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Up until the 1922 creation of the Port Authority of New York and New Jersey—one of the most famous examples of interstate compacts—states mostly used compacts to address boundary issues rather than complex interstate challenges. Const., art. An interstate compact is a contractual arrangement made between two or more states in which the assigned parties agree on a specific policy issue and either adopt a set of standards or cooperate with one another on a particular regional or national matter. Those compacts were introduced in 2016 and have been enacted in one state and three states, respectively.  Buenger et al., supra note 2, at 269. Traditionally, this device was used to Despite the freedom of states to form interstate compacts, the trend is toward increased federal participation and control. Atlantic States Marine Fisheries Commission. The District of Columbia belongs to 26 interstate compacts. , While interstate compacts are binding contracts among those states party to them, compacts that are approved by Congress also become federal law. That compact primarily provides for the adjustment of the border between the two states, as well as related matters, such as specifying one state’s relinquishment of sovereignty to territory that became part of the other state pursuant to the boundary adjustment, and the right to tax property located in acquired territory.. v. Board of Governors, the Court indicated that congressional consent would be required for a compact that would increase the political power of compacting states “at the expense of” non-compacting states.. Compacts that require ongoing or future activities may provide for one or more mechanisms for acquiring the funds to pay for those activities.  If so approved by the legislature, a state’s governor will still have the power to veto a compact if the governor so determines (subject to an ability of the legislature to override a veto with a re-vote). Tribal governments are on equal footing with state government and have a government-to-government relationship with federal governm… Hawaii belongs to 24 interstate compacts. The US Supreme Court often suggests to state litigants that they address conflicts by means of interstate compacts, rather than by litigation. Michigan belongs to 32 interstate compacts. As contracts between states, compacts affect the rights and responsibilities of states party to them (and their citizens); the US Supreme Court has indicated that the interests of non-party states could be a factor when determining whether congressional consent is required.  Bylaws, Multistate Tax Commission, http://www.mtc.gov/The-Commission/Bylaws (last visited June 19, 2018). As state-level administrative functions have increased, however, interstate compacts have grown to include provisions for rules and procedures to manage activity under them. 5 Compacts are financed in various ways; these can include state appropriations, proceeds from compact activities, foundation funds, and dues assessments. Native American tribal governments are sovereign, self-governing entities. 1 (providing that the “Citizens of each State shall be entitled to all Privileges and Immunities of Citizens in the several States”).  See, e.g., Woodrow Wilson Bridge and Tunnel Compact, supra note 48, tit.  States negotiating compacts on their own initiative may invite representatives of federal agencies to participate; when Congress invited negotiation of a compact on water allocation that would involve the District of Columbia, a non-state jurisdiction the legislative enactments of which are subject to review by Congress, Congress specified that federal representatives would be required in the negotiations. Information provided about each compact includes the states party to it, citations to where the compact appears in those states’ respective statutes, and, in many cases, a PDF version of the compact and/or a link to the website of the commission or other interstate agency formed by the compact. Establishment of an interstate agency to administer compact activities, Creation of a governing body to manage the interstate agency, with representatives of each of the states party to the compact, Requirements for voting by the interstate agency’s governing body (voting matters under such compacts are addressed in Part IV(C), below), Restrictions on conflict of interest transactions between the interstate agency and members of its board, officers, or employees, Taxes imposed by the interstate agency created by the compact, Assessments paid by the states that are part of the compact (annually or at other intervals), Appropriations through such states’ legislative processes (common in compacts that create commissions that act in an advisory capacity), Revenue from activity under the compact, such as admissions and inspection fees assessed by the Historic Chattahoochee Commission (formed to promote tourism and historic preservation in parts of the states of Alabama and Georgia), or the proceeds of sales of lottery tickets by the commission formed under the Tri-State Lotto Compact, Funds and property received as donations, grants, or bequests, Borrowed funds derived from bank loans or bond issuances, often used in compacts requiring substantial capital to accomplish their objectives, such as building bridges or roads, or other transportation projects, Governance, such as bylaws for the interstate agency, its officers, and its committees, Financial matters, such as creating budgets, receiving and paying funds, borrowing money, and accepting donations, Conducting other business, such as leasing, buying, or selling real property; setting up offices; hiring staff; entering contracts; and bringing or defending lawsuits.  U.S. Credit Clause. According to the Compact Clause (Article I, Section 10) of the U.S. Constitution, states have the authority to enter into compacts with each other for any purpose subject only to congressional approval.Interstate compacts take the form of a binding agreement that requires the … , As another example, under the Woodrow Wilson Bridge and Tunnel Compact, Virginia, Maryland, and the District of Columbia created an interstate agency named the National Capital Region Woodrow Wilson Bridge and Tunnel Authority to take over ownership and operation of that bridge from the federal government. Virginia belongs to 55 interstate compacts. Colorado is part of nine interstate river compacts, documents which govern the use of rivers crossing state lines.Key to equitable allocation of the West's most precious resource—water—the compact clause of the U.S. Constitution was first applied to rivers in the 1920s, an idea conceived and promoted by Greeley water lawyer Delph Carpenter.  Council of State Governments, Compact Governance 1, https://www.csg.org/knowledgecenter/docs/ ncic/Success.pdf (last visited June 19, 2018). The National Center for Interstate Compacts of the Council of State Governments has created an online database of interstate compacts available at http://apps.csg.org/ncic/Default.aspx. Grants of Franchise to Corporations by Two States.  Texas v. New Mexico, 482 U.S. 124, 134 (1987).  Virginia v. Tennessee, 148 U.S. 503, 519 (1893). I, art. Legal | Porter, chief of the Florida bureau of interstate compacts, wrote Kirk.
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