# Title 54 — State Government

## Chapter 54-03.3 — Compact for a Balanced Budget

### § 54-03.3-01. Adoption of compact.

The state of North Dakota enacts, adopts, and agrees to be bound by the Compact for a
Balanced Budget with all other jurisdictions legally joining therein in the form substantially as
follows:
Whereas, every state enacting, adopting and agreeing to be bound by this compact intends
to ensure that their respective legislature's use of the power to originate a Balanced Budget
Amendment under Article V of the Constitution of the United States will be exercised
conveniently and with reasonable certainty as to the consequences thereof.
Now, therefore, in consideration of their expressed mutual promises and obligations, be it
enacted by every state enacting, adopting and agreeing to be bound by this compact, and
resolved by each of their respective legislatures, as the case may be, to exercise herewith all of
their respective powers as set forth herein notwithstanding any law to the contrary.
1. "Compact" means this "Compact for a Balanced Budget".
2. "Convention" means the convention for proposing amendments organized by this
compact under Article V of the Constitution of the United States and, where
contextually appropriate to ensure the terms of this compact are not evaded, any other
similar gathering or body, which might be organized as a consequence of Congress
receiving the application set out in this compact and claim authority to propose or
effectuate any amendment, alteration or revision to the Constitution of the United
States. This term does not encompass a convention for proposing amendments under
Article V of the Constitution of the United States that is organized independently of this
compact based on the separate and distinct application of any state.
3. "State" means one of the several states of the United States. Where contextually
appropriate, the term "state" shall be construed to include all of its branches,
departments, agencies, political subdivisions, and officers and representatives acting
in their official capacity.
4. "Member state" means a state that has enacted, adopted, and agreed to be bound to
this compact. For any state to qualify as a member state with respect to any other
state under this compact, each such state must have enacted, adopted, and agreed to
be bound by substantively identical compact legislation.
5. "Compact notice recipients" means the archivist of the United States, the president of
the United States, the president of the United States Senate, the office of the secretary
of the United States Senate, the speaker of the United States House of
Representatives, the office of the clerk of the United States House of Representatives,
the chief executive officer of each state, and the presiding officers of each house of the
legislatures of the several states.
6. Notice. All notices required by this compact shall be by United States certified mail,
return receipt requested, or an equivalent or superior form of notice, such as personal
delivery documented by evidence of actual receipt.
7. "Balanced Budget Amendment" means the following:
"Article ___
Section 1. Total outlays of the government of the United States shall not exceed
total receipts of the government of the United States at any point in time unless
the excess of outlays over receipts is financed exclusively by debt issued in strict
conformity with this article.
Section 2. Outstanding debt shall not exceed authorized debt, which initially shall
be an amount equal to 105 percent of the outstanding debt on the effective date
of this article. Authorized debt shall not be increased above its aforesaid initial
amount unless such increase is first approved by the legislatures of the several
states as provided in Section 3.

