Arizona 2024 Regular Session

Arizona Senate Bill SB1069 Compare Versions

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1	1	REFERENCE TITLE: state health insurance exchange; board State of Arizona Senate Fifty-sixth Legislature Second Regular Session 2024 SB 1069 Introduced by Senator Shope An Act repealing section 1-271, Arizona Revised Statutes; amending title 20, Arizona Revised Statutes, by adding chapter 32; amending title 41, chapter 27, article 2, Arizona Revised Statutes, by adding section 41-3034.01; relating to health care insurance. (TEXT OF BILL BEGINS ON NEXT PAGE)
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9	9	REFERENCE TITLE: state health insurance exchange; board
10	10	State of Arizona Senate Fifty-sixth Legislature Second Regular Session 2024
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14	14	REFERENCE TITLE: state health insurance exchange; board
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40	40	SB 1069
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64	64	An Act
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68	68	repealing section 1-271, Arizona Revised Statutes; amending title 20, Arizona Revised Statutes, by adding chapter 32; amending title 41, chapter 27, article 2, Arizona Revised Statutes, by adding section 41-3034.01; relating to health care insurance.
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78	78	Be it enacted by the Legislature of the State of Arizona: Section 1. Repeal Section 1-271, Arizona Revised Statutes, is repealed. Sec. 2. Title 20, Arizona Revised Statutes, is amended by adding chapter 32, to read: CHAPTER 32 HEALTH INSURANCE EXCHANGE ARTICLE 1. GENERAL PROVISIONS START_STATUTE20-3701. Definitions In this article, unless the context otherwise requires: 1. "Affordable care act" means the patient protection and affordable care act (P.L. 111-148). 2. "Board" means the board of directors of the exchange. 3. "Exchange" means the state health insurance exchange. 4. "Executive director" means the executive director of the exchange. 5. "Qualified health plan" has the same meaning prescribed in section 1301 of the affordable care act. 6. "Qualified individual" means a person, including a minor, who: (a) Seeks to enroll in a qualified health plan that is offered to persons through the exchange. (b) Resides in this state. (c) At the time of enrollment is not incarcerated, unless the person is incarcerated pending the disposition of charges. (d) Is, as applicable, a citizen of the United States or an alien who is lawfully present in the United States for the entire enrollment period. (e) Meets all qualifications as prescribed in the affordable care act. END_STATUTE START_STATUTE20-3702. State health insurance exchange; powers; duties; requirements A. The state health insurance exchange is established to: 1. Facilitate the purchase and sale of qualified health plans in the individual market in this state. 2. Reduce the number of uninsured individuals in this state. 3. Provide a transparent marketplace for health insurance and consumer education on matters relating to health insurance. 4. Assist residents with access to programs, premium assistance, tax credits and cost sharing reductions. B. The exchange shall: 1. Establish and administer a health insurance exchange. 2. Facilitate the purchase and sale of qualified health plans. 3. Establish a program to assist qualified small employers to facilitate the enrollment of their employees in qualified health plans offered in the small group market. 4. Make qualified health plans available to qualified individuals. 5. Perform all necessary duties to implement the affordable care act. C. The exchange may: 1. Enter into contracts with this state, any political subdivision of this state or a person to carry out the powers and duties of the exchange or the Board. 2. Apply for or accept any gift, donation, bequest, grant or other source of monies to carry out the powers and duties of the exchange or the Board. 3. Collaborate and coordinate with the Arizona health care cost containment system to facilitate transitions between health insurance plans. D. The Board and the exchange shall comply with the procurement process prescribed in Title 41, Chapter 23. E. the Board and the exchange are subject to the open meeting laws prescribed in title 38, chapter 3, article 3.1.END_STATUTE START_STATUTE20-3703. State health insurance exchange board; membership; terms; compensation a. The state health insurance exchange board is established and consists of the following members: 1. The director of the department of health services or the director's designee as a nonvoting member. 2. The director of the department of insurance and financial institutions or director's designee as a nonvoting member. 3. the director of the Arizona health care cost containment system or the director's designee as a nonvoting member. 4. three members who are appointed by the governor. 5. two members who are appointed by the president of the senate. 6. two members who are appointed by the speaker of the house of representatives. B. Each voting member of the Board must possess one or more of the following: 1. expertise in selling or marketing individual or small employer health insurance. 2. Expertise in health care administration, health care financing, health care information technology or health insurance. 3. expertise in administering health care delivery systems. 4. Experience as a consumer who would benefit from the services provided by the exchange. 5. Experience as a health care consumer advocate, including experience in consumer outreach and consumer education. C. When making appointments to the board, the governor, the president of the senate and the speaker of the house of representatives shall do both of the following: 1. Consider the collective expertise and experience of the voting members of the Board and make appointments that collectively represent: (a) The expertise and experience as described in subsection B of this section. (b) The range and diversity of members' skills, knowledge and experience and geographic and stakeholder perspectives. 