Bill Text: IA HF2084 | 2019-2020 | 88th General Assembly | Introduced

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Bill Title: A bill for an act relating to the adoption of the interstate curing disease compact. (See HF 2519.)

Spectrum: Partisan Bill (Republican 3-0)

Status: (Introduced - Dead) 2020-02-19 - Committee report, recommending passage. H.J. 309. [HF2084 Detail]

Download: Iowa-2019-HF2084-Introduced.html

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House File 2084 - Introduced
HOUSE FILE 2084
BY LUNDGREN , WILLS , and FRY
A BILL FOR
An Act relating to the adoption of the interstate curing
disease compact.
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
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Section 1. NEW SECTION . 139D.1 Interstate curing disease
compact.
1. Article I —— Definitions. For the purposes of this
compact:
a. “Compact” means the solemn covenant of the states to
award prizes for curing diseases enacted in this chapter.
b. “Compacting state” means either of the following:
(1) Any state that has enacted the compact and which has not
withdrawn or been suspended pursuant to article XIV.
(2) The federal government in accordance with the
commission’s bylaws.
c. “Non-compacting state” means any state or the federal
government, if it is not at the time a compacting state.
d. “Public health expenses” means the amount of all costs
paid by taxpayers in a specified geographic area relating to a
particular disease.
e. “State” means any state, district, or territory of the
United States of America.
2. Article II —— Establishment of the commission; membership.
a. Upon the enactment of the compact by six states, the
compacting states shall establish the solemn covenant of states
commission.
b. 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.
c. 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.
3. Article III —— Powers of the commission. The powers of
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the commission include all of the following:
a. 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.
b. 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.
c. 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 article VI,
paragraph “c” , subparagraph (7), subparagraph division (a),
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.
d. 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 non-compacting states. The price shall not
include the expenses of any other activities.
e. In non-compacting states and foreign countries, to
establish and collect royalty fees imposed on manufacturers,
producers, and providers in non-compacting states or foreign
countries 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 paragraph “d” ; provided
that the royalty fees shall cumulatively be not more than the
estimated five-year savings in public health expenses for
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that state or country, as calculated by actuaries employed or
contracted by the commission.
f. To do the following regarding the collected royalty fees:
(1) 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 article VI, paragraph
“c” , subparagraph (7), subparagraph division (a), and payment
of interest and other expenses related to a loan obtained in
accordance with article VI, paragraph “c” , subparagraph (7),
subparagraph division (f).
(2) Annually disburse any amounts remaining after making
payments or reimbursements under subparagraph (1) as refunds
to compacting states based on the percent of the state’s prize
obligation in relation to the total obligation amount of all
compacting states.
g. To bring and prosecute legal proceedings or actions in
its name as the commission.
h. To issue subpoenas requiring the attendance and testimony
of witnesses and the production of evidence.
i. To establish and maintain offices.
j. To borrow, accept, or contract for personnel services,
including personnel services from employees of a compacting
state.
k. 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.
l. To accept any and all appropriate donations and grants
of money, equipment, supplies, materials, and services, and to
receive, utilize, and dispose of them; provided that at all
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times the commission shall strive to avoid any appearance of
impropriety.
m. 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.
n. To sell, convey, mortgage, pledge, lease, exchange,
abandon, or otherwise dispose of any property, real, personal,
or mixed.
o. To monitor compacting states for compliance with the
commission’s bylaws and rules.
p. To enforce compliance by compacting states with the
commission’s bylaws and rules.
q. 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.
r. To establish a budget and make expenditures.
s. To borrow money.
t. 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.
u. 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.
v. To adopt and use a corporate seal.
w. To perform such other functions as may be necessary or
appropriate to achieve the purposes of this compact.
4. Article IV —— Meetings and voting.
a. The commission shall meet and take such actions as are
consistent with the compact, bylaws, and rules.
b. A majority of the members of the commission shall
constitute a quorum necessary in order to conduct business or
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take actions at meetings of the commission.
c. 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.
d. 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.
e. The commission shall meet at least once during each
calendar year. Additional meetings shall be held as set forth
in the commission’s bylaws.
f. No decision of the commission with respect to the
approval of an award for a treatment or therapeutic protocol
for the cure of a disease shall be effective unless two-thirds
of all the members of the commission vote in favor of the
approval.
g. Guidelines and voting requirements for all other
decisions of the commission shall be established in the
commission’s bylaws.
5. 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:
a. Establishing the fiscal year of the commission.
b. Providing reasonable procedures for appointing and
electing members and holding meetings of the management
committee.
c. Providing reasonable standards and procedures relating
to all of the following:
(1) The establishment and meetings of other committees.
(2) Governing any general or specific delegation of any
authority or function of the commission.
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(3) Voting guidelines and procedures for commission
decisions.
d. 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.
