Compact to Award Prizes for Curing Disease.

GENERAL ASSEMBLY OF NORTH CAROLINA
SESSION 2025
S 1
SENATE BILL 796

Short Title: Compact to Award Prizes for Curing Disease. (Public)
Sponsors: Senator Burgin (Primary Sponsor).
Referred to: Rules and Operations of the Senate
April 22, 2026
*S796-v-1*
A BILL TO BE ENTITLED 1
AN ACT ENACTING A COMPACT TO AWARD PRIZES FOR CURING DISEASES. 2
The General Assembly of North Carolina enacts: 3
SECTION 1. Chapter 90 of the General Statutes is amended by adding a new Article 4
to read: 5
"Article 23B. 6
"Compact to Award Prizes for the Cure of Diseases. 7
"§ 90-326. Definitions. 8
As used in this Article, the following definitions have the following meanings: 9
(1) Compact. – The Solemn Covenant of the States to Award Prizes for Curing 10
Diseases enacted in this Article. 11
(2) Compacting state. – Either of the following: 12
a. Any state that has enacted the compact and has not withdrawn or been 13
suspended pursuant to G.S. 90-326.14. 14
b. The federal government in accordance with the Commission's bylaws. 15
(3) Non-compacting state. – Any state or the federal government if it is not at the 16
time a compacting state. 17
(4) Public health expenses. – The amount of all costs paid by taxpayers in a 18
specified geographic area relating to a particular disease. 19
(5) State. – Any state, district, or territory of the United States of America. 20
"§ 90-326.1. Establishment of the Commission; membership. 21
(1) Upon the enactment of the compact by six states, the compacting states shall 22
establish the Solemn Covenant of States Commission. 23
(2) The Commission is a body corporate and politic and an instrumentality of each 24
of the compacting states and is solely responsible for its liabilities, except as 25
otherwise specifically provided in the compact. 26
(3) Each compacting state shall be represented by one member as selected by the 27
compacting state. Each compacting state shall determine its member 's 28
qualifications and period of service and shall be responsible for any action to 29
remove or suspend its member or to fill the member 's position if it becomes 30
vacant. Nothing in the compact shall be construed to affect a compacting 31
state's authority regarding the qualification, selection, or service of its own 32
member. 33
"§ 90-326.2. Powers of the Commission. 34
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(1) To adopt bylaws and rules pursuant to G.S. 90-326.4 and G.S. 90-326.5, 1
which shall have the force and effect of law and shall be binding in the 2
compacting states to the extent and in the manner provided in the compact. 3
(2) To receive and review in an expeditious manner treatments and therapeutic 4
protocols for the cure of disease submitted to the Commission and to award 5
prizes for submissions that meet the Commission's standards for a successful 6
cure treatment or therapeutic protocol. 7
(3) To make widely available a cure treatment or therapeutic protocol upon a prize 8
winner claiming a prize and transferring any intellectual property necessary 9
for the manufacture and distribution of the cure in accordance with 10
G.S. 90-326.5(a)(4)g.1., including by arranging or contracting for the 11
manufacturing, production, or provision of any drug, serum, or other 12
substance, device, or process, provided that the Commission does not market 13
the cure or conduct any other activity regarding the cure not specifically 14
authorized in the compact. 15
(4) To establish a selling price for the cure, which shall be not more than the 16
expenses for the cure 's manufacturing, distribution, licensing, and any other 17
necessary governmental requirements for compacting states, or those 18
expenses plus any royalty fees, for non-compacting states; the price shall not 19
include the expenses of any other activities. 20
(5) In non-compacting states and foreign countries, to establish and collect royalty 21
fees imposed on manufacturers, producers, and providers of any drug, serum, 22
or other substance, device, or process used for a cure treatment or therapeutic 23
protocol, for which a prize is awarded; royalty fees may be added to the sales 24
price of the cure pursuant to subdivision (4) of this section; provided that the 25
royalty fees shall cumulatively be not more than the estimated five -year 26
savings in public health expenses for that state or country, as calculated by 27
actuaries employed or contracted by the Commission. 28
(6) To do the following regarding the collected royalty fees: 29
a. Pay or reimburse expenses related to the payment of a prize, which 30
shall include employing or contracting actuaries to calculate annual 31
taxpayer savings amounts in compacting states in accordance with 32
G.S. 90-326.5(a)(4)g.3., and payment of interest and other expenses 33
related to a loan obtained in accordance with G.S. 90-326.5(a)(4)g.6. 34
b. Annually disburse any amounts remaining after making payments or 35
reimbursements under sub-subdivision a. of this subdivision as 36
refunds to compacting states based on the percent of the state 's prize 37
obligation in relation to the total obligation amount of all compacting 38
states. 39
