HB-5963, As Passed House, April 16, 2008

SUBSTITUTE FOR

HOUSE BILL NO. 5963

A bill entering into the interstate compact on educational

opportunity for military children: and for related purposes.

THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

Sec. 1. The interstate compact on educational opportunity for

military children is enacted into law and entered into with all

jurisdictions legally joining in the compact, in the form

substantially as follows:

Interstate Compact on Educational

Opportunity for Military Children

ARTICLE I

PURPOSE

It is the purpose of this compact to remove barriers to

educational success imposed on children of military families

because of frequent moves and deployment of their parents by:

A. Facilitating the timely enrollment of children of military

families and 1ensuring that they are not placed at a disadvantage

due to difficulty in the transfer of education records from the

previous school district(s) or variations in entrance/age

requirements.

B. Facilitating the student placement process through which

children of military families are not disadvantaged by variations

in attendance requirements, scheduling, sequencing, grading, course

content or assessment.

C. Facilitating the qualification and eligibility for

enrollment, educational programs, and participation in

extracurricular academic, athletic, and social activities.

D. Facilitating the on-time graduation of children of military

families.

E. Providing for the promulgation and enforcement of

administrative rules implementing the provisions of this compact.

F. Providing for the uniform collection and sharing of

information between and among member states, schools and military

families under this compact.

G. Promoting coordination between this compact and other

compacts affecting military children.

H. Promoting flexibility and cooperation between the

educational system, parents and the student in order to achieve

educational success for the student.

ARTICLE II

DEFINITIONS

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

different construction:

A. "Active duty" means: full-time duty status in the active

uniformed service of the United States, including members of the

National Guard and Reserve on active duty orders pursuant to 10

U.S.C. Section 1209 and 1211.

B. "Children of military families" means: a school-aged

child(ren), enrolled in Kindergarten through Twelfth (12th) grade,

in the household of an active duty member.

C. "Compact commissioner" means: the voting representative of

each compacting state appointed pursuant to Article VIII of this

compact.

D. "Deployment" means: the period one (1) month prior to the

service members' departure from their home station on military

orders though six (6) months after return to their home station.

E. "Education(al) records" means: those official records,

files, and data directly related to a student and maintained by the

school or local education agency, including but not limited to

records encompassing all the material kept in the student's

cumulative folder such as general identifying data, records of

attendance and of academic work completed, records of achievement

and results of evaluative tests, health data, disciplinary status,

test protocols, and individualized education programs.

F. "Extracurricular activities" means: a voluntary activity

sponsored by the school or local education agency or an

organization sanctioned by the local education agency.

Extracurricular activities include, but are not limited to,

preparation for and involvement in public performances, contests,

athletic competitions, demonstrations, displays, and club

activities.

G. "Interstate Commission on Educational Opportunity for

Military Children" means: the commission that is created under

Article IX of this compact, which is generally referred to as

Interstate Commission.

H. "Local education agency" means: a public authority legally

constituted by the state as an administrative agency to provide

control of and direction for Kindergarten through Twelfth (12th)

grade public educational institutions.

I. "Member state" means: a state that has enacted this

compact.

J. "Military installation" means: means a base, camp, post,

station, yard, center, homeport facility for any ship, or other

activity under the jurisdiction of the Department of Defense,

including any leased facility, which is located within any of the

several States, the District of Columbia, the Commonwealth of

Puerto Rico, the U.S. Virgin Islands, Guam, American Samoa, the

Northern Marianas Islands and any other U.S. Territory. Such term

does not include any facility used primarily for civil works,

rivers and harbors projects, or flood control projects.

K. "Non-member state" means: a state that has not enacted this

compact.

L. "Receiving state" means: the state to which a child of a

military family is sent, brought, or caused to be sent or brought.

M. "Rule" means: a written statement by the Interstate

Commission promulgated pursuant to Article XII of this compact that

is of general applicability, implements, interprets or prescribes a

policy or provision of the Compact, or an organizational,

procedural, or practice requirement of the Interstate Commission,

and has the force and effect of statutory law in a member state,

and includes the amendment, repeal, or suspension of an existing

rule.

N. "Sending state" means: the state from which a child of a

military family is sent, brought, or caused to be sent or brought.

O. "State" means: a state of the United States, the District

of Columbia, the Commonwealth of Puerto Rico, the U.S. Virgin

Islands, Guam, American Samoa, the Northern Marianas Islands and

any other U.S. Territory.

