DIGEST
The digest printed below was prepared by House Legislative Services. It constitutes no part of the
legislative instrument. The keyword, one-liner, abstract, and digest do not constitute part of the law
or proof or indicia of legislative intent. [R.S. 1:13(B) and 24:177(E)]
HB 290 Engrossed 2021 Regular Session Robert Owen
Abstract: Joins Louisiana to the interstate compact known as the Solemn Covenant of the States
to Award Prizes for Curing Diseases and provides for administration and functions of the
compact.
Proposed law recognizes and enacts the Solemn Covenant of the States to Award Prizes for Curing
Diseases, referred to hereafter as the "compact", and causes Louisiana to enter into the compact.
Proposed law provides that upon the enactment of the compact by six states, the compacting states
shall establish the Solemn Covenant of States Commission, referred to hereafter as the
"commission". Provides that the powers of the commission shall include all of the following:
(1)To adopt bylaws and rules as required by the compact, which shall have the force and effect
of law and shall be binding in the compacting states to the extent and in the manner provided
in the compact.
(2)To receive and review treatments and therapeutic protocols for the cure of disease submitted
to the commission and to award prizes for submissions that meet the commission's standards
for a successful cure treatment or therapeutic protocol.
(3)To make widely available a cure treatment or therapeutic protocol upon a prize winner
claiming a prize and transferring any intellectual property necessary for the manufacture and
distribution of the cure in accordance with the compact.
(4)To establish a selling price for the cure, which shall be not more than the expenses for the
cure's manufacturing, distribution, licensing, and any other necessary governmental
requirements for compacting states, or those expenses plus any royalty fees, for
noncompacting states.
(5)In non-compacting states and foreign countries, to establish and collect royalty fees imposed
on manufacturers, producers, and providers of any drug, serum, or other substance, device,
or process used for a cure treatment or therapeutic protocol, for which a prize is awarded.
Provides that the royalty fees shall, cumulatively, be not more than the estimated five-year
savings in public health expenses for that state or country, as calculated by actuaries
employed or contracted by the commission.
(6)To do the following regarding the collected royalty fees: (a)Pay or reimburse expenses related to the payment of a prize, which shall include
employing or contracting actuaries to calculate annual taxpayer savings amounts in
compacting states and payment of interest and other expenses related to a loan
obtained in accordance with the compact.
(b)Annually disburse any amounts remaining after making payments or reimbursements
under the compact as refunds to compacting states based on the percent of the state's
prize obligation in relation to the total obligation amount of all compacting states.
(7)To bring and prosecute legal proceedings or actions in its name.
(8)To issue subpoenas requiring the attendance and testimony of witnesses and the production
of evidence.
(9)To establish and maintain offices.
(10)To borrow, accept, or contract for personnel services, including personnel services from
employees of a compacting state.
(11)To hire employees, professionals, or specialists, and elect or appoint officers, and to fix their
compensation, define their duties and give them appropriate authority to carry out the
purposes of the compact, and determine their qualifications; and to establish the
commission's personnel policies and programs relating to conflicts of interest, rates of
compensation, and qualifications of personnel.
(12)To accept any and all appropriate donations and grants of money, equipment, supplies,
materials, and services, and to receive, utilize, and dispose of the same; provided that at all
times the commission shall strive to avoid any appearance of impropriety.
(13)To lease, purchase, or accept appropriate gifts or donations of, or otherwise to own, hold,
improve, or use, any property; provided, that at all times the commission shall strive to avoid
any appearance of impropriety.
(14)To sell, convey, mortgage, pledge, lease, exchange, abandon, or otherwise dispose of any
property.
(15)To monitor compacting states for compliance with the commission's bylaws and rules.
(16)To enforce compliance by compacting states with the commission's bylaws and rules.
(17)To provide for dispute resolution among compacting states or between the commission and
those who submit treatments and therapeutic protocols for the cure of disease for
consideration.
(18)To establish a budget and make expenditures. (19)To borrow money.
(20)To appoint committees, including management, legislative, and advisory committees
comprised of members, state legislators or their representatives, medical professionals, and
such other interested persons as may be designated by the commission.
(21)To establish annual membership dues for compacting states, which shall be used for daily
expenses of the commission and not for interest or prize payments.
(22)To adopt and use a corporate seal.
(23)To perform such other functions as may be necessary or appropriate to achieve the purposes
of the compact.
Proposed law provides relative to meetings, bylaws, finances, and records of the commission.
Requires that the commission adopt rules to do the following:
(1)Govern the methods, processes, and any other aspect of the research, creation, and testing of
a treatment or therapeutic protocol for each disease for which a prize may be awarded.
(2)Establish the criteria for defining and classifying the diseases for which prizes shall be
awarded.
Proposed law requires that the commission adopt rules regarding prizes for curing diseases.
Requires that such rules establish the following:
(1)At least ten major diseases for which to create prizes.
(2)The criteria a treatment or therapeutic protocol must meet in order to be considered a cure
for any of the diseases for which a prize may be awarded.
(3)The procedure for determining the diseases for which to award prizes, which includes the
option to award prizes for more than ten diseases that meet the requisite criteria, if agreed to
by two-thirds vote of the commission, and a requirement to update the list every three years.
(4)The submission and evaluation procedures and guidelines, including filing and review
procedures, a requirement that the person or entity submitting the cure bears the burden of
proof in demonstrating that the treatment or therapeutic protocol meets the requisite criteria,
and limitations preventing public access to treatment or protocol submissions.
(5)The estimated five-year public health savings that would result from a cure, which shall be
equal to the five-year public health expenses for each disease in each compacting state, and
a procedure to update these expenses every three years in conjunction with the applicable
requirements of the compact. The estimated five-year public health savings amount shall be
calculated, estimated, and publicized every three years by actuaries employed or contracted by the commission.
(6)The prize amount with respect to cures for each disease, which shall be equal to the most
recent estimated total five-year savings in public health expenses for the disease in all of the
compacting states; amounts donated by charities, individuals, and any other entities intended
for the prize; and any other factors that the commission deems appropriate.
(7)Prize distribution procedures and guidelines.
Proposed law provides qualified immunity for the members, officers, executive director, employees,
and representatives of the commission. Provides for defense of such persons in civil actions and
indemnification of such persons for the amount of any settlement or judgment obtained against them
arising out of any actual or alleged act, error, or omission that occurred within the scope of their
employment, duties, or responsibilities with the commission.
Proposed law provides relative to withdrawal and expulsion of states from the compact and for
procedures in cases of states defaulting in the performance of any of their obligations or
responsibilities under the compact or the commission's bylaws or rules.
Proposed law provides relative to severability, construction, and dissolution of the compact.
(Adds R.S. 40:1123.1)