STATE OF NEW YORK ________________________________________________________________________ 6421 2023-2024 Regular Sessions IN ASSEMBLY April 6, 2023 ___________ Introduced by M. of A. O'DONNELL -- read once and referred to the Committee on Higher Education AN ACT to amend the education law, in relation to enacting the nurse licensure compact The People of the State of New York, represented in Senate and Assem- bly, do enact as follows: 1 Section 1. Article 170 of the education law, as renumbered by chapter 2 905 of the laws of 1990, is renumbered article 171 and a new article 170 3 is added to title 8 of the education law to read as follows: 4 ARTICLE 170 5 NURSE LICENSURE COMPACT 6 Section 8900. Nurse licensure compact. 7 8901. Findings and declaration of purpose. 8 8902. Definitions. 9 8903. General provisions and jurisdiction. 10 8904. Applications for licensure in a party state. 11 8905. Additional authorities invested in party state licensing 12 boards. 13 8906. Coordinated licensure information system and exchange of 14 information. 15 8907. Establishment of the interstate commission of nurse licen- 16 sure compact administrators. 17 8908. Rulemaking. 18 8909. Oversight, dispute resolution and enforcement. 19 8910. Effective date, withdrawal and amendment. 20 8911. Construction and severability. 21 § 8900. Nurse licensure compact. The nurse license compact as set 22 forth in the article is hereby adopted and entered into with all party 23 states joining therein. 24 § 8901. Findings and declaration of purpose 1. Findings. The party 25 states find that: EXPLANATION--Matter in italics (underscored) is new; matter in brackets [] is old law to be omitted. LBD10548-01-3A. 6421 2 1 a. The health and safety of the public are affected by the degree of 2 compliance with and the effectiveness of enforcement activities related 3 to state nurse licensure laws; 4 b. Violations of nurse licensure and other laws regulating the prac- 5 tice of nursing may result in injury or harm to the public; 6 c. The expanded mobility of nurses and the use of advanced communi- 7 cation technologies as part of our nation's health care delivery system 8 require greater coordination and cooperation among states in the areas 9 of nurse licensure and regulation; 10 d. New practice modalities and technology make compliance with indi- 11 vidual state nurse licensure laws difficult and complex; 12 e. The current system of duplicative licensure for nurses practicing 13 in multiple states is cumbersome and redundant for both nurses and 14 states; and 15 f. Uniformity of nurse licensure requirements throughout the states 16 promotes public safety and public health benefits. 17 2. Declaration of purpose. The general purposes of this compact are 18 to: 19 a. Facilitate the states' responsibility to protect the public's 20 health and safety; 21 b. Ensure and encourage the cooperation of party states in the areas 22 of nurse licensure and regulation; 23 c. Facilitate the exchange of information between party states in the 24 areas of nurse regulation, investigation and adverse actions; 25 d. Promote compliance with the laws governing the practice of nursing 26 in each jurisdiction; 27 e. Invest all party states with the authority to hold a nurse account- 28 able for meeting all state practice laws in the state in which the 29 patient is located at the time care is rendered through the mutual 30 recognition of party state licenses; 31 f. Decrease redundancies in the consideration and issuance of nurse 32 licenses; and 33 g. Provide opportunities for interstate practice by nurses who meet 34 uniform licensure requirements. 35 § 8902. Definitions. 1. Definitions. As used in this compact: 36 a. "Adverse action" means any administrative, civil, equitable or 37 criminal action permitted by a state's laws which is imposed by a 38 licensing board or other authority against a nurse, including actions 39 against an individual's license or multistate licensure privilege such 40 as revocation, suspension, probation, monitoring of the licensee, limi- 41 tation on the licensee's practice, or any other encumbrance on licensure 42 affecting a nurse's authorization to practice, including issuance of a 43 cease and desist action. 44 b. "Alternative program" means a non-disciplinary monitoring program 45 approved by a licensing board. 46 c. "Coordinated licensure information system" means an integrated 47 process for collecting, storing and sharing information on nurse licen- 48 sure and enforcement activities related to nurse licensure laws that is 49 administered by a nonprofit organization composed of and controlled by 50 licensing boards. 51 d. "Commission" means the interstate commission of nurse licensure 52 compact administrators. 53 e. "Current significant investigative information" means: 54 1. Investigative information that a licensing board, after a prelimi- 55 nary inquiry that includes notification and an opportunity for the nurse 56 to respond, if required by state law, has reason to believe is notA. 6421 3 1 groundless and, if proved true, would indicate more than a minor infrac- 2 tion; or 3 2. Investigative information that indicates that the nurse represents 4 an immediate threat to public health and safety regardless of whether 5 the nurse has been notified and had an opportunity to respond; or 6 3. Any information concerning a nurse reported to a licensing board by 7 a health care entity, health care professional, or any other person, 8 which indicates that the nurse demonstrated an impairment, gross incom- 9 petence, or unprofessional conduct that would present an imminent danger 10 to a patient or the public health, safety, or welfare. 11 f. "Encumbrance" means a revocation or suspension of, or any limita- 12 tion on, the full and unrestricted practice of nursing imposed by a 13 licensing board. 