Interstate Fiscal Sovereignty Compact adopted, reports required, and money appropriated.

This bill establishes a legal framework in Minnesota to create an interstate agreement called the Interstate Fiscal Sovereignty Compact, which would allow member states to hold federal taxes in a state-controlled escrow fund rather than sending them directly to the federal government. The legislation defines key terms such as "member state" and "triggering event," and sets up a process where employers would deposit withheld federal income, Social Security, and unemployment taxes into this new state treasury fund once the compact is officially activated. Currently, no action is required from employers or the state until a governing body issues an order to start the escrow operations, meaning the bill does not immediately change how taxes are collected or paid. By creating a separate escrow fund, the bill aims to give states more control over federal tax revenue, though it requires other states to pass similar laws and join the agreement for the system to function.