P. "Student" means: the child of a military family for whom

the local education agency receives public funding and who is

formally enrolled in Kindergarten through Twelfth (12th) grade.

Q. "Transition" means: 1) the formal and physical process of

transferring from school to school or 2) the period of time in

which a student moves from one school in the sending state to

another school in the receiving state.

R. "Uniformed service(s)" means: the Army, Navy, Air Force,

Marine Corps, Coast Guard as well as the Commissioned Corps of the

National Oceanic and Atmospheric Administration, and Public Health

Services.

S. "Veteran" means: a person who served in the uniformed

services and who was discharged or released there from under

conditions other than dishonorable.

ARTICLE III

APPLICABILITY

A. Except as otherwise provided in Section B, this compact

shall apply to the children of:

1. active duty members of the uniformed services as defined in

this compact, including members of the National Guard and Reserve

on active duty orders pursuant to 10 U.S.C. Section 1209 and 1211;

2. members or veterans of the uniformed services who are

severely injured and medically discharged or retired for a period

of one (1) year after medical discharge or retirement; and

3. members of the uniformed services who die on active duty or

as a result of injuries sustained on active duty for a period of

one (1) year after death.

B. The provisions of this interstate compact shall only apply

to local education agencies as defined in this compact.

C. The provisions of this compact shall not apply to the

children of:

1. inactive members of the national guard and military

reserves;

2. members of the uniformed services now retired, except as

provided in Section A;

3. veterans of the uniformed services, except as provided in

Section A; and

4. other U.S. Dept. of Defense personnel and other federal

agency civilian and contract employees not defined as active duty

members of the uniformed services.

ARTICLE IV

EDUCATIONAL RECORDS & ENROLLMENT

A. Unofficial or "hand-carried" education records – In the

event that official education records cannot be released to the

parents for the purpose of transfer, the custodian of the records

in the sending state shall prepare and furnish to the parent a

complete set of unofficial educational records containing uniform

information as determined by the Interstate Commission. Upon

receipt of the unofficial education records by a school in the

receiving state, the school shall enroll and appropriately place

the student based on the information provided in the unofficial

records pending validation by the official records, as quickly as

possible.

B. Official education records/transcripts - Simultaneous with

the enrollment and conditional placement of the student, the school

in the receiving state shall request the student's official

education record from the school in the sending state. Upon receipt

of this request, the school in the sending state will process and

furnish the official education records to the school in the

receiving state within ten (10) days or within such time as is

reasonably determined under the rules promulgated by the Interstate

Commission.

C. Immunizations – Compacting states shall give thirty (30)

days from the date of enrollment or within such time as is

reasonably determined under the rules promulgated by the Interstate

Commission, for students to obtain any immunization(s) required by

the receiving state. For a series of immunizations, initial

vaccinations must be obtained within thirty (30) days or within

such time as is reasonably determined under the rules promulgated

by the Interstate Commission.

D. Kindergarten and First grade entrance age – Students shall

be allowed to continue their enrollment at grade level in the

receiving state commensurate with their grade level (including

Kindergarten) from a local education agency in the sending state at

the time of transition, regardless of age. A student that has

satisfactorily completed the prerequisite grade level in the local

education agency in the sending state shall be eligible for

enrollment in the next highest grade level in the receiving state,

regardless of age. A student transferring after the start of the

school year in the receiving state shall enter the school in the

receiving state on their validated level from an accredited school

in the sending state.

ARTICLE V

PLACEMENT & ATTENDANCE

A. Course placement - When the student transfers before or

during the school year, the receiving state school shall initially

honor placement of the student in educational courses based on the

student's enrollment in the sending state school and/or educational

assessments conducted at the school in the sending state if the

courses are offered. Course placement includes but is not limited

to Honors, International Baccalaureate, Advanced Placement,

vocational, technical and career pathways courses. Continuing the

student's academic program from the previous school and promoting

placement in academically and career challenging courses should be

paramount when considering placement. This does not preclude the

school in the receiving state from performing subsequent

evaluations to ensure appropriate placement and continued

enrollment of the student in the course(s).

B. Educational program placement – The receiving state school

shall initially honor placement of the student in educational

programs based on current educational assessments conducted at the

school in the sending state or participation/placement in like

programs in the sending state. Such programs include, but are not

limited to: 1) gifted and talented programs; and 2) English as a

second language (ESL). This does not preclude the school in the

receiving state from performing subsequent evaluations to ensure

appropriate placement of the student.

