State Codes and Statutes

Statutes > North-carolina > Chapter_106 > GS_106-65_55

Article 4E.

Pest Control Compact.

§ 106‑65.55.  Adoption of Compact.

The Pest Control Compact is hereby enacted into law and entered intowith all other jurisdictions legally joining therein in the form substantiallyas follows: PEST CONTROL COMPACT.

Article I. Findings.

The party states find that:

(a)        In the absence of the higher degree of cooperation amongthem possible under this Compact, the annual loss of approximately ten billiondollars ($10,000,000,000) from the depredations of pests is virtually certainto continue, if not to increase.

(b)        Because of varying climatic, geographic and economicfactors, each state may be affected differently by particular species of pests;but all states share the inability to protect themselves fully against thosepests which present serious dangers to them.

(c)        The migratory character of pest infestations makes itnecessary for states both adjacent to and distant from one another, tocomplement each other's activities when faced with conditions of infestationand reinfestation.

(d)        While every state is seriously affected by a substantialnumber of pests, and every state is susceptible of infestation by many speciesof pests not now causing damage to its crop and plant life and products, thefact that relatively few species of pests present equal danger to or are ofinterest to all states makes the establishment and operation of an insurancefund, from which individual states may obtain financial support for pestcontrol programs of benefit to them in other states and to which they maycontribute in accordance with their relative interests, the most equitablemeans of financing cooperative pest eradication and control programs.

Article II. Definitions.

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

(a)        "State" means a state, territory or possession ofthe United States, the District of Columbia, and the Commonwealth of PuertoRico.

(b)        "Requesting state" means a state which invokes theprocedures of the Compact to secure the undertaking or intensification ofmeasures to control or eradicate one or more pests within one or more otherstates.

(c)        "Responding state" means a state requested toundertake or intensify the measures referred to in subdivision (b) of thisArticle.

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

(e)        "Insurance fund" means the Pest Control InsuranceFund established pursuant to this Compact.

(f)         "Governing board" means the administrators ofthis Compact representing all of the party states when such administrators areacting as a body in pursuance of authority vested in them by this Compact.

(g)        "Executive committee" means the committeeestablished pursuant to Article V(e) of this Compact.

Article III. The Insurance Fund.

There is hereby established the Pest Control Insurance Fund for thepurpose of financing other than normal pest control operations which states maybe called upon to engage in pursuant to this Compact. The insurance fund shallcontain moneys appropriated to it by the party states and any donations andgrants accepted by it. All appropriations, except as conditioned by the rightsand obligations 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.

Article IV. The Insurance Fund, Internal Operations and Management.

(a)        The insurance fund shall be administered by a governing boardand executive committee as hereinafter provided. The actions of the governingboard and 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 onevote each on such board. No action of the governing board shall be bindingunless taken at a meeting at which a majority of the total number of votes onthe governing board are cast in favor thereof. Action of the governing boardshall be only at a meeting at which a majority of the members are present.

(c)        The insurance fund shall have a seal which may be employedas an official symbol and which may be affixed to documents and otherwise usedas the governing board may provide.

(d)        The governing board shall elect annually, from among itsmembers, a chairman, a vice‑chairman, a secretary and a treasurer. Thechairman may not succeed himself. The governing board may appoint an executivedirector and fix his duties and his compensation, if any. Such executive directorshall serve at the pleasure of the governing board. The governing board shallmake provision for the bonding of such of the officers and employees of theinsurance fund as may be appropriate.

(e)        Irrespective of the civil service, personnel or other meritsystem laws of any of the party states, the executive director, or if there beno executive director, the chairman, in accordance with such procedures as thebylaws may provide, shall appoint, remove or discharge such personnel as may benecessary for the performance of the functions of the insurance fund and shallfix the duties and compensation of such personnel. The governing board in itsbylaws shall provide for the personnel policies and programs of the insurancefund.

(f)         The insurance fund may borrow, accept or contract for theservices of personnel from any state, the United States, or any othergovernmental agency, or from any person, firm, association or corporation.

(g)        The insurance fund may accept for any of its purposes andfunctions under this Compact any and all donations, and grants of money,equipment, supplies, materials and services, conditional or otherwise, from anystate, the United States, or any other governmental agency, or from any person,firm, association or corporation, and may receive, utilize and dispose of thesame. Any donation, gift or grant accepted by the governing board pursuant tothis paragraph or services borrowed pursuant to paragraph (f) of this Articleshall be 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 ofthe business of the insurance fund and shall have the power to amend andrescind these bylaws. The insurance fund shall publish its bylaws in convenientform and shall file a copy thereof and a copy of any amendment thereto with theappropriate agency or officer in each of the party states.

(i)         The insurance fund annually shall make to the Governor andlegislature of each party state a report covering its activities for thepreceding year. The insurance fund may make such additional reports as it maydeem desirable.

(j)         In addition to the powers and duties specificallyauthorized and imposed, the insurance fund may do such other things as arenecessary and incidental to the conduct of its affairs pursuant to thisCompact.

Article V. Compact and Insurance Fund Administration.

(a)        In each party state there shall be a Compact administrator,who shall be selected and serve in such manner as the laws of his state mayprovide, and who shall:

(1)        Assist in the coordination of activities pursuant to theCompact in his state; and

(2)        Represent his state on the governing board of the insurancefund.

(b)        If the laws of the United States specifically so provide, orif administrative provision is made therefor 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 on the executivecommittee thereof.

(c)        The governing board shall meet at least once each year forthe purpose of determining policies and procedures in the administration of theinsurance fund and, consistent with the provisions of the Compact, supervisingand giving direction to the expenditure of moneys from the insurance fund.Additional meetings of the governing board shall be held on call of thechairman, the executive committee, or a majority of the membership of the governingboard.

(d)        At such times as it may be meeting, the governing boardshall pass upon applications for assistance from the insurance fund andauthorize disbursements therefrom. When the governing board is not in session,the executive committee thereof shall act as agent of the governing board, withfull authority to act for it in passing upon such applications.

