2-2135.   Pest control compact; enactment.The pest control compact is hereby enacted into law andentered into with all other jurisdictions legally joining therein in the formsubstantially as follows:

      The party states find that:

      (a)   In the absence of the higher degree of cooperation among them possibleunder this compact, the annual loss of approximately 137 billion dollars fromthe depredations of pests is virtually certain to continue, if not to increase.

      (b)   Because of the varying climatic, geographic and economic factors, eachstate may be affected differently by particular species of pests; but allstates share the inability to protect themselves fully against those pestswhich present serious dangers to them.

      (c)   The migratory character of pest infestations makes it necessary forstates both adjacent to and distant from one another, to complement eachother's activities when faced with conditions of infestation and reinfestation.

      (d)   While every state is seriously affected by a substantial number of pests,and every state is susceptible to infestation by many species of pests not nowcausing damage to its crop and plant life and products, the fact thatrelatively few species of pests present equal danger to or are of interest toall states makes the establishment and operation of an insurance fund, fromwhich individual states may obtain financial support for pest control programsof benefit to them in other states and to which they may contribute inaccordance with their relative interest, the most equitable means of financingcooperative pest eradication and control programs.

      As used in this compact, unless the context clearly requires a differentconstruction:

      (a)   "State" means a state, territory, or possession of the United States, theDistrict of Columbia and the Commonwealth of Puerto Rico.

      (b)   "Requesting state" means a state which invokes the procedures of thecompact to secure the undertaking or intensification of measures to control oreradicate one or more pests within one or more other states.

      (c)   "Responding state" means a state requested to undertake or intensify themeasures referred to in subdivision (b) of this article.

      (d)   "Pest" means any invertebrate animal, pathogen, parasitic plant orsimilar or allied organism which can cause disease or damage in any crops,trees, shrubs, grasses or other plants of substantial value.

      (e)   "Insurance fund" means the pest control insurance fund establishedpursuant to this compact.

      (f)   "Governing board" means the administrators of this compact representingall of the party states when such administrators are acting as a body inpursuance of authority vested in them by this compact.

      (g)   "Executive committee" means the committee established pursuant toArticle V(e), of this compact.

      There is hereby established the pest control insurance fund for the purpose offinancing other than normal pest control operations which states may be calledupon to engage in pursuant to this compact. The insurance fund shall containmoneys appropriated to it by the party states and any donations and grantsaccepted by it. All appropriations, except as conditioned by the rights andobligations of party states expressly set forth in this compact, shall beunconditional and may not be restricted by the appropriating state to use inthe control of any specified pest or pests. Donations and grants may beconditional or unconditional, provided that the insurance fund shall not acceptany donation or grant whose terms are inconsistent with any provision of thiscompact.

      (a)   The insurance fund shall be administered by a governing board andexecutive committee as hereinafter provided. The actions of the governing boardand the executive committee pursuant to this compact shall be deemed theactions of the insurance fund.

      (b)   The members of the governing board shall be entitled to one vote on suchboard. No action of the governing board shall be binding unless taken at ameeting at which a majority of the total number of votes on the governing boardis cast in favor thereof. Action of the governing board shall be only at ameeting at which a majority of the members are present.

      (c)   The insurance fund shall have a seal which may be employed as an officialsymbol and which may be affixed to documents and otherwise used as thegoverning board may provide.

      (d)   The governing board shall elect annually, from among its members, achairman, a vice chairman, a secretary and a treasurer. The chairman may notsucceed himself. The governing board may appoint an executive director and fixhis duties and his compensation, if any. Such executive director shall serve atthe pleasure of the governing board. The governing board shall make provisionfor the bonding of such of the officers and employees of the insurance fund asmay be appropriate.

      (e)   Irrespective of the civil service, personnel or other merit system lawsof any of the party states, the executive director, or if there be no executivedirector, the chairman, in accordance with such procedures as the bylaws mayprovide, shall appoint, remove or discharge such personnel as may be necessaryfor the performance of the functions of the insurance fund and shall fix theduties and compensation of such personnel. The governing board in its bylawsshall provide for the personnel policies and programs of the insurance fund.

      (f)   The insurance fund may borrow, accept or contract for the services ofpersonnel from any state, the United States, or any other governmental agency,or from any person, firm, association or corporation.