(7) To bring and prosecute legal proceedings or actions in its name as the 40
Commission. 41
(8) To issue subpoenas requiring the attendance and testimony of witnesses and 42
the production of evidence. 43
(9) To establish and maintain offices. 44
(10) To borrow, accept, or contract for personnel services, including personnel 45
services from employees of a compacting state. 46
(11) To hire employees, professionals, or specialists, and elect or appoint officers, 47
and to fix their compensation, define their duties , and give them appropriate 48
authority to carry out the purposes of the compact, and determine their 49
qualifications; and to establish the Commission 's personnel policies and 50
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Senate Bill 796-First Edition Page 3
programs relating t o, among other things, conflicts of interest, rates of 1
compensation, and qualifications of personnel. 2
(12) To accept any and all appropriate donations and grants of money, equipment, 3
supplies, materials, and services, and to receive, utilize, and dispose o f the 4
same; provided that at all times the Commission shall strive to avoid any 5
appearance of impropriety. 6
(13) To lease, purchase, or accept appropriate gifts or donations of, or otherwise to 7
own, hold, improve, or use, any property, real, personal, or mixed; provided, 8
that at all times the Commission shall strive to avoid any appearance of 9
impropriety. 10
(14) To sell, convey, mortgage, pledge, lease, exchange, abandon, or otherwise 11
dispose of any property, real, personal, or mixed. 12
(15) To monitor compacting states for compliance with the Commission 's bylaws 13
and rules. 14
(16) To enforce compliance by compacting states with the Commission 's bylaws 15
and rules. 16
(17) To provide for dispute resolution among compacting states or between the 17
Commission and those who submit treatments and therapeutic protocols for 18
the cure of disease for consideration. 19
(18) To establish a budget and make expenditures. 20
(19) To borrow money. 21
(20) To appoint committees, including management, legislative, and advisory 22
committees comprised of members, state legislators or their representatives, 23
medical professionals, and such other interested persons as may be designated 24
by the Commission. 25
(21) To establish annual membership dues for compacting states, which shall be 26
used for daily expenses of the Commission and not for interest or prize 27
payments. 28
(22) To adopt and use a corporate seal. 29
(23) To perform such other functions as may be necessary or appropriate to achieve 30
the purposes of this compact. 31
"§ 90-326.3. Meetings and voting. 32
(1) The Commission shall meet and take such actions as are consistent with the 33
compact, bylaws, and rules. 34
(2) A majority of the members of the Commission shall constitute a quorum 35
necessary in order to conduct business or take actions at meetings of the 36
Commission. 37
(3) Each member of the Commission shall have the right and power to cast one 38
vote regarding matters determined or actions to be taken by the Commission. 39
Each member shall have the right and power to participate in the business and 40
affairs of the Commission. 41
(4) A member shall vote in person or by such other means as provided in the 42
Commission's bylaws. The Commission 's bylaws may provide for members ' 43
participation in meetings by telephone or other means of communication. 44
(5) The Commission shall meet at least once during each calendar year. 45
Additional meetings shall be held as set forth in the Commission's bylaws. 46
(6) No decision of the Commission with respect to the approval of an award for a 47
treatment or therapeutic process for the cure of a disease shall be effective 48
unless two-thirds of all the members of the Commission vote in favor thereof. 49
(7) Guidelines and voting requirements for all other decisions of the Commission 50
shall be established in the Commission's bylaws. 51
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"§ 90-326.4. Bylaws. 1
The Commission shall, by a majority vote of all the members of the Commission, prescribe 2
bylaws to govern its conduct as may be necessary or appropriate to carry out the purposes and 3
exercise the powers of the compact, including, but not limited to: 4
(1) Establishing the fiscal year of the Commission. 5
(2) Providing reasonable procedures for appointing and electing members, as well 6
as holding meetings, of the management committee. 7
(3) Providing reasonable standards and procedures for the following: 8
a. For the establishment and meetings of other committees. 9
b. Governing any general or specific delegation of any authority or 10
function of the Commission. 11
c. Voting guidelines and procedures for Commission decisions. 12
(4) Providing reasonable procedures for calling and c onducting meetings of the 13
Commission that shall consist of requiring a quorum to be present, ensuring 14
reasonable advance notice of each such meeting , and providing for the right 15
of citizens to attend each such meeting with enumerated exceptions designed 16
to protect the public's interest and the privacy of individuals. 17