e. 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:
(1) A copy of the vote to go into executive session,
revealing the vote of each member with no proxy votes allowed.
(2) The matter requiring executive session, without
identifying the actual issues or individuals involved.
f. Establishing the titles, duties, authority, and
reasonable procedures for the election of the officers of the
commission.
g. 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.
h. Allowing a mechanism for:
(1) The federal government to join as a compacting state.
(2) 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.
i. Adopting a code of ethics to address permissible and
prohibited activities of members and employees.
j. Providing for the maintenance of the commission’s books
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and records.
k. 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.
l. Governing any fundraising efforts in which the commission
wishes to engage.
m. 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.
6. Article VI —— Rules.
a. The commission shall adopt rules to do the following:
(1) Effectively and efficiently achieve the purposes of
this compact.
(2) 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.
b. 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 the purposes of paragraph “c” , subparagraphs
(1) and (3), 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.
c. The commission shall also adopt rules regarding prizes
for curing diseases that establish the following:
(1) At least ten major diseases for which to create prizes,
which shall be determined based on the following factors:
(a) The severity of the disease to a human individual’s
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overall health and well-being.
(b) The survival rate or severity of impact of the disease.
(c) The public health expenses and treatment expenses for
the disease.
(2) 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:
(a) 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.
(b) Except as provided in paragraph “d” , it must yield a
significant increase in survival with respect to the diseases
if early death is the usual outcome.
(c) It requires less than one year of the treatment or
protocol to completely cure the disease.
(3) 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.
(4) 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.
(5) 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 paragraph “c” ,
subparagraph (3). The estimated five-year public health
savings amount shall be calculated, estimated, and publicized
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every three years by actuaries employed or contracted by the
commission.
(6) 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 “c” , subparagraph (5), in all of the
compacting states; amounts donated by charities, individuals,
and any other entities intended for the prize under article I;
and any other factors that the commission deems appropriate.
(7) The prize distribution procedures and guidelines, which
shall include the following requirements:
(a) 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.
(b) 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.
(c) 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 paragraph “c” , subparagraph
(6). 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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(d) 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.
(e) 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.
(f) 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 paragraph “c” , subparagraph (6). 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.
d. 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
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survival rate established in the cure criteria.
e. The commission also shall adopt rules that do the
following:
(1) Establish the following regarding commission records:
(a) 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
that would otherwise violate privacy laws under federal law and
the laws of the compacting states.
(b) Procedures for sharing with federal and state agencies,
including law enforcement agencies, records and information
otherwise exempt from disclosure.
(c) Guidelines for entering into agreements with federal
and state agencies to receive or exchange information
or records subject to nondisclosure and confidentiality
provisions.
(2) Provide a process for commission review of submitted
treatments and therapeutic protocols for curing diseases that
includes the following:
(a) 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.
(b) Commission monitoring and review of treatment and
protocol effectiveness consistent with the cure criteria
established by the commission for the particular disease.
(c) 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.
(d) Establishment of 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
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provide for all of the following:
(i) Administrative review by a review panel appointed by the
commission.
(ii) Judicial review of decisions issued after an
administrative review.
(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.
(e) Establishment and imposition of 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.
f. (1) 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 incentives 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.
(2) 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
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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.
g. All rules may be amended as the commission sees
necessary.
h. 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.
i. In the event the commission exercises its rulemaking
authority in a manner that is beyond the scope of the purpose
of this compact, or the powers granted under the compact, then
such rule shall be invalid and have no force and effect.
7. Article VII —— Committees.
a. Management committee.
(1) The commission may establish a management committee
comprised of not more than fourteen members when twenty-six
states enact the compact.
(2) The committee shall consist of those members
representing compacting states whose total public health
expenses of all of the established diseases are the highest.
(3) The committee shall have such authority and duties
as may be set forth in the commission’s bylaws and rules,
including:
(a) 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.
(b) Overseeing the offices of the commission.
(c) Planning, implementing, and coordinating communications
and activities with state, federal, and local government