Section 3. From time to time, Congress may increase authorized debt to an
amount in excess of its initial amount set by Section 2 only if it first publicly refers
to the legislatures of the several states an unconditional, single subject measure
proposing the amount of such increase, in such form as provided by law, and the
measure is thereafter publicly and unconditionally approved by a simple majority
of the legislatures of the several states, in such form as provided respectively by
state law; provided that no inducement requiring an expenditure or tax levy shall
be demanded, offered or accepted as a quid pro quo for such approval. If such
approval is not obtained within sixty (60) calendar days after referral then the
measure shall be deemed disapproved and the authorized debt shall thereby
remain unchanged.
Section 4. Whenever the outstanding debt exceeds 98 percent of the debt limit
set by Section 2, the President shall enforce said limit by publicly designating
specific expenditures for impoundment in an amount sufficient to ensure
outstanding debt shall not exceed the authorized debt. Said impoundment shall
become effective thirty (30) days thereafter, unless Congress first designates an
alternate impoundment of the same or greater amount by concurrent resolution,
which shall become immediately effective. The failure of the President to
designate or enforce the required impoundment is an impeachable misdemeanor.
Any purported issuance or incurrence of any debt in excess of the debt limit set
by Section 2 is void.
Section 5. No bill that provides for a new or increased general revenue tax shall
become law unless approved by a two-thirds roll call vote of the whole number of
each House of Congress. However, this requirement shall not apply to any bill
that provides for a new end user sales tax which would completely replace every
existing income tax levied by the government of the United States; or for the
reduction or elimination of an exemption, deduction, or credit allowed under an
existing general revenue tax.
Section 6. For purposes of this article, "debt" means any obligation backed by the
full faith and credit of the government of the United States; "outstanding debt"
means all debt held in any account and by any entity at a given point in time;
"authorized debt" means the maximum total amount of debt that may be lawfully
issued and outstanding at any single point in time under this article; "total outlays
of the government of the United States" means all expenditures of the
government of the United States from any source; "total receipts of the
government of the United States" means all tax receipts and other income of the
government of the United States, excluding proceeds from its issuance or
incurrence of debt or any type of liability; "impoundment" means a proposal not to
spend all or part of a sum of money appropriated by Congress; and "general
revenue tax" means any income tax, sales tax, or value-added tax levied by the
government of the United States excluding imposts and duties.
Section 7. This article is immediately operative upon ratification, self-enforcing,
and Congress may enact conforming legislation to facilitate enforcement."
1. This compact governs each member state to the fullest extent permitted by their
respective constitutions, superseding and repealing any conflicting or contrary law.
2. By becoming a member state, each such state offers, promises, and agrees to perform
and comply strictly in accordance with the terms and conditions of this compact, and
has made such offer, promise, and agreement in anticipation and consideration of, and
in substantial reliance upon, such mutual and reciprocal performance and compliance
by each other current and future member state, if any. Accordingly, in addition to
having the force of law in each member state upon its respective effective date, this
compact and each of its articles shall also be construed as contractually binding each
member state when:

a. At least one other state has likewise become a member state by enacting
substantively identical legislation adopting and agreeing to be bound by this
compact; and
b. Notice of such state's member state status is or has been seasonably received by
the compact administrator, if any, or otherwise by the chief executive officer of
each other member state.
3. For purposes of determining member state status under this compact, as long as all
other provisions of the compact remain identical and operative on the same terms,
legislation enacting, adopting, and agreeing to be bound by this compact shall be
deemed and regarded as "substantively identical" with respect to such other legislation
enacted by another state notwithstanding:
a. Any difference in subsection 2 of article IV with specific regard to the respectively
enacting state's own method of appointing its member to the commission;
b. Any difference in subsection 5 of article IV with specific regard to the respectively
enacting state's own obligation to fund the commission;
c. Any difference in subsections 1 and 2 of article VI with specific regard to the
number and identity of each delegate respectively appointed on behalf of the
enacting state, provided that no more than three delegates may attend and
participate in the Convention on behalf of any state; or
d. Any difference in subsection 7 of article X with specific regard to the respectively
enacting state as to whether subsection 1 of article V of this compact shall
survive termination of the compact, and thereafter become a continuing resolution
of the legislature of such state applying to Congress for the calling of a
convention of the states under Article V of the Constitution of the United States,
under such terms and limitations as may be specified by such state.
4. When fewer than three-fourths of the states are member states, any member state
may withdraw from this compact by enacting appropriate legislation, as determined by
state law, and giving notice of such withdrawal to the compact administrator, if any, or
otherwise to the chief executive officer of each other member state. A withdrawal shall
not affect the validity or applicability of the compact with respect to remaining member
states, provided that there remain at least two such states. However, once at least
three-fourths of the states are member states, then no member state may withdraw
from the compact prior to its termination absent unanimous consent of all member
states.
1. Nature of the compact commission. The compact commission ("commission") is
hereby established. It has the power and duty:
a. To appoint and oversee a compact administrator;
b. To encourage states to join the compact and Congress to call the Convention in
accordance with this compact;
c. To coordinate the performance of obligations under the compact;
d. To oversee the Convention's logistical operations as appropriate to ensure this
compact governs its proceedings;
e. To oversee the defense and enforcement of the compact in appropriate legal
venues;
f. To request funds and to disburse those funds to support the operations of the
commission, compact administrator, and Convention; and
g. To cooperate with any entity that shares a common interest with the commission
and engages in policy research, public interest litigation, or lobbying in support of
the purposes of the compact. The commission shall only have such implied
powers as are essential to carrying out these express powers and duties. It shall
take no action that contravenes or is inconsistent with this compact or any law of
any state that is not superseded by this compact. It may adopt and publish
corresponding bylaws and policies.
2. Commission membership. The commission initially consists of three unpaid members.
Each member state may appoint one member to the commission through an