(5) Providing a list of matters about which the Commission may go into executive 18
session and requiring a majority of all members of the Commission to vote to 19
enter into such session. As soon as practicable, the Commission shall make 20
public: 21
a. A copy of the vote to go into executive session, revealing the vote of 22
each member with no proxy votes allowed. 23
b. The matter requiring executive session, without identifying the actual 24
issues or individuals involved. 25
(6) Establishing the titles, duties, authority, and reasonable procedures for the 26
election of the officers of the Commission. 27
(7) Providing reasonable standards and procedures for the establishment of the 28
personnel policies and progra ms of the Commission. Notwithstanding any 29
civil service or other similar laws of any compacting state, the Commission 's 30
bylaws shall exclusively govern the personnel policies and programs of the 31
Commission. 32
(8) Allowing a mechanism for the following: 33
a. The federal government to join as a compacting state. 34
b. Foreign countries or subdivisions of those countries to join as liaison 35
members by adopting the compact; provided that adopting countries 36
or subdivisions shall not have voting power or the power to bin d the 37
Commission in any way. 38
(9) Adopting a code of ethics to address permissible and prohibited activities of 39
members and employees. 40
(10) Providing for the maintenance of the Commission's books and records. 41
(11) Governing the acceptance of and accounting for donations, annual member 42
dues, and other sources of funding and establishing the proportion of these 43
funds to be allocated to prize amounts for treatments and therapeutic protocols 44
that cure disease. 45
(12) Governing any fundraising efforts in which the Commission wishes to engage. 46
(13) Providing a mechanism for winding up the operations of the Commission and 47
the equitable disposition of any surplus funds that may exist after the 48
termination of the compact after the payment and reserving of all its debts and 49
obligations. 50
"§ 90-326.5. Rules. 51
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Senate Bill 796-First Edition Page 5
(a) The Commission shall adopt rules to do the following: 1
(1) Effectively and efficiently achieve the purposes of this compact. 2
(2) Govern the methods, processes, and any other aspect of the research, creation, 3
and testing of a treatment or therapeutic protocol for each disease for which a 4
prize may be awarded. 5
(3) Establishing the criteria for defining and classifying the diseases for which 6
prizes shall be awarded. The Commission may define and classify subsets of 7
diseases, for example, tubular carcinoma of the breast. For purposes of 8
sub-subdivisions a. and c. of subdivision (4) of this subsection, a subset of a 9
disease shall be considered one disease. The Commission may consult the 10
most recent edition of the International Classification of Diseases as published 11
by the World Health Organization or other definitions agreed to by a 12
two-thirds vote of the Commission. 13
(4) Regarding prizes for curing diseases that establish the following: 14
a. At least 10 major diseases for which to create prizes, which shall be 15
determined based on the following factors: 16
1. The severity of the disease to a human individual 's overall 17
health and well-being. 18
2. The survival rate or severity of impact of the disease. 19
3. The pu blic health expenses and treatment expenses for the 20
disease. 21
b. The criteria a treatment or therapeutic protocol must meet in order to 22
be considered a cure for any of the diseases for which a prize may be 23
awarded, which shall include the following requirements: 24
1. It must be approved by the federal Food and Drug 25
Administration or have otherwise obtained legal status for the 26
compact to immediately contract to manufacture and distribute 27
in the United States. 28
2. Except as provided in subsection (b) of this sec tion, it must 29
yield a significant increase in survival with respect to the 30
diseases if early death is the usual outcome. 31
3. It requires less than one year of the treatment or protocol to 32
completely cure the disease. 33
c. The procedure for determining the diseases for which to award prizes, 34
which includes the option to award prizes for more than 10 diseases 35
that meet the above criteria, if agreed to by two -thirds vote of the 36
Commission, and a requirement to update the list every three years. 37
d. The submission and evaluation procedures and guidelines, including 38
filing and review procedures, a requirement that the person or entity 39
submitting the cure bears the burden of proof in demonstrating that the 40
treatment or therapeutic protocol meets the above criteria, an d 41
limitations preventing public access to treatment or protocol 42
submissions. 43
e. The estimated five-year public health savings that would result from a 44
cure, which shall be equal to the five -year public health expenses for 45
each disease in each compacting state, and a procedure to update these 46
expenses every three years in conjunction with the requirements in 47