14 g. "Home state" means the party state which is the nurse's primary 15 state of residence. 16 h. "Licensing board" means a party state's regulatory body responsible 17 for issuing nurse licenses. 18 i. "Multistate license" means a license to practice as a registered 19 nurse (RN) or as a licensed practical/vocational nurse (LPN/VN), which 20 is issued by a home state licensing board, and which authorizes the 21 licensed nurse to practice in all party states under a multistate licen- 22 sure privilege. 23 j. "Multistate licensure privilege" means a legal authorization asso- 24 ciated with a multistate license permitting the practice of nursing as 25 either a RN or a LPN/VN in a remote state. 26 k. "Nurse" means RN or LPN/VN, as those terms are defined by each 27 party state's practice laws. 28 l. "Party state" means any state that has adopted this compact. 29 m. "Remote state" means a party state, other than the home state. 30 n. "Single-state license" means a nurse license issued by a party 31 state that authorizes practice only within the issuing state and does 32 not include a multistate licensure privilege to practice in any other 33 party state. 34 o. "State" means a state, territory or possession of the United States 35 and the District of Columbia. 36 p. "State practice laws" means a party state's laws, rules and regu- 37 lations that govern the practice of nursing, define the scope of nursing 38 practice, and create the methods and grounds for imposing discipline. 39 "State practice laws" shall not include requirements necessary to obtain 40 and retain a license, except for qualifications or requirements of the 41 home state. 42 § 8903. General provisions and jurisdiction. 1. General provisions and 43 jurisdiction. a. A multistate license to practice registered or licensed 44 practical/vocational nursing issued by a home state to a resident in 45 that state will be recognized by each party state as authorizing a nurse 46 to practice as a registered nurse (RN) or as a licensed 47 practical/vocational nurse (LPN/VN), under a multistate licensure privi- 48 lege, in each party state. 49 b. A state shall implement procedures for considering the criminal 50 history records of applicants for an initial multistate license or 51 licensure by endorsement. Such procedures shall include the submission 52 of fingerprints or other biometric-based information by applicants for 53 the purpose of obtaining an applicant's criminal history record informa- 54 tion from the federal bureau of investigation and the agency responsible 55 for retaining that state's criminal records.A. 6421 4 1 c. Each party state shall require its licensing board to authorize an 2 applicant to obtain or retain a multistate license in the home state 3 only if the applicant: 4 i. Meets the home state's qualifications for licensure or renewal of 5 licensure, and complies with all other applicable state laws; 6 ii. (1) Has graduated or is eligible to graduate from a licensing 7 board-approved RN or LPN/VN prelicensure education program; or 8 (2) Has graduated from a foreign RN or LPN/VN prelicensure education 9 program that has been: (A) approved by the authorized accrediting body 10 in the applicable country, and (B) verified by an independent creden- 11 tials review agency to be comparable to a licensing board-approved prel- 12 icensure education program; 13 iii. Has, if a graduate of a foreign prelicensure education program 14 not taught in English or if English is not the individual's native 15 language, successfully passed an English proficiency examination that 16 includes the components of reading, speaking, writing and listening; 17 iv. Has successfully passed an NCLEX-RN or NCLEX-PN examination or 18 recognized predecessor, as applicable; 19 v. Is eligible for or holds an active, unencumbered license; 20 vi. Has submitted, in connection with an application for initial 21 licensure or licensure by endorsement, fingerprints or other biometric 22 data for the purpose of obtaining criminal history record information 23 from the federal bureau of investigation and the agency responsible for 24 retaining that state's criminal records; 25 vii. Has not been convicted or found guilty, or has entered into an 26 agreed disposition, of a felony offense under applicable state or feder- 27 al criminal law; 28 viii. Has not been convicted or found guilty, or has entered into an 29 agreed disposition, of a misdemeanor offense related to the practice of 30 nursing as determined on a case-by-case basis; 31 ix. Is not currently enrolled in an alternative program; 32 x. Is subject to self-disclosure requirements regarding current 33 participation in an alternative program; and 34 xi. Has a valid United States social security number. 35 d. All party states shall be authorized, in accordance with existing 36 state due process law, to take adverse action against a nurse's multi- 37 state licensure privilege such as revocation, suspension, probation or 38 any other action that affects a nurse's authorization to practice under 39 a multistate licensure privilege, including cease and desist actions. If 40 a party state takes such action, it shall promptly notify the adminis- 41 trator of the coordinated licensure information system. The administra- 42 tor of the coordinated licensure information system shall promptly noti- 43 fy the home state of any such actions by remote states. 44 e. A nurse practicing in a party state shall comply with the state 45 practice laws of the state in which the client is located at the time 46 service is provided. The practice of nursing is not limited to patient 47 care but shall include all nursing practice as defined by the state 48 practice laws of the party state in which the client is located. The 49 practice of nursing in a party state under a multistate licensure privi- 50 lege will subject a nurse to the jurisdiction of the licensing board, 51 the courts and the laws of the party state in which the client is 52 located at the time service is provided. 