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North Carolina Senate Bill S82

North Carolina 2025-2026 Regular Session

North Carolina Senate Bill S82 Compare Versions

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11 GENERAL ASSEMBLY OF NORTH CAROLINA
22 SESSION 2025
3-S 1
4-SENATE BILL 82
3+S D
4+SENATE BILL DRS45018-MG-32
5+
56
67
78 Short Title: Compact to Award Prizes for Curing Disease. (Public)
89 Sponsors: Senator Burgin (Primary Sponsor).
9-Referred to: Rules and Operations of the Senate
10-February 12, 2025
11-*S82-v-1*
10+Referred to:
11+
12+*DRS45018 -MG-32*
1213 A BILL TO BE ENTITLED 1
1314 AN ACT ENACTING A COMPACT TO AWARD PRIZES FOR CURING DISEASES. 2
1415 The General Assembly of North Carolina enacts: 3
1516 SECTION 1. Chapter 90 of the General Statutes is amended by adding a new Article 4
1617 to read: 5
1718 "Article 23B. 6
1819 "Compact to Award Prizes for the Cure of Diseases. 7
1920 "§ 90-326. Definitions. 8
2021 As used in this Article, the following definitions have the following meanings: 9
2122 (1) Compact. – The Solemn Covenant of the States to Award Prizes for Curing 10
2223 Diseases enacted in this Article. 11
2324 (2) Compacting state. – Either of the following: 12
2425 a. Any state that has enacted the compact and has not withdrawn or been 13
2526 suspended pursuant to G.S. 90-326.14. 14
2627 b. The federal government in accordance with the Commission's bylaws. 15
2728 (3) Non-compacting state. – Any state or the federal government if it is not at the 16
2829 time a compacting state. 17
2930 (4) Public health expenses. – The amount of all costs paid by taxpayers in a 18
3031 specified geographic area relating to a particular disease. 19
3132 (5) State. – Any state, district, or territory of the United States of America. 20
3233 "§ 90-326.1. Establishment of the Commission; membership. 21
3334 (1) Upon the enactment of the compact by six states, the compacting states shall 22
3435 establish the Solemn Covenant of States Commission. 23
3536 (2) The Commission is a body corporate and politic and an instrumentality of each 24
3637 of the compacting states and is solely responsible for its liabilities, except as 25
3738 otherwise specifically provided in the compact. 26
3839 (3) Each compacting state shall be represented by one member as selected by the 27
3940 compacting state. Each compacting state shall determine its member's 28
4041 qualifications and period of service and shall be responsible for any action to 29
4142 remove or suspend its member or to fill the member's position if it becomes 30
4243 vacant. Nothing in the compact shall be construed to affect a compacting 31
4344 state's authority regarding the qualification, selection, or service of its own 32
4445 member. 33
45-"§ 90-326.2. Powers of the Commission. 34 General Assembly Of North Carolina Session 2025
46-Page 2 Senate Bill 82-First Edition
46+"§ 90-326.2. Powers of the Commission. 34
47+FILED SENATE
48+Feb 11, 2025
49+S.B. 82
50+PRINCIPAL CLERK General Assembly Of North Carolina Session 2025
51+Page 2 DRS45018-MG-32
4752 (1) To adopt bylaws and rules pursuant to G.S. 90-326.4 and G.S. 90-326.5, 1
4853 which shall have the force and effect of law and shall be binding in the 2
4954 compacting states to the extent and in the manner provided in the compact. 3
5055 (2) To receive and review in an expeditious manner treatments and therapeutic 4
5156 protocols for the cure of disease submitted to the Commission and to award 5
5257 prizes for submissions that meet the Commission's standards for a successful 6
5358 cure treatment or therapeutic protocol. 7
5459 (3) To make widely available a cure treatment or therapeutic protocol upon a prize 8
5560 winner claiming a prize and transferring any intellectual property necessary 9
5661 for the manufacture and distribution of the cure in accordance with 10
5762 G.S. 90-326.5(a)(4)g.1., including by arranging or contracting for the 11
5863 manufacturing, production, or provision of any drug, serum, or other 12
5964 substance, device, or process, provided that the Commission does not market 13
6065 the cure or conduct any other activity regarding the cure not specifically 14
6166 authorized in the compact. 15
6267 (4) To establish a selling price for the cure, which shall be not more than the 16
6368 expenses for the cure's manufacturing, distribution, licensing, and any other 17
6469 necessary governmental requirements for compacting states, or those 18
6570 expenses plus any royalty fees, for non-compacting states; the price shall not 19
6671 include the expenses of any other activities. 20
6772 (5) In non-compacting states and foreign countries, to establish and collect royalty 21
6873 fees imposed on manufacturers, producers, and providers of any drug, serum, 22
6974 or other substance, device, or process used for a cure treatment or therapeutic 23
7075 protocol, for which a prize is awarded; royalty fees may be added to the sales 24
7176 price of the cure pursuant to subdivision (4) of this section; provided that the 25
7277 royalty fees shall cumulatively be not more than the estimated five-year 26
7378 savings in public health expenses for that state or country, as calculated by 27
7479 actuaries employed or contracted by the Commission. 28
7580 (6) To do the following regarding the collected royalty fees: 29
7681 a. Pay or reimburse expenses related to the payment of a prize, which 30
7782 shall include employing or contracting actuaries to calculate annual 31
7883 taxpayer savings amounts in compacting states in accordance with 32
7984 G.S. 90-326.5(a)(4)g.3., and payment of interest and other expenses 33