appointment process to be determined by their respective chief executive officer until
all positions on the commission are filled. Positions shall be assigned to appointees in
the order in which their respective appointing states became member states. The
bylaws of the commission may expand its membership to include representatives of
additional member states and to allow for modest salaries and reimbursement of
expenses if adequate funding exists.
3. Commission action. Each commission member is entitled to one vote. The commission
shall not act unless a majority of its appointed membership is present, and no action
shall be binding unless approved by a majority of the commission's appointed
membership. The commission shall meet at least once a year, and may meet more
frequently.
4. First order of business. The commission shall at the earliest possible time elect from
among its membership a chairperson, determine a primary place of doing business,
and appoint a compact administrator.
5. Funding. The commission and the compact administrator's activities shall be funded
exclusively by each member state, as determined by their respective state law, or by
voluntary donations.
6. Compact administrator. The compact administrator has the power and duty:
a. To timely notify the states of the date, time, and location of the Convention;
b. To organize and direct the logistical operations of the Convention;
c. To maintain an accurate list of all member states, their appointed delegates,
including contact information; and
d. To formulate, transmit, and maintain all official notices, records, and
communications relating to this compact. The compact administrator shall only
have such implied powers as are essential to carrying out these express powers
and duties; and shall take no action that contravenes or is inconsistent with this
compact or any law of any state that is not superseded by this compact. The
compact administrator serves at the pleasure of the commission and must keep
the commission seasonably apprised of the performance or nonperformance of
the terms and conditions of this compact. Any notice sent by a member state to
the compact administrator concerning this compact shall be adequate notice to
each other member state provided that a copy of said notice is seasonably
delivered by the compact administrator to each other member state's respective
chief executive officer.
7. Notice of key events. Upon the occurrence of each of the following described events,
or otherwise as soon as possible, the compact administrator shall immediately send
the following notices to all compact notice recipients, together with certified conforming
copies of the chaptered version of this compact as maintained in the statutes of each
member state:
a. Whenever any state becomes a member state, notice of that fact shall be given;
b. Once at least three-fourths of the states are member states, notice of that fact
shall be given together with a statement declaring that the legislatures of at least
two-thirds of the several states have applied for a convention for proposing
amendments under Article V of the Constitution of the United States, petitioning
Congress to call the Convention contemplated by this compact, and further
requesting cooperation in organizing the same in accordance with this compact;
c. Once Congress has called the Convention contemplated by this compact, and
whenever the date, time, and location of the Convention has been determined,
notice of that fact shall be given together with the date, time, and location of the
Convention and other essential logistical matters;
d. Upon approval of the Balanced Budget Amendment by the Convention, notice of
that fact shall be given together with the transmission of certified copies of such
approved proposed amendment and a statement requesting Congress to refer
the same for ratification by three-fourths of the legislatures of the several states
under Article V of the Constitution of the United States. However, in no event shall