2. Ensure that not more than two voting members of the board represent any particular area of expertise or experience. D. Voting members of the Board: 1. May not be legislators or hold any elective office in this state. 2. Serve three year terms. 3. May be reappointed to the Board. 4. May be removed by The appointing authority if the voting member: (a) neglects the voting member's duty. (b) Commits malfeasance. (c) Commits misfeasance or nonfeasance. E. A vacancy shall be filled in the same manner as the original appointment. F. on the expiration of a Board member's term, the voting member may continue to serve until that member is reappointed to another term or a new board member is appointed. G. the board shall annually elect a chairperson and vice chairperson from among its members. The chairperson and vice chairperson may serve more than one term. H. Board members are not eligible to receive compensation but members who are appointed pursuant to subsection a, paragraphs 4, 5 and 6 are eligible for reimbursement of expenses pursuant to title 38, chapter 4, article 2. I. The Board shall meet at least four times each calendar year and at other times at the discretion of the chairperson or a majority of the voting members. A majority of the voting members constitutes a quorum.END_STATUTE START_STATUTE20-3704. Subcommittees; advisory committees; requirements; reimbursement A. The Board may appoint subcommittees and advisory committees that are comprised of members of the board, former members of the Board and the public who have experience or knowledge in Matters relating to health care or matters that are within the scope of the powers, duties and functions of the Board. B. The members of a subcommittee or advisory committee must be representative of the various geographic areas and ethnic groups of this state to the extent PRACTICABLE. C. Subcommittee and advisory committee members may not receive reimbursement of expenses pursuant to title 38, chapter 4, article 2. END_STATUTE START_STATUTE20-3705. Board; powers and duties; reports; audits A. The Board shall: 1. Adopt rules that set forth the Board's procedures and operations. 2. On or before June 30 and December 31 of each year, submit a written fiscal and operational report to the governor, the president of the senate and the speaker of the house of representatives and include any recommendations CONCERNING the exchange. 3. On or before July 1 of each year, post a report on a publicly accessible website that summarizes the activities of the Board and explains how the exchange has impacted health care in this state for the previous fiscal year. 4. Provide for an annual audit of the Board's functions and operations. 5. Submit in a timely manner all reports that are required by federal law to the appropriate federal agencies. B. The Board may: 1. Adopt rules to carry out the duties and powers of the exchange. 2. Prepare special reports concerning the exchange that are sent to the Governor, the president of the senate and the speaker of the house of representatives and that are publicly posted on its website. 3. Contract for services that the exchange may require to execute the duties and powers of the exchange, including legal, professional, technical and personnel services. C. The board is subject to legislative and executive branch audits, as appropriate. END_STATUTE START_STATUTE20-3706. Executive director; appointment The Board shall appoint an executive director of the exchange. The executive director: 1. Is an employee of this state. 2. Serves at the pleasure of the Board. 3. Is responsible to the Board. 4. Is responsible for the administrative matters of the board. 5. Must have experience and education in administering health care or health insurance. 6. is subject to the limits of available funding. 7. May hire or remove employees. END_STATUTE START_STATUTE20-3707. Coordination with AHCCCS; children's health insurance program The board and the director of the department of health services or the director's designee shall ensure that the exchange coordinates with the health care cost containment system as prescribed in title 36, chapter 29, the children's health insurance program as prescribed in title 36, CHAPTER 29, article 4 and any other state or local public health program.END_STATUTE Sec. 3. Title 41, chapter 27, article 2, Arizona Revised Statutes, is amended by adding section 41-3034.01, to read: START_STATUTE41-3034.01. State health insurance exchange board; termination July 1, 2034 A. the state health insurance exchange board terminates on July 1, 2034. B. title 20, chapter 32, article 1 and this section are repealed on January 1, 2035.END_STATUTE Sec. 4. Initial terms of state health insurance exchange board A. Notwithstanding section 20-3703, Arizona Revised Statutes, as added by this act, the initial terms of members of the state health insurance exchange board are: 1. Two terms ending January 31, 2025. 2. Two terms ending January 31, 2026. 3. Three terms ending January 31, 2027. B. The appropriate official shall make all subsequent appointments as prescribed by statute. Sec. 5. Purpose Pursuant to section 41-2955, subsection E, Arizona Revised Statutes, the legislature establishes the state health insurance exchange board to facilitate the purchase and sale of qualified health plans in the individual health insurance market in this state.
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80	80	Be it enacted by the Legislature of the State of Arizona:
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82	82	Section 1. Repeal
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84	84	Section 1-271, Arizona Revised Statutes, is repealed.