8085 related to a loan obtained in accordance with G.S. 90-326.5(a)(4)g.6. 34
8186 b. Annually disburse any amounts remaining after making payments or 35
8287 reimbursements under sub-subdivision a. of this subdivision as 36
8388 refunds to compacting states based on the percent of the state's prize 37
8489 obligation in relation to the total obligation amount of all compacting 38
8590 states. 39
8691 (7) To bring and prosecute legal proceedings or actions in its name as the 40
8792 Commission. 41
8893 (8) To issue subpoenas requiring the attendance and testimony of witnesses and 42
8994 the production of evidence. 43
9095 (9) To establish and maintain offices. 44
9196 (10) To borrow, accept, or contract for personnel services, including personnel 45
9297 services from employees of a compacting state. 46
9398 (11) To hire employees, professionals, or specialists, and elect or appoint officers, 47
9499 and to fix their compensation, define their duties, and give them appropriate 48
95100 authority to carry out the purposes of the compact, and determine their 49
96101 qualifications; and to establish the Commission's personnel policies and 50 General Assembly Of North Carolina Session 2025
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98103 programs relating to, among other things, conflicts of interest, rates of 1
99104 compensation, and qualifications of personnel. 2
100105 (12) To accept any and all appropriate donations and grants of money, equipment, 3
101106 supplies, materials, and services, and to receive, utilize, and dispose of the 4
102107 same; provided that at all times the Commission shall strive to avoid any 5
103108 appearance of impropriety. 6
104109 (13) To lease, purchase, or accept appropriate gifts or donations of, or otherwise to 7
105110 own, hold, improve, or use, any property, real, personal, or mixed; provided, 8
106111 that at all times the Commission shall strive to avoid any appearance of 9
107112 impropriety. 10
108113 (14) To sell, convey, mortgage, pledge, lease, exchange, abandon, or otherwise 11
109114 dispose of any property, real, personal, or mixed. 12
110115 (15) To monitor compacting states for compliance with the Commission's bylaws 13
111116 and rules. 14
112117 (16) To enforce compliance by compacting states with the Commission's bylaws 15
113118 and rules. 16
114119 (17) To provide for dispute resolution among compacting states or between the 17
115120 Commission and those who submit treatments and therapeutic protocols for 18
116121 the cure of disease for consideration. 19
117122 (18) To establish a budget and make expenditures. 20
118123 (19) To borrow money. 21
119124 (20) To appoint committees, including management, legislative, and advisory 22
120125 committees comprised of members, state legislators or their representatives, 23
121126 medical professionals, and such other interested persons as may be designated 24
122127 by the Commission. 25
123128 (21) To establish annual membership dues for compacting states, which shall be 26
124129 used for daily expenses of the Commission and not for interest or prize 27
125130 payments. 28
126131 (22) To adopt and use a corporate seal. 29
127132 (23) To perform such other functions as may be necessary or appropriate to achieve 30
128133 the purposes of this compact. 31
129134 "§ 90-326.3. Meetings and voting. 32
130135 (1) The Commission shall meet and take such actions as are consistent with the 33
131136 compact, bylaws, and rules. 34
132137 (2) A majority of the members of the Commission shall constitute a quorum 35
133138 necessary in order to conduct business or take actions at meetings of the 36
134139 Commission. 37
135140 (3) Each member of the Commission shall have the right and power to cast one 38
136141 vote regarding matters determined or actions to be taken by the Commission. 39
137142 Each member shall have the right and power to participate in the business and 40
138143 affairs of the Commission. 41
139144 (4) A member shall vote in person or by such other means as provided in the 42
140145 Commission's bylaws. The Commission's bylaws may provide for members' 43
141146 participation in meetings by telephone or other means of communication. 44
142147 (5) The Commission shall meet at least once during each calendar year. 45
143148 Additional meetings shall be held as set forth in the Commission's bylaws. 46
144149 (6) No decision of the Commission with respect to the approval of an award for a 47
145150 treatment or therapeutic process for the cure of a disease shall be effective 48
146151 unless two-thirds of all the members of the Commission vote in favor thereof. 49
147152 (7) Guidelines and voting requirements for all other decisions of the Commission 50
148153 shall be established in the Commission's bylaws. 51 General Assembly Of North Carolina Session 2025
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150155 "§ 90-326.4. Bylaws. 1
151156 The Commission shall, by a majority vote of all the members of the Commission, prescribe 2
152157 bylaws to govern its conduct as may be necessary or appropriate to carry out the purposes and 3
153158 exercise the powers of the compact, including, but not limited to: 4
154159 (1) Establishing the fiscal year of the Commission. 5
155160 (2) Providing reasonable procedures for appointing and electing members, as well 6
156161 as holding meetings, of the management committee. 7
157162 (3) Providing reasonable standards and procedures for the following: 8
158163 a. For the establishment and meetings of other committees. 9
159164 b. Governing any general or specific delegation of any authority or 10
160165 function of the Commission. 11
