senate Bill S5652

Establishes the New York State Health Benefit exchange

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Bill Status


  • Introduced
  • In Committee
  • On Floor Calendar
    • Passed Senate
    • Passed Assembly
  • Delivered to Governor
  • Signed/Vetoed by Governor
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actions

  • 08 / Jun / 2011
    • REFERRED TO RULES
  • 16 / Jun / 2011
    • ORDERED TO THIRD READING CAL.1329
  • 24 / Jun / 2011
    • RECOMMITTED TO RULES
  • 04 / Jan / 2012
    • REFERRED TO CORPORATIONS, AUTHORITIES AND COMMISSIONS

Summary

Establishes the New York State Health Benefit exchange in accordance with the federal Patient Protection and Affordable Care Act, as amended by the federal Health Care and Education Reconciliation Act of 2010.

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Bill Details

Versions:
S5652
Legislative Cycle:
2011-2012
Current Committee:
Senate Corporations, Authorities And Commissions
Law Section:
Public Authorities Law
Laws Affected:
Add Art 9 Title 6-A ยงยง2911 - 2921, Pub Auth L

Sponsor Memo

BILL NUMBER:S5652

TITLE OF BILL:
An act
to amend the public authorities law, in relation to
establishing the New York Health Benefit
exchange in accordance with the federal Patient Protection and
Affordable Care Act, as amended by the
federal Health Care and Education Reconciliation Act of 2010

PURPOSE:
To establish the New York Health Benefit Exchange as required
by the federal health care reform law (Patient Protection and
Affordable Care Act)

SUMMARY OF PROVISIONS:
Section 1 of the bill adds a new Title 6-A to
Article 9 of the public authorities law creating the New York Health
Benefit Exchange to do the following:

Section 2911 provides the short title.

Section 2912 provides definitions.

Section 2913 establishes the New York State Health Benefit Exchange as
a new public authority. The Exchange will operate under the control
of an 11 member board of directors.

Section 2914 sets forth the powers of the Exchange.

Section 2915 addresses issues relating to procurement.

Section 2916 requires the Exchange to study various policy issues
relating to the Exchange and issue a report to the Legislature by
December 31, 2011.

Section 2917 allows the Exchange to set up accounts and provides that
no general fund monies will be used to finance the Exchange without a
subsequent appropriation.

Section 2918 provides that no director or employee of the Exchange
shall be subject to personal liability for carrying out the powers of
the Exchange.

Section 2919 establishes Regional Advisory Committees across the state
to provide expertise and recommendations to the Board.

Section 2920 relates to officers and employees of the Exchange.

Section 2921 provides that the Exchange shall not supersede the
authority of either the superintendent of the Department of Financial
Services or the Commissioner of Health.

Sections 2 and 3 provides a severability clause and effective date.
Should the federal act be declared unconstitutional or is repealed by
congress, then this act shall be null and void.


JUSTIFICATION:
This bill establishes the New York State Health Benefit
Exchange and begins the initial phase of addressing the requirements
under the federal Patient Protection and Affordable Care Act enacted
last year. Under the federal law, states are encouraged to set up and
have operational health insurance exchanges by 2014. If states do
not fulfill this mandate, the federal government will assume that
responsibility and establish one for us This bill establishes a
state-operated exchange.

Exchanges are intended to assist small employers, individuals and
families in determining if they are eligible for subsidized health
insurance programs and to select a health insurance product that best
meets their needs. By establishing an independent public authority
with legislative and executive appointments, as well as regional
advisory committees, the Exchange will be able to obtain input and
develop recommendations on the policy issues that must be addressed.
The bill allows the new Board the time to review and evaluate
critical aspects of the Exchange and its role and functions within
the health insurance arena. This allows for a transparent process and
careful consideration of policy choices.

New York State already has strong regulatory oversight of health
plans. The current system protects policyholders and promotes a
robust health insurance market. This bill acknowledges the existing
regulatory and statutory underpinnings in both the health and
insurance areas, while recognizing the importance of moving forward
to establish an Exchange in order to access federal funding.

LEGISLATIVE HISTORY:
New bill.

FISCAL IMPLICATIONS:
None to the State, as the Exchange is contingent upon federal
funding.

EFFECTIVE DATE:
Immediately.

view bill text
                    S T A T E   O F   N E W   Y O R K
________________________________________________________________________

                                  5652

                       2011-2012 Regular Sessions

                            I N  S E N A T E

                              June 8, 2011
                               ___________

Introduced  by  Sens.  SEWARD, HANNON -- read twice and ordered printed,
  and when printed to be committed to the Committee on Rules

AN ACT to amend the public authorities law, in relation to  establishing
  the  New  York  Health Benefit exchange in accordance with the federal
  Patient Protection and Affordable Care Act, as amended by the  federal
  Health Care and Education Reconciliation Act of 2010

  THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
BLY, DO ENACT AS FOLLOWS:

  Section 1. Article 9 of the  public  authorities  law  is  amended  by
adding a new title 6-A to read as follows:
                                 TITLE 6-A
                 NEW YORK STATE HEALTH BENEFIT EXCHANGE
SECTION 2911. SHORT TITLE.
        2912. DEFINITIONS.
        2913. HEALTH BENEFIT EXCHANGE.
        2914. POWERS OF THE EXCHANGE.
        2915. PROCUREMENT.
        2916. REPORTS BY THE EXCHANGE.
        2917. MONEYS OF THE AUTHORITY.
        2918. ACTIONS AGAINST THE EXCHANGE.
        2919. REGIONAL ADVISORY COMMITTEES.
        2920. OFFICERS AND EMPLOYEES.
        2921. RELATION TO OTHER LAWS.
  S 2911. SHORT TITLE. THIS TITLE SHALL BE KNOWN AND MAY BE CITED AS THE
"NEW YORK STATE HEALTH BENEFIT EXCHANGE ACT".
  S  2912.  DEFINITIONS.  FOR  THE  PURPOSE OF THIS TITLE, THE FOLLOWING
DEFINITIONS SHALL APPLY:
  1. "BOARD" OR "BOARD OF DIRECTORS" MEANS THE BOARD OF DIRECTORS OF THE
EXCHANGE.
  2. "REGIONAL  ADVISORY  COMMITTEES"  MEANS  NEW  YORK  HEALTH  BENEFIT
EXCHANGE ADVISORY COMMITTEES ESTABLISHED PURSUANT TO THIS TITLE.