sub-subdivision c. of this subdivision . The estimated five-year public 48
health savings amount shall be calculated, estimated, and publicized 49
every three years by actuaries employed or contracted by the 50
Commission. 51
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f. The prize amount with respect to cures for each disease, which shall 1
be equal to the most recent estimated total five-year savings in public 2
health expenses for the disease as calculated in sub-subdivision e. of 3
this subdivision in all of the compacting states; amounts donated by 4
charities, individuals, and any other entities intended for the prize; and 5
any other factors that the Commission deems appropriate. 6
g. The prize distribution procedures and guidelines, which shall include 7
the following requirements: 8
1. Upon acceptance of a cure, the prize winner shall transfer to 9
the Commission the patent and all related intellectual property 10
for the manufacture and distribution of the treatment or 11
therapeutic protocol in exchange for the prize, except in the 12
case that the prize money is considered by the Commission to 13
be too low, and that a prize will be awarded only to the first 14
person or entity that submits a successful cure for a disease for 15
which a prize may be awarded. 16
2. Donation amounts intended for the prize shall be kept in a 17
separate, interest -bearing account maintained by the 18
Commission. This account shall be the only account in which 19
prize money is kept. 20
3. Each compacting state shall have th e responsibility to pay 21
annually the compacting state 's actual one -year savings in 22
public health expenses for the particular disease for which a 23
cure has been accepted. The compacting state shall make such 24
an annual payment until it has fulfilled its prize responsibility 25
as established in s ub-subdivision f. of this subdivision . Each 26
compacting state's payment responsibility begins one year after 27
the date the cure becomes widely available. The Commission 28
shall employ or contract with actuaries to calculate each state's 29
actual one-year savings in public health expenses at the end of 30
each year to determine each state 's responsibility for the 31
succeeding year. 32
4. Compacting states may meet prize responsibilities by any 33
method including the issuance of bonds or o ther obligations, 34
with the principal and interest of those bonds or obligations to 35
be repaid only from revenue derived from estimated public 36
health expense savings from a cure to a disease. If the 37
compacting state does not make such revenue available to 38
repay some or all of the revenue bonds or obligations issued, 39
the owners or holders of those bonds or obligations have no 40
right to have excises or taxes levied to pay the principal or 41
interest on them. The revenue bonds and obligations are not a 42
debt of the issuing compacting state. 43
5. A compacting state may issue bonds or other debt that are 44
general obligations, under which the full faith and credit, 45
revenue, and taxing power of the state is pledged to pay the 46
principal and interest under those obligations, only if 47
authorized by the compacting state 's constitution or, if 48
constitutional authorization is not required, by other law of the 49
compacting state. 50
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6. Upon acceptance of a cure, the Commission shall obtain a loan 1
from a financial institution in an amount equal to the most 2
recently calculated total estimated five -year public health 3
expenses for the disease in all compacting states, in accordance 4
with sub-subdivision f. of this subdivision . The Commission 5
reserves the right to continuously evaluate the cure in the 6
interim and rescind a prize offer if the Commission finds that 7
the cure no longer meets the Commission's criteria. 8
(5) The Commission also shall adopt rules to do the following: 9
a. Establish the following regarding Commission records: 10
1. Conditions and procedures for public inspection and copying 11
of its information and official records, except such information 12
and records involving the privacy of individuals or that would 13
otherwise violate privacy laws under federal law and the laws 14
of the compacting states. 15
2. Procedures for sharing with federal and state agencies, 16
including law enforcement agencies, records and information 17
otherwise exempt from disclosure. 18
3. Guidelines for entering into agreements with federal and state 19
agencies to receive or exchange information or records subject 20
to nondisclosure and confidentiality provisions. 21
b. Provide a process for Commission review of submitted treatments and 22
therapeutic protocols for curing diseases that includes the following: 23
1. An opportunity for an appeal, not later than 30 days after a 24
rejection of a treatment or protocol for prize consideration, to 25
a review panel established under the Commission 's dispute 26
resolution process. 27
2. Commission monitoring and review of treatment and protocol 28
effectiveness consistent with the cure criteria established by 29