C. Special education services – 1) In compliance with the

federal requirements of the Individuals with Disabilities Education

Act (IDEA), 20 U.S.C.A. Section 1400 et seq, the receiving state

shall initially provide comparable services to a student with

disabilities based on his/her current Individualized Education

Program (IEP); and 2) In compliance with the requirements of

Section 504 of the Rehabilitation Act, 29 U.S.C.A. Section 794, and

with Title II of the Americans with Disabilities Act, 42 U.S.C.A.

Sections 12131-12165, the receiving state shall make reasonable

accommodations and modifications to address the needs of incoming

students with disabilities, subject to an existing 504 or Title II

Plan, to provide the student with equal access to education. This

does not preclude the school in the receiving state from performing

subsequent evaluations to ensure appropriate placement of the

student.

D. Placement flexibility – Local education agency

administrative officials shall have flexibility in waiving

course/program prerequisites, or other preconditions for placement

in courses/programs offered under the jurisdiction of the local

education agency.

E. Absence as related to deployment activities – A student

whose parent or legal guardian is an active duty member of the

uniformed services, as defined by the compact, and has been called

to duty for, is on leave from, or immediately returned from

deployment to a combat zone or combat support posting, shall be

granted additional excused absences at the discretion of the local

education agency superintendent to visit with his or her parent or

legal guardian relative to such leave or deployment of the parent

or guardian.

ARTICLE VI

ELIGIBILITY

A. Eligibility for enrollment

1. Special power of attorney, relative to the guardianship of

a child of a military family and executed under applicable law

shall be sufficient for the purposes of enrollment and all other

actions requiring parental participation and consent.

2. A local education agency shall be prohibited from charging

local tuition to a transitioning military child placed in the care

of a non-custodial parent or other person standing in loco parentis

who lives in a jurisdiction other than that of the custodial

parent.

3. A transitioning military child, placed in the care of a

non-custodial parent or other person standing in loco parentis who

lives in a jurisdiction other than that of the custodial parent,

may continue to attend the school in which he/she was enrolled

while residing with the custodial parent.

B. Eligibility for extracurricular participation - State and

local education agencies shall facilitate the opportunity for

transitioning military children's inclusion in extracurricular

activities, regardless of application deadlines, to the extent they

are otherwise qualified.

ARTICLE VII

GRADUATION

In order to facilitate the on-time graduation of children of

military families states and local education agencies shall

incorporate the following procedures:

A. Waiver requirements – Local education agency administrative

officials shall waive specific courses required for graduation if

similar course work has been satisfactorily completed in another

local education agency or shall provide reasonable justification

for denial. Should a waiver not be granted to a student who would

qualify to graduate from the sending school, the local education

agency shall provide an alternative means of acquiring required

coursework so that graduation may occur on time.

B. Exit exams - States shall accept: 1) exit or end-of-course

exams required for graduation from the sending state; or 2)

national norm referenced achievement tests or 3) alternative

testing, in lieu of testing requirements for graduation in the

receiving state. In the event the above alternatives cannot be

accommodated by the receiving state for a student transferring in

his or her Senior year, then the provisions of Article VII, Section

C shall apply.

C. Transfers during Senior year – Should a military student

transferring at the beginning or during his or her Senior year be

ineligible to graduate from the receiving local education agency

after all alternatives have been considered, the sending and

receiving local education agencies shall ensure the receipt of a

diploma from the sending local education agency, if the student

meets the graduation requirements of the sending local education

agency. In the event that one of the states in question is not a

member of this compact, the member state shall use best efforts to

facilitate the on-time graduation of the student in accordance with

Sections A and B of this Article.

ARTICLE VIII

STATE COORDINATION

A. Each member state shall, through the creation of a State

Council or use of an existing body or board, provide for the

coordination among its agencies of government, local education

agencies and military installations concerning the state's

participation in, and compliance with, this compact and Interstate

Commission activities. While each member state may determine the

membership of its own State Council, its membership must include at

least: the state superintendent of education, superintendent of a

school district with a high concentration of military children,

representative from a military installation, one representative

each from the legislative and executive branches of government, and

other offices and stakeholder groups the State Council deems

appropriate. A member state that does not have a school district

deemed to contain a high concentration of military children may

appoint a superintendent from another school district to represent

local education agencies on the State Council.

B. The State Council of each member state shall appoint or

designate a military family education liaison to assist military

families and the state in facilitating the implementation of this

compact.