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD11754-04-1

S. 5652                             2

  3. "COMMISSIONER" MEANS THE COMMISSIONER OF HEALTH.
  4.  "EXCHANGE"  MEANS THE NEW YORK HEALTH BENEFIT EXCHANGE ESTABLISHED
PURSUANT TO THIS TITLE.
  5. "FEDERAL ACT" MEANS THE PATIENT PROTECTION AND AFFORDABLE CARE ACT,
PUBLIC LAW 111-148, AS AMENDED BY THE HEALTH CARE AND  EDUCATION  RECON-
CILIATION  ACT OF 2010, PUBLIC LAW 111-152, AND ANY REGULATIONS OR GUID-
ANCE ISSUED THEREUNDER.
  6. "HEALTH PLAN" MEANS A POLICY, CONTRACT OR CERTIFICATE,  OFFERED  OR
ISSUED  BY AN INSURER TO PROVIDE, DELIVER, ARRANGE FOR, PAY FOR OR REIM-
BURSE ANY OF THE COSTS OF HEALTH CARE SERVICES.  "HEALTH PLAN" SHALL NOT
INCLUDE THE FOLLOWING:
  (A) ACCIDENT INSURANCE OR DISABILITY INCOME INSURANCE, OR ANY COMBINA-
TION THEREOF;
  (B) COVERAGE ISSUED AS A SUPPLEMENT TO LIABILITY INSURANCE;
  (C) LIABILITY INSURANCE, INCLUDING  GENERAL  LIABILITY  INSURANCE  AND
AUTOMOBILE LIABILITY INSURANCE;
  (D) WORKERS' COMPENSATION OR SIMILAR INSURANCE;
  (E) AUTOMOBILE NO-FAULT INSURANCE;
  (F) CREDIT INSURANCE;
  (G)  OTHER  SIMILAR  INSURANCE COVERAGE, AS SPECIFIED IN FEDERAL REGU-
LATIONS, UNDER WHICH BENEFITS FOR MEDICAL CARE ARE  SECONDARY  OR  INCI-
DENTAL TO OTHER INSURANCE BENEFITS;
  (H)  LIMITED  SCOPE  DENTAL OR VISION BENEFITS, BENEFITS FOR LONG-TERM
CARE INSURANCE, NURSING HOME INSURANCE,  HOME  CARE  INSURANCE,  OR  ANY
COMBINATION  THEREOF,  OR  SUCH  OTHER  SIMILAR, LIMITED BENEFITS HEALTH
INSURANCE AS SPECIFIED IN  FEDERAL  REGULATIONS,  IF  THE  BENEFITS  ARE
PROVIDED  UNDER  A SEPARATE POLICY, CERTIFICATE OR CONTRACT OF INSURANCE
OR ARE OTHERWISE NOT AN INTEGRAL PART OF THE PLAN;
  (I) COVERAGE ONLY FOR A SPECIFIED DISEASE OR ILLNESS, HOSPITAL  INDEM-
NITY, OR OTHER FIXED INDEMNITY COVERAGE;
  (J)  MEDICARE  SUPPLEMENTAL INSURANCE AS DEFINED IN SECTION 1882(G)(1)
OF THE FEDERAL SOCIAL SECURITY ACT, COVERAGE SUPPLEMENTAL TO THE  COVER-
AGE  PROVIDED UNDER CHAPTER 55 OF TITLE 10 OF THE UNITED STATES CODE, OR
SIMILAR SUPPLEMENTAL COVERAGE PROVIDED UNDER A GROUP HEALTH PLAN  IF  IT
IS  OFFERED  AS A SEPARATE POLICY, CERTIFICATE OR CONTRACT OF INSURANCE;
OR
  (K) THE MEDICAL INDEMNITY FUND ESTABLISHED PURSUANT TO TITLE  FOUR  OF
ARTICLE TWENTY-NINE-D OF THE PUBLIC HEALTH LAW.
  7.  "INSURER" MEANS AN INSURANCE COMPANY SUBJECT TO ARTICLE THIRTY-TWO
OR FORTY-THREE OF THE INSURANCE LAW, OR A HEALTH  MAINTENANCE  ORGANIZA-
TION  CERTIFIED  PURSUANT TO ARTICLE FORTY-FOUR OF THE PUBLIC HEALTH LAW
THAT CONTRACTS OR OFFERS TO CONTRACT TO PROVIDE, DELIVER,  ARRANGE,  PAY
OR REIMBURSE ANY OF THE COSTS OF HEALTH CARE SERVICES.
  8.  "QUALIFIED  DENTAL PLAN" MEANS A LIMITED SCOPE DENTAL PLAN THAT IS
ISSUED  BY  AN  INSURER  AND  CERTIFIED  IN  ACCORDANCE   WITH   SECTION
TWENTY-NINE HUNDRED FOURTEEN OF THIS TITLE.
  9. "QUALIFIED EMPLOYER" MEANS A SMALL EMPLOYER THAT ELECTS TO MAKE ITS
FULL-TIME  EMPLOYEES  ELIGIBLE  FOR  ONE  OR MORE QUALIFIED HEALTH PLANS
THROUGH THE EXCHANGE.
  10. "QUALIFIED HEALTH PLAN" MEANS A HEALTH PLAN THAT IS ISSUED  BY  AN
INSURER  AND  CERTIFIED  IN  ACCORDANCE WITH SECTION TWENTY-NINE HUNDRED
FOURTEEN OF THIS TITLE.
  11. "QUALIFIED INDIVIDUAL" MEANS AN  INDIVIDUAL,  INCLUDING  A  MINOR,
WHO:
  (A)  IS  SEEKING TO ENROLL IN A QUALIFIED HEALTH PLAN OFFERED TO INDI-
VIDUALS THROUGH THE EXCHANGE;

