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PRINTER'S NO. 3376
THE GENERAL ASSEMBLY OF PENNSYLVANIA
HOUSE BILL
No.
2325
Session of
2020
INTRODUCED BY TOEPEL, ROTHMAN, CIRESI, SCHLEGEL CULVER, CUTLER,
HILL-EVANS, MALONEY, MILLARD, PICKETT, READSHAW, ROZZI,
SAYLOR, SCHMITT, THOMAS, YOUNGBLOOD AND DRISCOLL,
FEBRUARY 24, 2020
REFERRED TO COMMITTEE ON HEALTH, FEBRUARY 24, 2020
AN ACT
Authorizing the Commonwealth of Pennsylvania to join the Solemn
Covenant of the States to Award Prizes for Curing Diseases;
providing for the form of the compact; imposing additional
powers and duties on the Governor, the Secretary of the
Commonwealth and the compact.
The General Assembly of the Commonwealth of Pennsylvania
hereby enacts as follows:
Section 1. Short title.
This act shall be known and may be cited as the Solemn
Covenant of the States to Award Prizes for Curing Diseases.
Section 2. Authority to execute compact.
The Governor of Pennsylvania, on behalf of this State, is
authorized to execute a compact in substantially the following
form with any one or more of the states of the United States,
and the General Assembly signifies in advance its approval and
ratification of the compact:
Article I. Definitions
For purposes of this compact:
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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has not withdrawn or been suspended pursuant to Article
XIV of the compact;
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 section.
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.
Article II. 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
instrumentality 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 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
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service of its own member.
Article III. Powers of the Commission
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;
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;
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;
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,
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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;
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 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;
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;
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
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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
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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;
23. To perform such other functions as may be necessary or
appropriate to achieve the purposes of this compact.
Article IV. 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 meetings 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 communication.
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 commission vote in favor thereof.
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7. Guidelines and voting requirements for all other
decisions of the commission shall be established in the
commission's bylaws.
Article V. 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 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.
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
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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 procedures 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. 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;
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 countries 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 proportion of these funds to be allocated to
prize amounts for treatments and therapeutic protocols that cure
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disease;
12. Governing any fund raising efforts in which the
commission wishes to engage; and
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.
Article VI. Rules
1. The commission shall adopt rules to do the following:
a. Effectively and efficiently achieve the purposes of
this compact;
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 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 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:
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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 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;
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
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limitations 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 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.
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
under Article I of the compact; 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.
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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.
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.
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.
v. A compacting state may issue bonds or other debt
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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.
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.
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.
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,
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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 process;
ii. Commission monitoring and review of treatment
and protocol effectiveness 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
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and therapeutic protocols to cure diseases, which process
shall provide for:
i. Administrative review by a review panel appointed
by the commission;
ii. Judicial review of decisions issued after an
administrative review; and
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.
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 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.
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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.
7. All rules may be amended as the commission sees
necessary.
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.
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.
Article VII. Committees
1. Management Committee
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 compacting 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
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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.
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 committee.
2. Advisory Committees
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
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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 significant action.
Article VIII. Finance
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.
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
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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.
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.
Article IX. Records
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.
Article X. 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 specified in the notice, the compacting state shall be
deemed to be in default as set forth in Article XIV.
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Article XI. Venue
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.
Article XII. 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 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.
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
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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, 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.
Article XIII. 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 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.
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Article XIV. Withdrawal, Default, and Expulsion
1. Withdrawal
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:
I. At least three years after the date the
notice is sent;
II. After the repeal takes effect.
b. The effective date of withdrawal is the date
described in section 1.a.ii. of this article.
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.
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
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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. Default
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
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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. Dissolution of Compact
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.
Article XV. 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.
Article XVI. Binding Effect of Compact and Other Laws
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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.
2. Binding Effect of the Compact
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 constitution 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
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
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thereof to which those obligations, duties, powers, or
jurisdiction are delegated by law in effect at the time the
compact becomes effective.
Section 3. When and how compact becomes operative.
(a) General rule.--When the Governor executes the compact on
behalf of this State and files a verified copy thereof with the
Secretary of the Commonwealth and when the compact is ratified
by one or more other states, then the compact shall become
operative and effective between this State and such other state
or states. The Governor is hereby authorized and directed to
take such action as may be necessary to complete the exchange of
official documents between this State and any other state
ratifying the compact.
(b) Notice in Pennsylvania Bulletin.--The Secretary of the
Commonwealth shall transmit a notice when the conditions set
forth in subsection (a) are satisfied and shall include in the
notice the date on which the compact became effective and
operative between this State and any other state or states in
accordance with this act to the Legislative Reference Bureau for
publication in the Pennsylvania Bulletin.
Section 4. Compensation and expenses.
The members, officers, executive director, employees and
representatives of the commission who represent this State shall
not be entitled to any additional compensation for their duties
and responsibilities on the commission but shall be entitled to
reimbursement for reasonable expenses actually incurred in
connection with their duties and responsibilities in the same
manner as for expenses incurred in connection with other duties
and responsibilities of their offices or employment.
Section 5. Effective date.
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This act shall take effect in 60 days.
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