Compacts

Under United States law, an interstate compact is an agreement, comparable to a treaty or a contract, between two or more US states. more...

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Introduction

Interstate compacts represent an opportunity for multistate cooperation, reinforcing state sovereignty and avoiding federal intervention. The emergence of broad public policy issues that cross jurisdictional boundaries present new governing challenges to state authorities. Compacts enable the states – in their sovereign capacity – to act jointly and collectively, generally outside the confines of the federal legislative or regulatory process while respecting the view of Congress on the appropriateness of joint action.

Unlike federal actions that impose unilateral, rigid mandates, compacts afford states the opportunity to develop dynamic, self regulatory systems over which the party states can maintain control through a coordinated legislative and administrative process. Compacts enable the states to develop adaptive structures that can evolve to meet new and increased challenges that naturally arise over time.

Political and legislative framework

Characteristics

General purposes for creating an interstate compact include:

1) Establish a formal, legal relationship among states to address common problems or promote a common agenda.; 2) Create independent, multistate governmental authorities (e.g., commissions) that can address issues more effectively than a state agency acting independently, or when no state has the authority to act unilaterally.; 3) Establish uniform guidelines, standards, or procedures for agencies in the compact’s member states.; 4) Create economies of scale to reduce administrative and other costs.; 5) Respond to national priorities in consultation or in partnership with the federal government.; 6) Retain state sovereignty in matters traditionally reserved for the states.; 7) Settle interstate disputes.;

It should be noted that an interstate compact is not a uniform state law. In fact, an interstate compact differs from a uniform state law in several ways, most notably that a uniform law does not depend on contractual obligations and a state can therefore change any portion of the law, thus losing any degree of uniformity initially intended. Second, courts of different states may interpret the provisions of a uniform state law differently and since the highest court in a state is the final arbiter on legal issues within that state, there is no satisfactory way to achieve a reconciliation of divergent interpretations.

Compacts are created when an offer is made by one state, usually by statute that adopts the terms of a compact requiring approval by one or more other states to become effective. Other states accept the offer by adopting identical compact language. Once the required number of states has adopted the pact, the “contract” among them is valid and becomes effective as provided.

Read more at Wikipedia.org