(e)        The executive committee shall be composed of the chairman ofthe governing board and four additional members of the governing board chosenby it so 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 charges againstthe insurance fund.

Article VI. Assistance and Reimbursement.

(a)        Each party state pledges to each other party state that itwill employ its best efforts to eradicate, or control within the strictestpracticable limits, any and all pests. It is recognized that performance ofthis responsibility involves:

(1)        The maintenance of pest control and eradication activitiesof interstate significance by a party state at a level that would be reasonablefor its own protection in the absence of this Compact.

(2)        The meeting of emergency outbreaks or infestations ofinterstate significance to no less an extent than would have been done in theabsence of this Compact.

(b)        Whenever a party state is threatened by a pest not presentwithin its borders but present within another party state, or whenever a partystate is undertaking or engaged in activities for the control or eradication ofa pest or pests, and finds that such activities are or would be impracticableor substantially more difficult of success by reason of failure of anotherparty state 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 made 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 requesting state shall submit the following in writing:

(1)        A detailed statement of the circumstances which occasion therequest for the invoking of the Compact.

(2)        Evidence that the pest on account of whose eradication orcontrol assistance is requested constitutes a danger to an agricultural orforest crop, product, tree, shrub, grass or other plant having a substantialvalue to the requesting state.

(3)        A statement of the extent of the present and projectedprogram of the requesting state and its subdivisions, including fullinformation as to the legal authority for the conduct of such program orprograms and the expenditures being made or budgeted therefor, in connectionwith the eradication, control, or prevention of introduction of the pestconcerned.

(4)        Proof that the expenditures being made or budgeted asdetailed in item (3) do not constitute a reduction of the effort for thecontrol or eradication of the pest concerned or, if there is a reduction, thereasons why the level of program detailed in item (3) constitutes a normallevel of pest‑control activity.

(5)        A declaration as to whether, to the best of its knowledgeand belief, the conditions which in its view occasion the invoking of theCompact in the particular instance can be abated by a program undertaken withthe aid of moneys from the insurance fund in one year or less, or whether therequest is for an installment in a program which is likely to continue for alonger period of time.

(6)        Such other information as the governing board may require consistentwith the provisions of this Compact.

(d)        The governing board or executive committee shall give duenotice of any meeting at which an application for assistance from the insurancefund is to be considered. Such notice shall be given to the Compact administratorof each party state and to such other officers and agencies as may bedesignated by the laws of the party states. The requesting state and any otherparty state shall be entitled to be represented and present evidence andargument at such meeting.

(e)        Upon the submission as required by paragraph (c) of thisArticle and such other information as it may have or acquire, and upondetermining that an expenditure of funds is within the purposes of this Compactand justified thereby, the governing board or executive committee shallauthorize support of the program. The governing board or the executivecommittee may meet at any time or place for the purpose of receiving andconsidering an application. Any and all determinations of the governing board orexecutive committee, with respect to an application, together with the reasonstherefor shall be recorded and subscribed in such manner as to show andpreserve the votes of the individual members thereof.

(f)         A requesting state which is dissatisfied with adetermination of the executive committee shall, upon notice in writing givenwithin 20 days of the determination with which it is dissatisfied, be entitledto receive a review thereof at the next meeting of the governing board.Determinations of the executive committee shall be reviewable only by thegoverning board at one of its regular meetings, or at a special meeting held insuch manner as the governing board may authorize.

(g)        Responding states required to undertake or increase measurespursuant to this Compact may receive moneys from the insurance fund, either atthe time or times when such state incurs expenditures on account of suchmeasures, or as reimbursement for expenses incurred and chargeable to theinsurance fund. The governing board shall adopt and, from time to time, mayamend or revise procedures for submission of claims upon it and for paymentthereof.

(h)        Before authorizing the expenditure of moneys from theinsurance fund pursuant to an application of a requesting state, the insurancefund shall ascertain the extent and nature of any timely assistance orparticipation which may be available from the federal government and shallrequest the appropriate agency or agencies of the federal government for suchassistance and participation.

(i)         The insurance fund may negotiate and execute a memorandumof understanding or other appropriate instrument defining the extent and degreeof assistance or participation between and among the insurance fund,cooperating federal agencies, states and any other entities concerned.

Article VII. Advisory and Technical Committees.

The governing board may establish advisory and technical committeescomposed of State, local, and federal officials, and private persons to adviseit with respect to any one or more of its functions. Any such advisory ortechnical committee, or any member or members thereof may meet with andparticipate in its deliberations. Upon request of the governing board orexecutive committee an advisory or technical committee may furnish informationand recommendations with respect to any application for assistance from theinsurance fund being considered by such board or committee and the board orcommittee may receive and consider the same: Provided that any participant in ameeting of the governing board or executive committee held pursuant to ArticleVI(d) of the Compact shall be entitled to know the substance of any suchinformation and recommendations, at the time of the meeting if made priorthereto or as a part thereof or, if made thereafter, no later than the time atwhich the governing board or executive committee makes its disposition of theapplication.

Article VIII. Relations with Nonparty Jurisdictions.

(a)        A party state may make application for assistance from theinsurance fund in respect of a pest in a nonparty state. Such application shallbe considered and disposed of by the governing board or executive committee inthe same manner as an application with respect to a pest within a party state,except as provided in this Article.

(b)        At or in connection with any meeting of the governing boardor executive committee held pursuant to Article VI(d) of this Compact anonparty state shall be entitled to appear, participate, and receiveinformation only to such extent as the governing board or executive committeemay provide. A nonparty state shall not be entitled to review of anydetermination made by the executive committee.

