P.R. Laws tit. 26, § 8094

2019-02-20 00:00:00+00
§ 8094. Disaffiliation, default and dissolution

(a) Disaffiliation.— Once the Compact is in effect it shall remain in effect and shall be obligatory in all subscribing states; Provided, That a subscribing state may disaffiliate itself from the Compact through the approval of a law that repeals the statute by which the Compact became law.

The effective date of the disaffiliation shall be the effective date of the repeal. However, the disaffiliation shall not apply to the products introduced that have been approved or are already certified or to the publicity material of said products by the date in which the law through which the disaffiliation took place becomes effective, except through an agreement between the Commission and the disaffiliated state, unless the disaffiliated state revokes the approval as provided in the present Compact.

The Commissioner of the disaffiliating state shall immediately notify the Administrative Committee upon the introduction of the bill to repeal the Compact in the disaffiliating state.

The Commission shall notify all other subscribing states about the filing to repeal this Compact in the disaffiliated state within ten (10) days of having received notice thereof.

The disaffiliated state shall be liable for all obligations, duties and responsibilities incurred [up] to the effective date of disaffiliation, including any obligation whose execution extends beyond the effective date of disaffiliation, except those obligations that may be excused or delivered through a mutual agreement between the Commission and the disaffiliated state. The approval granted by the Commission about the publicity products and materials prior to the date of disaffiliation of the state shall remain in force, except if revoked by said state in the same way the laws of the disaffiliated state authorize the prospective disapproval of publicity products or materials.

Reinstatement after disaffiliation shall take place when the disaffiliated state again approves the Compact.

(b) Default.— Should the Commission determine that a subscribing state has failed to meet (has been in default of) its obligations or responsibilities pursuant to the present Compact, all rights, privileges and benefits shall be suspended after notice and hearing as provided in the regulations, effective to the date the Commission may determine. The grounds for determining whether the state is in default include but are not limited to, (a)[sic] whether the subscribing state has failed to meet its obligations and responsibilities as established in the regulations of the Commission. The Commission shall immediately notify the state in writing about the suspension until noncompliance has been remedied. The Commission shall stipulate the conditions and the term within which noncompliance must be remedied. Should the state fail to remedy the errors within the term established by the Commission, it shall be suspended from the Compact and all its rights, privileges and benefits shall cease as of the effective date of the separation.

The approval of products granted by the Commission or the certification of products made by the party which makes the introduction, or of all materials related to said products that are in effect at the time of separation of the state, shall remain in force as if the state in default had disaffiliated itself voluntarily pursuant to this section.

Reinstatement after the disaffiliation of a subscribing state shall again require approval of the Compact through a law.

(c) Dissolution of the Compact.— The dissolution of the Compact shall occur on the effective date of the disaffiliation or default of the subscribing state that would reduce the number of members of the Compact to a single subscribing state. Upon the dissolution of the present Compact, the same shall be null and shall not have force or effect of law and the operations and the affairs of the Commission shall be concluded and any surplus funds shall be distributed according to the bylaws.

History —Dec. 22, 2005, No. 161, art. 1.14.