S. 5652                             3

  (B) RESIDES IN THIS STATE;
  (C)  AT THE TIME OF ENROLLMENT, IS NOT INCARCERATED, OTHER THAN INCAR-
CERATION PENDING THE DISPOSITION OF CHARGES; AND
  (D) IS, AND IS REASONABLY EXPECTED TO BE, FOR THE  ENTIRE  PERIOD  FOR
WHICH  ENROLLMENT  IS SOUGHT, A CITIZEN OR NATIONAL OF THE UNITED STATES
OR AN ALIEN LAWFULLY PRESENT IN THE UNITED STATES.
  12. "SECRETARY" MEANS THE SECRETARY OF THE UNITED STATES DEPARTMENT OF
HEALTH AND HUMAN SERVICES.
  13. "SHOP" MEANS THE SMALL BUSINESS HEALTH OPTIONS PROGRAM DESIGNED TO
ASSIST QUALIFIED EMPLOYERS IN THIS STATE IN FACILITATING THE  ENROLLMENT
OF THEIR EMPLOYEES IN QUALIFIED HEALTH PLANS OFFERED IN THE GROUP MARKET
IN THIS STATE.
  14.  "SMALL  EMPLOYER"  SHALL BE DEFINED PURSUANT TO LEGISLATION TO BE
ADOPTED FOLLOWING THE ISSUANCE OF THE REPORT AND RECOMMENDATION REQUIRED
BY SECTION TWENTY-NINE HUNDRED SIXTEEN OF THIS TITLE; PROVIDED, HOWEVER,
THAT SUCH DEFINITION SHALL BE CONSISTENT WITH THE DEFINITION  OF  "SMALL
EMPLOYER" THAT APPLIES FOR EMPLOYERS PURCHASING HEALTH INSURANCE OUTSIDE
OF THE EXCHANGE.
  15. "SMALL GROUP MARKET" MEANS THE HEALTH INSURANCE MARKET UNDER WHICH
INDIVIDUALS  RECEIVE  HEALTH  INSURANCE COVERAGE ON BEHALF OF THEMSELVES
AND THEIR DEPENDENTS THROUGH A GROUP HEALTH PLAN MAINTAINED BY  A  SMALL
EMPLOYER.
  16. "SUPERINTENDENT" MEANS THE SUPERINTENDENT OF INSURANCE UNTIL OCTO-
BER  THIRD,  TWO  THOUSAND  ELEVEN, WHEN SUCH TERM SHALL MEAN THE SUPER-
INTENDENT OF FINANCIAL SERVICES.
  S 2913. HEALTH BENEFIT EXCHANGE. 1. THE NEW YORK STATE HEALTH  BENEFIT
EXCHANGE  IS  HEREBY  ESTABLISHED  AS A PUBLIC AUTHORITY PURSUANT TO THE
PROVISIONS OF THIS CHAPTER.
  2. THE EXCHANGE SHALL OPERATE SUBJECT TO THE SUPERVISION  AND  CONTROL
OF  A  BOARD  OF  DIRECTORS.  IT SHALL CONSIST OF ELEVEN DIRECTORS TO BE
APPOINTED AS PROVIDED IN SUBDIVISION THREE OF THIS SECTION.
  3. THE BOARD SHALL BE COMPOSED OF THE FOLLOWING DIRECTORS:
  (A) TWO NON-VOTING EX OFFICIO DIRECTORS: THE  SUPERINTENDENT  AND  THE
COMMISSIONER OR THEIR DESIGNEES;
  (B) THREE DIRECTORS SHALL BE APPOINTED BY THE GOVERNOR;
  (C) TWO DIRECTORS SHALL BE APPOINTED BY THE TEMPORARY PRESIDENT OF THE
SENATE;
  (D) TWO DIRECTORS SHALL BE APPOINTED BY THE SPEAKER OF THE ASSEMBLY;
  (E)  ONE  DIRECTOR  SHALL  BE  APPOINTED BY THE MINORITY LEADER OF THE
SENATE;
  (F) ONE DIRECTOR SHALL BE APPOINTED BY  THE  MINORITY  LEADER  OF  THE
ASSEMBLY.
  4.  APPOINTMENTS  SHALL  BE  MADE  NO  LATER THAN SIXTY DAYS AFTER THE
EFFECTIVE DATE OF THIS TITLE. IN THE EVENT THAT A PARTICULAR APPOINTMENT
IS NOT MADE WITHIN SIXTY DAYS, THE GOVERNOR SHALL APPOINT AN  INDIVIDUAL
OF HIS OR HER CHOOSING TO FILL THE VACANCY.
  5. DIRECTORS OF THE BOARD, OTHER THAN AN EX OFFICIO DIRECTOR, SHALL BE
APPOINTED FOR A TERM OF FOUR YEARS, EXCEPT THAT THE INITIAL APPOINTMENTS
BY  THE  TEMPORARY  PRESIDENT  OF THE SENATE AND SPEAKER OF THE ASSEMBLY
SHALL BE FOR A TERM OF FIVE YEARS, AND THE INITIAL APPOINTMENTS  BY  THE
MINORITY  LEADERS  IN THE SENATE AND ASSEMBLY SHALL BE FOR A TERM OF TWO
YEARS. EACH DIRECTOR SHALL CONTINUE TO SERVE UNTIL A SUCCESSOR HAS  BEEN
APPOINTED AND QUALIFIED. VACANCIES SHALL BE FILLED BY APPOINTMENT BY THE
INITIAL  APPOINTING AUTHORITY FOR THE UNEXPIRED TERM. FIVE VOTING DIREC-
TORS SHALL CONSTITUTE A QUORUM FOR THE PURPOSE OF ORGANIZING THE AUTHOR-
ITY AND CONDUCTING THE BUSINESS THEREOF. THE BOARD SHALL  DETERMINE  THE