      (g)   The insurance fund may accept for any of its purposes and functions underthis compact any and all donations, and grants of money, equipment, supplies,materials, and services, conditional or otherwise, from any state, the UnitedStates, or any other governmental agency, or from any person, firm,association, or corporation, and may receive, utilize and dispose of the same.Any donation, gift or grant accepted by the governing board pursuant to thisparagraph or services borrowed pursuant to paragraph (f) of this Article shallbe reported in the annual report of the insurance fund. Such report shallinclude the nature, amount and conditions, if any, of the donation, gift, grantor services borrowed and the identity of the donor or lender.

      (h)   The governing board shall adopt bylaws for the conduct of the business ofthe insurance fund and shall have the power to amend and rescind these bylaws.The insurance fund shall publish its bylaws in convenient form and shall file acopy thereof and a copy of any amendment thereto with the appropriate agency orofficer in each of the party states.

      (i)   The insurance fund annually shall make to the governor and legislature ofeach party state a report covering its activities for the preceding year. Theinsurance fund may make such additional reports as it may deem desirable.

      (j)   In addition to the powers and duties specifically authorized and imposed,the insurance fund may do such other things as are necessary and incidental tothe conduct of its affairs pursuant to this compact.

      (a)   In each party state there shall be a compact administrator, who shall beselected and serve in such manner as the laws of his state may provide, and whoshall:

      (1)   Assist in the coordination of activities pursuant to the compact in hisstate; and

      (2)   represent his state on the governing board of the insurance fund.

      (b)   If the laws of the United States specifically so provide, or ifadministrative provision is made therefore within the federal government, theUnited States may be represented on the governing board of the insurance fundby not to exceed three representatives. Any such representative orrepresentatives of the United States shall be appointed and serve in suchmanner as may be provided by or pursuant to federal law, but no suchrepresentative shall have a vote on the governing board or the executivecommittee thereof.

      (c)   The governing board shall meet at least once each year for the purpose ofdetermining policies and procedures in the administration of the insurance fundand, consistent with the provisions of the compact, supervising and givingdirection to the expenditure of moneys from the insurance fund. Additionalmeetings of the governing board shall be held on call of the chairman, theexecutive committee or a majority of the membership of the governing board.

      (d)   At such times as it may be meeting, the governing board shall pass uponapplications for assistance from the insurance fund and authorize disbursementstherefrom. When the governing board is not in session, the executive committeethereof shall act as agent of the governing board, with full authority to actfor it in passing upon such applications.

      (e)   The executive committee shall be composed of the chairman of thegoverning board and four additional members of the governing board chosen by itso that there shall be one member representing each of four geographicgroupings of party states. The governing board shall make such geographicgroupings. If there is representation of the United States on the governingboard, one such representative may meet with the executive committee. Thechairman of the governing board shall be chairman of the executive committee.No action of the executive committee shall be binding unless taken at a meetingat which at least four members of such committee are present and vote in favorthereof. Necessary expenses of each of the five members of the executivecommittee incurred in attending meetings of such committee, when not held atthe same time and place as a meeting of the governing board, shall be chargesagainst the insurance fund.

      (a)   Each party state pledges to each other party state that it will employits best efforts to eradicate, or control within the strictest practicablelimits, any and all pests. It is recognized that performance of thisresponsibility involves:

      (1)   The maintenance of pest control and eradication activities of interstatesignificance by a party state at a level that would be reasonable for its ownprotection in the absence of this compact.

      (2)   The meeting of emergency outbreaks or infestations of interstatesignificance to no less an extent than would have been done in the absence ofthis compact.

      (b)   Whenever a party state is threatened by a pest not present within itsborders but present within another party state, or whenever a party state isundertaking or engaged in activities for the control or eradication of a pestor pests, and finds that such activities are or would be impracticable orsubstantially more difficult of success by reason of failure of another partystate to cope with infestation or threatened infestation, that state mayrequest the governing board to authorize expenditures from the insurance fundfor eradication or control measures to be taken by one or more of such otherparty states at a level sufficient to prevent, or to reduce to the greatestpracticable extent, infestation or reinfestation of the requesting state. Uponsuch authorization the responding state or states shall take or increase sucheradication or control measures as may be warranted. A responding state shalluse moneys available from the insurance fund expeditiously and efficientlyto assist in affording the protection requested.

      (c)   In order to apply for expenditures from the insurance fund, a requestingstate shall submit the following in writing:

      (1)   A detailed statement of the circumstances which occasion the request forthe invoking of the compact.

