Chief Sponsor: Norman K. Thurston

Senate Sponsor: Ann Millner


8     General Description:
9          This bill enacts the interstate compact known as the Solemn Covenant of the States to
10     Award Prizes for Curing Diseases.
11     Highlighted Provisions:
12          This bill:
13          ▸     enacts an interstate compact to award prizes for curing diseases, which includes:
14               •     defining terms;
15               •     establishing a commission to administer this compact and defines the
16     commissions powers, duties, and governance;
17               •     specifying requirement regarding finances, record keeping, and compliance;
18               •     creating certain qualified immunities, defenses, and indemnifications for
19     activities under this compact;
20               •     describing the procedures for a state to join or leave the compact; and
21               •     specifying other provisions necessary to carry out the provisions of the compact.
22     Money Appropriated in this Bill:
23          None
24     Other Special Clauses:
25          None
26     Utah Code Sections Affected:
27     ENACTS:

28          26-68-101, Utah Code Annotated 1953
29          26-68-201, Utah Code Annotated 1953
30          26-68-202, Utah Code Annotated 1953
31          26-68-203, Utah Code Annotated 1953
32          26-68-204, Utah Code Annotated 1953
33          26-68-205, Utah Code Annotated 1953
34          26-68-206, Utah Code Annotated 1953
35          26-68-207, Utah Code Annotated 1953
36          26-68-208, Utah Code Annotated 1953
37          26-68-209, Utah Code Annotated 1953
38          26-68-210, Utah Code Annotated 1953
39          26-68-211, Utah Code Annotated 1953
40          26-68-212, Utah Code Annotated 1953
41          26-68-213, Utah Code Annotated 1953
42          26-68-214, Utah Code Annotated 1953
43          26-68-215, Utah Code Annotated 1953
44          26-68-216, Utah Code Annotated 1953

46     Be it enacted by the Legislature of the state of Utah:
47          Section 1. Section 26-68-101 is enacted to read:


Part 1. General Provisions

51          26-68-101. Title.
52          This chapter is known as the "Solemn Covenant of the States to Award Prizes for
53     Curing Diseases."
54          Section 2. Section 26-68-201 is enacted to read:
Part 2. Solemn Covenant of the States to Award Prizes for Curing Diseases

56          26-68-201. Definitions.
57          For purposes of this compact:
58          (1) "Compacting state" means:

59          (a) any state that has enacted the compact and which has not withdrawn or been
60     suspended pursuant to Section 26-68-214 of the compact; or
61          (b) the federal government in accordance with the commission's bylaws.
62          (2) "Compact" means the Solemn Covenant of the States to Award Prizes for Curing
63     Diseases enacted in this chapter.
64          (3) "Noncompacting state" means any state or the federal government, if it is not at the
65     time a compacting state.
66          (4) "Public health expenses" means the amount of all costs paid by taxpayers in a
67     specified geographic area relating to a particular disease.
68          (5) "State" means any state, district, or territory of the United States of America.
69          Section 3. Section 26-68-202 is enacted to read:
70          26-68-202. Commission -- Creation -- Membership.
71          (1) Upon the enactment of the compact by six states, the compacting states shall
72     establish the Solemn Covenant of States Commission.
73          (2) The commission is a body corporate and politic and an instrumentality of each of
74     the compacting states and is solely responsible for its liabilities, except as otherwise
75     specifically provided in the compact.
76          (3) Each compacting state shall be represented by one member as selected by the
77     compacting state. Each compacting state shall determine its member's qualifications and period
78     of service and shall be responsible for any action to remove or suspend its member or to fill the
79     member's position if it becomes vacant. Nothing in the compact shall be construed to affect a
80     compacting state's authority regarding the qualification, selection, or service of its own
81     member.
82          Section 4. Section 26-68-203 is enacted to read:
83          26-68-203. Powers and duties of the commission.
84          The commission has the following powers and duties:
85          (1) to adopt bylaws and rules pursuant to Sections 26-68-205 and 26-68-206 of the
86     compact, which shall have the force and effect of law and shall be binding in the compacting
87     states to the extent and in the manner provided in the compact;
88          (2) to receive and review in an expeditious manner treatments and therapeutic
89     protocols for the cure of disease submitted to the commission and to award prizes for