any proposed amendment other than the Balanced Budget Amendment be
transmitted; and
e. When any article of this compact prospectively ratifying the Balanced Budget
Amendment is effective in any member state, notice of the same shall be given
together with a statement declaring such ratification and further requesting
cooperation in ensuring that the official record confirms and reflects the effective
corresponding amendment to the Constitution of the United States. However,
whenever any member state enacts appropriate legislation, as determined by the
laws of the respective state, withdrawing from this compact, the compact
administrator shall immediately send certified conforming copies of the chaptered
version of such withdrawal legislation as maintained in the statutes of each such
withdrawing member state, solely to each chief executive officer of each
remaining member state, giving notice of such withdrawal.
8. Cooperation. The commission, member states, and compact administrator shall
cooperate with each other and give each other mutual assistance in enforcing this
compact and shall give the chief law enforcement officer of each other member state
any information or documents that are reasonably necessary to facilitate the
enforcement of this compact.
9. This article does not take effect until there are at least two member states.
1. Be it resolved, as provided for in Article V of the Constitution of the United States, the
legislature of each member state herewith applies to Congress for the calling of a
convention for proposing amendments limited to the subject matter of proposing for
ratification the Balanced Budget Amendment.
2. Congress is further petitioned to refer the Balanced Budget Amendment to the states
for ratification by three-fourths of their respective legislatures.
3. This article does not take effect until at least three-fourths of the several states are
member states.
1. Number of delegates. Each member state shall be entitled to three delegates to
represent its sovereign interests at the Convention as set forth in this article.
2. Identity of delegates. The governor, speaker of the house of representatives, and
president pro tempore of the senate of the member state who hold office at the time of
the Convention, or the officers' designees as identified in sworn affidavits executed by
the officers, are each appointed in an individual capacity to represent the member
state at the Convention as the member state's sole and exclusive delegates. A majority
of this delegation shall decide the issue at the Convention on behalf of the member
state.
3. Replacement or recall of delegates. A delegate appointed hereunder may be replaced
or recalled by the legislature of his or her respective state at any time for good cause,
such as criminal misconduct or the violation of this compact. If replaced or recalled,
any delegate previously appointed hereunder must immediately vacate the Convention
and return to their respective state's capital.
4. Oath. The power and authority of a delegate under this article may only be exercised
after the Convention is first called by Congress in accordance with this compact and
such appointment is duly accepted by such appointee publicly taking the following oath
or affirmation: "I do solemnly swear (or affirm) that I accept this appointment and will
act strictly in accordance with the terms and conditions of the compact for a balanced
budget, the constitution of the state I represent, and the Constitution of the United
States. I understand that violating this oath (or affirmation) forfeits my appointment and
may subject me to other penalties as provided by law."
5. Term. The term of a delegate hereunder commences upon acceptance of appointment
and terminates upon the permanent adjournment of the Convention, unless shortened
by recall, replacement, or forfeiture under this article. Upon expiration of such term,
any person formerly serving as a delegate must immediately withdraw from and cease
participation at the Convention, if any is proceeding.

6. Delegate authority. The power and authority of any delegate appointed hereunder is
strictly limited:
a. To introducing, debating, voting upon, proposing, and enforcing the Convention
rules specified in this compact, as needed to ensure those rules govern the
Convention; and
b. To introducing, debating, voting upon, and rejecting or proposing for ratification
the Balanced Budget Amendment. All actions taken by any delegate in violation of
this section are void ab initio.
7. Delegate authority. No delegate of any member state may introduce, debate, vote
upon, reject, or propose for ratification any constitutional amendment at the
Convention unless:
a. Convention rules specified in this compact govern the Convention and their
actions; and
b. The constitutional amendment is the Balanced Budget Amendment.
8. Delegate authority. The power and authority of any delegate at the Convention does
not include any power or authority associated with any other public office held by the
delegate. Any person appointed to serve as a delegate shall take a temporary leave of
absence, or otherwise shall be deemed temporarily disabled, from any other public
office held by the delegate while attending the Convention, and may not exercise any
power or authority associated with any other public office held by the delegate, while
attending the Convention. All actions taken by any delegate in violation of this section
are void ab initio.
9. Order of business. Before introducing, debating, voting upon, rejecting, or proposing
for ratification any constitutional amendment at the Convention, each delegate of every
member state must first ensure the Convention rules in this compact govern the
Convention and their actions. Every delegate and each member state must
immediately vacate the Convention and notify the compact administrator by the most
effective and expeditious means if the Convention rules in this compact are not
adopted to govern the Convention and their actions.
10. Forfeiture of appointment. If any member state or delegate violates any provision of
this compact, then every delegate of that member state immediately forfeits his or her
appointment, and shall immediately cease participation at the Convention, vacate the
Convention, and return to his or her respective state's capital.
11. Expenses. A delegate appointed hereunder is entitled to reimbursement of reasonable
expenses for attending the Convention from his or her respective member state. No
delegate may accept any other form of remuneration or compensation for service
under this compact.
1. Nature of the Convention. The Convention shall be organized, construed, and
conducted as a body exclusively representing and constituted by the several states.
2. Agenda of the Convention. The agenda of the Convention shall be entirely focused
upon and exclusively limited to introducing, debating, voting upon, and rejecting or
proposing for ratification the Balanced Budget Amendment under the Convention rules
specified in this article and in accordance with the compact. It shall not be in order for
the Convention to consider any matter that is outside the scope of this agenda.
3. Delegate identity and procedure. States shall be represented at the Convention
through duly appointed delegates. The number, identity, and authority of delegates
assigned to each state shall be determined by this compact in the case of member
states or, in the case of states that are not member states, by their respective state
laws. However, to prevent disruption of proceedings, no more than three delegates
may attend and participate in the Convention on behalf of any state. A certified
chaptered conforming copy of this compact, together with government-issued
photographic proof of identification, shall suffice as credentials for delegates of
member states. Any commission for delegates of states that are not member states
shall be based on their respective state laws, but it shall furnish credentials that are at
least as reliable as those required of member states.