S. 5652                             4

TIMES,  PLACES  AND  FREQUENCY OF ITS MEETINGS, HOWEVER, THE BOARD SHALL
MEET AT LEAST QUARTERLY.
  6.  A  CHAIR SHALL BE NOMINATED BY THE GOVERNOR AMONG HIS OR HER ALLO-
CATED NOMINEES AND BE SUBJECT TO  CONFIRMATION  BY  THE  SENATE.    EACH
DIRECTOR  SHALL  RECEIVE REIMBURSEMENT FOR HIS OR HER ACTUAL AND REASON-
ABLE EXPENSES IN THE PERFORMANCE OF HIS OR HER DUTIES HEREUNDER.
  7. THE BOARD SHALL APPOINT A CHIEF EXECUTIVE OFFICER OF THE  NEW  YORK
STATE  HEALTH  BENEFIT  EXCHANGE.  THE  CHIEF EXECUTIVE OFFICER SHALL BE
SUBJECT TO CONFIRMATION BY THE STATE SENATE IN ACCORDANCE  WITH  SECTION
TWENTY-EIGHT HUNDRED FIFTY-TWO OF THIS ARTICLE.
  8. DIRECTORS SHALL BE SUBJECT TO THE PROVISIONS FOR REMOVAL PRESCRIBED
IN SECTION TWENTY-EIGHT HUNDRED TWENTY-SEVEN OF THIS ARTICLE.
  9.  TO  THE EXTENT PRACTICABLE, DIRECTORS APPOINTED TO THE BOARD SHALL
COLLECTIVELY HAVE DEMONSTRATED EXPERTISE IN ALL OF THE FOLLOWING  AREAS,
PROVIDED  THAT  EACH  DIRECTOR  SHALL  HAVE DEMONSTRATED EXPERTISE IN AT
LEAST ONE OF THE FOLLOWING AREAS:
  (A) INDIVIDUAL HEALTH CARE COVERAGE;
  (B) SMALL EMPLOYER HEALTH CARE COVERAGE;
  (C) HEALTH BENEFITS PLAN ADMINISTRATION;
  (D) HEALTH CARE FINANCE OR ECONOMICS;
  (E) PURCHASING HEALTH PLAN COVERAGE, INCLUDING AGENTS, BROKERS,  CHAM-
BERS OF COMMERCE AND OTHER EMPLOYER ASSOCIATIONS; AND
  (F) DELIVERY OF HEALTH CARE SERVICES.
  10.  IN  MAKING  APPOINTMENTS TO THE BOARD, THE APPOINTING AUTHORITIES
SHALL TAKE INTO CONSIDERATION  THE  CULTURAL,  ETHNIC  AND  GEOGRAPHICAL
DIVERSITY  OF  THE  STATE  SO  THAT  THE  BOARD'S COMPOSITION ACCURATELY
REFLECTS THE VARIOUS REGIONS OF THE STATE.
  11. THE BOARD SHALL ADOPT FORMAL  MECHANISMS  TO  AVOID  CONFLICTS  OF
INTERESTS BY ITS DIRECTORS OR THE STAFF OF THE EXCHANGE.
  12.  THE  EXCHANGE  SHALL  BE  SUBJECT TO THE PROVISIONS OF THE PUBLIC
OFFICERS LAW. IN THE EVENT  REGULATORY  AUTHORITY  IS  PROVIDED  TO  THE
EXCHANGE,  THE  EXCHANGE  SHALL  BE  SUBJECT TO THE STATE ADMINISTRATIVE
PROCEDURE ACT.
  13. EXCEPT AS EXPRESSLY PROVIDED BY THIS TITLE, THE BOARD SHALL NOT:
  (A) HAVE THE POWER TO TAX, ASSESS, IMPOSE FEES OR IMPOSE ASSESSMENTS;
  (B) HAVE THE POWER TO ISSUE BONDS, NOTES,  OR  ANY  OTHER  DEBT  OBLI-
GATIONS;
  (C) EXERCISE ANY ADDITIONAL POWERS, DUTIES OR FUNCTIONS WITH REGARD TO
THE  OPERATION  OF  THE EXCHANGE UNLESS THE GOVERNOR AND THE LEGISLATURE
AUTHORIZES SUCH ADDITIONAL POWERS, DUTIES OR FUNCTIONS THROUGH ENACTMENT
OF SUBSEQUENT LEGISLATION;
  (D) REGULATE HEALTH INSURERS, HEALTH INSURANCE PLANS, OR HEALTH INSUR-
ANCE PRODUCERS.
  14. THE BOARD SHALL HAVE A FIDUCIARY RELATIONSHIP WITH THE EXCHANGE.
  S 2914. POWERS OF THE EXCHANGE. 1. NOTHING  CONTAINED  IN  THIS  TITLE
SHALL  BE  INTERPRETED  TO AUTHORIZE THE EXCHANGE TO EXERCISE REGULATORY
AUTHORITY, UNLESS AND UNTIL EXPRESSLY AUTHORIZED BY THE LEGISLATURE, AND
THE POWERS OF THE EXCHANGE SHALL BE LIMITED TO THE FOLLOWING:
  (A) TO APPOINT OFFICERS, AGENTS AND EMPLOYEES, PRESCRIBE THEIR  DUTIES
AND  QUALIFICATIONS AND FIX THEIR COMPENSATION SUBJECT TO THE PROVISIONS
OF THE CIVIL SERVICE LAW,  INCLUDING  THE  CHIEF  EXECUTIVE  OFFICER  AS
REFERRED TO IN SUBDIVISION SEVEN OF SECTION TWENTY-NINE HUNDRED THIRTEEN
OF THIS TITLE.
  (B)  ACQUIRE,  LEASE,  PURCHASE, OWN, MANAGE, HOLD AND DISPOSE OF REAL
AND PERSONAL PROPERTY, AND LEASE, CONVEY OR DEAL IN OR ENTER INTO AGREE-

