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Interstate compact

Formal agreement between two or more U.S. states

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Description

Most early interstate compacts resolved boundary disputes, but since the early 20th century, compacts have increasingly been used as tools of state cooperation and mutual recognition for infrastructure, services, and professional licensing, often to ease administrative barriers and reduce costs and litigation. In some cases, an agreement will create a new multistate governmental agency responsible for administering or improving a shared resource, such as a seaport or public transportation infrastructure. Compacts may also be limited to a specific multistate region, open to all states and insular areas, or open to subnational governments in other countries.

Interstate compacts are considered to be legally binding contracts, and states can be compelled to comply with their terms by Congress and the courts. Even if the compact is not enacted by statute, it has the force of statutory law, superseding state law when there is a conflict.

Interstate compacts are distinct from, but may involve aspects of, the following:

  • Model acts, which are proposed statutes produced by non-governmental bodies of legal experts to be passed by state legislatures independently, rather than constituting an agreement among multiple states;
  • executive agreements between governors or statewide executive officers of states, which may or may not have the backing of statute or state constitutional law;
  • State-level trigger laws which provide for an automatic action if one or more states, or the federal government, perform a specified action; or
  • State-level laws mandating, permitting, or prohibiting state cooperation with another state government or the federal government regarding certain actions.

Interstate agencies

Several interstate compacts may establish multistate agencies to coordinate policy among member states or to perform tasks on behalf of member states. Such agencies may take the form of commissions, with at least one representative from a member state with a voting role in the commission. Alternatively, member states to a compact may opt for cooperation with a single independent non-profit organization that carries out designated tasks without government funding. Actions or rule changes taken by commissions or non-profits may require ratification by the member states to take effect, depending on whether they alter the terms of the compact.

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