Vermont § 1420r - Default procedures

§ 1420r. Default procedures

• (a) The grounds for default include, but are not limited to, failure of a member state
  to perform such obligations or responsibilities imposed upon it by the Compact, or
  the rules and bylaws of the Interstate Commission promulgated under the Compact. (b) If the Interstate Commission determines that a member state has defaulted in the performance
  of its obligations or responsibilities under the Compact or the bylaws or promulgated
  rules, the Interstate Commission shall: (1) Provide written notice to the defaulting state and other member states, of the nature
  of the default, the means of curing the default, and any action taken by the Interstate
  Commission. The Interstate Commission shall specify the conditions by which the defaulting
  state must cure its default; and (2) Provide remedial training and specific technical assistance regarding the default. (c) If the defaulting state fails to cure the default, the defaulting state shall be terminated
  from the Compact upon an affirmative vote of a majority of the Commissioners and all
  rights, privileges, and benefits conferred by the Compact shall terminate on the effective
  date of termination. A cure of the default does not relieve the offending state of
  obligations or liabilities incurred during the period of the default. (d) Termination of membership in the Compact shall be imposed only after all other means
  of securing compliance have been exhausted. Notice of intent to terminate shall be
  given by the Interstate Commission to the governor, the majority and minority leaders
  of the defaulting state’s legislature, and each of the member states. (e) The Interstate Commission shall establish rules and procedures to address licenses
  and physicians that are materially impacted by the termination of a member state or
  the withdrawal of a member state. (f) The member state that has been terminated is responsible for all dues, obligations,
  and liabilities incurred through the effective date of termination including obligations,
  the performance of which extends beyond the effective date of termination. (g) The Interstate Commission shall not bear any costs relating to any state that has
  been found to be in default or that has been terminated from the Compact, unless otherwise
  mutually agreed upon in writing between the Interstate Commission and the defaulting
  state. (h) The defaulting state may appeal the action of the Interstate Commission by petitioning
  the U.S. District Court for the District of Columbia or the federal district where
  the Interstate Commission has its principal offices. The prevailing party shall be
  awarded all costs of such litigation including reasonable attorney’s fees. (Added 2017, No. 115 (Adj. Sess.), § 1, eff. Jan. 1, 2020.)