An Act granting the consent and approval of Congress to the Wabash Valley compact, and for related purposes
PL 86-375 (H.R.5711), enacted 09/23/1959

694 
PUBLIC LAW 86-376-8EPT. 23, 1969 
[73 STAT. 
Public Law 86-375 
September 23, 1959 
AN A C T 
[H. R. 5711] 
Granting the consent and approval of Congress to the AVabash Valley Compact, 
and for related purposes. 
Be it enacted hy the Senate and House of Representatives 
of the 
c^pac^t.*''^*"*^ United States of America in Congress assembled, That the consent of 
Congress is hereby given to the States of Illinois and Indiana for the 
compact, known as the Wabash Valley Compact (Law^s of Indiana, 
1959, chapter 3, approved February 26, 1959, House Enrolled Act 
No. 22; Laws of Illinois, 1959, approved March 20, 1959, Senate Bill 
Xo. 78), in the form as follo^ys: 
"THE WABASH VALLEY COMPACT 
"ARTICLE I 
'FINDINGS AND PUIiPOSE 
iit 
"The party states find that the Wabash Valley has sujffered from a 
lack of comprehensive planning for the optimal use of its human and 
natural resources and that underutilization and inadequte benefits 
from its potential wealth are likely to continue until there is proper 
organization to encourage and facilitate coordinated development of 
the Wabash Valley as a region and to relate its agricultural, indus-
trial, commercial, recreational, transportation, development and other 
problems to the opportunities in the Valley. 
To this end it is the 
purpose of the party states to recognize and provide for such develop-
ment and coordination and to establish an agency of the party states 
with powers sufficient and appropriate to further regional planning 
for the Valley. 
"ARTICLE I I 
( ' i THE VALLEY 
"As used in this compact^ the term 'Wabash Valley' shall mean the 
Wabash River, its tributaries and all land drained by said river and 
tributaries, to whatever extent they lie within the party states. 
"ARTICLE 
I I I 
" T H E WABASH VALLEY INTERSTATE COMMISSION 
"(a) There is hereby created an agency of the party states to be 
known as the Wabash Valley Interstate Commission 
(hereinafter 
called the Commission). 
The Commission shall be composed of seven 
Commissioners from each party state designated or appointed in ac-
cordance with the law of the state which they represent and serving 
and subject to removal in accordance with such law. 
The federal 
f
overnment may be represented w ithout vote if provision is made by 
ederal law for such representation. 
"(b) The Commissioners of the party states shall each be entitled 
to one vote in the Commission. 
No action of the Commission shall 
be binding unless taken at a meeting in which a majority of the 
members from each party state are present and unless a majority of 
those from each state concur, provided that any action not binding 
for such a reason may be ratified within thirty days by the concur-
rence of a majority of each state. In the absence of any Commis-
sioner, his vote may be cast by another representative or Commis-
73 S T A T . ] 
PUBLIC LAW 86-376-SEPT. 23, 1969 
695 
sioner of his state provided that said Commissioner or other repre-
sentative casting said vote shall have a written proxy in proper form 
as may be required by the Commission. 
"(c) The Commission may sue and be sued, and shall have a seal. 
"(d) The Commission shall elect annually, from among its mem-
bers, a chairman, a vice-chairman and a treasurer. 
The Commission 
shall appoint an executive director who shall also act as secretary, 
and who, together with the treasurer, shall be bonded in such amounts 
as the Commission may require. 
"(e) The Commission shall appoint and remove or discharge such 
personnel as may be necessary for the performance of the Commis-
sion's functions irrespective of the civil service, personnel or other 
merit system laws of any of the party states. 
"(f) The Commission may establish and maintain, independently 
or in conjunction with any one or more of the party states, a suitable 
retirement system for its employees. Employees of the Commission 
shall be eligible for social security coverage in respect of old-age and 
survivors insurance provided that the Commission takes such steps 
as may be necessary pursuant to federal law to participate in such 
program of insurance as a governmental agency or unit. 
The Com-
mission may establish and maintain or participate in such additional 
programs of employee benefits as may be appropriate to afford em-
ployees of the Commission terms and conditions of employment simi-
lar to those enjoyed h^ employees of the party states generally. 