      (2)   Evidence that the pest on account of whose eradication or controlassistance is requested constitutes a danger to an agricultural or forest crop,product, tree, shrub, grass or other plant having a substantial value to therequesting state.

      (3)   A statement of the extent of the present and projected program of therequesting state and its subdivisions, including full information as to thelegal authority for the conduct of such program or programs and theexpenditures being made or budgeted therefore, in connection with theeradication, control or prevention of introduction of the pest concerned.

      (4)   Proof that the expenditures being made or budgeted as detailed in item 3do not constitute a reduction of the effort for the control or eradication ofthe pest concerned or, if there is a reduction, the reasons why the level ofprogram detailed in item 3 constitutes a normal level of pest control activity.

      (5)   A declaration as to whether, to the best of its knowledge and belief, theconditions which in its view occasion the invoking of the compact in theparticular instance can be abated by a program undertaken with the aid ofmoneys from the insurance fund in one year or less or whether the request isfor an installment in a program which is likely to continue for a longer periodof time.

      (6)   Such other information as the governing board may require consistent withthe provisions of this compact.

      (d)   The governing board or executive committee shall give due notice of anymeeting at which an application for assistance from the insurance fund is to beconsidered. Such notice shall be given to the compact administrator of eachparty state and to such other officers and agencies as may be designated by thelaws of the party states. The requesting state and any other party state shallbe entitled to be represented and present evidence and argument at suchmeeting.

      (e)   Upon the submission as required by paragraph (c) of this Article and suchother information as it may have or acquire, and upon determining that anexpenditure of funds is within the purposes of this compact and justifiedthereby, the governing board or executive committee shall authorize support ofthe program. The governing board or executive committee may meet at anytime or place for the purpose of receiving and considering an application. Anyand all determinations of the governing board or executive committee, withrespect to an application, together with the reasons therefore shall berecorded and subscribed in such manner as to show and preserve the votes of theindividual members thereof.

      (f)   A requesting state which is dissatisfied with a determination of theexecutive committee shall upon notice in writing given within twenty days ofthe determination with which it is dissatisfied, be entitled to receive areview thereof at the next meeting of the governing board. Determinations ofthe executive committee shall be reviewable only by the governing board at oneof its regular meetings, or at a special meeting held in such manner as thegoverning board may authorize.

      (g)   Responding states required to undertake or increase measures pursuant tothis compact may receive moneys from the insurance fund, either at the time ortimes when such state incurs expenditures on account of such measures, or asreimbursement for expenses incurred and chargeable to the insurance fund.The governing board shall adopt and, from time to time, may amend or reviseprocedures for submission of claims upon it and for payment thereof.

      (h)   Before authorizing the expenditure of moneys from the insurance fundpursuant to an application of a requesting state, the insurance fund shallascertain the extent and nature of any timely assistance or participation whichmay be available from the federal government and shall request the appropriateagency or agencies of the federal government for such assistance andparticipation.

      (i)   The insurance fund may negotiate and execute a memorandum ofunderstanding or other appropriate instrument defining the extent and degree ofassistance or participation between and among the insurance fund, cooperatingfederal agencies, states and any other entities concerned.

      The governing board may establish advisory and technical committees composed ofstate, local, and federal officials and private persons to advise it withrespect to any one or more of its functions. Any such advisory or technicalcommittee, or any member or members thereof may meet with and participate inits deliberations upon request of the governing board or executive committee.An advisory or technical committee may furnish information and recommendationswith respect to any application for assistance from the insurance fund beingconsidered by such board or committee and the board or committee may receiveand consider the same: Provided, That any participant in a meeting of thegoverning board or executive committee held pursuant to Article VI(d) of thecompact shall be entitled to know the substance of any such information andrecommendations, at the time of the meeting if made prior thereto or as a partthereof or, if made thereafter, no later than the time at which the governingboard or executive committee makes its disposition of the application.

      (a)   A party state may make application for assistance from the insurance fundin respect of a pest in a nonparty state. Such application shall be consideredand disposed of by the governing board or executive committee in the samemanner as an application with respect to a pest within a party state, except asprovided in this Article.

      (b)   At or in connection with any meeting of the governing board or executivecommittee held pursuant to Article VI(d) of this compact a nonpartystate shall be entitled to appear, participate and receive information only tosuch extent as the governing board or executive committee may provide. Anonparty state shall not be entitled to review of any determination made by theexecutive committee.