90     submissions that meet the commission's standards for a successful cure treatment or therapeutic
91     protocol;
92          (3) to make widely available a cure treatment or therapeutic protocol upon a prize
93     winner claiming a prize and transferring any intellectual property necessary for the manufacture
94     and distribution of the cure in accordance with Section 26-68-206(3)(g)(i), including by
95     arranging or contracting for the manufacturing, production, or provision of any drug, serum, or
96     other substance, device, or process, provided that the commission does not market the cure or
97     conduct any other activity regarding the cure not specifically authorized in the compact;
98          (4) to establish a selling price for the cure, which shall be not more than the expenses
99     for the cure's manufacturing, distribution, licensing, and any other necessary governmental
100     requirements for compacting states, or those expenses plus any royalty fees, for noncompacting
101     states; the price shall not include the expenses of any other activities;
102          (5) in noncompacting states and foreign countries, to establish and collect royalty fees
103     imposed on manufacturers, producers, and providers of any drug, serum, or other substance,
104     device, or process used for a cure treatment or therapeutic protocol, for which a prize is
105     awarded; royalty fees may be added to the sales price of the cure pursuant to item (4); provided
106     that the royalty fees shall cumulatively be not more than the estimated five-year savings in
107     public health expenses for that state or country, as calculated by actuaries employed or
108     contracted by the commission;
109          (6) to do the following regarding the collected royalty fees:
110          (a) pay or reimburse expenses related to the payment of a prize, which shall include
111     employing or contracting actuaries to calculate annual taxpayer savings amounts in compacting
112     states in accordance with Section 26-68-206(3)(g)(iii), and payment of interest and other
113     expenses related to a loan obtained in accordance with Section 26-68-206(3)(g)(vi); and
114          (b) annually disburse any amounts remaining after making payments or
115     reimbursements under subitem (6)(a) as refunds to compacting states based on the percent of
116     the state's prize obligation in relation to the total obligation amount of all compacting states;
117          (7) to bring and prosecute legal proceedings or actions in its name as the commission;
118          (8) to issue subpoenas requiring the attendance and testimony of witnesses and the
119     production of evidence;
120          (9) to establish and maintain offices;

121          (10) to borrow, accept, or contract for personnel services, including personnel services
122     from employees of a compacting state;
123          (11) to hire employees, professionals, or specialists, and elect or appoint officers, and
124     to fix their compensation, define their duties and give them appropriate authority to carry out
125     the purposes of the compact, and determine their qualifications; and to establish the
126     commission's personnel policies and programs relating to, among other things, conflicts of
127     interest, rates of compensation, and qualifications of personnel;
128          (12) to accept any and all appropriate donations and grants of money, equipment,
129     supplies, materials, and services, and to receive, utilize, and dispose of the same; provided that
130     at all times the commission shall strive to avoid any appearance of impropriety;
131          (13) to lease, purchase, or accept appropriate gifts or donations of, or otherwise to own,
132     hold, improve, or use, any property, real, personal, or mixed; provided, that at all times the
133     commission shall strive to avoid any appearance of impropriety;
134          (14) to sell, convey, mortgage, pledge, lease, exchange, abandon, or otherwise dispose
135     of any property, real, personal, or mixed;
136          (15) to monitor compacting states for compliance with the commission's bylaws and
137     rules;
138          (16) to enforce compliance by compacting states with the commission's bylaws and
139     rules;
140          (17) to provide for dispute resolution among compacting states or between the
141     commission and those who submit treatments and therapeutic protocols for the cure of disease
142     for consideration;
143          (18) to establish a budget and make expenditures;
144          (19) to borrow money;
145          (20) to appoint committees, including management, legislative, and advisory
146     committees comprised of members, state legislators or their representatives, medical
147     professionals, and such other interested persons as may be designated by the commission;
148          (21) to establish annual membership dues for compacting states, which shall be used
149     for daily expenses of the commission and not for interest or prize payments;
150          (22) to adopt and use a corporate seal; and
151          (23) to perform such other functions as may be necessary or appropriate to achieve the