the Commission for the particular disease. 30
3. Commission reconsideration, modification, or withdrawal of 31
approval of a treatment or protocol for prize consideration for 32
failure to continue to meet the cure criteria established by the 33
Commission for the particular disease. 34
c. Establish a dispute resolution process to resolve disputes or other 35
issues under the compact that may arise between two or more 36
compacting states or between the Co mmission and individuals or 37
entities who submit treatments and therapeutic protocols to cure 38
diseases, which process shall provide for: 39
1. Administrative review by a review panel appointed by the 40
Commission. 41
2. Judicial review of decisions issued after an administrative 42
review. 43
3. Qualifications to be appointed to a panel, due process 44
requirements, including notice and hearing procedures, and 45
any other procedure, requirement, or standard necessary to 46
provide adequate dispute resolution. 47
d. Establish and imp ose annual member dues on compacting states, 48
which shall be calculated based on the percentage of each compacting 49
state's population in relation to the population of all the compacting 50
states. 51
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(b) The Commission may award a prize for a treatment or therapeutic protocol that yields 1
a survival rate that is less than what is established in the cure criteria through at least five years 2
after the treatment or protocol has ended. In that case, the prize amount awarded for that treatment 3
or therapeutic protocol sh all be reduced from the prize amount originally determined by the 4
Commission for a cure for that disease. The reduction shall be in proportion to the survival rate 5
yielded by that treatment or protocol as compared to the survival rate established in the cu re 6
criteria. 7
(c) Recognizing that the goal of the compact is to pool the potential savings of as many 8
states and countries as possible to generate sufficient financial incentive to develop a cure for 9
many of the world's most devastating diseases, the compact will respect the laws of each of these 10
United States by adopting rules that establish ethical standards for research that shall be followed 11
in order for a prize to be claimed. The compact, in the rules, shall establish a common set of 12
ethical standards that embodies the laws and restrictions in each of the states so that to be eligible 13
for claiming a prize the entity submitting a cure must not have violated any of the ethical 14
standards in any one of the 50 states, whether the states have joined the compa ct or not. The 15
compact will publish these common ethical standards along with the specific criteria for a cure 16
for each of the diseases the compact has targeted. So long as a researcher follows the common 17
ethical standards in effect at the time the researc h is done, an entity presenting a cure will be 18
deemed to have followed the standards. On or before January 1 of each year, the compact shall 19
review all state laws to determine if additional ethical standards have been enacted by any of the 20
50 states and the federal government. Any changes to the common ethical standards rules based 21
on new state laws shall be adopted and published by the compact but shall not take effect in cure 22
criteria for a period of three years to allow for sufficient notice to researchers. 23
(d) All rules may be amended as the Commission sees necessary. 24
(e) All rules shall be adopted pursuant to a rulemaking process that conforms to the 25
Model State Administrative Procedure Act of 1981 by the uniform law commissioners, as 26
amended, as may be appropriate to the operations of the Commission. 27
(f) In the event the Commission exercises its rulemaking authority in a manner that is 28
beyond the scope of the purpose of this compact or the powers granted hereunder, then such rule 29
shall be invalid and have no force and effect. 30
"§ 90-326.6. Management committee. 31
(a) The Commission may establish a management committee comprised of not more than 32
14 members when 26 states enact the compact. 33
(b) The committee shall consist of those members representing compacting states whose 34
total public health expenses of all of the established diseases are the highest. 35
(c) The committee shall have such authority and duties as may be set forth in the 36
Commission's bylaws and rules, including: 37
(1) Managing authority over the day -to-day affairs of the Commission in a 38
manner consistent with the Commission 's bylaws and rules and the purposes 39
of the compact. 40
(2) Overseeing the offices of the Commission. 41
(3) Planning, implementing, and coordinating communications and activities with 42
state, federal, and local government organizations in order to advance the 43
goals of the compact. 44
(d) The Commission annually shall elect officers for the committee, with each having 45
such authority and duties as may be specified in the Commission's bylaws and rules. 46
(e) The management committee, subject to Commission approval, may appoint or retain 47
an executive director for such period, upon such terms and conditions, and for such compensation 48