C. The compact commissioner responsible for the administration

and management of the state's participation in the compact shall be

appointed by the Governor or as otherwise determined by each member

state.

D. The compact commissioner and the military family education

liaison designated herein shall be ex-officio members of the State

Council, unless either is already a full voting member of the State

Council.

ARTICLE IX

INTERSTATE COMMISSION ON EDUCATIONAL

OPPORTUNITY FOR MILITARY CHILDREN

The member states hereby create the "Interstate Commission on

Educational Opportunity for Military Children." The activities of

the Interstate Commission are the formation of public policy and

are a discretionary state function. The Interstate Commission

shall:

A. Be a body corporate and joint agency of the member states

and shall have all the responsibilities, powers and duties set

forth herein, and such additional powers as may be conferred upon

it by a subsequent concurrent action of the respective legislatures

of the member states in accordance with the terms of this compact.

B. Consist of one Interstate Commission voting representative

from each member state who shall be that state's compact

commissioner.

1. Each member state represented at a meeting of the

Interstate Commission is entitled to one vote.

2. A majority of the total member states shall constitute a

quorum for the transaction of business, unless a larger quorum is

required by the bylaws of the Interstate Commission.

3. A representative shall not delegate a vote to another

member state. In the event the compact commissioner is unable to

attend a meeting of the Interstate Commission, the Governor or

State Council may delegate voting authority to another person from

their state for a specified meeting.

4. The bylaws may provide for meetings of the Interstate

Commission to be conducted by telecommunication or electronic

communication.

C. Consist of ex-officio, non-voting representatives who are

members of interested organizations. Such ex-officio members, as

defined in the bylaws, may include but not be limited to, members

of the representative organizations of military family advocates,

local education agency officials, parent and teacher groups, the

U.S. Department of Defense, the Education Commission of the States,

the Interstate Agreement on the Qualification of Educational

Personnel and other interstate compacts affecting the education of

children of military members.

D. Meet at least once each calendar year. The chairperson may

call additional meetings and, upon the request of a simple majority

of the member states, shall call additional meetings.

E. Establish an executive committee, whose members shall

include the officers of the Interstate Commission and such other

members of the Interstate Commission as determined by the bylaws.

Members of the executive committee shall serve a one year term.

Members of the executive committee shall be entitled to one vote

each. The executive committee shall have the power to act on behalf

of the Interstate Commission, with the exception of rulemaking,

during periods when the Interstate Commission is not in session.

The executive committee shall oversee the day-to-day activities of

the administration of the compact including enforcement and

compliance with the provisions of the compact, its bylaws and

rules, and other such duties as deemed necessary. The U.S. Dept. of

Defense, shall serve as an ex-officio, nonvoting member of the

executive committee.

F. Establish bylaws and rules that provide for conditions and

procedures under which the Interstate Commission shall make its

information and official records available to the public for

inspection or copying. The Interstate Commission may exempt from

disclosure information or official records to the extent they would

adversely affect personal privacy rights or proprietary interests.

G. Give public notice of all meetings and all meetings shall

be open to the public, except as set forth in the rules or as

otherwise provided in the compact. The Interstate Commission and

its committees may close a meeting, or portion thereof, where it

determines by two-thirds vote that an open meeting would be likely

to:

1. Relate solely to the Interstate Commission's internal

personnel practices and procedures;

2. Disclose matters specifically exempted from disclosure by

federal and state statute;

3. Disclose trade secrets or commercial or financial

information which is privileged or confidential;

4. Involve accusing a person of a crime, or formally censuring

a person;

5. Disclose information of a personal nature where disclosure

would constitute a clearly unwarranted invasion of personal

privacy;

6. Disclose investigative records compiled for law enforcement

purposes; or

7. Specifically relate to the Interstate Commission's

participation in a civil action or other legal proceeding.

H. Shall cause its legal counsel or designee to certify that a

meeting may be closed and shall reference each relevant exemptible

provision for any meeting, or portion of a meeting, which is closed

pursuant to this provision. The Interstate Commission shall keep

minutes which shall fully and clearly describe all matters

discussed in a meeting and shall provide a full and accurate

summary of actions taken, and the reasons therefore, including a

description of the views expressed and the record of a roll call

vote. All documents considered in connection with an action shall

be identified in such minutes. All minutes and documents of a

closed meeting shall remain under seal, subject to release by a

majority vote of the Interstate Commission.