53 f. Individuals not residing in a party state shall continue to be able 54 to apply for a party state's single-state license as provided under the 55 laws of each party state. However, the single-state license granted to 56 these individuals will not be recognized as granting the privilege toA. 6421 5 1 practice nursing in any other party state. Nothing in this compact shall 2 affect the requirements established by a party state for the issuance of 3 a single-state license. 4 g. Any nurse holding a home state multistate license, on the effective 5 date of this compact, may retain and renew the multistate license issued 6 by the nurse's then-current home state, provided that: 7 i. A nurse, who changes primary state of residence after this 8 compact's effective date, shall meet all applicable requirements set 9 forth in this article to obtain a multistate license from a new home 10 state. 11 ii. A nurse who fails to satisfy the multistate licensure requirements 12 set forth in this article due to a disqualifying event occurring after 13 this compact's effective date shall be ineligible to retain or renew a 14 multistate license, and the nurse's multistate license shall be revoked 15 or deactivated in accordance with applicable rules adopted by the 16 commission. 17 § 8904. Applications for licensure in a party state. 1. Applications 18 for licensure in a party state. a. Upon application for a multistate 19 license, the licensing board in the issuing party state shall ascertain, 20 through the coordinated licensure information system, whether the appli- 21 cant has ever held, or is the holder of, a license issued by any other 22 state, whether there are any encumbrances on any license or multistate 23 licensure privilege held by the applicant, whether any adverse action 24 has been taken against any license or multistate licensure privilege 25 held by the applicant and whether the applicant is currently participat- 26 ing in an alternative program. 27 b. A nurse may hold a multistate license, issued by the home state, in 28 only one party state at a time. 29 c. If a nurse changes primary state of residence by moving between two 30 party states, the nurse must apply for licensure in the new home state, 31 and the multistate license issued by the prior home state will be deac- 32 tivated in accordance with applicable rules adopted by the commission. 33 i. The nurse may apply for licensure in advance of a change in primary 34 state of residence. 35 ii. A multistate license shall not be issued by the new home state 36 until the nurse provides satisfactory evidence of a change in primary 37 state of residence to the new home state and satisfies all applicable 38 requirements to obtain a multistate license from the new home state. 39 d. If a nurse changes primary state of residence by moving from a 40 party state to a non-party state, the multistate license issued by the 41 prior home state will convert to a single-state license, valid only in 42 the former home state. 43 § 8905. Additional authorities invested in party state licensing 44 boards. 1. Licensing board authority. In addition to the other powers 45 conferred by state law, a licensing board shall have the authority to: 46 a. Take adverse action against a nurse's multistate licensure privi- 47 lege to practice within that party state. 48 i. Only the home state shall have the power to take adverse action 49 against a nurse's license issued by the home state. 50 ii. For purposes of taking adverse action, the home state licensing 51 board shall give the same priority and effect to reported conduct 52 received from a remote state as it would if such conduct had occurred 53 within the home state. In so doing, the home state shall apply its own 54 state laws to determine appropriate action. 55 b. Issue cease and desist orders or impose an encumbrance on a nurse's 56 authority to practice within that party state.A. 6421 6 1 c. Complete any pending investigations of a nurse who changes primary 2 state of residence during the course of such investigations. The licens- 3 ing board shall also have the authority to take appropriate action or 4 actions and shall promptly report the conclusions of such investigations 5 to the administrator of the coordinated licensure information system. 6 The administrator of the coordinated licensure information system shall 7 promptly notify the new home state of any such actions. 8 d. Issue subpoenas for both hearings and investigations that require 9 the attendance and testimony of witnesses, as well as the production of 10 evidence. Subpoenas issued by a licensing board in a party state for the 11 attendance and testimony of witnesses or the production of evidence from 12 another party state shall be enforced in the latter state by any court 13 of competent jurisdiction, according to the practice and procedure of 14 that court applicable to subpoenas issued in proceedings pending before 15 it. The issuing authority shall pay any witness fees, travel expenses, 16 mileage and other fees required by the service statutes of the state in 17 which the witnesses or evidence are located. 18 e. Obtain and submit, for each nurse licensure applicant, fingerprint 19 or other biometric-based information to the federal bureau of investi- 20 gation for criminal background checks, receive the results of the feder- 21 al bureau of investigation record search on criminal background checks 22 and use the results in making licensure decisions. 23 f. If otherwise permitted by state law, recover from the affected 24 nurse the costs of investigations and disposition of cases resulting 25 from any adverse action taken against that nurse. 