as the committee determines. The executive director shall serve as secretary to the Commission 49
but shall not be a member of the Commission. The executive director shall hire and supervise 50
such other staff as may be authorized by the committee. 51
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"§ 90-326.7. Advisory committees. 1
The Commission may appoint advisory committees to monitor all operations related to the 2
purposes of the compact and make recommendations to the Commission; provided that the 3
manner of selection and term of any committee member shall be as set forth in the Commission's 4
bylaws and ru les. The Commission shall consult with an advisory committee, to the extent 5
required by the Commission's bylaws or rules, before doing any of the following: 6
(1) Approving cure criteria. 7
(2) Amending, enacting, or repealing any bylaw or rule. 8
(3) Adopting the Commission's annual budget. 9
(4) Addressing any other significant matter or taking any other significant action. 10
"§ 90-326.8. Finance. 11
(a) The Commission annually shall establish a budget to pay or provide for the payment 12
of its reasonable expenses. To fund the cost of initial operations, the Commission may accept 13
contributions and other forms of funding from the compacting states and other sources. 14
Contributions and other forms of funding from other sources shall be of such a nature that the 15
independence of the Commission concerning the performance of its duties shall not be 16
compromised. 17
(b) The Commission shall be exempt from all taxation in and by the compacting states. 18
(c) The Commission shall keep complete and accurate accounts of all of its interna l 19
receipts, including grants and donations, and disbursements of all funds under its control. The 20
internal financial accounts of the Commission shall be subject to the accounting procedures 21
established under the Commission 's bylaws or rules. The financial accounts and reports , 22
including the system of internal controls and procedures of the Commission , shall be audited 23
annually by an independent certified public accountant. Upon the determination of the 24
Commission but not less frequently than every three years, the review of the independent auditor 25
shall include a management and performance audit of the Commission. The Commission shall 26
make an annual report to the governors and legislatures of the compacting states, which shall 27
include a report of the indepen dent audit. The Commission 's internal accounts shall not be 28
confidential, and such materials may be shared with any compacting state upon request, provided, 29
however, that any work papers related to any internal or independent audit and any information 30
subject to the compacting states' privacy laws shall remain confidential. 31
(d) No compacting state shall have any claim or ownership of any property he ld by or 32
vested in the Commission or to any Commission funds held pursuant to the provisions of the 33
compact. 34
"§ 90-326.9. Records. 35
Except as to privileged records, data, and information, the laws of any compacting state 36
pertaining to confidentiality or nondisclosure shall not relieve any member of the duty to disclose 37
any relevant records, data, or information to the Commission; provided, that disclosure to the 38
Commission shall not be deemed to waive or otherwise affect any confidentiality requirement; 39
and further provided, that, except as otherwise expressly provided in the compact, the 40
Commission shall not be subject to the compacting state's laws pertaining to confidentiality and 41
nondisclosure with respect to records, data, and information in its possess ion. Confidential 42
information of the Commission shall remain confidential after such information is provided to 43
any member. All cure submissions received by the Commission are confidential. 44
"§ 90-326.10. Compliance. 45
The Commission shall notify a compacting state in writing of any noncompliance with 46
Commission bylaws and rules. If a compacting state fails to remedy its noncompliance within 47
the time specified in the notice, the compacting state shall be deemed to be in default as set forth 48
in G.S. 90-326.14. 49
"§ 90-326.11. Venue. 50
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Venue for any judicial proceedings by or against the Commission shall be brought in the 1
appropriate court of competent jurisdiction for the geographical area in which the principal office 2
of the Commission is located. 3
"§ 90-326.12. Qualified immunity, defense, and indemnification. 4
(a) The members, officers, executive director, employees, and representatives of the 5
Commission shall be immune from suit and liability, either personally or in their official capacity, 6
for any claim for damage to or loss of property or personal injury or other civil liability caused 7
by or arising out of any actual or alleged act, error, or omission that occurred, or that such person 8
had a reasonable basis for believing occurred within the scope of the person 's Commission 9
employment, duties, or responsibilities; provided, that nothing in this subsecti on shall be 10