152     purposes of this compact.
153          Section 5. Section 26-68-204 is enacted to read:
154          26-68-204. Meetings and voting.
155          (1) The commission shall meet and take such actions as are consistent with the
156     compact, bylaws, and rules.
157          (2) A majority of the members of the commission shall constitute a quorum necessary
158     in order to conduct business or take actions at meetings of the commission.
159          (3) Each member of the commission shall have the right and power to cast one vote
160     regarding matters determined or actions to be taken by the commission. Each member shall
161     have the right and power to participate in the business and affairs of the commission.
162          (4) A member shall vote in person or by such other means as provided in the
163     commission's bylaws. The commission's bylaws may provide for members' participation in
164     meetings by telephone or other means of communication.
165          (5) The commission shall meet at least once during each calendar year. Additional
166     meetings shall be held as set forth in the commission's bylaws.
167          (6) No decision of the commission with respect to the approval of an award for a
168     treatment or therapeutic process for the cure of a disease shall be effective unless two-thirds of
169     all the members of the commission vote in favor thereof.
170          (7) Guidelines and voting requirements for all other decisions of the commission shall
171     be established in the commission's bylaws.
172          Section 6. Section 26-68-205 is enacted to read:
173          26-68-205. Bylaws.
174          The commission shall, by a majority vote of all the members of the commission,
175     prescribe bylaws to govern its conduct as may be necessary or appropriate to carry out the
176     purposes, and exercise the powers, of the compact including, but not limited to:
177          (1) establishing the fiscal year of the commission;
178          (2) providing reasonable procedures for appointing and electing members, as well as
179     holding meetings, of the management committee;
180          (3) providing reasonable standards and procedures:
181          (a) for the establishment and meetings of other committees;
182          (b) governing any general or specific delegation of any authority or function of the

183     commission; and
184          (c) voting guidelines and procedures for commission decisions;
185          (4) providing reasonable procedures for calling and conducting meetings of the
186     commission that shall consist of requiring a quorum to be present, ensuring reasonable advance
187     notice of each such meeting and providing for the right of citizens to attend each such meeting
188     with enumerated exceptions designed to protect the public interest and the privacy of
189     individuals;
190          (5) providing a list of matters about which the commission may go into executive
191     session and requiring a majority of all members of the commission vote to enter into such
192     session. However, a soon as practicable, the commission shall make public:
193          (a) a copy of any vote going into executive session, revealing the vote of each member
194     with no proxy votes allowed; and
195          (b) the matter requiring executive session, without identifying the actual issues or
196     individuals involved;
197          (6) establishing the titles, duties, authority, and reasonable procedures for the election
198     of the officers of the commission;
199          (7) providing reasonable standards and procedures for the establishment of the
200     personnel policies and programs of the commission. Notwithstanding any civil service or other
201     similar laws of any compacting state, the commission's bylaws shall exclusively govern the
202     personnel policies and programs of the commission;
203          (8) allowing a mechanism for:
204          (a) the federal government to join as a compacting state; and
205          (b) foreign countries or subdivisions of those countries to join as liaison members by
206     adopting the compact; provided that adopting countries or subdivisions shall not have voting
207     power or the power to bind the commission in any way;
208          (9) adopting a code of ethics to address permissible and prohibited activities of
209     members and employees;
210          (10) providing for the maintenance of the commission's books and records;
211          (11) governing the acceptance of and accounting for donations, annual member dues,
212     and other sources of funding and establishing the proportion of these funds to be allocated to
213     prize amounts for treatments and therapeutic protocols that cure disease;

214          (12) governing any fundraising efforts in which the commission wishes to engage; and
215          (13) providing a mechanism for winding up the operations of the commission and the
216     equitable disposition of any surplus funds that may exist after the termination of the compact
217     after the payment and reserving of all its debts and obligations.
218          Section 7. Section 26-68-206 is enacted to read:
219          26-68-206. Rules.
220          (1) The commission shall adopt rules to do the following:
221          (a) effectively and efficiently achieve the purposes of this compact; and
222          (b) govern the methods, processes, and any other aspect of the research, creation, and
223     testing of a treatment or therapeutic protocol for each disease for which a prize may be
224     awarded.
225          (2) The commission shall adopt rules establishing the criteria for defining and
226     classifying the diseases for which prizes shall be awarded. The commission may define and
227     classify subsets of diseases, for example, tubular carcinoma of the breast. For purposes of
228     Subsections (3)(a) and (c), a subset of a disease shall be considered one disease. The
229     commission may consult the most recent edition of the international classification of disease as
230     published by the world health organization or other definitions agreed to by a two-thirds vote
231     of the commission.
232          (3) The commission shall adopt rules regarding prizes for curing diseases that establish
233     the following:
234          (a) at least ten major diseases for which to create prizes, which shall be determined
235     based on the following factors:
236          (i) the severity of the disease to a human individual's overall health and well-being;
237          (ii) the survival rate or severity of impact of the disease; and
238          (iii) the public health expenses and treatment expenses for the disease;
239          (b) the criteria a treatment or therapeutic protocol must meet in order to be considered
240     a cure for any of the diseases for which a prize may be awarded, which shall include the
241     following requirements:
242          (i) it must be approved by the federal Food and Drug Administration or have otherwise
243     obtained legal status for the compact to immediately contract to manufacture and distribute in
244     the United States;

