§2485. Withdrawal, default and termination -- Article 14
The following provisions govern withdrawal from the compact.
A. Once effective, the compact continues in force and remains binding upon each compacting state. A compacting state may withdraw
from the compact by enacting a statute specifically repealing the statute that enacted the compact. [2003, c. 680, §1 (NEW).]
B. The effective date of withdrawal is the effective date of the repealing law. However, the withdrawal does not apply to
any product filings approved or self-certified, or any advertisement of such products, on the date the repealing statute becomes
effective, except by mutual agreement of the commission and the withdrawing state unless the approval is rescinded by the
withdrawing state as provided in paragraph E. [2003, c. 680, §1 (NEW).]
C. The commissioner of the withdrawing state shall immediately notify the management committee in writing upon the introduction
of legislation repealing this compact in the withdrawing state. [2003, c. 680, §1 (NEW).]
D. The commission shall notify the other compacting states of the introduction of such legislation within 10 days after it
receives notice under paragraph C. [2003, c. 680, §1 (NEW).]
E. The withdrawing state is responsible for all obligations, duties and liabilities incurred through the effective date of
withdrawal, including any obligations the performance of which extend beyond the effective date of withdrawal, except to the
extent those obligations may have been released or relinquished by mutual agreement of the commission and the withdrawing
state. The commission's approval of products and advertisements prior to the effective date of withdrawal continues to be
effective and must be given full force and effect in the withdrawing state unless formally rescinded by the withdrawing state
in the same manner as provided by the laws of the withdrawing state for the prospective disapproval of products or advertisements
previously approved under state law. [2003, c. 680, §1 (NEW).]
F. Reinstatement following withdrawal of any compacting state occurs upon the effective date of the withdrawing state's reenacting
the compact. [2003, c. 680, §1 (NEW).]
2003, c. 680, §1 (NEW)
The following provisions govern default.
A. If the commission determines that a compacting state has defaulted in the performance of any of its obligations or responsibilities
under this compact, the bylaws or duly promulgated rules or operating procedures, then, after notice and hearing as set forth
in the bylaws, all rights, privileges and benefits conferred by this compact on the defaulting state are suspended from the
effective date of default as fixed by the commission. The grounds for default include, but are not limited to, failure of
a compacting state to perform its obligations or responsibilities, and any other grounds designated in commission rules.
The commission shall immediately notify the defaulting state in writing of the defaulting state's suspension pending a cure
of the default. The commission shall stipulate the conditions and the time period within which the defaulting state must
cure its default. If the defaulting state fails to cure the default within the time period specified by the commission, the
defaulting state must be terminated from the compact and all rights, privileges and benefits conferred by this compact are
terminated from the effective date of termination. [2003, c. 680, §1 (NEW).]
B. Product approvals by the commission or product self-certifications, or any advertisement in connection with such a product,
that are in force on the effective date of termination remain in force in the defaulting state in the same manner as if the
defaulting state had withdrawn voluntarily pursuant to subsection 1. [2003, c. 680, §1 (NEW).]
C. Reinstatement following termination of a compacting state requires a reenactment of the compact. [2003, c. 680, §1 (NEW).]
2003, c. 680, §1 (NEW)
3.Dissolution of compact.
The following provisions govern the dissolution of the compact.
A. The compact dissolves upon the date of the withdrawal or default of the compacting state that reduces membership in the
compact to one compacting state. [2003, c. 680, §1 (NEW).]
B. Upon the dissolution of this compact, the compact becomes void and is of no further effect, and the business and affairs
of the commission must be wound up and any surplus funds must be distributed in accordance with the bylaws. [2003, c. 680, §1 (NEW).]
2003, c. 680, §1 (NEW)
2003, c. 680, §1 (NEW).
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