organizations in order to advance the goals of the compact.
(4) The commission annually shall elect officers for the
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committee, with each having such authority and duties as may be
specified in the commission’s bylaws and rules.
(5) 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.
b. 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 following:
(1) Approving cure criteria.
(2) Amending, enacting, or repealing any bylaw or rule.
(3) Adopting the commission’s annual budget.
(4) Addressing any other significant matter or taking any
other significant action.
8. Article VIII —— Finance.
a. 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.
b. The commission shall be exempt from all taxation in and
by the compacting states.
c. The commission shall keep complete and accurate
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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.
d. 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.
9. 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
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shall remain confidential after such information is provided to
any member. All cure submissions received by the commission
are confidential.
10. 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.
11. 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.
12. Article XII —— Qualified immunity, defense, and
indemnification.
a. 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 paragraph
“a” 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.
b. 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
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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 the
person’s 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.
c. 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.
13. Article XIII —— Compacting states, effective date, and
amendment.
a. Any state is eligible to become a compacting state.
b. 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.
c. 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.
d. 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
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the cost of the compact, including annual member dues and prize
distributions.
14. Article XIV —— Withdrawal, default, and expulsion.
a. Withdrawal.
(1) 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:
(a) Repealing the law enacting the compact in that state.
(b) 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.
(2) The effective date of withdrawal is the date described
in paragraph “a” , subparagraph (1), subparagraph division (b).
(3) 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.
(4) 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 of
introduction of such legislation.
(5) 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.
(6) Reinstatement following a state’s withdrawal shall
become effective upon the effective date of the subsequent
enactment of the compact by that state.
b. Default.
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(1) 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 toward a prize
for a cure that was accepted while the compacting state was a
member of the commission.
(2) The expelled state must reenact the compact in order to
become a compacting state.
c. Dissolution of compact.
(1) The compact dissolves effective upon the date of either
of the following:
(a) The withdrawal or expulsion of a compacting state, which
withdrawal or expulsion reduces membership in the compact to
one compacting state.
(b) The commission votes to dissolve the compact.
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(2) 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.
15. Article XV —— Severability and construction.
a. 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.
b. The provisions of the compact shall be liberally
construed to effectuate its purposes.
16. Article XVI —— Binding effect of compact and other laws.
a. Other laws. Nothing in this compact prevents the
enforcement of any other law of a compacting state, except as
provided in paragraph “b” , subparagraph (2).
b. Binding effect of the compact.
(1) All lawful actions of the commission, including all
commission rules, are binding upon the compacting states.
(2) All agreements between the commission and the
compacting states are binding in accordance with their terms.
(3) 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 do any of the following:
(a) Commit the full faith and credit or taxing power of the
compacting state for the payment of prizes or other obligations
under the compact.
(b) Make prize payment responsibilities or other
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obligations under the compact a debt of the compacting state.
(4) 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.
(5) 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 of the compacting
state to which those obligations, duties, powers, or
jurisdiction are delegated by law in effect at the time the
compact becomes effective.
EXPLANATION
The inclusion of this explanation does not constitute agreement with
the explanation’s substance by the members of the general assembly.
This bill establishes the interstate curing disease
compact intended to award prizes for curing diseases. The
compact becomes effective and finding upon enactment into
law by two compacting states. Once six states enact the
compact, the governing commission is established and the
compact becomes binding and effective on any other state
that enacts the compact into law. The commission is a body
corporate and politic and an instrumentality of each of the
compacting states. In general, the commission has the power
to receive and review in an expeditious manner treatments and
therapeutic protocols for the cure of diseases specified by
the commission, and to award prizes for submissions that meet
the commission’s standards for a successful cure treatment and
therapeutic protocol. The bill includes provisions relating
to the establishment and membership of the commission; the
powers of the commission; meetings and voting requirements
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of the commission; commission bylaws; rules; commission
committees; finance; records of the commission; compacting
state compliance; venue for judicial proceedings; qualified
immunity, defense, and indemnification; effective dates and
amendments to the compact; withdrawal, default, and expulsion;
severability and construction; and the binding effect of the
compact and other laws.
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