I. Shall collect standardized data concerning the educational

transition of the children of military families under this compact

as directed through its rules which shall specify the data to be

collected, the means of collection and data exchange and reporting

requirements. Such methods of data collection, exchange and

reporting shall, in so far as is reasonably possible, conform to

current technology and coordinate its information functions with

the appropriate custodian of records as identified in the bylaws

and rules.

J. Shall create a process that permits military officials,

education officials and parents to inform the Interstate Commission

if and when there are alleged violations of the compact or its

rules or when issues subject to the jurisdiction of the compact or

its rules are not addressed by the state or local education agency.

This section shall not be construed to create a private right of

action against the Interstate Commission or any member state.

ARTICLE X

POWERS AND DUTIES OF THE INTERSTATE COMMISSION

The Interstate Commission shall have the following powers:

A. To provide for dispute resolution among member states.

B. To promulgate rules and take all necessary actions to

effect the goals, purposes and obligations as enumerated in this

compact. The rules shall have the force and effect of statutory law

and shall be binding in the compact states to the extent and in the

manner provided in this compact.

C. To issue, upon request of a member state, advisory opinions

concerning the meaning or interpretation of the interstate compact,

its bylaws, rules and actions.

D. To enforce compliance with the compact provisions, the

rules promulgated by the Interstate Commission, and the bylaws,

using all necessary and proper means, including but not limited to

the use of judicial process.

E. To establish and maintain offices which shall be located

within one or more of the member states.

F. To purchase and maintain insurance and bonds.

G. To borrow, accept, hire or contract for services of

personnel.

H. To establish and appoint committees including, but not

limited to, an executive committee as required by Article IX,

Section E, which shall have the power to act on behalf of the

Interstate Commission in carrying out its powers and duties

hereunder.

I. To elect or appoint such officers, attorneys, employees,

agents, or consultants, and to fix their compensation, define their

duties and determine their qualifications; and to establish the

Interstate Commission's personnel policies and programs relating to

conflicts of interest, rates of compensation, and qualifications of

personnel.

J. To accept any and all donations and grants of money,

equipment, supplies, materials, and services, and to receive,

utilize, and dispose of it.

K. To lease, purchase, accept contributions or donations of,

or otherwise to own, hold, improve or use any property, real,

personal, or mixed.

L. To sell, convey, mortgage, pledge, lease, exchange,

abandon, or otherwise dispose of any property, real, personal or

mixed.

M. To establish a budget and make expenditures.

N. To adopt a seal and bylaws governing the management and

operation of the Interstate Commission.

O. To report annually to the legislatures, governors,

judiciary, and state councils of the member states concerning the

activities of the Interstate Commission during the preceding year.

Such reports shall also include any recommendations that may have

been adopted by the Interstate Commission.

P. To coordinate education, training and public awareness

regarding the compact, its implementation and operation for

officials and parents involved in such activity.

Q. To establish uniform standards for the reporting,

collecting and exchanging of data.

R. To maintain corporate books and records in accordance with

the bylaws.

S. To perform such functions as may be necessary or

appropriate to achieve the purposes of this compact.

T. To provide for the uniform collection and sharing of

information between and among member states, schools and military

families under this compact.

ARTICLE XI

ORGANIZATION AND OPERATION OF THE INTERSTATE COMMISSION

A. The Interstate Commission shall, by a majority of the

members present and voting, within 12 months after the first

Interstate Commission meeting, adopt bylaws to govern its conduct

as may be necessary or appropriate to carry out the purposes of the

compact, including, but not limited to:

1. Establishing the fiscal year of the Interstate Commission;

2. Establishing an executive committee, and such other

committees as may be necessary;

3. Providing for the establishment of committees and for

governing any general or specific delegation of authority or

function of the Interstate Commission;

4. Providing reasonable procedures for calling and conducting

meetings of the Interstate Commission, and ensuring reasonable

notice of each such meeting;

5. Establishing the titles and responsibilities of the

officers and staff of the Interstate Commission;

6. Providing a mechanism for concluding the operations of the

Interstate Commission and the return of surplus funds that may

exist upon the termination of the compact after the payment and

reserving of all of its debts and obligations.

7. Providing "start up" rules for initial administration of

the compact.