161166 c. Voting guidelines and procedures for Commission decisions. 12
162167 (4) Providing reasonable procedures for calling and conducting meetings of the 13
163168 Commission that shall consist of requiring a quorum to be present, ensuring 14
164169 reasonable advance notice of each such meeting, and providing for the right 15
165170 of citizens to attend each such meeting with enumerated exceptions designed 16
166171 to protect the public's interest and the privacy of individuals. 17
167172 (5) Providing a list of matters about which the Commission may go into executive 18
168173 session and requiring a majority of all members of the Commission to vote to 19
169174 enter into such session. As soon as practicable, the Commission shall make 20
170175 public: 21
171176 a. A copy of the vote to go into executive session, revealing the vote of 22
172177 each member with no proxy votes allowed. 23
173178 b. The matter requiring executive session, without identifying the actual 24
174179 issues or individuals involved. 25
175180 (6) Establishing the titles, duties, authority, and reasonable procedures for the 26
176181 election of the officers of the Commission. 27
177182 (7) Providing reasonable standards and procedures for the establishment of the 28
178183 personnel policies and programs of the Commission. Notwithstanding any 29
179184 civil service or other similar laws of any compacting state, the Commission's 30
180185 bylaws shall exclusively govern the personnel policies and programs of the 31
181186 Commission. 32
182187 (8) Allowing a mechanism for the following: 33
183188 a. The federal government to join as a compacting state. 34
184189 b. Foreign countries or subdivisions of those countries to join as liaison 35
185190 members by adopting the compact; provided that adopting countries 36
186191 or subdivisions shall not have voting power or the power to bind the 37
187192 Commission in any way. 38
188193 (9) Adopting a code of ethics to address permissible and prohibited activities of 39
189194 members and employees. 40
190195 (10) Providing for the maintenance of the Commission's books and records. 41
191196 (11) Governing the acceptance of and accounting for donations, annual member 42
192197 dues, and other sources of funding and establishing the proportion of these 43
193198 funds to be allocated to prize amounts for treatments and therapeutic protocols 44
194199 that cure disease. 45
195200 (12) Governing any fundraising efforts in which the Commission wishes to engage. 46
196201 (13) Providing a mechanism for winding up the operations of the Commission and 47
197202 the equitable disposition of any surplus funds that may exist after the 48
198203 termination of the compact after the payment and reserving of all its debts and 49
199204 obligations. 50
200205 "§ 90-326.5. Rules. 51 General Assembly Of North Carolina Session 2025
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202207 (a) The Commission shall adopt rules to do the following: 1
203208 (1) Effectively and efficiently achieve the purposes of this compact. 2
204209 (2) Govern the methods, processes, and any other aspect of the research, creation, 3
205210 and testing of a treatment or therapeutic protocol for each disease for which a 4
206211 prize may be awarded. 5
207212 (3) Establishing the criteria for defining and classifying the diseases for which 6
208213 prizes shall be awarded. The Commission may define and classify subsets of 7
209214 diseases, for example, tubular carcinoma of the breast. For purposes of 8
210215 sub-subdivisions a. and c. of subdivision (4) of this subsection, a subset of a 9
211216 disease shall be considered one disease. The Commission may consult the 10
212217 most recent edition of the International Classification of Diseases as published 11
213218 by the World Health Organization or other definitions agreed to by a 12
214219 two-thirds vote of the Commission. 13
215220 (4) Regarding prizes for curing diseases that establish the following: 14
216221 a. At least 10 major diseases for which to create prizes, which shall be 15
217222 determined based on the following factors: 16
218223 1. The severity of the disease to a human individual's overall 17
219224 health and well-being. 18
220225 2. The survival rate or severity of impact of the disease. 19
221226 3. The public health expenses and treatment expenses for the 20
222227 disease. 21
223228 b. The criteria a treatment or therapeutic protocol must meet in order to 22
224229 be considered a cure for any of the diseases for which a prize may be 23
225230 awarded, which shall include the following requirements: 24
226231 1. It must be approved by the federal Food and Drug 25
227232 Administration or have otherwise obtained legal status for the 26
228233 compact to immediately contract to manufacture and distribute 27
229234 in the United States. 28
230235 2. Except as provided in subsection (b) of this section, it must 29
231236 yield a significant increase in survival with respect to the 30
232237 diseases if early death is the usual outcome. 31
233238 3. It requires less than one year of the treatment or protocol to 32
234239 completely cure the disease. 33
235240 c. The procedure for determining the diseases for which to award prizes, 34
236241 which includes the option to award prizes for more than 10 diseases 35
237242 that meet the above criteria, if agreed to by two-thirds vote of the 36
238243 Commission, and a requirement to update the list every three years. 37
239244 d. The submission and evaluation procedures and guidelines, including 38
240245 filing and review procedures, a requirement that the person or entity 39