245          (ii) except as provided in Subsection (4), it must yield a significant increase in survival
246     with respect to the diseases if early death is the usual outcome; and
247          (iii) it requires less than one year of the treatment or protocol to completely cure the
248     disease;
249          (c) the procedure for determining the diseases for which to award prizes, which
250     includes the option to award prizes for more than ten diseases that meet the above criteria, if
251     agreed to by two-thirds vote of the commission, and a requirement to update the list every three
252     years;
253          (d) the submission and evaluation procedures and guidelines, including filing and
254     review procedures, a requirement that the person or entity submitting the cure bears the burden
255     of proof in demonstrating that the treatment or therapeutic protocol meets the above criteria,
256     and limitations preventing public access to treatment or protocol submissions;
257          (e) the estimated five-year public health savings that would result from a cure, which
258     shall be equal to the five-year public health expenses for each disease in each compacting state,
259     and a procedure to update these expenses every three years in conjunction with the
260     requirements in item (3)(c). The estimated five-year public health savings amount shall be
261     calculated, estimated, and publicized every three years by actuaries employed or contracted by
262     the commission;
263          (f) the prize amount with respect to cures for each disease, which shall be equal to the
264     most recent estimated total five-year savings in public health expenses for the disease as
265     calculated in item (3)(e) in all of the compacting states; amounts donated by charities,
266     individuals, and any other entities intended for the prize; and any other factors that the
267     commission deems appropriate;
268          (g) the prize distribution procedures and guidelines, which shall include the following
269     requirements:
270          (i) Upon acceptance of a cure, the prize winner shall transfer to the commission the
271     patent and all related intellectual property for the manufacture and distribution of the treatment
272     or therapeutic protocol in exchange for the prize, except in the case that the prize money is
273     considered by the commission to be too low, and that a prize will be awarded only to the first
274     person or entity that submits a successful cure for a disease for which a prize may be awarded.
275          (ii) Donation amounts intended for the prize shall be kept in a separate, interest-bearing

276     account maintained by the commission. This account shall be the only account in which prize
277     money is kept.
278          (iii) Each compacting state shall have the responsibility to pay annually the compacting
279     state's actual one-year savings in public health expenses for the particular disease for which a
280     cure has been accepted. The compacting state shall make such an annual payment until it has
281     fulfilled its prize responsibility as established in item (3)(f). Each compacting state's payment
282     responsibility begins one year after the date the cure becomes widely available. The
283     commission shall employ or contract with actuaries to calculate each state's actual one-year
284     savings in public health expenses at the end of each year to determine each state's responsibility
285     for the succeeding year.
286          (iv) Compacting states may meet prize responsibilities by any method including the
287     issuance of bonds or other obligations, with the principal and interest of those bonds or
288     obligations to be repaid only from revenue derived from estimated public health expense
289     savings from a cure to a disease. If the compacting state does not make such revenue available
290     to repay some or all of the revenue bonds or obligations issued, the owners or holders of those
291     bonds or obligations have no right to have excises or taxes levied to pay the principal or
292     interest on them. The revenue bonds and obligations are not a debt of the issuing compacting
293     state.
294          (v) A compacting state may issue bonds or other debt that are general obligations,
295     under which the full faith and credit, revenue, and taxing power of the state is pledged to pay
296     the principal and interest under those obligations, only if authorized by the compacting state's
297     constitution or, if constitutional authorization is not required, by other law of the compacting
298     state.
299          (vi) Upon acceptance of a cure, the commission shall obtain a loan from a financial
300     institution in an amount equal to the most recently calculated total estimated five-year public
301     health expenses for the disease in all compacting states, in accordance with item (3)(f). The
302     commission reserves the right to continuously evaluate the cure in the interim and rescind a
303     prize offer if the commission finds that the cure no longer meets the commission's criteria.
304          (4) The commission may award a prize for a treatment or therapeutic protocol that
305     yields a survival rate that is less than what is established in the cure criteria through at least five
306     years after the treatment or protocol has ended. In that case, the prize amount awarded for that