B. The Interstate Commission shall, by a majority of the

members, elect annually from among its members a chairperson, a

vice-chairperson, and a treasurer, each of whom shall have such

authority and duties as may be specified in the bylaws. The

chairperson or, in the chairperson's absence or disability, the

vice-chairperson, shall preside at all meetings of the Interstate

Commission. The officers so elected shall serve without

compensation or remuneration from the Interstate Commission;

provided that, subject to the availability of budgeted funds, the

officers shall be reimbursed for ordinary and necessary costs and

expenses incurred by them in the performance of their

responsibilities as officers of the Interstate Commission.

C. Executive Committee, Officers and Personnel

1. The executive committee shall have such authority and

duties as may be set forth in the bylaws, including but not limited

to:

a. Managing the affairs of the Interstate Commission in a

manner consistent with the bylaws and purposes of the Interstate

Commission;

b. Overseeing an organizational structure within, and

appropriate procedures for the Interstate Commission to provide for

the creation of rules, operating procedures, and administrative and

technical support functions; and

c. Planning, implementing, and coordinating communications and

activities with other state, federal and local government

organizations in order to advance the goals of the Interstate

Commission.

3. The executive committee may, subject to the approval of the

Interstate Commission, appoint or retain an executive director for

such period, upon such terms and conditions and for such

compensation, as the Interstate Commission may deem appropriate.

The executive director shall serve as secretary to the Interstate

Commission, but shall not be a Member of the Interstate Commission.

The executive director shall hire and supervise such other persons

as may be authorized by the Interstate Commission.

D. The Interstate Commission's executive director and its

employees shall be immune from suit and liability, either

personally or in their official capacity, for a claim for damage to

or loss of property or personal injury or other civil liability

caused or arising out of or relating to an actual or alleged act,

error, or omission that occurred, or that such person had a

reasonable basis for believing occurred, within the scope of

Interstate Commission employment, duties, or responsibilities;

provided, that such person shall not be protected from suit or

liability for damage, loss, injury, or liability caused by the

intentional or willful and wanton misconduct of such person.

1. The liability of the Interstate Commission's executive

director and employees or Interstate Commission representatives,

acting within the scope of such person's employment or duties for

acts, errors, or omissions occurring within such person's state may

not exceed the limits of liability set forth under the Constitution

and laws of that state for state officials, employees, and agents.

The Interstate Commission is considered to be an instrumentality of

the states for the purposes of any such action. Nothing in this

subsection shall be construed to protect such person from suit or

liability for damage, loss, injury, or liability caused by the

intentional or willful and wanton misconduct of such person.

2. The Interstate Commission shall defend the executive

director and its employees and, subject to the approval of the

Attorney General or other appropriate legal counsel of the member

state represented by an Interstate Commission representative, shall

defend such Interstate Commission representative in any civil

action seeking to impose liability arising out of an actual or

alleged act, error or omission that occurred within the scope of

Interstate Commission employment, duties or responsibilities, or

that the defendant had a reasonable basis for believing occurred

within the scope of Interstate Commission employment, duties, or

responsibilities, provided that the actual or alleged act, error,

or omission did not result from intentional or willful and wanton

misconduct on the part of such person.

3. To the extent not covered by the state involved, member

state, or the Interstate Commission, the representatives or

employees of the Interstate Commission shall be held harmless in

the amount of a settlement or judgment, including attorney's fees

and costs, obtained against such persons arising out of an actual

or alleged act, error, or omission that occurred within the scope

of Interstate Commission employment, duties, or responsibilities,

or that such persons had a reasonable basis for believing occurred

within the scope of Interstate Commission employment, duties, or

responsibilities, provided that the actual or alleged act, error,

or omission did not result from intentional or willful and wanton

misconduct on the part of such persons.

ARTICLE XII

RULEMAKING FUNCTIONS OF THE INTERSTATE COMMISSION

A. Rulemaking Authority - The Interstate Commission shall

promulgate reasonable rules in order to effectively and efficiently

achieve the purposes of this Compact. Notwithstanding the

foregoing, in the event the Interstate Commission exercises its

rulemaking authority in a manner that is beyond the scope of the

purposes of this Act, or the powers granted hereunder, then such an

action by the Interstate Commission shall be invalid and have no

force or effect.

B. Rulemaking Procedure - Rules shall be made pursuant to a

rulemaking process that substantially conforms to the "Model State

Administrative Procedure Act," of 1981 Act, Uniform Laws Annotated,

Vol. 15, p.1 (2000) as amended, as may be appropriate to the

operations of the Interstate Commission.