construed to protect any such person from suit or liability for any damage, loss, injury, or liability 11
caused by the intentional or willful and wanton misconduct of that person. 12
(b) The Commission shall defend any member, officer, executive director, employee, or 13
representative of the Commission in any civil action seeking to impose liability arising out of 14
any ac tual or alleged act, error, or omission that occurred within the scope of the person 's 15
Commission employment, duties, or responsibilities, or that such person had a reasonable basis 16
for believing occurred within the scope of the person 's Commission employm ent, duties, or 17
responsibilities; provided, that nothing in the compact or Commission bylaws or rules shall be 18
construed to prohibit that person from retaining his or her own counsel; and provided further, 19
that the actual or alleged act, error, or omission did not result from that person 's intentional or 20
willful and wanton misconduct. 21
(c) The Commission shall indemnify and hold harmless any member, officer, executive 22
director, employee, or representative of the Commission for the amount of any settlement or 23
judgment obtained against the person arising out of any actual or alleged act, error, or omission 24
that occurred within the scope of the person 's Commission employment, duties, or 25
responsibilities, or that such person had a reasonable basis for believing occurred within the scope 26
of Commission employment, duties, or responsibilities; provided, that the actual or alleged act, 27
error, or omission did not result from the intentional or willful and wanton misconduct of that 28
person. 29
"§ 90-326.13. Compacting states, effective date, amendments, and funding. 30
(a) Compacting States. – Any state is eligible to become a compacting state. 31
(b) Effective Date. – The compact shall become effective and binding upon legislative 32
enactment of the compact into law by two compacting states; provided that the Commission shall 33
only be established after six states become compacting states. Thereafter, the compact shall 34
become effective and binding as to any other compacting state upon enactment of the compact 35
into law by that state. 36
(c) Amendments. – Amendments to the compact may be proposed by the Commission 37
for enactment by the compacting states. No amendment shall become effective and binding until 38
all compacting states enact the amendment into law. 39
(d) Funding. – If funding is requested or required, the legislative authority of each 40
compacting state shall be responsible for making the appropriations it determines necessary to 41
pay for the costs of the compact, including annual member dues and prize distributions. 42
"§ 90-326.14. Withdrawal, default, and expulsion. 43
(a) Once effective, the compact shall continue in force and remain binding upon each and 44
every compacting state; provided, that a compacting state may withdraw from the compact by 45
doing both of the following: 46
(1) Repealing the law enacting the compact in that state. 47
(2) Notifying the Commission in writing of the intent to withdraw on a date that 48
is both of the following: 49
a. At least three years after the date the notice is sent. 50
b. After the repeal takes effect. 51
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Senate Bill 796-First Edition Page 11
(b) The effective date of withdrawal is the date described in subdivision (2) of subsection 1
(a) of this section. 2
(c) The member representing the withdrawing state shall immediately notify the 3
management committee in writing upon the introduction of legislation in that state repealing the 4
compact. If a management committee has not been established, the member shall immediately 5
notify the Commission. 6
(d) The Commission or management committee, as applicable, shall notify the other 7
compacting states of the introduction of such legislation within 10 days after its receipt of notice 8
thereof. 9
(e) The withdrawing state is responsible for all obligations, duties, and liabilities incurred 10
through the effective date of withdrawal, including any obligations, the performance of which 11
extend beyond the effective date of withdrawal. The Commission's actions shall continue to be 12
effective and be given full force and effect in the withdrawing state. 13
"§ 90-326.15. Reinstatement. 14
Reinstatement following a state's withdrawal shall become effective upon the effective date 15
of the subsequent enactment of the compact by that state. 16
"§ 90-326.16. Default. 17
(a) If the Commission determines that any compacting state has at any time defaulted in 18
the performance of any of its obligations or responsibilities under the compact or the 19
Commission's bylaws or rules, then, after notice and hearing as set forth in the bylaws, all rights, 20
privileges, and benefits conferred by this compact on the defaulting state shall be suspended from 21
the effective date of default as fixed by the Commission. The grounds for default include failure 22
of a compacting state to perform its obligations or responsibilities and any other grounds 23