      (c)   The governing board or executive committee shall authorize expendituresfrom the insurance fund to be made in a nonparty state only after determiningthat the conditions in such state and the value of such expenditures to theparty states as a whole justify them. The governing board or executivecommittee may set any conditions which it deems appropriate with respect to theexpenditure of moneys from the insurance fund in a nonparty state and may enterinto such agreement or agreements with nonparty states and other jurisdictionsor entities as it may deem necessary or appropriate to protect the interests ofthe insurance fund with respect to expenditures and activities outside of partystates.

      (a)   The insurance fund shall submit to the executive head or designatedofficer or officers of each party state a budget for the insurance fund forsuch period as may be required by the laws of that party state for presentationto the legislature thereof.

      (b)   Each of the budgets shall contain specific recommendations of the amountor amounts to be appropriated by each of the party states. The requests forappropriations shall be apportioned among the party states as follows:one-tenth of the total budget in equal shares and the remainder in proportionto the value of agricultural and forest crops and products, excluding animalsand animal products, produced in each party state. In determining the value ofsuch crops and products the insurance fund may employ such source or sources ofinformation as in its judgment present the most equitable and accuratecomparisons among the party states. Each of the budgets and requests forappropriations shall indicate the source or sources used in obtaininginformation concerning value of products.

      (c)   The financial assets of the insurance fund shall be maintained in twoaccounts to be designated respectively as the "operating account" and the"claims account". The operating account shall consist only of those assetsnecessary for the administration of the insurance fund during the next ensuingtwo-year period. The claims account shall contain all moneys not included inthe operating account and shall not exceed the amount reasonably estimated tobe sufficient to pay all legitimate claims on the insurance fund for a periodof three years. At any time when the claims account has reached its maximumlimit or would reach its maximum limit by the addition of moneys requested forappropriation by the party states, the governing board shall reduce its budgetrequests on a pro rata basis in such manner as to keep the claims accountwithin such maximum limit. Any moneys in the claims account by virtue ofconditional donations, grants or gifts shall be included in calculations madepursuant to this paragraph only to the extent that such moneys are available tomeet demands arising out of claims.

      (d)   The insurance fund shall not pledge the credit of any party state. Theinsurance fund may meet any of its obligations in whole or in part with moneysavailable to it under Article IV(g) of this compact, providedthat the governing board takes specific action setting aside such moneys priorto incurring any obligation to be met in whole or in part in such manner.Except where the insurance fund makes use of moneys available to it underArticle IV(g) hereof, the insurance fund shall not incur anyobligation prior to the allotment of moneys by the party states adequate tomeet the same.

      (e)   The insurance fund shall keep accurate accounts of all receipts anddisbursements. The receipts and disbursements of the insurance fund shall besubject to the audit and accounting procedures established under its bylaws.However, all receipts and disbursements of funds handled by the insurance fundshall be audited yearly by a certified or licensed public accountant andreport of the audit shall be included in and become part of the annual reportof the insurance fund.

      (f)   The accounts of the insurance fund shall be open at any reasonable timefor inspection by duly authorized officers of the party states and by anypersons authorized by the insurance fund.

      (a)   This compact shall enter into force when enacted into law by any five ormore states. Thereafter, this compact shall become effective as to any otherstate upon its enactment thereof.

      (b)   Any party state may withdraw from this compact by enacting a statuterepealing the same, but no such withdrawal shall take effect until two yearsafter the executive head of the withdrawing state has given notice in writingof the withdrawal to the executive heads of all other party states. Nowithdrawal shall affect any liability already incurred by or chargeable to aparty state prior to the time of such withdrawal.

      This compact shall be liberally construed so as to effectuate the purposesthereof. The provisions of this compact shall be severable and if any phrase,clause, sentence or provision of this compact is declared to be contrary tothe constitution of any state or of the United States or the applicabilitythereof to any government, agency, person or circumstance is held invalid, thevalidity of the remainder of this compact and the applicability thereof to anygovernment, agency, person or circumstance shall not be affected thereby. Ifthis compact shall be held contrary to the constitution of any stateparticipating herein the compact shall remain in full force and effect as tothe remaining party states and in full force and effect as to the stateaffected as to all severable matters.

      History:   L. 2005, ch. 8, § 1; July 1.