241246 submitting the cure bears the burden of proof in demonstrating that the 40
242247 treatment or therapeutic protocol meets the above criteria, and 41
243248 limitations preventing public access to treatment or protocol 42
244249 submissions. 43
245250 e. The estimated five-year public health savings that would result from a 44
246251 cure, which shall be equal to the five-year public health expenses for 45
247252 each disease in each compacting state, and a procedure to update these 46
248253 expenses every three years in conjunction with the requirements in 47
249254 sub-subdivision c. of this subdivision. The estimated five-year public 48
250255 health savings amount shall be calculated, estimated, and publicized 49
251256 every three years by actuaries employed or contracted by the 50
252257 Commission. 51 General Assembly Of North Carolina Session 2025
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254259 f. The prize amount with respect to cures for each disease, which shall 1
255260 be equal to the most recent estimated total five-year savings in public 2
256261 health expenses for the disease as calculated in sub-subdivision e. of 3
257262 this subdivision in all of the compacting states; amounts donated by 4
258263 charities, individuals, and any other entities intended for the prize; and 5
259264 any other factors that the Commission deems appropriate. 6
260265 g. The prize distribution procedures and guidelines, which shall include 7
261266 the following requirements: 8
262267 1. Upon acceptance of a cure, the prize winner shall transfer to 9
263268 the Commission the patent and all related intellectual property 10
264269 for the manufacture and distribution of the treatment or 11
265270 therapeutic protocol in exchange for the prize, except in the 12
266271 case that the prize money is considered by the Commission to 13
267272 be too low, and that a prize will be awarded only to the first 14
268273 person or entity that submits a successful cure for a disease for 15
269274 which a prize may be awarded. 16
270275 2. Donation amounts intended for the prize shall be kept in a 17
271276 separate, interest-bearing account maintained by the 18
272277 Commission. This account shall be the only account in which 19
273278 prize money is kept. 20
274279 3. Each compacting state shall have the responsibility to pay 21
275280 annually the compacting state's actual one-year savings in 22
276281 public health expenses for the particular disease for which a 23
277282 cure has been accepted. The compacting state shall make such 24
278283 an annual payment until it has fulfilled its prize responsibility 25
279284 as established in sub-subdivision f. of this subdivision. Each 26
280285 compacting state's payment responsibility begins one year after 27
281286 the date the cure becomes widely available. The Commission 28
282287 shall employ or contract with actuaries to calculate each state's 29
283288 actual one-year savings in public health expenses at the end of 30
284289 each year to determine each state's responsibility for the 31
285290 succeeding year. 32
286291 4. Compacting states may meet prize responsibilities by any 33
287292 method including the issuance of bonds or other obligations, 34
288293 with the principal and interest of those bonds or obligations to 35
289294 be repaid only from revenue derived from estimated public 36
290295 health expense savings from a cure to a disease. If the 37
291296 compacting state does not make such revenue available to 38
292297 repay some or all of the revenue bonds or obligations issued, 39
293298 the owners or holders of those bonds or obligations have no 40
294299 right to have excises or taxes levied to pay the principal or 41
295300 interest on them. The revenue bonds and obligations are not a 42
296301 debt of the issuing compacting state. 43
297302 5. A compacting state may issue bonds or other debt that are 44
298303 general obligations, under which the full faith and credit, 45
299304 revenue, and taxing power of the state is pledged to pay the 46
300305 principal and interest under those obligations, only if 47
301306 authorized by the compacting state's constitution or, if 48
302307 constitutional authorization is not required, by other law of the 49
303308 compacting state. 50 General Assembly Of North Carolina Session 2025
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305310 6. Upon acceptance of a cure, the Commission shall obtain a loan 1
306311 from a financial institution in an amount equal to the most 2
307312 recently calculated total estimated five-year public health 3
308313 expenses for the disease in all compacting states, in accordance 4
309314 with sub-subdivision f. of this subdivision. The Commission 5
310315 reserves the right to continuously evaluate the cure in the 6
311316 interim and rescind a prize offer if the Commission finds that 7
312317 the cure no longer meets the Commission's criteria. 8
313318 (5) The Commission also shall adopt rules to do the following: 9
314319 a. Establish the following regarding Commission records: 10
315320 1. Conditions and procedures for public inspection and copying 11
316321 of its information and official records, except such information 12
317322 and records involving the privacy of individuals or that would 13
318323 otherwise violate privacy laws under federal law and the laws 14
319324 of the compacting states. 15
320325 2. Procedures for sharing with federal and state agencies, 16
321326 including law enforcement agencies, records and information 17
322327 otherwise exempt from disclosure. 18