C. Not later than thirty (30) days after a rule is

promulgated, any person may file a petition for judicial review of

the rule; provided, that the filing of such a petition shall not

stay or otherwise prevent the rule from becoming effective unless

the court finds that the petitioner has a substantial likelihood of

success. The court shall give deference to the actions of the

Interstate Commission consistent with applicable law and shall not

find the rule to be unlawful if the rule represents a reasonable

exercise of the Interstate Commission's authority.

D. If a majority of the legislatures of the compacting states

rejects a Rule by enactment of a statute or resolution in the same

manner used to adopt the compact, then such rule shall have no

further force and effect in any compacting state.

ARTICLE XIII

OVERSIGHT, ENFORCEMENT, AND DISPUTE RESOLUTION

A. Oversight

1. The executive, legislative and judicial branches of state

government in each member state shall enforce this compact and

shall take all actions necessary and appropriate to effectuate the

compact's purposes and intent. The provisions of this compact and

the rules promulgated hereunder shall have standing as statutory

law.

2. All courts shall take judicial notice of the compact and

the rules in any judicial or administrative proceeding in a member

state pertaining to the subject matter of this compact which may

affect the powers, responsibilities or actions of the Interstate

Commission.

3. The Interstate Commission shall be entitled to receive all

service of process in any such proceeding, and shall have standing

to intervene in the proceeding for all purposes. Failure to provide

service of process to the Interstate Commission shall render a

judgment or order void as to the Interstate Commission, this

compact or promulgated rules.

B. Default, Technical Assistance, Suspension and Termination -

If the Interstate Commission determines that a member state has

defaulted in the performance of its obligations or responsibilities

under this compact, or the bylaws or promulgated rules, the

Interstate Commission shall:

1. Provide written notice to the defaulting state and other

member states, of the nature of the default, the means of curing

the default and any action taken by the Interstate Commission. The

Interstate Commission shall specify the conditions by which the

defaulting state must cure its default.

2. Provide remedial training and specific technical assistance

regarding the default.

3. If the defaulting state fails to cure the default, the

defaulting state shall be terminated from the compact upon an

affirmative vote of a majority of the member states and all rights,

privileges and benefits conferred by this compact shall be

terminated from the effective date of termination. A cure of the

default does not relieve the offending state of obligations or

liabilities incurred during the period of the default.

4. Suspension or termination of membership in the compact

shall be imposed only after all other means of securing compliance

have been exhausted. Notice of intent to suspend or terminate shall

be given by the Interstate Commission to the Governor, the majority

and minority leaders of the defaulting state's legislature, and

each of the member states.

5. The state which has been suspended or terminated is

responsible for all assessments, obligations and liabilities

incurred through the effective date of suspension or termination

including obligations, the performance of which extends beyond the

effective date of suspension or termination.

6. The Interstate Commission shall not bear any costs relating

to any state that has been found to be in default or which has been

suspended or terminated from the compact, unless otherwise mutually

agreed upon in writing between the Interstate Commission and the

defaulting state.

7. The defaulting state may appeal the action of the

Interstate Commission by petitioning the U.S. District Court for

the District of Columbia or the federal district where the

Interstate Commission has its principal offices. The prevailing

party shall be awarded all costs of such litigation including

reasonable attorney's fees.

C. Dispute Resolution

1. The Interstate Commission shall attempt, upon the request

of a member state, to resolve disputes which are subject to the

compact and which may arise among member states and between member

and non-member states.

2. The Interstate Commission shall promulgate a rule providing

for both mediation and binding dispute resolution for disputes as

appropriate.

D. Enforcement

1. The Interstate Commission, in the reasonable exercise of

its discretion, shall enforce the provisions and rules of this

compact.

2. The Interstate Commission, may by majority vote of the

members, initiate legal action in the United States District Court

for the District of Columbia or, at the discretion of the

Interstate Commission, in the federal district where the Interstate

Commission has its principal offices, to enforce compliance with

the provisions of the compact, its promulgated rules and bylaws,

against a member state in default. The relief sought may include

both injunctive relief and damages. In the event judicial

enforcement is necessary the prevailing party shall be awarded all

costs of such litigation including reasonable attorney's fees.

3. The remedies herein shall not be the exclusive remedies of

the Interstate Commission. The Interstate Commission may avail

itself of any other remedies available under state law or the

regulation of a profession.

ARTICLE XIV

FINANCING OF THE INTERSTATE COMMISSION

A. The Interstate Commission shall pay, or provide for the

payment of the reasonable expenses of its establishment,

organization and ongoing activities.