(c)        The governing board or executive committee shall authorizeexpenditures from the insurance fund to be made in a nonparty state only afterdetermining that the conditions in such state and the value of suchexpenditures to the party states as a whole justify them. The governing boardor executive committee may set any conditions which it deems appropriate with respectto the expenditure of moneys from the insurance fund in a nonparty state andmay enter into such agreement or agreements with nonparty states and otherjurisdictions or entities as it may deem necessary or appropriate to protectthe interests of the insurance fund with respect to expenditures and activitiesoutside of party states.

Article IX. Finance.

(a)        The insurance fund shall submit to the executive head ordesignated officer or officers of each party state a budget for the insurancefund for such period as may be required by the laws of that party state forpresentation to the legislature thereof.

(b)        Each of the budgets shall contain specific recommendationsof the amount or amounts to be appropriated by each of the party states. Therequests for appropriations shall be apportioned among the party states asfollows: one tenth of the total budget in equal shares and the remainder inproportion to the value of agricultural and forest crops and products,excluding animals and animal products, produced in each party state. Indetermining the value of such crops and products the insurance fund may employsuch source or sources of information as in its judgment present the mostequitable and accurate comparisons among the party states. Each of the budgetsand requests for appropriations shall indicate the source or sources used inobtaining information concerning value of products.

(c)        The financial assets of the insurance fund shall bemaintained in two accounts to be designated respectively as the "operatingaccount" and the "claims account." The operating account shallconsist only of those assets necessary for the administration of the insurancefund during the next ensuing two‑year period. The claims account shallcontain all moneys not included in the operating account and shall not exceedthe amount reasonably estimated to be sufficient to pay all legitimate claimson the insurance fund for a period of three years. At any time when the claimsaccount has reached its maximum limit or would reach its maximum limit by theaddition of moneys requested for appropriation by the party states, thegoverning board shall reduce its budget requests on a pro rata basis in suchmanner as to keep the claims account within such maximum limit. Any moneys inthe claims account by virtue of conditional donations, grants or gifts shall beincluded in calculations made pursuant to this paragraph only to the extentthat such moneys are available to meet demands arising out of claims.

(d)        The insurance fund shall not pledge the credit of any partystate. The insurance fund may meet any of its obligations in whole or in partwith moneys available to it under Article IV(g) of this Compact, provided thatthe governing board takes specific action setting aside such moneys prior toincurring any obligation to be met in whole or in part in such manner. Exceptwhere the insurance fund makes use of moneys available to it under ArticleIV(g) hereof, the insurance fund shall not incur any obligation prior to theallotment of moneys by the party states adequate to meet the same.

(e)        The insurance fund shall keep accurate accounts of allreceipts and disbursements. The receipts and disbursements of the insurancefund shall be subject to the audit and accounting procedures established underits bylaws. However, all receipts and disbursements of funds handled by theinsurance fund shall be audited yearly by a certified or licensed publicaccountant and a report of the audit shall be included in and become part ofthe annual report of the insurance fund.

(f)         The accounts of the insurance fund shall be open at anyreasonable time for inspection by duly authorized officers of the party statesand by any persons authorized by the insurance fund.

Article X. Entry into Force and Withdrawal.

(a)        This Compact shall enter into force when enacted into law byany five or more states. Thereafter, this Compact shall become effective as toany other state upon its enactment thereof.

(b)        Any party state may withdraw from this Compact by enacting astatute repealing the same, but no such withdrawal shall take effect until twoyears after the executive head of the withdrawing state has given notice inwriting of 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.

Article XI. Construction and Severability.

This Compact shall be liberally construed so as to effectuate thepurposes thereof. The provisions of this Compact shall be severable and if anyphrase, clause, sentence or provision of this Compact is declared to becontrary to the constitution of any state or of the United States or theapplicability thereof to any government, agency, person or circumstance is heldinvalid, the validity of the remainder of this Compact and the applicabilitythereof to any government, agency, person or circumstance shall not be affectedthereby. If this Compact shall be held contrary to the constitution of anystate participating herein, the Compact shall remain in full force and effectas to the remaining party states and in full force and effect as to the stateaffected as to all severable matters. (1975, c. 810, s.1.)

State Codes and Statutes

Statutes > North-carolina > Chapter_106 > GS_106-65_55

Article 4E.

Pest Control Compact.

§ 106‑65.55.  Adoption of Compact.

The Pest Control Compact is hereby enacted into law and entered intowith all other jurisdictions legally joining therein in the form substantiallyas follows: PEST CONTROL COMPACT.

Article I. Findings.

The party states find that:

(a)        In the absence of the higher degree of cooperation amongthem possible under this Compact, the annual loss of approximately ten billiondollars ($10,000,000,000) from the depredations of pests is virtually certainto continue, if not to increase.

(b)        Because of varying climatic, geographic and economicfactors, each state may be affected differently by particular species of pests;but all states share the inability to protect themselves fully against thosepests which present serious dangers to them.

(c)        The migratory character of pest infestations makes itnecessary for states both adjacent to and distant from one another, tocomplement each other's activities when faced with conditions of infestationand reinfestation.

(d)        While every state is seriously affected by a substantialnumber of pests, and every state is susceptible of infestation by many speciesof pests not now causing damage to its crop and plant life and products, thefact that relatively few species of pests present equal danger to or are ofinterest to all states makes the establishment and operation of an insurancefund, from which individual states may obtain financial support for pestcontrol programs of benefit to them in other states and to which they maycontribute in accordance with their relative interests, the most equitablemeans of financing cooperative pest eradication and control programs.

Article II. Definitions.

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

(a)        "State" means a state, territory or possession ofthe United States, the District of Columbia, and the Commonwealth of PuertoRico.

(b)        "Requesting state" means a state which invokes theprocedures of the Compact to secure the undertaking or intensification ofmeasures to control or eradicate one or more pests within one or more otherstates.

(c)        "Responding state" means a state requested toundertake or intensify the measures referred to in subdivision (b) of thisArticle.

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

(e)        "Insurance fund" means the Pest Control InsuranceFund established pursuant to this Compact.