S. 5652                             5

MENTS WITH RESPECT TO SUCH PROPERTY ON ANY TERMS NECESSARY OR INCIDENTAL
TO THE CARRYING OUT OF THESE PURPOSES.
  (C) TO MAKE AND ALTER BY-LAWS FOR ITS ORGANIZATION AND MANAGEMENT.
  (D)  TO  ENTER  INTO  CONTRACTS SUBJECT TO SECTION TWENTY-NINE HUNDRED
FIFTEEN OF THIS TITLE, AND  TO  EXECUTE  ALL  INSTRUMENTS  NECESSARY  OR
CONVENIENT.
  (E)  TO  RETAIN  AND  EMPLOY  PRIVATE CONSULTANTS ON A CONTRACT BASIS,
SUBJECT TO SECTION  TWENTY-NINE  HUNDRED  FIFTEEN  OF  THIS  TITLE,  FOR
RENDERING PROFESSIONAL AND TECHNICAL ASSISTANCE AND ADVICE.
  (F) TO ACCEPT OR APPLY FOR ANY GIFTS OR ANY GRANT OF FUNDS OR PROPERTY
FROM  THE  FEDERAL GOVERNMENT OR FROM THE STATE OF NEW YORK OR ANY OTHER
FEDERAL OR STATE PUBLIC BODY  OR  POLITICAL  SUBDIVISION  OR  ANY  OTHER
PERSON AND TO COMPLY WITH THE TERMS AND CONDITIONS THEREOF.
  (G)  TO  ACQUIRE, HOLD AND DISPOSE OF PERSONAL PROPERTY FOR ITS CORPO-
RATE PURPOSES.
  (H) THE EXCHANGE MAY ENTER INTO  INFORMATION-SHARING  AGREEMENTS  WITH
FEDERAL  AND  STATE  AGENCIES AND OTHER STATE EXCHANGES TO CARRY OUT ITS
RESPONSIBILITIES UNDER  THIS  TITLE  PROVIDED  SUCH  AGREEMENTS  INCLUDE
ADEQUATE PROTECTIONS WITH RESPECT TO THE CONFIDENTIALITY OF THE INFORMA-
TION SHARED AND COMPLY WITH ALL STATE AND FEDERAL LAWS.
  2. THE EXCHANGE SHALL:
  (A)  IMPLEMENT  PROCEDURES  FOR THE CERTIFICATION, RECERTIFICATION AND
DECERTIFICATION, CONSISTENT WITH GUIDELINES DEVELOPED BY  THE  SECRETARY
UNDER SECTION 1311(C) OF THE FEDERAL ACT AND AS AUTHORIZED BY THE ENACT-
MENT OF FUTURE STATE LEGISLATION REGARDING HEALTH BENEFIT PLANS AS QUAL-
IFIED HEALTH PLANS.
  (B)  IMPLEMENT  PROCEDURES FOR AUTHORIZING QUALIFIED DENTAL PLANS THAT
OFFER  LIMITED   SCOPE   DENTAL   BENEFITS   CONSISTENT   WITH   SECTION
1311(D)(2)(B)(II)  OF  THE FEDERAL ACT, AND PROVIDE THAT IF AT LEAST ONE
QUALIFIED DENTAL PLAN IS AUTHORIZED TO BE OFFERED THROUGH THE  EXCHANGE,
CERTIFICATION  OF A HEALTH BENEFIT PLAN AS A QUALIFIED HEALTH PLAN UNDER
PARAGRAPH (A) OF THIS SUBDIVISION,  SHALL  NOT  BE  DENIED  BECAUSE  THE
HEALTH  BENEFIT  PLAN  DOES  NOT OFFER THE DENTAL BENEFITS REQUIRED OF A
QUALIFIED DENTAL PLAN.
  (C) PROVIDE FOR THE OPERATION OF  A  TOLL-FREE  TELEPHONE  HOTLINE  TO
RESPOND TO REQUESTS FOR ASSISTANCE.
  (D) PROVIDE FOR ENROLLMENT PERIODS, WHICH ARE CONSISTENT WITH COMPARA-
BLE  ENROLLMENT  PERIODS IN THE INSURANCE LAW, AS PROVIDED UNDER SECTION
1311(C)(6) OF THE FEDERAL ACT.
  (E) MAINTAIN AN INTERNET WEB SITE THROUGH WHICH ENROLLEES AND PROSPEC-
TIVE ENROLLEES OF QUALIFIED HEALTH PLANS AND QUALIFIED DENTAL PLANS  MAY
OBTAIN STANDARDIZED COMPARATIVE INFORMATION ON SUCH PLANS.
  (F)  PUBLISH  THE  AVERAGE COSTS OF LICENSING, REGULATORY FEES AND ANY
OTHER PAYMENTS REQUIRED BY THE EXCHANGE AND THE ADMINISTRATIVE COSTS  OF
THE  EXCHANGE,  INCLUDING INFORMATION ON MONIES LOST TO WASTE, FRAUD AND
ABUSE, ON AN INTERNET WEB SITE TO EDUCATE INDIVIDUALS ON SUCH COSTS.
  (G) INFORM INDIVIDUALS, IN ACCORDANCE WITH SECTION 1413 OF THE FEDERAL
ACT, OF ELIGIBILITY REQUIREMENTS FOR THE MEDICAID  PROGRAM  UNDER  TITLE
XIX  OF THE SOCIAL SECURITY ACT, AS AMENDED FROM TIME TO TIME, THE CHIL-
DREN'S HEALTH INSURANCE PROGRAM (CHIP) UNDER TITLE  XXI  OF  THE  SOCIAL
SECURITY  ACT,  AS  AMENDED  FROM  TIME TO TIME, OR ANY APPLICABLE STATE
PUBLIC PROGRAM INCLUDING FAMILY HEALTH PLUS AND HEALTHY NY,  AND  ENROLL
AN INDIVIDUAL IN SUCH PROGRAM TO THE EXTENT REQUIRED BY THE FEDERAL ACT,
IF  THE EXCHANGE DETERMINES, THROUGH SCREENING OF THE APPLICATION BY THE
EXCHANGE, THAT SUCH INDIVIDUAL IS ELIGIBLE FOR ANY SUCH PROGRAM.    UPON

