Bill > S1966

Introduced Session

This bill enters New Jersey into the Solemn Covenant of the States to Award Prizes for Curing Diseases (compact). The purpose of the compact is to pool monies from the member states to award prizes for developing cures for certain diseases that represent a significant risk to the public health as well as a significant public expense. The compact becomes effective once two states adopt legislation enacting the compact. Once six states enter the compact, the member states will form a commission, which will comprise one representative from each member state. The commission will have various powers necessary to implement and administer the provisions of the compact, including the power to adopt bylaws and rules; receive and review applications for prizes; make disease cures widely available, including entering into contracts to manufacture or produce the cure; establish and collect royalty fees associated with the cure; and monitor compliance with compact requirements by member states. Each member will have one vote on the commission, and a majority vote by the total membership is required to take most official action, although a vote by two-thirds of the members is required to take certain specified actions, including awarding prizes under the compact. The commission is to meet at least once per year and establish annual membership dues that will be based on the percentage of each member state's population in relation to the total population of all member states. Generally, commission meetings will be open to the public, but the commission may go into executive session to discuss certain matters if authorized under the bylaws to be developed by the commission. The commission will establish rules for the purposes of designating the diseases that will be eligible for a prize. The commission is to create a list of at least 10 major diseases based on the severity of the disease and the public expenses associated with the disease, and create criteria upon which the cure for the disease will be measured which, at a minimum, is to include a 95 percent survival rate through at least five years after the cure is administered, and a course of treatment using the cure that lasts no more than one year. The list is to be updated at least once every three years. The commission may, by a two-thirds vote, expand the list to include more than 10 diseases. The commission will be required to employ or contact with actuaries to determine the estimated five-year public health expenses for each disease included in the list. Prizes will be equal to the most recent estimated total five-year savings in public health expenses for the disease in all member states, plus any amount donated for inclusion in the prize by any entity. An entity awarded a prize under the compact will be required to transfer to the commission the patent and all related intellectual property for the cure in exchange for the prize money, unless the commission determines the amount of the prize is too low. Only one prize may be awarded for each listed disease. Once a prize is awarded, the commission is to take out a loan equal to the prize amount, which loan will be repaid by the member states through five annual payments equal to that state's one-year savings from curing the disease. Member states may meet their prize obligations by issuing bonds or other obligations that are to be repaid through revenue derived from public health savings. The commission may rescind a prize if it determines the cure no longer meets the commission's criteria for a prize award. The commission is to establish a dispute resolution process to appeal award decisions as well as to resolve disputes between member states. No entity will be eligible for a prize award if the entity has violated the ethical standards of any state the United States, regardless of whether the state is a member of the compact. The commission is to develop ethical standards reflective of the laws concerning ethical standards in place under federal law and the laws of in all 50 states. Once 26 states have joined the compact, the commission will be authorized to establish a management committee comprising no more than 14 members representing the member states with the highest total public health expenses. The management committee will have the authority over the day-to-day affairs of the commission as well as coordinating communications and activities with various governmental entities. The commission may also, at any time, appoint advisory committees to monitor operations related to the purposes of the compact and to assist the commission in developing cure criteria, promulgating or revising rules and bylaws, adopting an annual budget, and addressing other matters of significance to the commission. The compact includes certain recordkeeping requirements for the commission, sets forth confidentiality requirements, provides for annual internal reviews and independent audits of the commission's finances and internal controls, provides for periodic management and performance audits, requires annual reporting to the governors of the member states, and provides for qualified immunity, defense, and indemnification for the members, officers, and employees of the commission in relation to their official duties. The compact further establishes requirements for the voluntary withdrawal and mandatory expulsion of member states and procedures for the dissolution of the compact. The provisions of the compact are severable, and the compact specifies that nothing in its provisions is to be construed to impair the operation of any law of a member state. The bill provides that the New Jersey member of the commission is to be appointed by the Governor with the advice and consent of the Senate. Except as may be contraindicated by the compact, the member will serve until the appointment of a successor, and is to have a background and expertise in communicable diseases and the public health. The member will serve without compensation but may be reimbursed for reasonable expenses incurred in connection with the member's duties with the commission. For administrative purposes, the member position will be placed in the Department of Health. Legislation adopting the compact has been enacted in Ohio and introduced in at least 10 other states, including Hawaii, Iowa, Indiana, Kentucky, Maryland, Rhode Island, South Carolina, Tennessee, Virginia, and West Virginia.

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Vin Gopal (D)*,  Tom Kean (R)*, 

Introduced in the Senate, Referred to Senate Health, Human Services and Senior Citizens Committee (on 02/25/2020)