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86	86	Sec. 2. Title 20, Arizona Revised Statutes, is amended by adding chapter 32, to read:
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88	88	CHAPTER 32
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90	90	HEALTH INSURANCE EXCHANGE
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92	92	ARTICLE 1. GENERAL PROVISIONS
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94	94	START_STATUTE20-3701. Definitions
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96	96	In this article, unless the context otherwise requires:
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98	98	1. "Affordable care act" means the patient protection and affordable care act (P.L. 111-148).
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100	100	2. "Board" means the board of directors of the exchange.
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102	102	3. "Exchange" means the state health insurance exchange.
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104	104	4. "Executive director" means the executive director of the exchange.
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106	106	5. "Qualified health plan" has the same meaning prescribed in section 1301 of the affordable care act.
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108	108	6. "Qualified individual" means a person, including a minor, who:
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110	110	(a) Seeks to enroll in a qualified health plan that is offered to persons through the exchange.
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112	112	(b) Resides in this state.
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114	114	(c) At the time of enrollment is not incarcerated, unless the person is incarcerated pending the disposition of charges.
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116	116	(d) Is, as applicable, a citizen of the United States or an alien who is lawfully present in the United States for the entire enrollment period.
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118	118	(e) Meets all qualifications as prescribed in the affordable care act. END_STATUTE
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120	120	START_STATUTE20-3702. State health insurance exchange; powers; duties; requirements
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122	122	A. The state health insurance exchange is established to:
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124	124	1. Facilitate the purchase and sale of qualified health plans in the individual market in this state.
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126	126	2. Reduce the number of uninsured individuals in this state.
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128	128	3. Provide a transparent marketplace for health insurance and consumer education on matters relating to health insurance.
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130	130	4. Assist residents with access to programs, premium assistance, tax credits and cost sharing reductions.
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132	132	B. The exchange shall:
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134	134	1. Establish and administer a health insurance exchange.
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136	136	2. Facilitate the purchase and sale of qualified health plans.
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138	138	3. Establish a program to assist qualified small employers to facilitate the enrollment of their employees in qualified health plans offered in the small group market.
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140	140	4. Make qualified health plans available to qualified individuals.
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142	142	5. Perform all necessary duties to implement the affordable care act.
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144	144	C. The exchange may:
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146	146	1. Enter into contracts with this state, any political subdivision of this state or a person to carry out the powers and duties of the exchange or the Board.
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148	148	2. Apply for or accept any gift, donation, bequest, grant or other source of monies to carry out the powers and duties of the exchange or the Board.
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150	150	3. Collaborate and coordinate with the Arizona health care cost containment system to facilitate transitions between health insurance plans.
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152	152	D. The Board and the exchange shall comply with the procurement process prescribed in Title 41, Chapter 23.
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154	154	E. the Board and the exchange are subject to the open meeting laws prescribed in title 38, chapter 3, article 3.1.END_STATUTE
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156	156	START_STATUTE20-3703. State health insurance exchange board; membership; terms; compensation
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158	158	a. The state health insurance exchange board is established and consists of the following members:
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160	160	1. The director of the department of health services or the director's designee as a nonvoting member.
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162	162	2. The director of the department of insurance and financial institutions or director's designee as a nonvoting member.
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164	164	3. the director of the Arizona health care cost containment system or the director's designee as a nonvoting member.
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166	166	4. three members who are appointed by the governor.
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168	168	5. two members who are appointed by the president of the senate.
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170	170	6. two members who are appointed by the speaker of the house of representatives.
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172	172	B. Each voting member of the Board must possess one or more of the following:
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174	174	1. expertise in selling or marketing individual or small employer health insurance.
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176	176	2. Expertise in health care administration, health care financing, health care information technology or health insurance.
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178	178	3. expertise in administering health care delivery systems.
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180	180	4. Experience as a consumer who would benefit from the services provided by the exchange.
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182	182	5. Experience as a health care consumer advocate, including experience in consumer outreach and consumer education.
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184	184	C. When making appointments to the board, the governor, the president of the senate and the speaker of the house of representatives shall do both of the following:
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186	186	1. Consider the collective expertise and experience of the voting members of the Board and make appointments that collectively represent:
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188	188	(a) The expertise and experience as described in subsection B of this section.
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190	190	(b) The range and diversity of members' skills, knowledge and experience and geographic and stakeholder perspectives.
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192	192	2. Ensure that not more than two voting members of the board represent any particular area of expertise or experience.
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194	194	D. Voting members of the Board:
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196	196	1. May not be legislators or hold any elective office in this state.
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198	198	2. Serve three year terms.
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200	200	3. May be reappointed to the Board.
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202	202	4. May be removed by The appointing authority if the voting member:
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204	204	(a) neglects the voting member's duty.