"(g) The Commission may borrow, accept, or contract for the serv-
ices of personnel from any state or the United States or any subdi-
vision or agency thereof, from anj^ interstate agency, or from any 
institution, person, firm or corporation. 
"(h) The Commission may accept for any of its purposes and func-
tions under this compact any and all donations, and grants of money, 
equipment, supplies, materials, and services, conditional or otherwise, 
from any state of the United States or any subdivision or agency 
thereof, or interstate agency, or from any institution, person, firm or 
corporation, and may receive, utilize, and dispose of the same. 
"(i) The Commission may establish and maintain such facilities as 
may be necessary for the transacting of its business. The Commis-
sion may acquire, hold, and convey real and personal property and 
any interest therein. 
"(j) The Commission may adopt, amend, and rescind bylaws, rules, 
and regulations for the conduct of its business. 
"(k) The Commission annually shall make to the Governor of each 
party state, a report covering the activities of the Commission for the 
preceding year, and embodying such recommendations as may have 
been adopted by the Commission which report shall be transmitted to 
the legislature of said state. The Commission may issue such addi-
tional reports as it may deem desirable. 
"ARTICLE 
IV 
"FINANCES 
"(a) The Commission shall submit to the executive head or desig-
nated oflGicer or officers of each party state a budget of its estimated 
expenditures for such period as may be required by the laws of that 
jurisdiction for presentation to the legislature thereof. 
"(b) Each of the Commission's budgets of estimated expenditures 
shall contain specific recommendations of the amount or amounts to 
be appropriated by each of the party states. Subject to appropriation 
by the respective legislatures tne Commission shall be provided with 
such funds by each of the party states as are necessary to provide the 
696 
PUBLIC LAW 86.876-8EPT. 23, 1969 
[78 STAT. 
means of establishing and maintaining facilities, a staff of personnel, 
and such activities as may be necessary to fulfill the powers and duties 
imposed upon and entrusted to the Commission. 
"(c) The Commission may meet any of its obligations in whole or 
in part with funds available to it under Article I l l ( h ) of this com-
pact, provided that the Commission takes specific action setting aside 
such funds prior to the incurring of any obligation to be met in whole 
or in part in this manner. 
Except where the Commission makes use 
of funds available to it under Article I l l ( h ) hereof, the Commission 
shall not incur any obligations prior to the allotment of funds by the 
party jurisdictions adequate to meet the same. 
"(d) The expenses and any other costs for each member of the 
Commission shall be met by the Commission in accordance with such 
standards and procedures as it may establish under its bylaws. 
"(e^ The Commission shall keep accurate accounts oi all receij)ts 
and disbursements. 
The receipts and disbursements of the Commis-
sion shall be subject to the audit and accounting procedures established 
under its bylaws. However, all receipts and disbursements of funds 
handled by the Commission shall be audited yearly by a qualified 
public accountant and the report of the audit shall be included in 
and become a part of the annual report of the Commission. 
"(f) The accounts of the Commission shall be open at any reason-
able time for inspection. 
"ARTICLE V 
"ADVICE AND COOPERATION 
"(a) The Commission shall establish a technical advisory committee 
which shall be composed of representatives of such departments or 
agencies of the governments of the party states as have significant 
interest in the subject matter of the Commission's work: Provided^ 
That if pursuant to the laws of a party state a representative of any 
such department or agency serves as a member of the Commission said 
department or agency need not be represented on the technical advisory 
committee. 
The Commission shall provide under its bylaws for pro-
cedures for the reference of questions to such committee. 
"(b) The Commission may establish other advisory and technical 
committees composed of private citizens, expert and lay personnel, 
representatives of industry, labor, commerce, agriculture, civic associa-
tions, and officials of local, state and federal government, and may 
cooperate with and use the services of any such committee and the 
organizations which they represent in furthering any of its activities 
under this compact. 
The Commission shall encourage citizen organ-
ization and activity for the promotion of the objectives of this compact. 
"ARTICLE 
VI 
a-
FUNCTIONS 
"The Commission shall have power to: 
"A. Promote the balanced development of the Wabash Valley 
"(1) Correlating and reporting on data significant to such 
development. 
"(2) Recommending the coordination of studies by the 
agencies of the party states to provide such data. 
"(3) Publishing and disseminating materials and studies 
which will encourage the economic development of the Valley. 
