBED IN SUBPARA-
GRAPH II OF PARAGRAPH A OF THIS SUBDIVISION.
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 COMMIT-
TEE HAS NOT BEEN ESTABLISHED, THE MEMBER SHALL IMMEDIATELY NOTIFY THE
COMMISSION.
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.
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.
F. REINSTATEMENT FOLLOWING A STATE'S WITHDRAWAL SHALL BECOME EFFECTIVE
UPON THE EFFECTIVE DATE OF THE SUBSEQUENT ENACTMENT OF THE COMPACT BY
THAT STATE.
2. 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 ARTICLE 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 SPECI-
FIED 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
S. 2123 12
THAT WITHDRAWS FROM THE COMPACT REMAINS LIABLE FOR PAYING ITS RESPONSI-
BILITY TOWARDS A PRIZE FOR A CURE THAT WAS ACCEPTED WHILE THE COMPACTING
STATE WAS A MEMBER OF THE COMMISSION.
B. THE EXPELLED STATE MUST REENACT THE COMPACT IN ORDER TO BECOME A
COMPACTING STATE.
3. A. THE COMPACT DISSOLVES EFFECTIVE UPON THE DATE OF EITHER OF THE
FOLLOWING:
I. THE WITHDRAWAL OR EXPULSION OF A COMPACTING STATE, WHICH WITHDRAWAL
OR EXPULSION REDUCES MEMBERSHIP IN THE COMPACT TO ONE COMPACTING STATE;
II. THE COMMISSION VOTES TO DISSOLVE THE COMPACT.
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.
§ 4999-N. SEVERABILITY AND CONSTRUCTION. 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.
2. THE PROVISIONS OF THE COMPACT SHALL BE LIBERALLY CONSTRUED TO
EFFECTUATE ITS PURPOSES.
§ 4999-O. BINDING EFFECT OF COMPACT AND OTHER LAWS. 1. NOTHING HEREIN
PREVENTS THE ENFORCEMENT OF ANY OTHER LAW OF A COMPACTING STATE, EXCEPT
AS PROVIDED IN PARAGRAPH B OF SUBDIVISION TWO OF THIS SECTION.
2. A. ALL LAWFUL ACTIONS OF THE COMMISSION, INCLUDING ALL COMMISSION
RULES, ARE BINDING UPON THE COMPACTING STATES.
B. ALL AGREEMENTS BETWEEN THE COMMISSION AND THE COMPACTING STATES ARE
BINDING IN ACCORDANCE WITH THEIR TERMS.
C. EXCEPT TO THE EXTENT AUTHORIZED BY THE COMPACTING STATE'S CONSTITU-
TION OR, IF CONSTITUTIONAL AUTHORIZATION IS NOT REQUIRED, BY OTHER LAW
OF THE COMPACTING STATE, SUCH STATE, BY ENTERING INTO THE COMPACT DOES
NOT:
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;
II. MAKE PRIZE PAYMENT RESPONSIBILITIES OR OTHER OBLIGATIONS UNDER THE
COMPACT A DEBT OF THE COMPACTING STATE.
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.
E. IN THE EVENT ANY PROVISION OF THE COMPACT EXCEEDS THE CONSTITU-
TIONAL 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.
§ 2. This act shall take effect immediately.