26 g. Take adverse action based on the factual findings of the remote 27 state, provided that the licensing board follows its own procedures for 28 taking such adverse action. 29 2. Adverse actions. a. If adverse action is taken by the home state 30 against a nurse's multistate license, the nurse's multistate licensure 31 privilege to practice in all other party states shall be deactivated 32 until all encumbrances have been removed from the multistate license. 33 All home state disciplinary orders that impose adverse action against a 34 nurse's multistate license shall include a statement that the nurse's 35 multistate licensure privilege is deactivated in all party states during 36 the pendency of the order. 37 b. Nothing in this compact shall override a party state's decision 38 that participation in an alternative program may be used in lieu of 39 adverse action. The home state licensing board shall deactivate the 40 multistate licensure privilege under the multistate license of any nurse 41 for the duration of the nurse's participation in an alternative program. 42 § 8906. Coordinated licensure information system and exchange of 43 information. 1. Coordinated licensure information system and exchange 44 of information. a. All party states shall participate in a coordinated 45 licensure information system of all licensed registered nurses (RNs) and 46 licensed practical/vocational nurses (LPNs/VNs). This system will 47 include information on the licensure and disciplinary history of each 48 nurse, as submitted by party states, to assist in the coordination of 49 nurse licensure and enforcement efforts. 50 b. The commission, in consultation with the administrator of the coor- 51 dinated licensure information system, shall formulate necessary and 52 proper procedures for the identification, collection and exchange of 53 information under this compact. 54 c. All licensing boards shall promptly report to the coordinated 55 licensure information system any adverse action, any current significant 56 investigative information, denials of applications with the reasons forA. 6421 7 1 such denials and nurse participation in alternative programs known to 2 the licensing board regardless of whether such participation is deemed 3 nonpublic or confidential under state law. 4 d. Current significant investigative information and participation in 5 nonpublic or confidential alternative programs shall be transmitted 6 through the coordinated licensure information system only to party state 7 licensing boards. 8 e. Notwithstanding any other provision of law, all party state licens- 9 ing boards contributing information to the coordinated licensure infor- 10 mation system may designate information that may not be shared with 11 non-party states or disclosed to other entities or individuals without 12 the express permission of the contributing state. 13 f. Any personally identifiable information obtained from the coordi- 14 nated licensure information system by a party state licensing board 15 shall not be shared with non-party states or disclosed to other entities 16 or individuals except to the extent permitted by the laws of the party 17 state contributing the information. 18 g. Any information contributed to the coordinated licensure informa- 19 tion system that is subsequently required to be expunged by the laws of 20 the party state contributing that information shall also be expunged 21 from the coordinated licensure information system. 22 h. The compact administrator of each party state shall furnish a 23 uniform data set to the compact administrator of each other party state, 24 which shall include, at a minimum: 25 i. Identifying information; 26 ii. Licensure data; 27 iii. Information related to alternative program participation; and 28 iv. Other information that may facilitate the administration of this 29 compact, as determined by commission rules. 30 i. The compact administrator of a party state shall provide all inves- 31 tigative documents and information requested by another party state. 32 § 8907. Establishment of the interstate commission of nurse licensure 33 compact administrators. 1. Commission of nurse licensure compact admin- 34 istrators. The party states hereby create and establish a joint public 35 entity known as the interstate commission of nurse licensure compact 36 administrators. The commission is an instrumentality of the party 37 states. 38 2. Venue. Venue is proper, and judicial proceedings by or against the 39 commission shall be brought solely and exclusively, in a court of compe- 40 tent jurisdiction where the principal office of the commission is 41 located. The commission may waive venue and jurisdictional defenses to 42 the extent it adopts or consents to participate in alternative dispute 43 resolution proceedings. 44 3. Sovereign immunity. Nothing in this compact shall be construed to 45 be a waiver of sovereign immunity. 46 4. Membership, voting and meetings. a. Each party state shall have and 47 be limited to one administrator. The head of the state licensing board 48 or designee shall be the administrator of this compact for each party 49 state. Any administrator may be removed or suspended from office as 50 provided by the law of the state from which the administrator is 51 appointed. Any vacancy occurring in the commission shall be filled in 52 accordance with the laws of the party state in which the vacancy exists. 53 b. Each administrator shall be entitled to one vote with regard to the 54 promulgation of rules and creation of bylaws and shall otherwise have an 55 opportunity to participate in the business and affairs of the commis- 56 sion. An administrator shall vote in person or by such other means asA. 6421 8 1 provided in the bylaws. The bylaws may provide for an administrator's 2 participation in meetings by telephone or other means of communication. 