(f)         "Governing board" means the administrators ofthis Compact representing all of the party states when such administrators areacting as a body in pursuance of authority vested in them by this Compact.

(g)        "Executive committee" means the committeeestablished pursuant to Article V(e) of this Compact.

Article III. The Insurance Fund.

There is hereby established the Pest Control Insurance Fund for thepurpose of financing other than normal pest control operations which states maybe called upon to engage in pursuant to this Compact. The insurance fund shallcontain moneys appropriated to it by the party states and any donations andgrants accepted by it. All appropriations, except as conditioned by the rightsand obligations 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.

Article IV. The Insurance Fund, Internal Operations and Management.

(a)        The insurance fund shall be administered by a governing boardand executive committee as hereinafter provided. The actions of the governingboard and 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 onevote each on such board. No action of the governing board shall be bindingunless taken at a meeting at which a majority of the total number of votes onthe governing board are cast in favor thereof. Action of the governing boardshall be only at a meeting at which a majority of the members are present.

(c)        The insurance fund shall have a seal which may be employedas an official symbol and which may be affixed to documents and otherwise usedas the governing board may provide.

(d)        The governing board shall elect annually, from among itsmembers, a chairman, a vice‑chairman, a secretary and a treasurer. Thechairman may not succeed himself. The governing board may appoint an executivedirector and fix his duties and his compensation, if any. Such executive directorshall serve at the pleasure of the governing board. The governing board shallmake provision for the bonding of such of the officers and employees of theinsurance fund as may be appropriate.

(e)        Irrespective of the civil service, personnel or other meritsystem laws of any of the party states, the executive director, or if there beno executive director, the chairman, in accordance with such procedures as thebylaws may provide, shall appoint, remove or discharge such personnel as may benecessary for the performance of the functions of the insurance fund and shallfix the duties and compensation of such personnel. The governing board in itsbylaws shall provide for the personnel policies and programs of the insurancefund.

(f)         The insurance fund may borrow, accept or contract for theservices of personnel from any state, the United States, or any othergovernmental agency, or from any person, firm, association or corporation.

(g)        The insurance fund may accept for any of its purposes andfunctions under this Compact any and all donations, and grants of money,equipment, supplies, materials and services, conditional or otherwise, from anystate, the United States, or any other governmental agency, or from any person,firm, association or corporation, and may receive, utilize and dispose of thesame. Any donation, gift or grant accepted by the governing board pursuant tothis paragraph or services borrowed pursuant to paragraph (f) of this Articleshall be 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 ofthe business of the insurance fund and shall have the power to amend andrescind these bylaws. The insurance fund shall publish its bylaws in convenientform and shall file a copy thereof and a copy of any amendment thereto with theappropriate agency or officer in each of the party states.

(i)         The insurance fund annually shall make to the Governor andlegislature of each party state a report covering its activities for thepreceding year. The insurance fund may make such additional reports as it maydeem desirable.

(j)         In addition to the powers and duties specificallyauthorized and imposed, the insurance fund may do such other things as arenecessary and incidental to the conduct of its affairs pursuant to thisCompact.

Article V. Compact and Insurance Fund Administration.

(a)        In each party state there shall be a Compact administrator,who shall be selected and serve in such manner as the laws of his state mayprovide, and who shall:

(1)        Assist in the coordination of activities pursuant to theCompact in his state; and

(2)        Represent his state on the governing board of the insurancefund.

(b)        If the laws of the United States specifically so provide, orif administrative provision is made therefor 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 on the executivecommittee thereof.

(c)        The governing board shall meet at least once each year forthe purpose of determining policies and procedures in the administration of theinsurance fund and, consistent with the provisions of the Compact, supervisingand giving direction to the expenditure of moneys from the insurance fund.Additional meetings of the governing board shall be held on call of thechairman, the executive committee, or a majority of the membership of the governingboard.

(d)        At such times as it may be meeting, the governing boardshall pass upon applications for assistance from the insurance fund andauthorize disbursements therefrom. When the governing board is not in session,the executive committee thereof shall act as agent of the governing board, withfull authority to act for it in passing upon such applications.

(e)        The executive committee shall be composed of the chairman ofthe governing board and four additional members of the governing board chosenby it so 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 charges againstthe insurance fund.

Article VI. Assistance and Reimbursement.

(a)        Each party state pledges to each other party state that itwill employ its best efforts to eradicate, or control within the strictestpracticable limits, any and all pests. It is recognized that performance ofthis responsibility involves:

(1)        The maintenance of pest control and eradication activitiesof interstate significance by a party state at a level that would be reasonablefor its own protection in the absence of this Compact.

(2)        The meeting of emergency outbreaks or infestations ofinterstate significance to no less an extent than would have been done in theabsence of this Compact.

(b)        Whenever a party state is threatened by a pest not presentwithin its borders but present within another party state, or whenever a partystate is undertaking or engaged in activities for the control or eradication ofa pest or pests, and finds that such activities are or would be impracticableor substantially more difficult of success by reason of failure of anotherparty state 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 made 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 requesting state shall submit the following in writing:

(1)        A detailed statement of the circumstances which occasion therequest for the invoking of the Compact.

(2)        Evidence that the pest on account of whose eradication orcontrol assistance is requested constitutes a danger to an agricultural orforest crop, product, tree, shrub, grass or other plant having a substantialvalue to the requesting state.

(3)        A statement of the extent of the present and projectedprogram of the requesting state and its subdivisions, including fullinformation as to the legal authority for the conduct of such program orprograms and the expenditures being made or budgeted therefor, in connectionwith the eradication, control, or prevention of introduction of the pestconcerned.

(4)        Proof that the expenditures being made or budgeted asdetailed in item (3) do not constitute a reduction of the effort for thecontrol or eradication of the pest concerned or, if there is a reduction, thereasons why the level of program detailed in item (3) constitutes a normallevel of pest‑control activity.