323328 3. Guidelines for entering into agreements with federal and state 19
324329 agencies to receive or exchange information or records subject 20
325330 to nondisclosure and confidentiality provisions. 21
326331 b. Provide a process for Commission review of submitted treatments and 22
327332 therapeutic protocols for curing diseases that includes the following: 23
328333 1. An opportunity for an appeal, not later than 30 days after a 24
329334 rejection of a treatment or protocol for prize consideration, to 25
330335 a review panel established under the Commission's dispute 26
331336 resolution process. 27
332337 2. Commission monitoring and review of treatment and protocol 28
333338 effectiveness consistent with the cure criteria established by 29
334339 the Commission for the particular disease. 30
335340 3. Commission reconsideration, modification, or withdrawal of 31
336341 approval of a treatment or protocol for prize consideration for 32
337342 failure to continue to meet the cure criteria established by the 33
338343 Commission for the particular disease. 34
339344 c. Establish a dispute resolution process to resolve disputes or other 35
340345 issues under the compact that may arise between two or more 36
341346 compacting states or between the Commission and individuals or 37
342347 entities who submit treatments and therapeutic protocols to cure 38
343348 diseases, which process shall provide for: 39
344349 1. Administrative review by a review panel appointed by the 40
345350 Commission. 41
346351 2. Judicial review of decisions issued after an administrative 42
347352 review. 43
348353 3. Qualifications to be appointed to a panel, due process 44
349354 requirements, including notice and hearing procedures, and 45
350355 any other procedure, requirement, or standard necessary to 46
351356 provide adequate dispute resolution. 47
352357 d. Establish and impose annual member dues on compacting states, 48
353358 which shall be calculated based on the percentage of each compacting 49
354359 state's population in relation to the population of all the compacting 50
355360 states. 51 General Assembly Of North Carolina Session 2025
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357362 (b) The Commission may award a prize for a treatment or therapeutic protocol that yields 1
358363 a survival rate that is less than what is established in the cure criteria through at least five years 2
359364 after the treatment or protocol has ended. In that case, the prize amount awarded for that treatment 3
360365 or therapeutic protocol shall be reduced from the prize amount originally determined by the 4
361366 Commission for a cure for that disease. The reduction shall be in proportion to the survival rate 5
362367 yielded by that treatment or protocol as compared to the survival rate established in the cure 6
363368 criteria. 7
364369 (c) Recognizing that the goal of the compact is to pool the potential savings of as many 8
365370 states and countries as possible to generate sufficient financial incentive to develop a cure for 9
366371 many of the world's most devastating diseases, the compact will respect the laws of each of these 10
367372 United States by adopting rules that establish ethical standards for research that shall be followed 11
368373 in order for a prize to be claimed. The compact, in the rules, shall establish a common set of 12
369374 ethical standards that embodies the laws and restrictions in each of the states so that to be eligible 13
370375 for claiming a prize the entity submitting a cure must not have violated any of the ethical 14
371376 standards in any one of the 50 states, whether the states have joined the compact or not. The 15
372377 compact will publish these common ethical standards along with the specific criteria for a cure 16
373378 for each of the diseases the compact has targeted. So long as a researcher follows the common 17
374379 ethical standards in effect at the time the research is done, an entity presenting a cure will be 18
375380 deemed to have followed the standards. On or before January 1 of each year, the compact shall 19
376381 review all state laws to determine if additional ethical standards have been enacted by any of the 20
377382 50 states and the federal government. Any changes to the common ethical standards rules based 21
378383 on new state laws shall be adopted and published by the compact but shall not take effect in cure 22
379384 criteria for a period of three years to allow for sufficient notice to researchers. 23
380385 (d) All rules may be amended as the Commission sees necessary. 24
381386 (e) All rules shall be adopted pursuant to a rulemaking process that conforms to the 25
382387 Model State Administrative Procedure Act of 1981 by the uniform law commissioners, as 26
383388 amended, as may be appropriate to the operations of the Commission. 27
384389 (f) In the event the Commission exercises its rulemaking authority in a manner that is 28
385390 beyond the scope of the purpose of this compact or the powers granted hereunder, then such rule 29
386391 shall be invalid and have no force and effect. 30
387392 "§ 90-326.6. Management committee. 31
388393 (a) The Commission may establish a management committee comprised of not more than 32
389394 14 members when 26 states enact the compact. 33
390395 (b) The committee shall consist of those members representing compacting states whose 34
391396 total public health expenses of all of the established diseases are the highest. 35
392397 (c) The committee shall have such authority and duties as may be set forth in the 36
393398 Commission's bylaws and rules, including: 37