3 c. The commission shall meet at least once during each calendar year. 4 Additional meetings shall be held as set forth in the bylaws or rules of 5 the commission. 6 d. All meetings shall be open to the public, and public notice of 7 meetings shall be given in the same manner as required under the rule- 8 making provisions in section eighty-nine hundred three of this article. 9 5. Closed meetings. a. The commission may convene in a closed, nonpub- 10 lic meeting if the commission shall discuss: 11 i. Noncompliance of a party state with its obligations under this 12 compact; 13 ii. The employment, compensation, discipline or other personnel 14 matters, practices or procedures related to specific employees or other 15 matters related to the commission's internal personnel practices and 16 procedures; 17 iii. Current, threatened or reasonably anticipated litigation; 18 iv. Negotiation of contracts for the purchase or sale of goods, 19 services or real estate; 20 v. Accusing any person of a crime or formally censuring any person; 21 vi. Disclosure of trade secrets or commercial or financial information 22 that is privileged or confidential; 23 vii. Disclosure of information of a personal nature where disclosure 24 would constitute a clearly unwarranted invasion of personal privacy; 25 viii. Disclosure of investigatory records compiled for law enforcement 26 purposes; 27 ix. Disclosure of information related to any reports prepared by or on 28 behalf of the commission for the purpose of investigation of compliance 29 with this compact; or 30 x. Matters specifically exempted from disclosure by federal or state 31 statute. 32 b. If a meeting, or portion of a meeting, is closed pursuant to this 33 paragraph the commission's legal counsel or designee shall certify that 34 the meeting may be closed and shall reference each relevant exempting 35 provision. The commission shall keep minutes that fully and clearly 36 describe all matters discussed in a meeting and shall provide a full and 37 accurate summary of actions taken, and the reasons therefor, including a 38 description of the views expressed. All documents considered in 39 connection with an action shall be identified in such minutes. All 40 minutes and documents of a closed meeting shall remain under seal, 41 subject to release by a majority vote of the commission or order of a 42 court of competent jurisdiction. 43 c. The commission shall, by a majority vote of the administrators, 44 prescribe bylaws or rules to govern its conduct as may be necessary or 45 appropriate to carry out the purposes and exercise the powers of this 46 compact, including but not limited to: 47 i. Establishing the fiscal year of the commission; 48 ii. Providing reasonable standards and procedures: 49 (1) For the establishment and meetings of other committees; and 50 (2) Governing any general or specific delegation of any authority or 51 function of the commission; 52 iii. Providing reasonable procedures for calling and conducting meet- 53 ings of the commission, ensuring reasonable advance notice of all meet- 54 ings and providing an opportunity for attendance of such meetings by 55 interested parties, with enumerated exceptions designed to protect the 56 public's interest, the privacy of individuals, and proprietary informa-A. 6421 9 1 tion, including trade secrets. The commission may meet in closed session 2 only after a majority of the administrators vote to close a meeting in 3 whole or in part. As soon as practicable, the commission must make 4 public a copy of the vote to close the meeting revealing the vote of 5 each administrator, with no proxy votes allowed; 6 iv. Establishing the titles, duties and authority and reasonable 7 procedures for the election of the officers of the commission; 8 v. Providing reasonable standards and procedures for the establishment 9 of the personnel policies and programs of the commission. Notwithstand- 10 ing any civil service or other similar laws of any party state, the 11 bylaws shall exclusively govern the personnel policies and programs of 12 the commission; and 13 vi. Providing a mechanism for winding up the operations of the commis- 14 sion and the equitable disposition of any surplus funds that may exist 15 after the termination of this compact after the payment or reserving of 16 all of its debts and obligations. 17 6. General provisions. a. The commission shall publish its bylaws and 18 rules, and any amendments thereto, in a convenient form on the website 19 of the commission. 20 b. The commission shall maintain its financial records in accordance 21 with the bylaws. 22 c. The commission shall meet and take such actions as are consistent 23 with the provisions of this compact and the bylaws. 24 7. Powers of the commission. The commission shall have the following 25 powers: 26 a. To promulgate uniform rules to facilitate and coordinate implemen- 27 tation and administration of this compact. The rules shall have the 28 force and effect of law and shall be binding in all party states; 29 b. To bring and prosecute legal proceedings or actions in the name of 30 the commission, provided that the standing of any licensing board to sue 31 or be sued under applicable law shall not be affected; 32 c. To purchase and maintain insurance and bonds; 33 d. To borrow, accept or contract for services of personnel, including, 34 but not limited to, employees of a party state or nonprofit organiza- 35 tions; 36 e. To cooperate with other organizations that administer state 37 compacts related to the regulation of nursing, including but not limited 38 to sharing administrative or staff expenses, office space or other 39 resources; 40 f. To hire employees, elect or appoint officers, fix compensation, 41 define duties, grant such individuals appropriate authority to carry out 42 the purposes of this compact, and to establish the commission's person- 43 nel policies