(5)        A declaration as to whether, to the best of its knowledgeand belief, the conditions which in its view occasion the invoking of theCompact in the particular instance can be abated by a program undertaken withthe aid of moneys from the insurance fund in one year or less, or whether therequest is for an installment in a program which is likely to continue for alonger period of time.

(6)        Such other information as the governing board may require consistentwith the provisions of this Compact.

(d)        The governing board or executive committee shall give duenotice of any meeting at which an application for assistance from the insurancefund is to be considered. Such notice shall be given to the Compact administratorof each party state and to such other officers and agencies as may bedesignated by the laws of the party states. The requesting state and any otherparty state shall be entitled to be represented and present evidence andargument at such meeting.

(e)        Upon the submission as required by paragraph (c) of thisArticle and such other information as it may have or acquire, and upondetermining that an expenditure of funds is within the purposes of this Compactand justified thereby, the governing board or executive committee shallauthorize support of the program. The governing board or the executivecommittee may meet at any time or place for the purpose of receiving andconsidering an application. Any and all determinations of the governing board orexecutive committee, with respect to an application, together with the reasonstherefor shall be recorded and subscribed in such manner as to show andpreserve the votes of the individual members thereof.

(f)         A requesting state which is dissatisfied with adetermination of the executive committee shall, upon notice in writing givenwithin 20 days of the determination with which it is dissatisfied, be entitledto receive a review thereof at the next meeting of the governing board.Determinations of the executive committee shall be reviewable only by thegoverning board at one of its regular meetings, or at a special meeting held insuch manner as the governing board may authorize.

(g)        Responding states required to undertake or increase measurespursuant to this Compact may receive moneys from the insurance fund, either atthe time or times when such state incurs expenditures on account of suchmeasures, or as reimbursement for expenses incurred and chargeable to theinsurance fund. The governing board shall adopt and, from time to time, mayamend or revise procedures for submission of claims upon it and for paymentthereof.

(h)        Before authorizing the expenditure of moneys from theinsurance fund pursuant to an application of a requesting state, the insurancefund shall ascertain the extent and nature of any timely assistance orparticipation which may be available from the federal government and shallrequest the appropriate agency or agencies of the federal government for suchassistance and participation.

(i)         The insurance fund may negotiate and execute a memorandumof understanding or other appropriate instrument defining the extent and degreeof assistance or participation between and among the insurance fund,cooperating federal agencies, states and any other entities concerned.

Article VII. Advisory and Technical Committees.

The governing board may establish advisory and technical committeescomposed of State, local, and federal officials, and private persons to adviseit with respect to any one or more of its functions. Any such advisory ortechnical committee, or any member or members thereof may meet with andparticipate in its deliberations. Upon request of the governing board orexecutive committee an advisory or technical committee may furnish informationand recommendations with respect to any application for assistance from theinsurance fund being considered by such board or committee and the board orcommittee may receive and consider the same: Provided that any participant in ameeting of the governing board or executive committee held pursuant to ArticleVI(d) of the Compact shall be entitled to know the substance of any suchinformation and recommendations, at the time of the meeting if made priorthereto or as a part thereof or, if made thereafter, no later than the time atwhich the governing board or executive committee makes its disposition of theapplication.

Article VIII. Relations with Nonparty Jurisdictions.

(a)        A party state may make application for assistance from theinsurance fund in respect of a pest in a nonparty state. Such application shallbe considered and disposed of by the governing board or executive committee inthe same manner as an application with respect to a pest within a party state,except as provided in this Article.

(b)        At or in connection with any meeting of the governing boardor executive committee held pursuant to Article VI(d) of this Compact anonparty state shall be entitled to appear, participate, and receiveinformation only to such extent as the governing board or executive committeemay provide. A nonparty state shall not be entitled to review of anydetermination made by the executive committee.

(c)        The governing board or executive committee shall authorizeexpenditures from the insurance fund to be made in a nonparty state only afterdetermining that the conditions in such state and the value of suchexpenditures to the party states as a whole justify them. The governing boardor executive committee may set any conditions which it deems appropriate with respectto the expenditure of moneys from the insurance fund in a nonparty state andmay enter into such agreement or agreements with nonparty states and otherjurisdictions or entities as it may deem necessary or appropriate to protectthe interests of the insurance fund with respect to expenditures and activitiesoutside of party states.

Article IX. Finance.

(a)        The insurance fund shall submit to the executive head ordesignated officer or officers of each party state a budget for the insurancefund for such period as may be required by the laws of that party state forpresentation to the legislature thereof.

(b)        Each of the budgets shall contain specific recommendationsof the amount or amounts to be appropriated by each of the party states. Therequests for appropriations shall be apportioned among the party states asfollows: one tenth of the total budget in equal shares and the remainder inproportion to the value of agricultural and forest crops and products,excluding animals and animal products, produced in each party state. Indetermining the value of such crops and products the insurance fund may employsuch source or sources of information as in its judgment present the mostequitable and accurate comparisons among the party states. Each of the budgetsand requests for appropriations shall indicate the source or sources used inobtaining information concerning value of products.

(c)        The financial assets of the insurance fund shall bemaintained in two accounts to be designated respectively as the "operatingaccount" and the "claims account." The operating account shallconsist only of those assets necessary for the administration of the insurancefund during the next ensuing two‑year period. The claims account shallcontain all moneys not included in the operating account and shall not exceedthe amount reasonably estimated to be sufficient to pay all legitimate claimson the insurance fund for a period of three years. At any time when the claimsaccount has reached its maximum limit or would reach its maximum limit by theaddition of moneys requested for appropriation by the party states, thegoverning board shall reduce its budget requests on a pro rata basis in suchmanner as to keep the claims account within such maximum limit. Any moneys inthe claims account by virtue of conditional donations, grants or gifts shall beincluded in calculations made pursuant to this paragraph only to the extentthat such moneys are available to meet demands arising out of claims.