S. 5652                             6

ENROLLMENT,  SUCH ELIGIBLE INDIVIDUAL SHALL BE REFERRED TO THE APPROPRI-
ATE LOCAL DEPARTMENT OF SOCIAL SERVICES.
  (H)  ESTABLISH  AND MAKE AVAILABLE BY ELECTRONIC MEANS A CALCULATOR TO
DETERMINE THE ACTUAL COST OF COVERAGE AFTER APPLICATION OF  ANY  PREMIUM
TAX  CREDIT UNDER SECTION 36B OF THE INTERNAL REVENUE CODE AND ANY COST-
SHARING REDUCTION UNDER SECTION 1402 OF THE FEDERAL ACT.
  (I) ESTABLISH A SMALL BUSINESS HEALTH OPTIONS PROGRAM (SHOP)  EXCHANGE
THROUGH  WHICH QUALIFIED EMPLOYERS MAY ENROLL IN QUALIFIED HEALTH PLANS.
THE SHOP EXCHANGE SHALL PROVIDE EMPLOYERS THE ABILITY TO SELECT A HEALTH
PLAN OR PLANS THROUGH WHICH THEIR EMPLOYEES ARE PROVIDED COVERAGE, OR AT
THE OPTION OF THE EMPLOYER, ALLOW EACH EMPLOYEE TO ENROLL  IN  ANY  PLAN
OFFERED  THROUGH THE SHOP EXCHANGE AT THE LEVEL OF COVERAGE SPECIFIED BY
THE EMPLOYER. THE EXCHANGE SHALL NOT HAVE THE AUTHORITY TO EITHER  MERGE
THE  INDIVIDUAL AND SMALL GROUP MARKETS OR MERGE THE SHOP WITH THE INDI-
VIDUAL MARKET EXCHANGE.  OTHER THAN FOR PURPOSES OF SHARING  INFORMATION
TECHNOLOGY,  THE  SHOP EXCHANGE SHALL OPERATE SEPARATE AND DISTINCT FROM
THOSE ACTIVITIES OF THE EXCHANGE INTENDED TO FACILITATE  THE  ENROLLMENT
OF INDIVIDUALS.
  (J) GRANT A CERTIFICATION, SUBJECT TO SECTION 1411 OF THE FEDERAL ACT,
ATTESTING  THAT,  FOR  PURPOSES OF THE INDIVIDUAL RESPONSIBILITY PENALTY
UNDER SECTION 5000A OF THE  INTERNAL  REVENUE  CODE,  AN  INDIVIDUAL  IS
EXEMPT FROM THE INDIVIDUAL RESPONSIBILITY REQUIREMENT OR FROM THE PENAL-
TY IMPOSED BY SAID SECTION 5000A BECAUSE:
  (I) THERE IS NO AFFORDABLE QUALIFIED HEALTH PLAN AVAILABLE THROUGH THE
EXCHANGE, OR THE INDIVIDUAL'S EMPLOYER, COVERING THE INDIVIDUAL; OR
  (II)  THE  INDIVIDUAL  MEETS  THE  REQUIREMENTS  FOR  ANY  OTHER  SUCH
EXEMPTION FROM THE INDIVIDUAL RESPONSIBILITY REQUIREMENT OR PENALTY.
  (K) PROVIDE TO THE SECRETARY OF THE TREASURY OF THE UNITED STATES  THE
FOLLOWING:
  (I)  A LIST OF THE INDIVIDUALS GRANTED A CERTIFICATION UNDER PARAGRAPH
(J) OF THIS SUBDIVISION, INCLUDING THE NAME AND TAXPAYER  IDENTIFICATION
NUMBER OF EACH INDIVIDUAL;
  (II)  THE  NAME  AND TAXPAYER IDENTIFICATION NUMBER OF EACH INDIVIDUAL
WHO WAS AN EMPLOYEE OF AN EMPLOYER BUT WHO WAS DETERMINED TO BE ELIGIBLE
FOR THE PREMIUM TAX CREDIT UNDER SECTION 36B  OF  THE  INTERNAL  REVENUE
CODE BECAUSE:
  (1)  THE  EMPLOYER  DID  NOT PROVIDE MINIMUM ESSENTIAL HEALTH BENEFITS
COVERAGE; OR
  (2) THE EMPLOYER PROVIDED THE MINIMUM ESSENTIAL COVERAGE  BUT  IT  WAS
DETERMINED UNDER SECTION 36B(C)(2)(C) OF THE INTERNAL REVENUE CODE TO BE
UNAFFORDABLE  TO  THE  EMPLOYEE  OR DID NOT PROVIDE THE REQUIRED MINIMUM
ACTUARIAL VALUE; AND
  (III) THE NAME AND TAXPAYER IDENTIFICATION NUMBER OF:
  (1) EACH INDIVIDUAL WHO NOTIFIES THE EXCHANGE UNDER SECTION 1411(B)(4)
OF THE FEDERAL ACT THAT SUCH INDIVIDUAL HAS CHANGED EMPLOYERS; AND
  (2) EACH INDIVIDUAL WHO CEASES COVERAGE UNDER A QUALIFIED HEALTH  PLAN
DURING A PLAN YEAR AND THE EFFECTIVE DATE OF THAT CESSATION.
  (L) PROVIDE TO EACH EMPLOYER THE NAME OF EACH EMPLOYEE OF THE EMPLOYER
DESCRIBED IN SUBPARAGRAPH (II) OF PARAGRAPH (K) OF THIS SUBDIVISION, WHO
CEASES COVERAGE UNDER A QUALIFIED HEALTH PLAN DURING A PLAN YEAR AND THE
EFFECTIVE DATE OF THE CESSATION.
  (M)  PERFORM  DUTIES REQUIRED OF, OR DELEGATED TO, THE EXCHANGE BY THE
SECRETARY OR THE SECRETARY OF THE TREASURY OF THE UNITED STATES  RELATED
TO DETERMINING ELIGIBILITY FOR PREMIUM TAX CREDITS, REDUCED COST-SHARING
OR INDIVIDUAL RESPONSIBILITY REQUIREMENT EXEMPTIONS.
  (N) CONSULT WITH STAKEHOLDERS, INCLUDING, BUT NOT LIMITED TO:

S. 5652                             7

  (I)  EDUCATED  HEALTH  CARE  CONSUMERS  WHO ARE ENROLLEES IN QUALIFIED
HEALTH PLANS;
  (II)  INDIVIDUALS AND ENTITIES WITH EXPERIENCE IN FACILITATING ENROLL-
MENT IN QUALIFIED HEALTH PLANS;
  (III) REPRESENTATIVES OF SMALL EMPLOYERS  AND  SELF-EMPLOYED  INDIVID-
UALS; AND
  (IV) ADVOCATES FOR ENROLLING HARD-TO-REACH POPULATIONS.
  (O) MEET THE FOLLOWING FINANCIAL INTEGRITY REQUIREMENTS:
  (I)  KEEP  AN  ACCURATE  ACCOUNTING  OF  ALL  ACTIVITIES, RECEIPTS AND
EXPENDITURES AND ANNUALLY SUBMIT A REPORT CONCERNING SUCH ACCOUNTINGS TO
THE GOVERNOR, THE TEMPORARY PRESIDENT OF THE SENATE, THE SPEAKER OF  THE
ASSEMBLY,  THE MINORITY LEADER OF THE SENATE, AND THE MINORITY LEADER OF
THE ASSEMBLY;
  (II) FULLY COOPERATE WITH ANY INVESTIGATION CONDUCTED BY THE SECRETARY
PURSUANT TO THE SECRETARY'S AUTHORITY UNDER THE FEDERAL  ACT  AND  ALLOW
THE  SECRETARY, IN COORDINATION WITH THE INSPECTOR GENERAL OF THE UNITED
STATES DEPARTMENT OF HEALTH AND  HUMAN  SERVICES  AND  ANY  OFFICERS  OF
COMPETENT JURISDICTION, TO:
  (1) INVESTIGATE THE AFFAIRS OF THE EXCHANGE;
  (2) EXAMINE THE PROPERTIES AND RECORDS OF THE EXCHANGE; AND
  (3)  REQUIRE PERIODIC REPORTS IN RELATION TO THE ACTIVITIES UNDERTAKEN
BY THE EXCHANGE;
  (III) NOT USE ANY FUNDS IN CARRYING  OUT  ITS  ACTIVITIES  UNDER  THIS
TITLE, THAT ARE INTENDED FOR THE ADMINISTRATIVE AND OPERATIONAL EXPENSES
OF  THE  EXCHANGE,  FOR STAFF RETREATS, PROMOTIONAL GIVEAWAYS, EXCESSIVE
EXECUTIVE COMPENSATION OR PROMOTION OF FEDERAL OR STATE LEGISLATIVE  AND
REGULATORY MODIFICATIONS.
  (P)  AS  AUTHORIZED  UNDER  SECTION  1312(E)  OF  THE FEDERAL ACT, THE
EXCHANGE SHALL PERMIT AGENTS AND BROKERS TO:
  (I) ENROLL QUALIFIED INDIVIDUALS AND QUALIFIED EMPLOYERS IN ANY QUALI-
FIED HEALTH PLANS OFFERED IN THE EXCHANGE; AND
  (II) ASSIST QUALIFIED INDIVIDUALS AND QUALIFIED EMPLOYERS IN  APPLYING
FOR PREMIUM TAX CREDITS AND COST-SHARING REDUCTIONS FOR PLANS OFFERED IN
THE EXCHANGE.
  S  2915. PROCUREMENT. 1. INFORMATION TECHNOLOGY CONTRACTS RESULTING IN
A SOLE TECHNOLOGY PLATFORM ENTERED INTO BY THE EXCHANGE UNDER THE AMOUNT
OF ONE MILLION DOLLARS SHALL BE EXEMPT FROM THE COMPETITIVE BID  PROCESS
PURSUANT  TO  SECTIONS ONE HUNDRED TWELVE AND ONE HUNDRED SIXTY-THREE OF
THE STATE FINANCE LAW AND ANY OTHER LAW TO THE CONTRARY.
  2. INFORMATION TECHNOLOGY CONTRACTS RESULTING  IN  A  SOLE  TECHNOLOGY
PLATFORM  IN  THE AMOUNT OF ONE MILLION DOLLARS OR MORE, ENTERED INTO BY
THE EXCHANGE, SHALL BE EXEMPT FROM THE COMPETITIVE BID  OR  REQUEST  FOR
PROPOSAL PROCESS PURSUANT TO SECTIONS ONE HUNDRED TWELVE AND ONE HUNDRED
SIXTY-THREE  OF THE STATE FINANCE LAW AND ANY OTHER LAW TO THE CONTRARY;
PROVIDED, HOWEVER:
  (A) THE EXCHANGE SHALL POST ON ITS WEBSITE, OR OTHERWISE  MAKE  AVAIL-
ABLE, FOR A PERIOD NOT LESS THAN SIXTY DAYS:
  (I)  A  DESCRIPTION  OF THE OF PROPOSED SERVICES TO BE PROVIDED BY THE
CONTRACTOR AND ANY RELATED SERVICES;
  (II) THE CRITERIA FOR SELECTION OF A CONTRACTOR OR CONTRACTORS;
  (III) THE PERIOD OF TIME DURING WHICH PROSPECTIVE CONTRACTORS MAY SEEK
SELECTION, WHICH SHALL BE NO LESS THAN THIRTY DAYS AFTER  SUCH  INFORMA-
TION IS FIRST POSTED ON THE WEBSITE; AND
  (IV)  THE  MANNER  BY  WHICH  A  PROSPECTIVE  CONTRACTOR MAY SEEK SUCH
SELECTION, WHICH MAY INCLUDE SUBMISSION BY ELECTRONIC MEANS;