and programs relating to conflicts of interest, qualifica- 44 tions of personnel and other related personnel matters; 45 g. To accept any and all appropriate donations, grants and gifts of 46 money, equipment, supplies, materials and services, and to receive, 47 utilize and dispose of the same; provided that at all times the commis- 48 sion shall avoid any appearance of impropriety or conflict of interest; 49 h. To lease, purchase, accept appropriate gifts or donations of, or 50 otherwise to own, hold, improve or use, any property, whether real, 51 personal or mixed; provided that at all times the commission shall avoid 52 any appearance of impropriety; 53 i. To sell, convey, mortgage, pledge, lease, exchange, abandon or 54 otherwise dispose of any property, whether real, personal or mixed; 55 j. To establish a budget and make expenditures; 56 k. To borrow money;A. 6421 10 1 l. To appoint committees, including advisory committees comprised of 2 administrators, state nursing regulators, state legislators or their 3 representatives, and consumer representatives, and other such interested 4 persons; 5 m. To provide and receive information from, and to cooperate with, law 6 enforcement agencies; 7 n. To adopt and use an official seal; and 8 o. To perform such other functions as may be necessary or appropriate 9 to achieve the purposes of this compact consistent with the state regu- 10 lation of nurse licensure and practice. 11 8. Financing of the commission. a. The commission shall pay, or 12 provide for the payment of, the reasonable expenses of its establish- 13 ment, organization and ongoing activities. 14 b. The commission may also levy on and collect an annual assessment 15 from each party state to cover the cost of its operations, activities 16 and staff in its annual budget as approved each year. The aggregate 17 annual assessment amount, if any, shall be allocated based upon a formu- 18 la to be determined by the commission, which shall promulgate a rule 19 that is binding upon all party states. 20 c. The commission shall not incur obligations of any kind prior to 21 securing the funds adequate to meet the same; nor shall the commission 22 pledge the credit of any of the party states, except by, and with the 23 authority of, such party state. 24 d. The commission shall keep accurate accounts of all receipts and 25 disbursements. The receipts and disbursements of the commission shall be 26 subject to the audit and accounting procedures established under its 27 bylaws. However, all receipts and disbursements of funds handled by the 28 commission shall be audited yearly by a certified or licensed public 29 accountant, and the report of the audit shall be included in and become 30 part of the annual report of the commission. 31 9. Qualified immunity, defense and indemnification. a. The administra- 32 tors, officers, executive director, employees and representatives of the 33 commission shall be immune from suit and liability, either personally or 34 in their official capacity, for any claim for damage to or loss of prop- 35 erty or personal injury or other civil liability caused by or arising 36 out of any actual or alleged act, error or omission that occurred, or 37 that the person against whom the claim is made had a reasonable basis 38 for believing occurred, within the scope of the commission's employment, 39 duties or responsibilities; provided that nothing in this paragraph 40 shall be construed to protect any such person from suit or liability for 41 any damage, loss, injury or liability caused by the intentional, willful 42 or wanton misconduct of that person. 43 b. The commission shall defend any administrator, officer, executive 44 director, employee or representative of the commission in any civil 45 action seeking to impose liability arising out of any actual or alleged 46 act, error or omission that occurred within the scope of the commis- 47 sion's employment, duties or responsibilities, or that the person 48 against whom the claim is made had a reasonable basis for believing 49 occurred within the scope of the commission's employment, duties or 50 responsibilities; provided that nothing herein shall be construed to 51 prohibit that person from retaining his or her own counsel; and provided 52 further that the actual or alleged act, error or omission did not result 53 from that person's intentional, willful or wanton misconduct. 54 c. The commission shall indemnify and hold harmless any administrator, 55 officer, executive director, employee or representative of the commis- 56 sion for the amount of any settlement or judgment obtained against thatA. 6421 11 1 person arising out of any actual or alleged act, error or omission that 2 occurred within the scope of the commission's employment, duties or 3 responsibilities, or that such person had a reasonable basis for believ- 4 ing occurred within the scope of the commission's employment, duties or 5 responsibilities, provided that the actual or alleged act, error or 6 omission did not result from the intentional, willful or wanton miscon- 7 duct of that person. 8 § 8908. Rulemaking. 1. Rulemaking. a. The commission shall exercise 9 its rulemaking powers pursuant to the criteria set forth in this article 10 and the rules adopted thereunder. Rules and amendments shall become 11 binding as of the date specified in each rule or amendment and shall 12 have the same force and effect as provisions of this compact. 13 b. Rules or amendments to the rules shall be adopted at a regular or 14 special meeting of the commission. 15 2. Notice. a. Prior to promulgation and adoption of a final rule or 16 rules by the commission, and at least sixty days in advance of the meet- 17 ing at which the rule will be considered and voted upon, the commission 18 shall file a notice of proposed rulemaking: 19 i. On the website of the commission; and 20 ii. On the website of each licensing board or the publication in which 21 each state would otherwise publish proposed rules. 