(d)        The insurance fund shall not pledge the credit of any partystate. The insurance fund may meet any of its obligations in whole or in partwith moneys available to it under Article IV(g) of this Compact, provided thatthe governing board takes specific action setting aside such moneys prior toincurring any obligation to be met in whole or in part in such manner. Exceptwhere the insurance fund makes use of moneys available to it under ArticleIV(g) hereof, the insurance fund shall not incur any obligation prior to theallotment of moneys by the party states adequate to meet the same.

(e)        The insurance fund shall keep accurate accounts of allreceipts and disbursements. The receipts and disbursements of the insurancefund shall be subject to the audit and accounting procedures established underits bylaws. However, all receipts and disbursements of funds handled by theinsurance fund shall be audited yearly by a certified or licensed publicaccountant and a report of the audit shall be included in and become part ofthe annual report of the insurance fund.

(f)         The accounts of the insurance fund shall be open at anyreasonable time for inspection by duly authorized officers of the party statesand by any persons authorized by the insurance fund.

Article X. Entry into Force and Withdrawal.

(a)        This Compact shall enter into force when enacted into law byany five or more states. Thereafter, this Compact shall become effective as toany other state upon its enactment thereof.

(b)        Any party state may withdraw from this Compact by enacting astatute repealing the same, but no such withdrawal shall take effect until twoyears after the executive head of the withdrawing state has given notice inwriting of 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.

Article XI. Construction and Severability.

This Compact shall be liberally construed so as to effectuate thepurposes thereof. The provisions of this Compact shall be severable and if anyphrase, clause, sentence or provision of this Compact is declared to becontrary to the constitution of any state or of the United States or theapplicability thereof to any government, agency, person or circumstance is heldinvalid, the validity of the remainder of this Compact and the applicabilitythereof to any government, agency, person or circumstance shall not be affectedthereby. If this Compact shall be held contrary to the constitution of anystate participating herein, the Compact shall remain in full force and effectas to the remaining party states and in full force and effect as to the stateaffected as to all severable matters. (1975, c. 810, s.1.)


State Codes and Statutes

State Codes and Statutes

Statutes > North-carolina > Chapter_106 > GS_106-65_55

Article 4E.

Pest Control Compact.

§ 106‑65.55.  Adoption of Compact.

The Pest Control Compact is hereby enacted into law and entered intowith all other jurisdictions legally joining therein in the form substantiallyas follows: PEST CONTROL COMPACT.

Article I. Findings.

The party states find that:

(a)        In the absence of the higher degree of cooperation amongthem possible under this Compact, the annual loss of approximately ten billiondollars ($10,000,000,000) from the depredations of pests is virtually certainto continue, if not to increase.

(b)        Because of varying climatic, geographic and economicfactors, each state may be affected differently by particular species of pests;but all states share the inability to protect themselves fully against thosepests which present serious dangers to them.

(c)        The migratory character of pest infestations makes itnecessary for states both adjacent to and distant from one another, tocomplement each other's activities when faced with conditions of infestationand reinfestation.

(d)        While every state is seriously affected by a substantialnumber of pests, and every state is susceptible of infestation by many speciesof pests not now causing damage to its crop and plant life and products, thefact that relatively few species of pests present equal danger to or are ofinterest to all states makes the establishment and operation of an insurancefund, from which individual states may obtain financial support for pestcontrol programs of benefit to them in other states and to which they maycontribute in accordance with their relative interests, the most equitablemeans of financing cooperative pest eradication and control programs.

Article II. Definitions.

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

(a)        "State" means a state, territory or possession ofthe United States, the District of Columbia, and the Commonwealth of PuertoRico.

(b)        "Requesting state" means a state which invokes theprocedures of the Compact to secure the undertaking or intensification ofmeasures to control or eradicate one or more pests within one or more otherstates.

(c)        "Responding state" means a state requested toundertake or intensify the measures referred to in subdivision (b) of thisArticle.

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

(e)        "Insurance fund" means the Pest Control InsuranceFund established pursuant to this Compact.

(f)         "Governing board" means the administrators ofthis Compact representing all of the party states when such administrators areacting as a body in pursuance of authority vested in them by this Compact.

(g)        "Executive committee" means the committeeestablished pursuant to Article V(e) of this Compact.

Article III. The Insurance Fund.

There is hereby established the Pest Control Insurance Fund for thepurpose of financing other than normal pest control operations which states maybe called upon to engage in pursuant to this Compact. The insurance fund shallcontain moneys appropriated to it by the party states and any donations andgrants accepted by it. All appropriations, except as conditioned by the rightsand obligations 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.

Article IV. The Insurance Fund, Internal Operations and Management.

(a)        The insurance fund shall be administered by a governing boardand executive committee as hereinafter provided. The actions of the governingboard and 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 onevote each on such board. No action of the governing board shall be bindingunless taken at a meeting at which a majority of the total number of votes onthe governing board are cast in favor thereof. Action of the governing boardshall be only at a meeting at which a majority of the members are present.

(c)        The insurance fund shall have a seal which may be employedas an official symbol and which may be affixed to documents and otherwise usedas the governing board may provide.

(d)        The governing board shall elect annually, from among itsmembers, a chairman, a vice‑chairman, a secretary and a treasurer. Thechairman may not succeed himself. The governing board may appoint an executivedirector and fix his duties and his compensation, if any. Such executive directorshall serve at the pleasure of the governing board. The governing board shallmake provision for the bonding of such of the officers and employees of theinsurance fund as may be appropriate.

(e)        Irrespective of the civil service, personnel or other meritsystem laws of any of the party states, the executive director, or if there beno executive director, the chairman, in accordance with such procedures as thebylaws may provide, shall appoint, remove or discharge such personnel as may benecessary for the performance of the functions of the insurance fund and shallfix the duties and compensation of such personnel. The governing board in itsbylaws shall provide for the personnel policies and programs of the insurancefund.

(f)         The insurance fund may borrow, accept or contract for theservices of personnel from any state, the United States, or any othergovernmental agency, or from any person, firm, association or corporation.