4. Voting. Each state represented at the Convention shall have one vote, exercised by
the vote of that state's delegate in the case of states represented by one delegate, or,
in the case of any state that is represented by more than one delegate, by the majority
vote of that state's respective delegates.
5. Quorum. A majority of the several states of the United States, each present through its
respective delegate in the case of any state that is represented by one delegate, or
through a majority of its respective delegates, in the case of any state that is
represented by more than one delegate, shall constitute a quorum for the transaction
of any business on behalf of the Convention.
6. Action by the Convention. The Convention shall only act as a committee of the whole,
chaired by the delegate representing the first state to have become a member state, if
that state is represented by one delegate, or otherwise by the delegate chosen by the
majority vote of that state's respective delegates. The transaction of any business on
behalf of the Convention, including the designation of a secretary, the adoption of
parliamentary procedures, and the rejection or proposal of any constitutional
amendment, requires a quorum to be present and a majority affirmative vote of those
states constituting the quorum.
7. Emergency suspension and relocation of the Convention. In the event that the chair of
the Convention declares an emergency due to disorder or an imminent threat to public
health and safety prior to the completion of the business on the agenda, and a majority
of the states present at the Convention do not object to such declaration, further
Convention proceedings shall be temporarily suspended, and the commission shall
subsequently relocate or reschedule the Convention to resume proceedings in an
orderly fashion in accordance with the terms and conditions of this compact with prior
notice given to the compact notice recipients.
8. Parliamentary procedure. In adopting, applying, and formulating parliamentary
procedure, the Convention shall exclusively adopt, apply, or appropriately adapt
provisions of the most recent editions of Robert's Rules of Order and the American
Institute of Parliamentarians Standard Code of Parliamentary Procedure. In adopting,
applying, or adapting parliamentary procedure, the Convention shall exclusively
consider analogous precedent arising within the jurisdiction of the United States.
Parliamentary procedures adopted, applied, or adapted pursuant to this section shall
not obstruct, override, or otherwise conflict with this compact.
9. Transmittal. Upon approval of the Balanced Budget Amendment by the Convention to
propose for ratification, the chair of the Convention shall immediately transmit certified
copies of such approved proposed amendment to the compact administrator and all
compact notice recipients, notifying them respectively of such approval and requesting
Congress to refer the same for ratification by the states under Article V of the
Constitution of the United States. However, in no event shall any proposed
amendment other than the Balanced Budget Amendment be transmitted as aforesaid.
10. Transparency. Records of the Convention, including the identities of all attendees and
detailed minutes of all proceedings, shall be kept by the chair of the Convention or
secretary designated by the Convention. All proceedings and records of the
Convention shall be open to the public upon request subject to reasonable regulations
adopted by the Convention that are closely tailored to preventing disruption of
proceedings under this article.
11. Adjournment of the Convention. The Convention shall permanently adjourn upon the
earlier of twenty-four hours after commencing proceedings under this article or the
completion of the business on its agenda.
1. Member states shall not participate in the Convention unless:
a. Congress first calls the Convention in accordance with this compact; and
b. The Convention rules of this compact are adopted by the Convention as its first
order of business.
2. Any proposal or action of the Convention is void ab initio and issued by a body that is
conducting itself in an unlawful and ultra vires fashion if that proposal or action:

a. Violates or was approved in violation of the Convention rules or the delegate
instructions and limitations on delegate authority specified in this compact;
b. Purports to propose or effectuate a mode of ratification that is not specified in
Article V of the Constitution of the United States; or
c. Purports to propose or effectuate the formation of a new government. All member
states are prohibited from advancing or assisting in the advancement of any such
proposal or action.
3. Member states shall not ratify or otherwise approve any proposed amendment,
alteration, or revision to the Constitution of the United States, which originates from the
Convention, other than the Balanced Budget Amendment.
1. Each member state, by and through its respective legislature, hereby adopts and
ratifies the Balanced Budget Amendment.
2. This article does not take effect until Congress effectively refers the Balanced Budget
Amendment to the states for ratification by three-fourths of the legislatures of the
several states under Article V of the Constitution of the United States.
1. To the extent that the effectiveness of this compact or any of its articles or provisions
requires the alteration of local legislative rules, drafting policies, or procedure to be
effective, the enactment of legislation enacting, adopting, and agreeing to be bound by
this compact shall be deemed to waive, repeal, supersede, or otherwise amend and
conform all such rules, policies, or procedures to allow for the effectiveness of this
compact to the fullest extent permitted by the constitution of any affected member
state.
2. Date and location of the Convention. Unless otherwise specified by Congress in its
call, the Convention shall be held in Dallas, Texas, and commence proceedings at
9:00 a.m. central standard time on the sixth Wednesday after the latter of the effective
date of article V of this compact or the enactment date of the Congressional resolution
calling the Convention.
3. In addition to all other powers and duties conferred by state law which are consistent
with the terms and conditions of this compact, the chief law enforcement officer of
each member state is empowered to defend the compact from any legal challenge, as
well as to seek civil mandatory and prohibitory injunctive relief to enforce this compact;
and shall take such action whenever the compact is challenged or violated.
4. The exclusive venue for all actions in any way arising under this compact shall be in
the United States District Court for the northern district of Texas or the courts of the
state of Texas within the jurisdictional boundaries of the foregoing district court. Each
member state shall submit to the jurisdiction of said courts with respect to such
actions. However, upon written request by the chief law enforcement officer of any
member state, the commission may elect to waive this provision for the purpose of
ensuring an action proceeds in the venue that allows for the most convenient and
effective enforcement or defense of this compact. Any such waiver shall be limited to
the particular action to which it is applied and not construed or relied upon as a
general waiver of this provision. The waiver decisions of the commission under this
provision shall be final and binding on each member state.
5. The effective date of this compact and any of its articles is the latter of:
a. The date of any event rendering the same effective according to its respective
terms and conditions; or
b. The earliest date otherwise permitted by law.
6. Article VIII of this compact is hereby deemed nonseverable prior to termination of the
compact. However, if any other phrase, clause, sentence, or provision of this compact,
or the applicability of any other phrase, clause, sentence, or provision of this compact
to any government, agency, person, or circumstance, is declared in a final judgment to
be contrary to the Constitution of the United States, contrary to the state constitution of
any member state, or is otherwise held invalid by a court of competent jurisdiction,

such phrase, clause, sentence, or provision shall be severed and held for naught, and
the validity of the remainder of this compact and the applicability of the remainder of
this compact to any government, agency, person, or circumstance shall not be
affected. Furthermore, if this compact is declared in a final judgment by a court of
competent jurisdiction to be entirely contrary to the state constitution of any member
state or otherwise entirely invalid as to any member state, such member state shall be
deemed to have withdrawn from the compact, and the compact shall remain in full
force and effect as to any remaining member state. Finally, if this compact is declared
in a final judgment by a court of competent jurisdiction to be wholly or substantially in
violation of Article I, Section 10, of the Constitution of the United States, then it shall be
construed and enforced solely as reciprocal legislation enacted by the affected
member states.
7. Termination. This compact shall terminate and be held for naught when the compact is
fully performed and the Constitution of the United States is amended by the Balanced
Budget Amendment. However, notwithstanding anything to the contrary set forth in this
compact, in the event such amendment does not occur on or before April 12, 2031, the
compact shall terminate as follows:
a. The commission shall dissolve and wind up its operations within ninety days
thereafter, with the compact administrator giving notice of such dissolution and
the operative effect of this section to the compact notice recipients; and
b. Upon the completed dissolution of the commission, this compact shall be deemed
terminated, repealed, void ab initio, and held for naught.