394399 (1) Managing authority over the day-to-day affairs of the Commission in a 38
395400 manner consistent with the Commission's bylaws and rules and the purposes 39
396401 of the compact. 40
397402 (2) Overseeing the offices of the Commission. 41
398403 (3) Planning, implementing, and coordinating communications and activities with 42
399404 state, federal, and local government organizations in order to advance the 43
400405 goals of the compact. 44
401406 (d) The Commission annually shall elect officers for the committee, with each having 45
402407 such authority and duties as may be specified in the Commission's bylaws and rules. 46
403408 (e) The management committee, subject to Commission approval, may appoint or retain 47
404409 an executive director for such period, upon such terms and conditions, and for such compensation 48
405410 as the committee determines. The executive director shall serve as secretary to the Commission 49
406411 but shall not be a member of the Commission. The executive director shall hire and supervise 50
407412 such other staff as may be authorized by the committee. 51 General Assembly Of North Carolina Session 2025
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409414 "§ 90-326.7. Advisory committees. 1
410415 The Commission may appoint advisory committees to monitor all operations related to the 2
411416 purposes of the compact and make recommendations to the Commission; provided that the 3
412417 manner of selection and term of any committee member shall be as set forth in the Commission's 4
413418 bylaws and rules. The Commission shall consult with an advisory committee, to the extent 5
414419 required by the Commission's bylaws or rules, before doing any of the following: 6
415420 (1) Approving cure criteria. 7
416421 (2) Amending, enacting, or repealing any bylaw or rule. 8
417422 (3) Adopting the Commission's annual budget. 9
418423 (4) Addressing any other significant matter or taking any other significant action. 10
419424 "§ 90-326.8. Finance. 11
420425 (a) The Commission annually shall establish a budget to pay or provide for the payment 12
421426 of its reasonable expenses. To fund the cost of initial operations, the Commission may accept 13
422427 contributions and other forms of funding from the compacting states and other sources. 14
423428 Contributions and other forms of funding from other sources shall be of such a nature that the 15
424429 independence of the Commission concerning the performance of its duties shall not be 16
425430 compromised. 17
426431 (b) The Commission shall be exempt from all taxation in and by the compacting states. 18
427432 (c) The Commission shall keep complete and accurate accounts of all of its internal 19
428433 receipts, including grants and donations, and disbursements of all funds under its control. The 20
429434 internal financial accounts of the Commission shall be subject to the accounting procedures 21
430435 established under the Commission's bylaws or rules. The financial accounts and reports, 22
431436 including the system of internal controls and procedures of the Commission, shall be audited 23
432437 annually by an independent certified public accountant. Upon the determination of the 24
433438 Commission but not less frequently than every three years, the review of the independent auditor 25
434439 shall include a management and performance audit of the Commission. The Commission shall 26
435440 make an annual report to the governors and legislatures of the compacting states, which shall 27
436441 include a report of the independent audit. The Commission's internal accounts shall not be 28
437442 confidential, and such materials may be shared with any compacting state upon request, provided, 29
438443 however, that any work papers related to any internal or independent audit and any information 30
439444 subject to the compacting states' privacy laws shall remain confidential. 31
440445 (d) No compacting state shall have any claim or ownership of any property held by or 32
441446 vested in the Commission or to any Commission funds held pursuant to the provisions of the 33
442447 compact. 34
443448 "§ 90-326.9. Records. 35
444449 Except as to privileged records, data, and information, the laws of any compacting state 36
445450 pertaining to confidentiality or nondisclosure shall not relieve any member of the duty to disclose 37
446451 any relevant records, data, or information to the Commission; provided, that disclosure to the 38
447452 Commission shall not be deemed to waive or otherwise affect any confidentiality requirement; 39
448453 and further provided, that, except as otherwise expressly provided in the compact, the 40
449454 Commission shall not be subject to the compacting state's laws pertaining to confidentiality and 41
450455 nondisclosure with respect to records, data, and information in its possession. Confidential 42
451456 information of the Commission shall remain confidential after such information is provided to 43
452457 any member. All cure submissions received by the Commission are confidential. 44
453458 "§ 90-326.10. Compliance. 45
454459 The Commission shall notify a compacting state in writing of any noncompliance with 46
455460 Commission bylaws and rules. If a compacting state fails to remedy its noncompliance within 47
456461 the time specified in the notice, the compacting state shall be deemed to be in default as set forth 48
457462 in G.S. 90-326.14. 49
458463 "§ 90-326.11. Venue. 50 General Assembly Of North Carolina Session 2025
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460465 Venue for any judicial proceedings by or against the Commission shall be brought in the 1