22 b. The notice of proposed rulemaking shall include: 23 i. The proposed time, date and location of the meeting in which the 24 rule will be considered and voted upon; 25 ii. The text of the proposed rule or amendment, and the reason for the 26 proposed rule; 27 iii. A request for comments on the proposed rule from any interested 28 person; and 29 iv. The manner in which interested persons may submit notice to the 30 commission of their intention to attend the public hearing and any writ- 31 ten comments. 32 c. Prior to adoption of a proposed rule, the commission shall allow 33 persons to submit written data, facts, opinions and arguments, which 34 shall be made available to the public. 35 3. Public hearings on rules. a. The commission shall grant an opportu- 36 nity for a public hearing before it adopts a rule or amendment. 37 b. The commission shall publish the place, time and date of the sched- 38 uled public hearing. 39 i. Hearings shall be conducted in a manner providing each person who 40 wishes to comment a fair and reasonable opportunity to comment orally or 41 in writing. All hearings will be recorded, and a copy will be made 42 available upon request. 43 ii. Nothing in this section shall be construed as requiring a separate 44 hearing on each rule. Rules may be grouped for the convenience of the 45 commission at hearings required by this section. 46 c. If no one appears at the public hearing, the commission may proceed 47 with promulgation of the proposed rule. 48 d. Following the scheduled hearing date, or by the close of business 49 on the scheduled hearing date if the hearing was not held, the commis- 50 sion shall consider all written and oral comments received. 51 4. Voting on rules. The commission shall, by majority vote of all 52 administrators, take final action on the proposed rule and shall deter- 53 mine the effective date of the rule, if any, based on the rulemaking 54 record and the full text of the rule. 55 5. Emergency rules. Upon determination that an emergency exists, the 56 commission may consider and adopt an emergency rule without priorA. 6421 12 1 notice, opportunity for comment or hearing, provided that the usual 2 rulemaking procedures provided in this compact and in this section shall 3 be retroactively applied to the rule as soon as reasonably possible, in 4 no event later than ninety days after the effective date of the rule. 5 For the purposes of this provision, an emergency rule is one that must 6 be adopted immediately in order to: 7 a. Meet an imminent threat to public health, safety or welfare; 8 b. Prevent a loss of the commission or party state funds; or 9 c. Meet a deadline for the promulgation of an administrative rule that 10 is required by federal law or rule. 11 6. Revisions. The commission may direct revisions to a previously 12 adopted rule or amendment for purposes of correcting typographical 13 errors, errors in format, errors in consistency or grammatical errors. 14 Public notice of any revisions shall be posted on the website of the 15 commission. The revision shall be subject to challenge by any person for 16 a period of thirty days after posting. The revision may be challenged 17 only on grounds that the revision results in a material change to a 18 rule. A challenge shall be made in writing, and delivered to the 19 commission, prior to the end of the notice period. If no challenge is 20 made, the revision will take effect without further action. If the 21 revision is challenged, the revision may not take effect without the 22 approval of the commission. 23 § 8909. Oversight, dispute resolution and enforcement. 1. Oversight. 24 a. Each party state shall enforce this compact and take all actions 25 necessary and appropriate to effectuate this compact's purposes and 26 intent. 27 b. The commission shall be entitled to receive service of process in 28 any proceeding that may affect the powers, responsibilities or actions 29 of the commission, and shall have standing to intervene in such a 30 proceeding for all purposes. Failure to provide service of process in 31 such proceeding to the commission shall render a judgment or order void 32 as to the commission, this compact or promulgated rules. 33 2. Default, technical assistance and termination. a. If the commission 34 determines that a party state has defaulted in the performance of its 35 obligations or responsibilities under this compact or the promulgated 36 rules, the commission shall: 37 i. Provide written notice to the defaulting state and other party 38 states of the nature of the default, the proposed means of curing the 39 default or any other action to be taken by the commission; and 40 ii. Provide remedial training and specific technical assistance 41 regarding the default. 42 b. If a state in default fails to cure the default, the defaulting 43 state's membership in this compact may be terminated upon an affirmative 44 vote of a majority of the administrators, and all rights, privileges and 45 benefits conferred by this compact may be terminated on the effective 46 date of termination. A cure of the default does not relieve the offend- 47 ing state of obligations or liabilities incurred during the period of 48 default. 49 c. Termination of membership in this compact shall be imposed only 50 after all other means of securing compliance have been exhausted. Notice 51 of intent to suspend or terminate shall be given by the commission to 52 the governor of the defaulting state and to the executive officer of the 53 defaulting state's licensing board and each of the party states. 54 d. A state whose membership in this compact has been terminated is 55 responsible for all assessments, obligations and liabilities incurredA. 