"(4) Recommending standards as guides for local and state 
zoning and other action which will promote balanced develop-
73 S T A T . ] 
PUBLIC LAW 86-375-SEPT. 23, 1959 
697 
ment by encouraging the establishing of industrial parks to 
facilitate industrial development, the reservation of stream 
bank and lake shore areas for recreation and public access to 
water, the preservation of marshes and other suitable areas as 
wild life preserves, the afforestation and sustained yield forest 
management of submarginal lands, the protection of scenic 
values and amenities and other appropriate measures. 
"(5) Preparing in cooperation with appropriate govern-
mental agencies a master plan for the identification and pro-
gramming of public works. 
"(6) Cooperating with all appropriate governmental agen-
cies in the encouragement of tourist traffic and facilities in 
the Valley. 
"B. Kecommend integrated plans and programs for the conser-
vation, development, and proper utilization of the water, land and 
related natural resources of the Wabash Valley, including but not 
limited to: 
"(1) Encouraging the classification of Valley lands in 
terms of appropriate uses. 
" (2) Cooperating in the development of appropriate plans 
for flood protection, including but not limited to the con-
struction of protective works and reservoirs. 
"(3) Developing public awareness of the need for flood 
plain zoning and in cooperation with the appropriate agen-
cies of the party states and their political subdivisions evolv-
ing standards for the implementation and application of such 
zoning in the Valley. 
"(4) Reviewing the need for and appropriate sources of 
suitable water supplies for domestic, municipal, agricultural, 
power, industrial, recreation and transportation purposes. 
" (5) Encouraging a pattern of land use and resource man-
agement which will increase the natural wealth of the Valley 
and promote the welfare of its inhabitants. 
"(6) In cooperation with appropriate agencies, analyzing 
the recreational needs and potential of the Valley and devel-
oping a program for the use and maximization of recreational 
resources. 
"C. Secure the necessary research and developmental activities 
by: 
"(1) Correlating such research and developmental activi-
ties as are placed within its purview by this compact. 
The 
Commission may engage in original investigation and re-
search on its own account or secure the undertaking thereof 
by a qualified public or private agency. 
"(2) Making contracts for studies, investigations and 
research in any of the fields of its interest. 
"(3) Publishing and disseminating reports. 
"D. Make recommendations for appropriate action to: 
"(1) The legislatures and executive heads of the party 
states and the federal government 
"(2) The agencies of the party states and the federal 
government 
"E. Undertake such additional functions as may hereafter be 
delegated to or imposed upon it from time to time by the action 
of the legislature of a party state concurred in by the legislature 
of the other. 
698 
PUBLIC LAW 86-375-8EPT. 23, 1969 
[73 STAT. 
"ARTICLE 
V I I 
"ENACTMENT AND WITHDRAWAIi 
"This compact shall become effective when entered into and 
enacted into law by the States of Illinois and Indiana. The com-
pact shall continue in force and remain binding upon each party-
state until renounced by legislative action of either party state. 
"ARTICLE VIII 
"CONSTRUCTION AND SEVERABILITY 
"The provisions of this compact shall be severable and if any 
phrase, clause, sentence or provision of this compact is declared to 
be unconstitutional or the applicability thereof to any state, agency, 
person or circumstances is held invalid, the constitutionality of the 
remainder of this compact and the applicability thereof to any 
other state, agency, person or circumstance shall not be affected 
thereby. 
It is the legislative intent that the provisions of this 
compact be reasonably and liberally construed." 
SEC. 2. A Federal representative to the Wabash Valley Interstate 
Commission shall be appointed by the President, and he shall re-
port to the President either directly or through such agency or offi-
cial as the President may specify. 
Such representative shall have 
no vote on the commission. 
His compensation shall be in such 
amount, not in excess of $100 per diem, as the President shall 
specify, but the total amount of compensation payable in any one 
calendar year shall not exceed $10,000: Provided., That if the Fed-
eral representative be an employee of the United States he shall 
serve without additional compensation: Provided 
further., That a 
retired military officer or a retired Federal civilian officer or em-
ployee may be appointed as such representative, without prejudice 
to his retired status, and he shall receive compensation as authorized 
herein in addition to his retired pay or annuity but the sum of 
his retired pay or annuity and such additional compensation as may 
be paid hereunder shall not exceed $12,000 in any one calendar year. 