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206	206	(b) Commits malfeasance.
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208	208	(c) Commits misfeasance or nonfeasance.
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210	210	E. A vacancy shall be filled in the same manner as the original appointment.
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212	212	F. on the expiration of a Board member's term, the voting member may continue to serve until that member is reappointed to another term or a new board member is appointed.
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214	214	G. the board shall annually elect a chairperson and vice chairperson from among its members. The chairperson and vice chairperson may serve more than one term.
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216	216	H. Board members are not eligible to receive compensation but members who are appointed pursuant to subsection a, paragraphs 4, 5 and 6 are eligible for reimbursement of expenses pursuant to title 38, chapter 4, article 2.
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218	218	I. The Board shall meet at least four times each calendar year and at other times at the discretion of the chairperson or a majority of the voting members. A majority of the voting members constitutes a quorum.END_STATUTE
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220	220	START_STATUTE20-3704. Subcommittees; advisory committees; requirements; reimbursement
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222	222	A. The Board may appoint subcommittees and advisory committees that are comprised of members of the board, former members of the Board and the public who have experience or knowledge in Matters relating to health care or matters that are within the scope of the powers, duties and functions of the Board.
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224	224	B. The members of a subcommittee or advisory committee must be representative of the various geographic areas and ethnic groups of this state to the extent PRACTICABLE.
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226	226	C. Subcommittee and advisory committee members may not receive reimbursement of expenses pursuant to title 38, chapter 4, article 2. END_STATUTE
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228	228	START_STATUTE20-3705. Board; powers and duties; reports; audits
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230	230	A. The Board shall:
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232	232	1. Adopt rules that set forth the Board's procedures and operations.
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234	234	2. On or before June 30 and December 31 of each year, submit a written fiscal and operational report to the governor, the president of the senate and the speaker of the house of representatives and include any recommendations CONCERNING the exchange.
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236	236	3. On or before July 1 of each year, post a report on a publicly accessible website that summarizes the activities of the Board and explains how the exchange has impacted health care in this state for the previous fiscal year.
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238	238	4. Provide for an annual audit of the Board's functions and operations.
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240	240	5. Submit in a timely manner all reports that are required by federal law to the appropriate federal agencies.
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242	242	B. The Board may:
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244	244	1. Adopt rules to carry out the duties and powers of the exchange.
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246	246	2. Prepare special reports concerning the exchange that are sent to the Governor, the president of the senate and the speaker of the house of representatives and that are publicly posted on its website.
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248	248	3. Contract for services that the exchange may require to execute the duties and powers of the exchange, including legal, professional, technical and personnel services.
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250	250	C. The board is subject to legislative and executive branch audits, as appropriate. END_STATUTE
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252	252	START_STATUTE20-3706. Executive director; appointment
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254	254	The Board shall appoint an executive director of the exchange. The executive director:
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256	256	1. Is an employee of this state.
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258	258	2. Serves at the pleasure of the Board.
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260	260	3. Is responsible to the Board.
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262	262	4. Is responsible for the administrative matters of the board.
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264	264	5. Must have experience and education in administering health care or health insurance.
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266	266	6. is subject to the limits of available funding.
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268	268	7. May hire or remove employees. END_STATUTE
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270	270	START_STATUTE20-3707. Coordination with AHCCCS; children's health insurance program
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272	272	The board and the director of the department of health services or the director's designee shall ensure that the exchange coordinates with the health care cost containment system as prescribed in title 36, chapter 29, the children's health insurance program as prescribed in title 36, CHAPTER 29, article 4 and any other state or local public health program.END_STATUTE
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274	274	Sec. 3. Title 41, chapter 27, article 2, Arizona Revised Statutes, is amended by adding section 41-3034.01, to read:
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276	276	START_STATUTE41-3034.01. State health insurance exchange board; termination July 1, 2034
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278	278	A. the state health insurance exchange board terminates on July 1, 2034.
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280	280	B. title 20, chapter 32, article 1 and this section are repealed on January 1, 2035.END_STATUTE
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282	282	Sec. 4. Initial terms of state health insurance exchange board
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284	284	A. Notwithstanding section 20-3703, Arizona Revised Statutes, as added by this act, the initial terms of members of the state health insurance exchange board are:
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286	286	1. Two terms ending January 31, 2025.
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288	288	2. Two terms ending January 31, 2026.
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290	290	3. Three terms ending January 31, 2027.
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292	292	B. The appropriate official shall make all subsequent appointments as prescribed by statute.
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294	294	Sec. 5. Purpose
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296	296	Pursuant to section 41-2955, subsection E, Arizona Revised Statutes, the legislature establishes the state health insurance exchange board to facilitate the purchase and sale of qualified health plans in the individual health insurance market in this state.