(g)        The insurance fund may accept for any of its purposes andfunctions under this Compact any and all donations, and grants of money,equipment, supplies, materials and services, conditional or otherwise, from anystate, the United States, or any other governmental agency, or from any person,firm, association or corporation, and may receive, utilize and dispose of thesame. Any donation, gift or grant accepted by the governing board pursuant tothis paragraph or services borrowed pursuant to paragraph (f) of this Articleshall be 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 ofthe business of the insurance fund and shall have the power to amend andrescind these bylaws. The insurance fund shall publish its bylaws in convenientform and shall file a copy thereof and a copy of any amendment thereto with theappropriate agency or officer in each of the party states.

(i)         The insurance fund annually shall make to the Governor andlegislature of each party state a report covering its activities for thepreceding year. The insurance fund may make such additional reports as it maydeem desirable.

(j)         In addition to the powers and duties specificallyauthorized and imposed, the insurance fund may do such other things as arenecessary and incidental to the conduct of its affairs pursuant to thisCompact.

Article V. Compact and Insurance Fund Administration.

(a)        In each party state there shall be a Compact administrator,who shall be selected and serve in such manner as the laws of his state mayprovide, and who shall:

(1)        Assist in the coordination of activities pursuant to theCompact in his state; and

(2)        Represent his state on the governing board of the insurancefund.

(b)        If the laws of the United States specifically so provide, orif administrative provision is made therefor 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 on the executivecommittee thereof.

(c)        The governing board shall meet at least once each year forthe purpose of determining policies and procedures in the administration of theinsurance fund and, consistent with the provisions of the Compact, supervisingand giving direction to the expenditure of moneys from the insurance fund.Additional meetings of the governing board shall be held on call of thechairman, the executive committee, or a majority of the membership of the governingboard.

(d)        At such times as it may be meeting, the governing boardshall pass upon applications for assistance from the insurance fund andauthorize disbursements therefrom. When the governing board is not in session,the executive committee thereof shall act as agent of the governing board, withfull authority to act for it in passing upon such applications.

(e)        The executive committee shall be composed of the chairman ofthe governing board and four additional members of the governing board chosenby it so 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 charges againstthe insurance fund.

Article VI. Assistance and Reimbursement.

(a)        Each party state pledges to each other party state that itwill employ its best efforts to eradicate, or control within the strictestpracticable limits, any and all pests. It is recognized that performance ofthis responsibility involves:

(1)        The maintenance of pest control and eradication activitiesof interstate significance by a party state at a level that would be reasonablefor its own protection in the absence of this Compact.

(2)        The meeting of emergency outbreaks or infestations ofinterstate significance to no less an extent than would have been done in theabsence of this Compact.

(b)        Whenever a party state is threatened by a pest not presentwithin its borders but present within another party state, or whenever a partystate is undertaking or engaged in activities for the control or eradication ofa pest or pests, and finds that such activities are or would be impracticableor substantially more difficult of success by reason of failure of anotherparty state 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 made 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 requesting state shall submit the following in writing:

(1)        A detailed statement of the circumstances which occasion therequest for the invoking of the Compact.

(2)        Evidence that the pest on account of whose eradication orcontrol assistance is requested constitutes a danger to an agricultural orforest crop, product, tree, shrub, grass or other plant having a substantialvalue to the requesting state.

(3)        A statement of the extent of the present and projectedprogram of the requesting state and its subdivisions, including fullinformation as to the legal authority for the conduct of such program orprograms and the expenditures being made or budgeted therefor, in connectionwith the eradication, control, or prevention of introduction of the pestconcerned.

(4)        Proof that the expenditures being made or budgeted asdetailed in item (3) do not constitute a reduction of the effort for thecontrol or eradication of the pest concerned or, if there is a reduction, thereasons why the level of program detailed in item (3) constitutes a normallevel of pest‑control activity.

(5)        A declaration as to whether, to the best of its knowledgeand belief, the conditions which in its view occasion the invoking of theCompact in the particular instance can be abated by a program undertaken withthe aid of moneys from the insurance fund in one year or less, or whether therequest is for an installment in a program which is likely to continue for alonger period of time.

(6)        Such other information as the governing board may require consistentwith the provisions of this Compact.

(d)        The governing board or executive committee shall give duenotice of any meeting at which an application for assistance from the insurancefund is to be considered. Such notice shall be given to the Compact administratorof each party state and to such other officers and agencies as may bedesignated by the laws of the party states. The requesting state and any otherparty state shall be entitled to be represented and present evidence andargument at such meeting.

(e)        Upon the submission as required by paragraph (c) of thisArticle and such other information as it may have or acquire, and upondetermining that an expenditure of funds is within the purposes of this Compactand justified thereby, the governing board or executive committee shallauthorize support of the program. The governing board or the executivecommittee may meet at any time or place for the purpose of receiving andconsidering an application. Any and all determinations of the governing board orexecutive committee, with respect to an application, together with the reasonstherefor shall be recorded and subscribed in such manner as to show andpreserve the votes of the individual members thereof.

(f)         A requesting state which is dissatisfied with adetermination of the executive committee shall, upon notice in writing givenwithin 20 days of the determination with which it is dissatisfied, be entitledto receive a review thereof at the next meeting of the governing board.Determinations of the executive committee shall be reviewable only by thegoverning board at one of its regular meetings, or at a special meeting held insuch manner as the governing board may authorize.

(g)        Responding states required to undertake or increase measurespursuant to this Compact may receive moneys from the insurance fund, either atthe time or times when such state incurs expenditures on account of suchmeasures, or as reimbursement for expenses incurred and chargeable to theinsurance fund. The governing board shall adopt and, from time to time, mayamend or revise procedures for submission of claims upon it and for paymentthereof.