The Federal representative shall be entitled to travel expenses, he 
shall also be provided with office space, stenographic service, and 
other necessary administrative services. 
The compensation of the 
Federal representative shall be paid from available appropriations 
for the White House Office or from funds available to the Presi-
dent in connection with special projects. 
Travel expenses, office 
space, stenographic, and administrative services shall be paid from 
any available appropriations selected by the head of such agency 
or agencies as may be designated by the President to provide such 
expenses. 
Report to Con- 
g^^ 3 ,j,j^^ Wabadi Valley Interstate Commission constituted by 
the compact shall make an annual report to Congress not later than 
sixty days after the beginning of each regular session thereof. 
SEC. 4. The right to alter, amend, or repeal this Act is expressly 
reserved. 
SEC. 5. Nothing contained in this Act or in the compact herein con-
sented to shall be construed as impairing or affecting the authority of 
the United States of any of its rights or jurisdiction in and over the 
area or waters which are the subject of the compact. 
S E C 6. That all future legislation enacted pursuant to article VI, 
clause E of the compact, requiring concurrent action by the States of 
Indiana and Illinois, shall be submitted to Congress for approval 
before such legislation becomes effective. 
gresB 
73 S T A T . ] 
PUBLIC LAW 86-376-SEPT. 23, 1959 
699 
SEC. 7. Nothing contained herein shall be interpreted or construed 
as approving any act, action, or conduct which is or has been or may 
be in violation of existing law nor shall anything herein contained 
constitute a defense to any action, suit, or proceeding pending or here-
after instituted on account of any prohibited antitrust or monopolistic 
act, action, or conduct. 
SEC. 8. The right is herebj reserved to the Congress or any of its 
standing committees to require the disclosure and furnishing of such 
information or data by the Wabash Valley Interstate Commission as 
is deemed appropriate by the Congress or any such committee. 
Approved September 23, 1959. 
Public Law 86-376 
A N A C T 
September 23, 1959 
To amend the Internal Revenue Code of 1954 to provide a personal exemption 
f"- ^- ^"^^ 
for children placed for adoption and to clarify certain provisions relating to 
the election of small business corporations as to taxable status. 
Be it enacted hy the Senate and House of Representatives 
of the 
United States of America in Congress assembled^ That (a) section 
152(b)(2) of the Internal Revenue Code of 1954 (relating to 
the definition of the term "dependent") is amended by striking out "a 
legally adopted child of an individual" and inserting in lieu thereof 
the following: "a legally adopted child of an individual (and a child 
who is a member of an individual's household, if placed with such 
individual by an authorized placement agency for legal adoption by 
such individual)". 
(b) The amendment made by subsection (a) shall apply to taxable 
years beginning after December 31,1958. 
SEC. 2. (a) Section 1371 of the Internal Revenue Code of 1954 
(relating to definitions applicable to certain small business corpora-
tions) is amended by adding at the end thereof the following new 
subsection: 
"(c) STOCK OWNED BY HUSBAND AND WIFE.—For purposes of sub-
section (a) (1) stock which— 
"(1) is community property of a husband and wife (or the 
income from which is community income) under the applicable 
community property law of a State, or 
"(2) is held by a husband and wife as joint tenants, tenants by 
the entirety, or tenants in common, 
shall be treated as owned by one shareholder." 
(b) Section 1374(b) of the Internal Revenue Code of 1954 (relat-
ing to allowance of net operating loss to shareholders of electing small 
business corporations) is amended by inserting after "the taxable year 
of the corporation ends" the following: "(or for the final taxable year 
of a shareholder who dies before the end of the corporation's taxable 
year)". 
(c) Section 1504(b) of the Internal Revenue Code of 1954 (relating 
to definition of includible corporation) is amended by striking out 
paragraph (8) thereof. 
(d) The amendment made by subsection (a) shall apply to taxable 
years beginning after December 31, 1959. The amendments made by 
subsections (b) and (c) shall take effect on the day after the date of 
the enactment of this Act. 
Internal Revenue 
C o d e of 
1 9 5 4 , 
amendment. 
68A Stat. 43. 
72 Stat. 1650. 
72 Stat. 1653. 
68A S t a t . 369; 
72 Stat. 1657. 
32716 O-60—47