designated in Commission rules. The Commission shall immediately n otify the defaulting state 24
in writing of the suspension pending cure of the default. The Commission shall stipulate the 25
conditions and the time period within which the defaulting state shall cure its default. If the 26
defaulting state fails to cure the default within the time period specified by the Commission, the 27
defaulting state shall be expelled from the compact , and all rights, privileges, and benefits 28
conferred by the compact shall be terminated from the effective date of the expulsion. Any state 29
that is expelled from the compact shall be liable for any cure prize or prizes for three years after 30
its removal. The Commission shall also take appropriate legal action to ensure that any 31
compacting state that withdraws from the compact remains liable for payin g its responsibility 32
toward a prize for a cure that was accepted while the compacting state was a member of the 33
Commission. 34
(b) The expelled state must reenact the compact in order to become a compacting state. 35
"§ 90-326.17. Dissolution of compact. 36
(a) The compact dissolves effective upon the date of either of the following: 37
(1) The withdrawal or expulsion of a compacting state, which withdrawal or 38
expulsion reduces membership in the compact to one compacting state. 39
(2) The Commission votes to dissolve the compact. 40
(b) Upon the dissolution of the compact, the compact becomes null and void and shall be 41
of no further force or effect, and the business and affairs of the Commission shall be wound up , 42
and any surplus funds shall be distributed in accordance with the Commission's bylaws, provided, 43
that the Commission shall pay all outstanding prizes awarded before the dissolution of the 44
compact, as well as any other outstanding debts and obligations incurred during the existence of 45
the compact. Any unawarded funds donated to be part of a prize shall be returned to the donor, 46
along with any interest earned on the amount. 47
"§ 90-326.18. Severability and construction. 48
(a) The provisions of the compact shall be severable, and if any phrase, clause, sentence, 49
or provision is deemed unenforceable, the remaining provisions of the compact shall be 50
enforceable. 51
General Assembly Of North Carolina Session 2025
Page 12 Senate Bill 796-First Edition
(b) The provisions of the compact shall be liberally construed to effectuate its purposes. 1
"§ 90-326.19. Binding effect of compact and other laws. 2
(a) Other Laws. – Nothing in this Article prevents the enforcement of any other law of a 3
compacting state, except as provided in subdivision (2) of subsection (b) of this section. 4
(b) Binding Effect of the Compact. – All of the following are binding: 5
(1) All lawful actions of the Commission, including all Commission rules, are 6
binding upon the compacting states. 7
(2) All agreements between the Commission and the compacting states are 8
binding in accordance with their terms. 9
(3) Except to the extent authorized by the compacting state 's constitution or, if 10
constitutional authorization is not required, by other law of the compacting 11
state, such state, by entering into the compact, does not: 12
a. Commit the full faith and credit or taxing power of the compacting 13
state for the payment of prizes or other obligations under the compact. 14
b. Make prize payment responsibilities or other obligations under the 15
compact a debt of the compacting state. 16
(4) Upon the request of a party to a conflict over the meaning or interpretation of 17
Commission actions, and upon a majority vote of the compacting states, the 18
Commission may issue advisory opinions regarding the meaning or 19
interpretation in dispute. 20
(5) In the event any provision of the compact exceeds the constitutional limits 21
imposed on any compacting state, the obligations, duties, powers , or 22
jurisdiction sought to be conferred by that provision upon the Commission 23
shall be ineffective as to that compacting state, and those obligations, duties , 24
powers, or jurisdiction shall remain in the compacting state and shall be 25
exercised by the agency thereof to which those obligations, duties, powers, or 26
jurisdiction are delegated by law in effect at the time the compact becomes 27
effective." 28
SECTION 2. There is appropriated from the General Fund to the Department of 29
Health and Human Services, Division of Public Health, the sum of one hundred thousand dollars 30
($100,000) in nonrecurring funds for the 2026 -2027 fiscal year. These funds shall not be used 31
for any purpose other than to cover the costs of implementing the Compact to Award Prizes for 32
the Cure of Diseases (the compact) set forth in Article 23B of Chapter 90 of the General Statutes, 33
as enacted by Section 1 of this act. The funds appropriated by this section shall not be available 34
for expenditure unless the compact becomes effective in North Carolina on or before June 30, 35
2027. 36
SECTION 3. Section 2 of this act becomes effective July 1, 2026. The remainder of 37
this act becomes effective upon the enactment of the compact into law by at least two compacting 38
states. 39