B. The Interstate Commission may levy on and collect an annual

assessment from each member state to cover the cost of the

operations and activities of the Interstate Commission and its

staff which must be in a total amount sufficient to cover the

Interstate Commission's annual budget as approved each year. The

aggregate annual assessment amount shall be allocated based upon a

formula to be determined by the Interstate Commission, which shall

promulgate a rule binding upon all member states.

C. The Interstate Commission shall not incur obligations of

any kind prior to securing the funds adequate to meet the same; nor

shall the Interstate Commission pledge the credit of any of the

member states, except by and with the authority of the member

state.

D. The Interstate Commission shall keep accurate accounts of

all receipts and disbursements. The receipts and disbursements of

the Interstate Commission shall be subject to the audit and

accounting procedures established under its bylaws. However, all

receipts and disbursements of funds handled by the Interstate

Commission shall by audited yearly by a certified or licensed

public accountant and the report of the audit shall be included in

and become part of the annual report of the Interstate Commission.

ARTICLE XV

MEMBER STATES, EFFECTIVE DATE AND AMENDMENT

A. Any state is eligible to become a member state.

B. The compact shall become effective and binding upon

legislative enactment of the compact into law by no less than ten

(10) of the states. The effective date shall be no earlier than

December 1, 2007. Thereafter it shall become effective and binding

as to any other member state upon enactment of the compact into law

by that state. The governors of non-member states or their

designees shall be invited to participate in the activities of the

Interstate Commission on a nonvoting basis prior to adoption of the

compact by all states.

C. The Interstate Commission may propose amendments to the

compact for enactment by the member states. No amendment shall

become effective and binding upon the Interstate Commission and the

member states unless and until it is enacted into law by unanimous

consent of the member states.

ARTICLE XVI

WITHDRAWAL AND DISSOLUTION

A. Withdrawal

1. Once effective, the compact shall continue in force and

remain binding upon each and every member state; provided that a

member state may withdraw from the compact by specifically

repealing the statute, which enacted the compact into law.

2. Withdrawal from this compact shall be by the enactment of a

statute repealing the same, but shall not take effect until one (1)

year after the effective date of such statute and until written

notice of the withdrawal has been given by the withdrawing state to

the Governor of each other member jurisdiction.

3. The withdrawing state shall immediately notify the

chairperson of the Interstate Commission in writing upon the

introduction of legislation repealing this compact in the

withdrawing state. The Interstate Commission shall notify the other

member states of the withdrawing state's intent to withdraw within

sixty (60) days of its receipt thereof.

4. The withdrawing state is responsible for all assessments,

obligations and liabilities incurred through the effective date of

withdrawal, including obligations, the performance of which extend

beyond the effective date of withdrawal.

5. Reinstatement following withdrawal of a member state shall

occur upon the withdrawing state reenacting the compact or upon

such later date as determined by the Interstate Commission.

B. Dissolution of Compact

1. This compact shall dissolve effective upon the date of the

withdrawal or default of the member state which reduces the

membership in the compact to one (1) member state.

2. Upon the dissolution of this compact, the compact becomes

null and void and shall be of no further force or effect, and the

business and affairs of the Interstate Commission shall be

concluded and surplus funds shall be distributed in accordance with

the bylaws.

ARTICLE XVII

SEVERABILITY AND CONSTRUCTION

A. The provisions of this compact shall be severable, and if

any phrase, clause, sentence or provision is deemed unenforceable,

the remaining provisions of the compact shall be enforceable.

B. The provisions of this compact shall be liberally construed

to effectuate its purposes.

C. Nothing in this compact shall be construed to prohibit the

applicability of other interstate compacts to which the states are

members.

ARTICLE XVIII

BINDING EFFECT OF COMPACT AND OTHER LAWS

A. Other Laws

1. Nothing herein prevents the enforcement of any other law of

a member state that is not inconsistent with this compact.

2. All member states' laws conflicting with this compact are

superseded to the extent of the conflict.

B. Binding Effect of the Compact

1. All lawful actions of the Interstate Commission, including

all rules and bylaws promulgated by the Interstate Commission, are

binding upon the member states.

2. All agreements between the Interstate Commission and the

member states are binding in accordance with their terms.

3. In the event any provision of this compact exceeds the

constitutional limits imposed on the legislature of any member

state, such provision shall be ineffective to the extent of the

conflict with the constitutional provision in question in that

member state.