§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approval is rescinded by the withdrawing state as provided in paragraph E. [2003, c. 680, §1 (NEW).]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full force and effect in the withdrawing state unless formally rescinded by the withdrawing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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