6421 13 1 through the effective date of termination, including obligations that 2 extend beyond the effective date of termination. 3 e. The commission shall not bear any costs related to a state that is 4 found to be in default or whose membership in this compact has been 5 terminated unless agreed upon in writing between the commission and the 6 defaulting state. 7 f. The defaulting state may appeal the action of the commission by 8 petitioning the U.S. District Court for the District of Columbia or the 9 federal district in which the commission has its principal offices. The 10 prevailing party shall be awarded all costs of such litigation, includ- 11 ing reasonable attorneys' fees. 12 3. Dispute resolution. a. Upon request by a party state, the commis- 13 sion shall attempt to resolve disputes related to the compact that arise 14 among party states and between party and non-party states. 15 b. The commission shall promulgate a rule providing for both mediation 16 and binding dispute resolution for disputes, as appropriate. 17 c. In the event the commission cannot resolve disputes among party 18 states arising under this compact: 19 i. The party states may submit the issues in dispute to an arbitration 20 panel, which will be comprised of individuals appointed by the compact 21 administrator in each of the affected party states, and an individual 22 mutually agreed upon by the compact administrators of all the party 23 states involved in the dispute. 24 ii. The decision of a majority of the arbitrators shall be final and 25 binding. 26 4. Enforcement. a. The commission, in the reasonable exercise of its 27 discretion, shall enforce the provisions and rules of this compact. 28 b. By majority vote, the commission may initiate legal action in the 29 U.S. District Court for the District of Columbia or the federal 30 district in which the commission has its principal offices against a 31 party state that is in default to enforce compliance with the provisions 32 of this compact and its promulgated rules and bylaws. The relief sought 33 may include both injunctive relief and damages. In the event judicial 34 enforcement is necessary, the prevailing party shall be awarded all 35 costs of such litigation, including reasonable attorneys' fees. 36 c. The remedies herein shall not be the exclusive remedies of the 37 commission. The commission may pursue any other remedies available under 38 federal or state law. 39 § 8910. Effective date, withdrawal and amendment. 1. Effective date. 40 a. This compact shall become effective and binding on the earlier of 41 the date of legislative enactment of this compact into law by no less 42 than twenty-six states or the effective date of the chapter of the laws 43 that enacted this compact. Thereafter, the compact shall become effec- 44 tive and binding as to any other compacting state upon enactment of the 45 compact into law by that state. All party states to this compact, that 46 also were parties to the prior nurse licensure compact, superseded by 47 this compact, (herein referred to as "prior compact"), shall be deemed 48 to have withdrawn from said prior compact within six months after the 49 effective date of this compact. 50 b. Each party state to this compact shall continue to recognize a 51 nurse's multistate licensure privilege to practice in that party state 52 issued under the prior compact until such party state has withdrawn from 53 the prior compact. 54 2. Withdrawal. a. Any party state may withdraw from this compact by 55 enacting a statute repealing the same. A party state's withdrawal shallA. 6421 14 1 not take effect until six months after enactment of the repealing stat- 2 ute. 3 b. A party state's withdrawal or termination shall not affect the 4 continuing requirement of the withdrawing or terminated state's licens- 5 ing board to report adverse actions and significant investigations 6 occurring prior to the effective date of such withdrawal or termination. 7 c. Nothing contained in this compact shall be construed to invalidate 8 or prevent any nurse licensure agreement or other cooperative arrange- 9 ment between a party state and a non-party state that is made in accord- 10 ance with the other provisions of this compact. 11 3. Amendment. a. This compact may be amended by the party states. No 12 amendment to this compact shall become effective and binding upon the 13 party states unless and until it is enacted into the laws of all party 14 states. 15 b. Representatives of non-party states to this compact shall be 16 invited to participate in the activities of the commission, on a nonvot- 17 ing basis, prior to the adoption of this compact by all states. 18 § 8911. Construction and severability. 1. Construction and severabil- 19 ity. This compact shall be liberally construed so as to effectuate the 20 purposes thereof. The provisions of this compact shall be severable, and 21 if any phrase, clause, sentence or provision of this compact is declared 22 to be contrary to the constitution of any party state or of the United 23 States, or if the applicability thereof to any government, agency, 24 person or circumstance is held to be invalid, the validity of the 25 remainder of this compact and the applicability thereof to any govern- 26 ment, agency, person or circumstance shall not be affected thereby. If 27 this compact shall be held to be contrary to the constitution of any 28 party state, this compact shall remain in full force and effect as to 29 the remaining party states and in full force and effect as to the party 30 state affected as to all severable matters. 31 § 2. This act shall take effect immediately. Effective immediately, 32 the addition, amendment and/or repeal of any rule or regulation neces- 33 sary for the implementation of this act on its effective date are 34 authorized to be made and completed on or before such effective date.