307     treatment or therapeutic protocol shall be reduced from the prize amount originally determined
308     by the commission for a cure for that disease. The reduction shall be in proportion to the
309     survival rate yielded by that treatment or protocol as compared to the survival rate established
310     in the cure criteria.
311          (5) The commission shall adopt rules that do the following:
312          (a) establish the following regarding commission records:
313          (i) conditions and procedures for public inspection and copying of its information and
314     official records, except such information and records involving the privacy of individuals or
315     would otherwise violate privacy laws under federal law and the laws of the compacting states;
316          (ii) procedures for sharing with federal and state agencies, including law enforcement
317     agencies, records and information otherwise exempt from disclosure; and
318          (iii) guidelines for entering into agreements with federal and state agencies to receive
319     or exchange information or records subject to nondisclosure and confidentiality provisions;
320          (b) provide a process for commission review of submitted treatments and therapeutic
321     protocols for curing diseases that includes the following:
322          (i) an opportunity for an appeal, no later than thirty days after a rejection of a treatment
323     or protocol for prize consideration, to a review panel established under the commission's
324     dispute resolution process;
325          (ii) commission monitoring and review of treatment and protocol effectiveness
326     consistent with the cure criteria established by the commission for the particular disease; and
327          (iii) commission reconsideration, modification, or withdrawal of approval of a
328     treatment or protocol for prize consideration for failure to continue to meet the cure criteria
329     established by the commission for the particular disease; and
330          (c) establish a dispute resolution process to resolve disputes or other issues under the
331     compact that may arise between two or more compacting states or between the commission and
332     individuals or entities who submit treatments and therapeutic protocols to cure diseases, which
333     process shall provide for:
334          (i) administrative review by a review panel appointed by the commission;
335          (ii) judicial review of decisions issued after an administrative review;
336          (iii) qualifications to be appointed to a panel, due process requirements, including
337     notice and hearing procedures, and any other procedure, requirement, or standard necessary to

338     provide adequate dispute resolution; and
339          (iv) establish and impose annual member dues on compacting states, which shall be
340     calculated based on the percentage of each compacting state's population in relation to the
341     population of all the compacting states.
342          (6) (a) Recognizing that the goal of the compact is to pool the potential savings of as
343     many states and countries as possible to generate sufficient financial incentive to develop a
344     cure for many of the world's most devastating diseases, the compact will respect the laws of
345     each of these United States by adopting rules that establish ethical standards for research that
346     shall be followed in order for a prize to be claimed. The compact, in the rules, shall establish a
347     common set of ethical standards that embodies the laws and restrictions in each of the states so
348     that to be eligible for claiming a prize the entity submitting a cure must not have violated any
349     of the ethical standards in any one of the fifty states, whether the states have joined the compact
350     or not. The compact will publish these common ethical standards along with the specific
351     criteria for a cure for each of the diseases the compact has targeted.
352          (b) So long as a researcher follows the common ethical standards in effect at the time
353     the research is done, an entity presenting a cure will be deemed to have followed the standards.
354     On or before January first of each year, the compact shall review all state laws to determine if
355     additional ethical standards have been enacted by any of the fifty states and the federal
356     government. Any changes to the common ethical standards rules based on new state laws shall
357     be adopted and published by the compact, but shall not take effect in cure criteria for a period
358     of three years to allow for sufficient notice to researchers.
359          (7) All rules may be amended as the commission sees necessary.
360          (8) All rules shall be adopted pursuant to a rule-making process that conforms to the
361     model state administrative procedure act of 1981 by the uniform law commissioners, as
362     amended, as may be appropriate to the operations of the commission.
363          (9) In the event the commission exercises its rule-making authority in a manner that is
364     beyond the scope of the purpose of this compact, or the powers granted hereunder, then such
365     rule shall be invalid and have no force and effect.
366          Section 8. Section 26-68-207 is enacted to read:
367          26-68-207. Committees.
368          (1) (a) The commission may establish a management committee comprised of no more

