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Frequently Asked Questions

Interstate Pest Control Compact

"An Insurance Policy for Pest Control"

The following are questions that have been asked by states who are considering adoption of the model pest control enabling act and the subsequent administration of the pest control insurance fund.

1.  What is the Compact?
The Compact is an organization of states that have joined together to bridge the economic and jurisdictional gap between state governments and between state and federal governments to more adequately address the realities of dynamic pest infestations or outbreaks for which no other appropriate federal or state control mechanism exists.  The Council of State Governments initiated the initial discussions and endorsed formation of the Compact.

2.  Why and when was the Compact established?
Control of pest infestations of agricultural crops across state lines is a complex and costly matter.  The Compact provides a framework within which future responsibilities can be fulfilled in a timely and efficient manner.  In the early 1960's the Council of State Governments was requested to assist in developing a suitable interstate mechanism to effectively pool the resources of the several states when such problems occurred.  The Compact became operative in 1968 when five states became members.  In 2006 the Compact adopted Articles of Association which clarified that The Interstate Pest Control Compact is organized exclusively for the charitable purpose of providing financial assistance to States who may not have the necessary resources to combat plant pest infestations that threaten the agricultural and natural resources of other states impacted by that infestation.  On December 6, 2006, the United States Internal Revenue Service determined that effective September 18, 2006, the Interstate Pest Control Compact (IPCC) is exempt from Federal income tax under section 501 (c) (3) of the Internal Revenue Code.  Contributions to the Interstate Pest Control Compact are deductible under section 170 of the Code.  The Interstate Pest Control Compact is also qualified to receive tax deductible bequests, devises, transfers or gifts under section 2055, 2016 or 2522 of the Code.

3.  What is required for a state to join the Compact?
As per Articles IX and XI of the Pest Control Compact, there shall be two entry requirements for all states party to the Compact:

(a) Payment of funds to the Pest Control Insurance Fund according to the apportionment designated in Article IX of the Pest Control Compact. States may make installment payments of their initial assessment to the Insurance Fund over a period of not to exceed six years.
(b) Enactment of state legislation providing for the joinder of the State in the Pest Control Compact using the suggested state legislation of the Pest Control Compact: Model Enabling Act. Enabling legislation must be passed within six years of payment of funds designated in (a) above, or within six years from enactment of this bylaw. Failure to pass enabling legislation will rescind all voting rights for that State.

4.  Which states currently belong to the Compact?
Currently 37 states have become parties to the Compact.  Click here to see the list of current members.

5.  Why after all these years do all states not belong?
The decision to join is the right of each state.  each state views the financial commitment required in a different manner and priority.  Some states question the possible need to request assistance from other states as a possible loss of control and prestige.  Other states prefer to act independently.

6.  What happens if a state is willing to join the Compact but does not have funding available?
The governing board of the Compact has determined that a state may pay on an installment basis over a period of six years.  This provision should enable any state to make the necessary monetary contribution.

7.  What happens if the fund balance is reduced, through use, to a level where it can no longer function according to the provisions of the Compact?
Any insurance fund must have funds available to pay claims or fund requests approved by the governing board.  the insurance fund of the Interstate Pest Control Compact was established with the hope that all states would become members.  Further, the criteria established by the Governing board provides the means to be very selective in approving requests for insurance funds.  However, the governing board has the authority to assess member states for additional funds on the same pro-rata basis as the initial assessment should the insurance fund balance be reduced to a level where it can no longer function ($750,000) according to the provisions of the Compact.

8.  If an additional assessment is required, are member states required to pay it?  If a member state refuses to pay the additional assessment, will it still retain membership in the Compact?
To become a full participating member of the Compact a state must enact enabling legislation and pay the initial assessment.  If an additional assessment is required, the member state must pay the additional assessment to retain full membership status.  The state would still have the enabling legislation in place, but would forfeit its voting privileges.

9.  A party state finds that a non-party state has a pest condition that presents a serious problem to it should the infestation spread.  What is the procedure that must be followed by the party state to request insurance funds for the non-party state?
The party state must make application for assistance from the insurance fund the same as if both were party states.  the Governing Board shall review the conditions that exist in the non-party state and may require that specific practices, conditions, or fund expenditures be met by the non-party state.

10.  What are some of the pest problems which have been handled under the Compact?
The Compact has funded numerous insect, disease, nematode and weed projects in many states.  Click here to see a list of the funded projects.

11.  What participation will a state have in decision making under the Compact?
Each state's enabling act designates a Compact administrator for that state.  Each member state has a representative on the governing board of the Insurance Fund.  The governing board shall meet at least once each year for the purpose of determining policies and procedures in the administration of the  insurance fund.  the officers and the executive committee of the governing board are elected on an annual basis.  This participation in decision making will depend upon whether or not the state representative attends the meeting(s) of the governing board.

12.  Will there be future additional assessment or membership fees?
This will depend upon the requests for assistance submitted by member states and the decisions made by the governing board on whether such requests should be approved.  the Compact has been in place since 1968, the fund balance has increased each year.

13.  What is meant by the term "pest"?
"Pest" means any vertebrate animal, pathogen, parasitic plant or similar or allied organism which can cause disease or damage to any crops, trees, shrubs, grasses or other plants of substantial value.  Animal pests and diseases are nit included.  Over the years pests which the Compact has addressed are those which were new or had economic significance, or were outside the control means of a single jurisdiction, or were of concern to other states if allowed to spread and the size of the infestation was such that results could be achieved.  These criteria along with the definition of a pest, do serve to limit the requests made and approvals given.

14.  Why are animal pests not included in the Compact?
Animal and plant pests are handled under separate statutory authorities, i.e. Plant Pest Laws vs. Animal Pest Laws.  The methods of plant pest and disease distribution are much more difficult to control.  Quarantines can and have been used to control plant pests.  However, because of the ability of these pests to move by wind, water, soil or other means, plant quarantines are generally not as effective as animal quarantines because animal movement is much easier to control. 

15.  What is the "insurance fund" and how does it relate to the "Compact"?   
The Interstate Pest Control Compact is the legally structured cooperative mechanism between states so that states wishing to become members may enact uniform legislation and have a governing board made up of state administrators duly authorized to collect and expend funds.  The "insurance fund" is the pest control insurance fund established in accordance with the provisions of the Compact and laws enacted by each member state.

16.  How long does the process take in an emergency?
The governing board has established a technical committee of plant industry representatives from all geographic areas.  Once the request for assistance has been received in the office of the Executive Director, and it has been determined that the program of action can be followed, an answer can be provided to the requesting state within seven days.

17.  How does the pest control insurance fund work?
Each member state makes an appropriation to the fund.  Each state appropriation can be equated with a premium used to purchase insurance against plant pests invading from other states.  The Insurance Fund may also accept for any of its purposes and functions under this Compact any and all donations, and grants of money, equipment, supplies, materials, and services, conditional or otherwise, from any state, the United States, or any other governmental agency, or from any person, firm, association, or corporation, and may receive, utilize and dispose of the same.  Such donations may be considered tax deductible by the donor.  Click here for IRS tax exempt determination letter.

18.  Does the entire governing board have to meet to appropriate funds?
The governing board elects a five person executive committee to exercise certain responsibilities for the governing board when the board is not in session.  This select committee affords geographic representation.

19.  Is it possible for a five person committee to have enough knowledge to assess the potential of all pests?
No it is not, but a technical committee made up of plant industry representatives from all geographic areas is available and will be contacted, to provide a recommendation to the executive committee.