461466 appropriate court of competent jurisdiction for the geographical area in which the principal office 2
462467 of the Commission is located. 3
463468 "§ 90-326.12. Qualified immunity, defense, and indemnification. 4
464469 (a) The members, officers, executive director, employees, and representatives of the 5
465470 Commission shall be immune from suit and liability, either personally or in their official capacity, 6
466471 for any claim for damage to or loss of property or personal injury or other civil liability caused 7
467472 by or arising out of any actual or alleged act, error, or omission that occurred, or that such person 8
468473 had a reasonable basis for believing occurred within the scope of the person's Commission 9
469474 employment, duties, or responsibilities; provided, that nothing in this subsection shall be 10
470475 construed to protect any such person from suit or liability for any damage, loss, injury, or liability 11
471476 caused by the intentional or willful and wanton misconduct of that person. 12
472477 (b) The Commission shall defend any member, officer, executive director, employee, or 13
473478 representative of the Commission in any civil action seeking to impose liability arising out of 14
474479 any actual or alleged act, error, or omission that occurred within the scope of the person's 15
475480 Commission employment, duties, or responsibilities, or that such person had a reasonable basis 16
476481 for believing occurred within the scope of the person's Commission employment, duties, or 17
477482 responsibilities; provided, that nothing in the compact or Commission bylaws or rules shall be 18
478483 construed to prohibit that person from retaining his or her own counsel; and provided further, 19
479484 that the actual or alleged act, error, or omission did not result from that person's intentional or 20
480485 willful and wanton misconduct. 21
481486 (c) The Commission shall indemnify and hold harmless any member, officer, executive 22
482487 director, employee, or representative of the Commission for the amount of any settlement or 23
483488 judgment obtained against the person arising out of any actual or alleged act, error, or omission 24
484489 that occurred within the scope of the person's Commission employment, duties, or 25
485490 responsibilities, or that such person had a reasonable basis for believing occurred within the scope 26
486491 of Commission employment, duties, or responsibilities; provided, that the actual or alleged act, 27
487492 error, or omission did not result from the intentional or willful and wanton misconduct of that 28
488493 person. 29
489494 "§ 90-326.13. Compacting states, effective date, amendments, and funding. 30
490495 (a) Compacting States. – Any state is eligible to become a compacting state. 31
491496 (b) Effective Date. – The compact shall become effective and binding upon legislative 32
492497 enactment of the compact into law by two compacting states; provided that the Commission shall 33
493498 only be established after six states become compacting states. Thereafter, the compact shall 34
494499 become effective and binding as to any other compacting state upon enactment of the compact 35
495500 into law by that state. 36
496501 (c) Amendments. – Amendments to the compact may be proposed by the Commission 37
497502 for enactment by the compacting states. No amendment shall become effective and binding until 38
498503 all compacting states enact the amendment into law. 39
499504 (d) Funding. – If funding is requested or required, the legislative authority of each 40
500505 compacting state shall be responsible for making the appropriations it determines necessary to 41
501506 pay for the costs of the compact, including annual member dues and prize distributions. 42
502507 "§ 90-326.14. Withdrawal, default, and expulsion. 43
503508 (a) Once effective, the compact shall continue in force and remain binding upon each and 44
504509 every compacting state; provided, that a compacting state may withdraw from the compact by 45
505510 doing both of the following: 46
506511 (1) Repealing the law enacting the compact in that state. 47
507512 (2) Notifying the Commission in writing of the intent to withdraw on a date that 48
508513 is both of the following: 49
509514 a. At least three years after the date the notice is sent. 50
510515 b. After the repeal takes effect. 51 General Assembly Of North Carolina Session 2025
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512517 (b) The effective date of withdrawal is the date described in subdivision (2) of subsection 1
513518 (a) of this section. 2
514519 (c) The member representing the withdrawing state shall immediately notify the 3
515520 management committee in writing upon the introduction of legislation in that state repealing the 4
516521 compact. If a management committee has not been established, the member shall immediately 5
517522 notify the Commission. 6
518523 (d) The Commission or management committee, as applicable, shall notify the other 7
519524 compacting states of the introduction of such legislation within 10 days after its receipt of notice 8
520525 thereof. 9
521526 (e) The withdrawing state is responsible for all obligations, duties, and liabilities incurred 10
522527 through the effective date of withdrawal, including any obligations, the performance of which 11
523528 extend beyond the effective date of withdrawal. The Commission's actions shall continue to be 12
524529 effective and be given full force and effect in the withdrawing state. 13
525530 "§ 90-326.15. Reinstatement. 14