369     than fourteen members when twenty-six states enact the compact.
370          (b) The committee shall consist of those members representing compacting states
371     whose total public health expenses of all of the established diseases are the highest.
372          (c) The committee shall have such authority and duties as may be set forth in the
373     commission's bylaws and rules, including:
374          (i) managing authority over the day-to-day affairs of the commission in a manner
375     consistent with the commission's bylaws and rules and the purposes of the compact;
376          (ii) overseeing the offices of the commission; and
377          (iii) planning, implementing, and coordinating communications and activities with
378     state, federal, and local governmental organizations in order to advance the goals of the
379     compact.
380          (d) The commission annually shall elect officers for the committee, with each having
381     such authority and duties as may be specified in the commission's bylaws and rules.
382          (e) The management committee, subject to commission approval, may appoint or retain
383     an executive director for such period, upon such terms and conditions, and for such
384     compensation as the committee determines. The executive director shall serve as secretary to
385     the commission, but shall not be a member of the commission. The executive director shall hire
386     and supervise such other staff as may be authorized by the committee.
387          (2) The commission may appoint advisory committees to monitor all operations related
388     to the purposes of the compact and make recommendations to the commission; provided that
389     the manner of selection and term of any committee member shall be as set forth in the
390     commission's bylaws and rules. The commission shall consult with an advisory committee, to
391     the extent required by the commission's bylaws or rules, before doing any of the following:
392          (a) approving cure criteria;
393          (b) amending, enacting, or repealing any bylaw or rule;
394          (c) adopting the commission's annual budget; or
395          (d) addressing any other significant matter or taking any other significant action.
396          Section 9. Section 26-68-208 is enacted to read:
397          26-68-208. Finance.
398          (1) The commission annually shall establish a budget to pay or provide for the payment
399     of its reasonable expenses. To fund the cost of initial operations, the commission may accept

400     contributions and other forms of funding from the compacting states and other sources.
401     Contributions and other forms of funding from other sources shall be of such a nature that the
402     independence of the commission concerning the performance of its duties shall not be
403     compromised.
404          (2) The commission shall be exempt from all taxation in and by the compacting states.
405          (3) The commission shall keep complete and accurate accounts of all of its internal
406     receipts, including grants and donations, and disbursements of all funds under its control. The
407     internal financial accounts of the commission shall be subject to the accounting procedures
408     established under the commission's bylaws or rules. The financial accounts and reports
409     including the system of internal controls and procedures of the commission shall be audited
410     annually by an independent certified public accountant. Upon the determination of the
411     commission, but no less frequently than every three years, the review of the independent
412     auditor shall include a management and performance audit of the commission. The commission
413     shall make an annual report to the governors and legislatures of the compacting states, which
414     shall include a report of the independent audit. The commission's internal accounts shall not be
415     confidential and such materials may be shared with any compacting state upon request
416     provided; however, that any work papers related to any internal or independent audit and any
417     information subject to the compacting states' privacy laws, shall remain confidential.
418          (4) No compacting state shall have any claim or ownership of any property held by or
419     vested in the commission or to any commission funds held pursuant to the provisions of the
420     compact.
421          Section 10. Section 26-68-209 is enacted to read:
422          26-68-209. Records.
423          Except as to privileged records, data, and information, the laws of any compacting state
424     pertaining to confidentiality or nondisclosure shall not relieve any member of the duty to
425     disclose any relevant records, data, or information to the commission; provided, that disclosure
426     to the commission shall not be deemed to waive or otherwise affect any confidentiality
427     requirement; and further provided, that, except as otherwise expressly provided in the compact,
428     the commission shall not be subject to the compacting state's laws pertaining to confidentiality
429     and nondisclosure with respect to records, data, and information in its possession. Confidential
430     information of the commission shall remain confidential after such information is provided to