(h)        Before authorizing the expenditure of moneys from theinsurance fund pursuant to an application of a requesting state, the insurancefund shall ascertain the extent and nature of any timely assistance orparticipation which may be available from the federal government and shallrequest the appropriate agency or agencies of the federal government for suchassistance and participation.

(i)         The insurance fund may negotiate and execute a memorandumof understanding or other appropriate instrument defining the extent and degreeof assistance or participation between and among the insurance fund,cooperating federal agencies, states and any other entities concerned.

Article VII. Advisory and Technical Committees.

The governing board may establish advisory and technical committeescomposed of State, local, and federal officials, and private persons to adviseit with respect to any one or more of its functions. Any such advisory ortechnical committee, or any member or members thereof may meet with andparticipate in its deliberations. Upon request of the governing board orexecutive committee an advisory or technical committee may furnish informationand recommendations with respect to any application for assistance from theinsurance fund being considered by such board or committee and the board orcommittee may receive and consider the same: Provided that any participant in ameeting of the governing board or executive committee held pursuant to ArticleVI(d) of the Compact shall be entitled to know the substance of any suchinformation and recommendations, at the time of the meeting if made priorthereto or as a part thereof or, if made thereafter, no later than the time atwhich the governing board or executive committee makes its disposition of theapplication.

Article VIII. Relations with Nonparty Jurisdictions.

(a)        A party state may make application for assistance from theinsurance fund in respect of a pest in a nonparty state. Such application shallbe considered and disposed of by the governing board or executive committee inthe same manner as an application with respect to a pest within a party state,except as provided in this Article.

(b)        At or in connection with any meeting of the governing boardor executive committee held pursuant to Article VI(d) of this Compact anonparty state shall be entitled to appear, participate, and receiveinformation only to such extent as the governing board or executive committeemay provide. A nonparty state shall not be entitled to review of anydetermination made by the executive committee.

(c)        The governing board or executive committee shall authorizeexpenditures from the insurance fund to be made in a nonparty state only afterdetermining that the conditions in such state and the value of suchexpenditures to the party states as a whole justify them. The governing boardor executive committee may set any conditions which it deems appropriate with respectto the expenditure of moneys from the insurance fund in a nonparty state andmay enter into such agreement or agreements with nonparty states and otherjurisdictions or entities as it may deem necessary or appropriate to protectthe interests of the insurance fund with respect to expenditures and activitiesoutside of party states.

Article IX. Finance.

(a)        The insurance fund shall submit to the executive head ordesignated officer or officers of each party state a budget for the insurancefund for such period as may be required by the laws of that party state forpresentation to the legislature thereof.

(b)        Each of the budgets shall contain specific recommendationsof the amount or amounts to be appropriated by each of the party states. Therequests for appropriations shall be apportioned among the party states asfollows: one tenth of the total budget in equal shares and the remainder inproportion to the value of agricultural and forest crops and products,excluding animals and animal products, produced in each party state. Indetermining the value of such crops and products the insurance fund may employsuch source or sources of information as in its judgment present the mostequitable and accurate comparisons among the party states. Each of the budgetsand requests for appropriations shall indicate the source or sources used inobtaining information concerning value of products.

(c)        The financial assets of the insurance fund shall bemaintained in two accounts to be designated respectively as the "operatingaccount" and the "claims account." The operating account shallconsist only of those assets necessary for the administration of the insurancefund during the next ensuing two‑year period. The claims account shallcontain all moneys not included in the operating account and shall not exceedthe amount reasonably estimated to be sufficient to pay all legitimate claimson the insurance fund for a period of three years. At any time when the claimsaccount has reached its maximum limit or would reach its maximum limit by theaddition of moneys requested for appropriation by the party states, thegoverning board shall reduce its budget requests on a pro rata basis in suchmanner as to keep the claims account within such maximum limit. Any moneys inthe claims account by virtue of conditional donations, grants or gifts shall beincluded in calculations made pursuant to this paragraph only to the extentthat such moneys are available to meet demands arising out of claims.

(d)        The insurance fund shall not pledge the credit of any partystate. The insurance fund may meet any of its obligations in whole or in partwith moneys available to it under Article IV(g) of this Compact, provided thatthe governing board takes specific action setting aside such moneys prior toincurring any obligation to be met in whole or in part in such manner. Exceptwhere the insurance fund makes use of moneys available to it under ArticleIV(g) hereof, the insurance fund shall not incur any obligation prior to theallotment of moneys by the party states adequate to meet the same.

(e)        The insurance fund shall keep accurate accounts of allreceipts and disbursements. The receipts and disbursements of the insurancefund shall be subject to the audit and accounting procedures established underits bylaws. However, all receipts and disbursements of funds handled by theinsurance fund shall be audited yearly by a certified or licensed publicaccountant and a report of the audit shall be included in and become part ofthe annual report of the insurance fund.

(f)         The accounts of the insurance fund shall be open at anyreasonable time for inspection by duly authorized officers of the party statesand by any persons authorized by the insurance fund.

Article X. Entry into Force and Withdrawal.

(a)        This Compact shall enter into force when enacted into law byany five or more states. Thereafter, this Compact shall become effective as toany other state upon its enactment thereof.

(b)        Any party state may withdraw from this Compact by enacting astatute repealing the same, but no such withdrawal shall take effect until twoyears after the executive head of the withdrawing state has given notice inwriting of 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.

Article XI. Construction and Severability.

This Compact shall be liberally construed so as to effectuate thepurposes thereof. The provisions of this Compact shall be severable and if anyphrase, clause, sentence or provision of this Compact is declared to becontrary to the constitution of any state or of the United States or theapplicability thereof to any government, agency, person or circumstance is heldinvalid, the validity of the remainder of this Compact and the applicabilitythereof to any government, agency, person or circumstance shall not be affectedthereby. If this Compact shall be held contrary to the constitution of anystate participating herein, the Compact shall remain in full force and effectas to the remaining party states and in full force and effect as to the stateaffected as to all severable matters. (1975, c. 810, s.1.)