526531 Reinstatement following a state's withdrawal shall become effective upon the effective date 15
527532 of the subsequent enactment of the compact by that state. 16
528533 "§ 90-326.16. Default. 17
529534 (a) If the Commission determines that any compacting state has at any time defaulted in 18
530535 the performance of any of its obligations or responsibilities under the compact or the 19
531536 Commission's bylaws or rules, then, after notice and hearing as set forth in the bylaws, all rights, 20
532537 privileges, and benefits conferred by this compact on the defaulting state shall be suspended from 21
533538 the effective date of default as fixed by the Commission. The grounds for default include failure 22
534539 of a compacting state to perform its obligations or responsibilities and any other grounds 23
535540 designated in Commission rules. The Commission shall immediately notify the defaulting state 24
536541 in writing of the suspension pending cure of the default. The Commission shall stipulate the 25
537542 conditions and the time period within which the defaulting state shall cure its default. If the 26
538543 defaulting state fails to cure the default within the time period specified by the Commission, the 27
539544 defaulting state shall be expelled from the compact, and all rights, privileges, and benefits 28
540545 conferred by the compact shall be terminated from the effective date of the expulsion. Any state 29
541546 that is expelled from the compact shall be liable for any cure prize or prizes for three years after 30
542547 its removal. The Commission shall also take appropriate legal action to ensure that any 31
543548 compacting state that withdraws from the compact remains liable for paying its responsibility 32
544549 toward a prize for a cure that was accepted while the compacting state was a member of the 33
545550 Commission. 34
546551 (b) The expelled state must reenact the compact in order to become a compacting state. 35
547552 "§ 90-326.17. Dissolution of compact. 36
548553 (a) The compact dissolves effective upon the date of either of the following: 37
549554 (1) The withdrawal or expulsion of a compacting state, which withdrawal or 38
550555 expulsion reduces membership in the compact to one compacting state. 39
551556 (2) The Commission votes to dissolve the compact. 40
552557 (b) Upon the dissolution of the compact, the compact becomes null and void and shall be 41
553558 of no further force or effect, and the business and affairs of the Commission shall be wound up, 42
554559 and any surplus funds shall be distributed in accordance with the Commission's bylaws, provided, 43
555560 that the Commission shall pay all outstanding prizes awarded before the dissolution of the 44
556561 compact, as well as any other outstanding debts and obligations incurred during the existence of 45
557562 the compact. Any unawarded funds donated to be part of a prize shall be returned to the donor, 46
558563 along with any interest earned on the amount. 47
559564 "§ 90-326.18. Severability and construction. 48
560565 (a) The provisions of the compact shall be severable, and if any phrase, clause, sentence, 49
561566 or provision is deemed unenforceable, the remaining provisions of the compact shall be 50
562567 enforceable. 51 General Assembly Of North Carolina Session 2025
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564569 (b) The provisions of the compact shall be liberally construed to effectuate its purposes. 1
565570 "§ 90-326.19. Binding effect of compact and other laws. 2
566571 (a) Other Laws. – Nothing in this Article prevents the enforcement of any other law of a 3
567572 compacting state, except as provided in subdivision (2) of subsection (b) of this section. 4
568573 (b) Binding Effect of the Compact. – All of the following are binding: 5
569574 (1) All lawful actions of the Commission, including all Commission rules, are 6
570575 binding upon the compacting states. 7
571576 (2) All agreements between the Commission and the compacting states are 8
572577 binding in accordance with their terms. 9
573578 (3) Except to the extent authorized by the compacting state's constitution or, if 10
574579 constitutional authorization is not required, by other law of the compacting 11
575580 state, such state, by entering into the compact, does not: 12
576581 a. Commit the full faith and credit or taxing power of the compacting 13
577582 state for the payment of prizes or other obligations under the compact. 14
578583 b. Make prize payment responsibilities or other obligations under the 15
579584 compact a debt of the compacting state. 16
580585 (4) Upon the request of a party to a conflict over the meaning or interpretation of 17
581586 Commission actions, and upon a majority vote of the compacting states, the 18
582587 Commission may issue advisory opinions regarding the meaning or 19
583588 interpretation in dispute. 20
584589 (5) In the event any provision of the compact exceeds the constitutional limits 21
585590 imposed on any compacting state, the obligations, duties, powers, or 22
586591 jurisdiction sought to be conferred by that provision upon the Commission 23
587592 shall be ineffective as to that compacting state, and those obligations, duties, 24
588593 powers, or jurisdiction shall remain in the compacting state and shall be 25
589594 exercised by the agency thereof to which those obligations, duties, powers, or 26
590595 jurisdiction are delegated by law in effect at the time the compact becomes 27
591596 effective." 28
592597 SECTION 2. This act becomes effective upon the enactment of the compact into law 29
593598 by at least two compacting states. 30