431     any member. All cure submissions received by the commission are confidential.
432          Section 11. Section 26-68-210 is enacted to read:
433          26-68-210. Compliance.
434          The commission shall notify a compacting state in writing of any noncompliance with
435     commission bylaws and rules. If a compacting state fails to remedy its noncompliance within
436     the time specified in the notice, the compacting state shall be deemed to be in default as set
437     forth in Section 26-68-214.
438          Section 12. Section 26-68-211 is enacted to read:
439          26-68-211. Venue.
440          Venue for any judicial proceedings by or against the commission shall be brought in the
441     appropriate court of competent jurisdiction for the geographical area in which the principal
442     office of the commission is located.
443          Section 13. Section 26-68-212 is enacted to read:
444          26-68-212. Qualified immunity -- Defenses -- Indemnification.
445          (1) The members, officers, executive director, employees, and representatives of the
446     commission shall be immune from suit and liability, either personally or in their official
447     capacity, for any claim for damage to or loss of property or personal injury or other civil
448     liability caused by or arising out of any actual or alleged act, error, or omission that occurred,
449     or that such person had a reasonable basis for believing occurred within the scope of the
450     person's commission employment, duties, or responsibilities; provided, that nothing in this
451     subsection shall be construed to protect any such person from suit or liability for any damage,
452     loss, injury, or liability caused by the intentional or wilful and wanton misconduct of that
453     person.
454          (2) The commission shall defend any member, officer, executive director, employee, or
455     representative of the commission in any civil action seeking to impose liability arising out of
456     any actual or alleged act, error, or omission that occurred within the scope of the person's
457     commission employment, duties, or responsibilities, or that such person had a reasonable basis
458     for believing occurred within the scope of commission employment, duties, or responsibilities;
459     provided, that nothing in the compact or commission bylaws or rules shall be construed to
460     prohibit that person from retaining his or her own counsel; and provided further, that the actual
461     or alleged act, error, or omission did not result from that person's intentional or wilful and

462     wanton misconduct.
463          (3) The commission shall indemnify and hold harmless any member, officer, executive
464     director, employee, or representative of the commission for the amount of any settlement or
465     judgment obtained against the person arising out of any actual or alleged act, error, or omission
466     that occurred within the scope of the person's commission employment, duties, or
467     responsibilities, or that such person had a reasonable basis for believing occurred within the
468     scope of commission employment, duties, or responsibilities; provided, that the actual or
469     alleged act, error, or omission, did not result from the intentional or wilful and wanton
470     misconduct of that person.
471          Section 14. Section 26-68-213 is enacted to read:
472          26-68-213. Compacting states -- Effective date -- Amendment.
473          (1) Any state is eligible to become a compacting state.
474          (2) The compact shall become effective and binding upon legislative enactment of the
475     compact into law by two compacting states; provided, the commission only shall be established
476     after six states become compacting states. Thereafter, the compact shall become effective and
477     binding as to any other compacting state upon enactment of the compact into law by that state.
478          (3) Amendments to the compact may be proposed by the commission for enactment by
479     the compacting states. No amendment shall become effective and binding until all compacting
480     states enact the amendment into law.
481          (4) If funding is requested or required, the legislative authority of each compacting
482     state shall be responsible for making the appropriations it determines necessary to pay for the
483     costs of the compact, including annual member dues and prize distributions.
484          Section 15. Section 26-68-214 is enacted to read:
485          26-68-214. Withdrawal -- Default -- Expulsion.
486          (1) (a) Once effective, the compact shall continue in force and remain binding upon
487     each and every compacting state; provided, that a compacting state may withdraw from the
488     compact by doing both of the following:
489          (i) repealing the law enacting the compact in that state; and
490          (ii) notifying the commission in writing of the intent to withdraw on a date that is both
491     of the following:
492          (A) at least three years after the date the notice is sent; and

493          (B) after the repeal takes effect.
494          (b) The effective date of withdrawal is the date described in item (1)(a)(ii).
495          (c) The member representing the withdrawing state immediately shall notify the
496     management committee in writing upon the introduction of legislation in that state repealing
497     the compact. If a management committee has not been established, the member immediately
498     shall notify the commission.
499          (d) The commission or management committee, as applicable, shall notify the other
500     compacting states of the introduction of such legislation within ten days after its receipt of
501     notice.
502          (e) The withdrawing state is responsible for all obligations, duties, and liabilities
503     incurred through the effective date of withdrawal, including any obligations, the performance
504     of which extend beyond the effective date of withdrawal. The commission's actions shall
505     continue to be effective and be given full force and effect in the withdrawing state.
506          (f) Reinstatement following a state's withdrawal shall become effective upon the
507     effective date of the subsequent enactment of the compact by that state.
508          (2) (a) If the commission determines that any compacting state has at any time
509     defaulted in the performance of any of its obligations or responsibilities under the compact or
510     the commission's bylaws or rules, then, after notice and hearing as set forth in the bylaws, all
511     rights, privileges, and benefits conferred by this compact on the defaulting state shall be
512     suspended from the effective date of default as fixed by the commission. The grounds for
513     default include failure of a compacting state to perform its obligations or responsibilities, and
514     any other grounds designated in commission rules. The commission immediately shall notify
515     the defaulting state in writing of the suspension pending cure of the default. The commission
516     shall stipulate the conditions and the time period within which the defaulting state shall cure its
517     default. If the defaulting state fails to cure the default within the time period specified by the
518     commission, the defaulting state shall be expelled from the compact and all rights, privileges,
519     and benefits conferred by the compact shall be terminated from the effective date of the
520     expulsion. Any state that is expelled from the compact shall be liable for any cure prize or
521     prizes for three years after its removal. The commission also shall take appropriate legal action
522     to ensure that any compacting state that withdraws from the compact remains liable for paying
523     its responsibility towards a prize for a cure that was accepted while the compacting state was a

524     member of the commission.
525          (b) The expelled state must reenact the compact in order to become a compacting state.
526          (3) (a) The compact dissolves effective upon the date of either of the following:
527          (i) the withdrawal or expulsion of a compacting state, which withdrawal or expulsion
528     reduces membership in the compact to one compacting state; or
529          (ii) the commission votes to dissolve the compact.
530          (b) Upon the dissolution of the compact, the compact becomes null and void and shall
531     be of no further force or effect, and the business and affairs of the commission shall be
532     concluded and any surplus funds shall be distributed in accordance with the commission's
533     bylaws; provided, that the commission shall pay all outstanding prizes awarded before the
534     dissolution of the compact, as well as any other outstanding debts and obligations incurred
535     during the existence of the compact. Any unawarded funds donated to be a part of a prize shall
536     be returned to the donor, along with any interest earned on the amount.
537          Section 16. Section 26-68-215 is enacted to read:
538          26-68-215. Severability and construction.
539          (1) The provisions of the compact shall be severable; and if any phrase, clause,
540     sentence, or provision is deemed unenforceable, the remaining provisions of the compact shall
541     be enforceable.
542          (2) The provisions of the compact shall be liberally construed to effectuate its
543     purposes.
544          Section 17. Section 26-68-216 is enacted to read:
545          26-68-216. Binding effect of compact and other laws.
546          (1) Nothing herein prevents the enforcement of any other law of a compacting state,
547     except as provided in Subsection (2)(b).
548          (2) (a) All lawful actions of the commission, including all commission rules, are
549     binding upon the compacting states.
550          (b) All agreements between the commission and the compacting states are binding in
551     accordance with their terms.
552          (c) Except to the extent authorized by the compacting state's constitution or, if
553     constitutional authorization is not required, by other law of the compacting state, such state, by
554     entering into the compact does not:

555          (i) commit the full faith and credit or taxing power of the compacting state for the
556     payment of prizes or other obligations under the compact; and
557          (ii) make prize payment responsibilities or other obligations under the compact a debt
558     of the compacting state.
559          (d) Upon the request of a party to a conflict over the meaning or interpretation of
560     commission actions, and upon a majority vote of the compacting states, the commission may
561     issue advisory opinions regarding the meaning or interpretation in dispute.
562          (e) In the event any provision of the compact exceeds the constitutional limits imposed
563     on any compacting state, the obligations, duties, powers, or jurisdiction sought to be conferred
564     by that provision upon the commission shall be ineffective as to that compacting state, and
565     those obligations, duties, powers, or jurisdiction shall remain in the compacting state and shall
566     be exercised by the agency to which those obligations, duties, powers, or jurisdiction are
567     delegated by law in effect at the time the compact becomes effective.