S. 5652                             8

  (B) ALL REASONABLE AND RESPONSIVE SUBMISSIONS THAT ARE  RECEIVED  FROM
PROSPECTIVE CONTRACTORS SHALL BE REVIEWED BY THE EXCHANGE; AND
  (C)  THE EXCHANGE SHALL SELECT SUCH CONTRACTOR OR CONTRACTORS THAT, IN
ITS DISCRETION, HAVE DEMONSTRATED THE ABILITY TO EFFECTIVELY, EFFICIENT-
LY, AND ECONOMICALLY IMPLEMENT THE REQUIREMENTS NECESSARY AND CONSISTENT
WITH THE CRITERIA ESTABLISHED BY THIS TITLE AND THE  FEDERAL  ACT;  HAVE
THE  REQUISITE EXPERTISE AND FINANCIAL RESOURCES; HAVE DEMONSTRATED THAT
THEIR DIRECTORS, MEMBERS,  MANAGERS,  PARTNERS  OR  OPERATORS  HAVE  THE
REQUISITE  CHARACTER,  COMPETENCE  AND STANDING IN THE INDUSTRY, AND ARE
BEST SUITED TO SERVE THE PURPOSES OF THIS TITLE.
  3. CONTRACTS ENTERED INTO BY THE EXCHANGE  PURSUANT  TO  THIS  SECTION
SHALL  BE  SUBJECT  TO  SECTION  ONE  HUNDRED THIRTY-NINE-J OF THE STATE
FINANCE LAW.
  S 2916. REPORTS BY THE EXCHANGE. 1. ON OR BEFORE  JANUARY  FIRST,  TWO
THOUSAND  TWELVE,  THE  BOARD SHALL SUBMIT A REPORT TO THE GOVERNOR, THE
TEMPORARY PRESIDENT OF THE SENATE, THE  SPEAKER  OF  THE  ASSEMBLY,  THE
MINORITY  LEADER OF THE SENATE, AND THE MINORITY LEADER OF THE ASSEMBLY,
WHICH SHALL INCLUDE, BUT IS  NOT  LIMITED  TO,  RECOMMENDATIONS  ON  THE
FOLLOWING:
  (A) ESTABLISHMENT OF A BASIC HEALTH PLAN;
  (B) HOW TO ESTABLISH A SEPARATE INDIVIDUAL HEALTH INSURANCE MARKET AND
A SMALL EMPLOYER HEALTH INSURANCE MARKET WITHIN THE EXCHANGE;
  (C)  ADVANTAGES AND DISADVANTAGES OF REVISING THE DEFINITION OF "SMALL
EMPLOYER" PRIOR TO THE DATE REQUIRED BY THE FEDERAL ACT  FROM  NOT  MORE
THAN  FIFTY  EMPLOYEES  TO  NOT MORE THAN ONE HUNDRED EMPLOYEES BASED ON
ACTUARIAL ANALYSES OF PROJECTED IMPACTS ON PREMIUM RATES FOR BOTH  INDI-
VIDUALS AND SMALL EMPLOYERS AND ESTABLISHMENT OF A CONSISTENT DEFINITION
BOTH  INSIDE  AND  OUTSIDE  THE  EXCHANGE  FOR THE PURPOSES OF STATE AND
FEDERAL LAW;
  (D) EVALUATION OF REQUIRING QUALIFIED  HEALTH  PLANS  TO  PROVIDE  THE
ESSENTIAL  HEALTH  BENEFITS  PACKAGE, AS DESCRIBED IN SECTION 1302(A) OF
THE FEDERAL ACT, ALONG WITH SPECIFIC COSTS OF INCLUDING  STATE  MANDATED
BENEFITS  AND  RECOMMENDATIONS  AS  TO  HOW TO FINANCE THE COSTS OF SUCH
ADDITIONAL BENEFITS;
  (E) VALUE OF ALLOWING LARGE EMPLOYERS TO PARTICIPATE IN  THE  EXCHANGE
BEGINNING IN TWO THOUSAND SEVENTEEN;
  (F)  WHETHER HEALTH SAVINGS ACCOUNTS SHOULD BE OFFERED IN THE EXCHANGE
AND IN WHAT  MANNER  YOUNG  ADULTS  WILL  BENEFIT  FROM  HEALTH  SAVINGS
ACCOUNTS;
  (G)  THE  EFFICACY OF MERGING THE INDIVIDUAL AND SMALL EMPLOYER HEALTH
INSURANCE MARKETS AND THE SUBSEQUENT EFFECT ON PREMIUM RATES ON NEW YORK
SMALL EMPLOYERS AND INDIVIDUALS BASED ON ACTUARIAL ANALYSES FOR EACH  OF
THE HEALTH PLAN OPTIONS UNDER THE FEDERAL ACT;
  (H)  A  PROCESS  TO  DETERMINE  EACH  QUALIFIED HEALTH PLAN'S LEVEL OF
COVERAGE IN ACCORDANCE WITH REGULATIONS ISSUED BY  THE  SECRETARY  UNDER
SECTION 1302(D)(2)(A) OF THE FEDERAL ACT;
  (I)  STEPS  TO  IMPLEMENT THE ASSIGNMENT OF A RATING TO EACH QUALIFIED
HEALTH PLAN OFFERED THROUGH THE EXCHANGE IN ACCORDANCE WITH THE CRITERIA
DEVELOPED BY THE SECRETARY UNDER SECTION 1311(C)(3) OF THE FEDERAL ACT;
  (J) RECOMMENDATIONS ON HOW TO AVOID  DUPLICATIVE  OVERSIGHT  FUNCTIONS
WITH OTHER STATE AND LOCAL AGENCIES AND ENTITIES.
  (K)  THE ROLE OF THE EXCHANGE AS IT RELATES TO PUBLIC HEALTH INSURANCE
COVERAGE, INCLUDING MEDICAID, CHILD HEALTH PLUS, FAMILY HEALTH PLUS  AND
HEALTHY NEW YORK;
  (L)  THE  ADVANTAGES  AND DISADVANTAGES OF THE EXCHANGE TO SERVE AS AN
ACTIVE PURCHASER, A SELECTIVE CONTRACTOR, OR CLEARINGHOUSE OF INSURANCE;

S. 5652                             9

  (M) RISK ADJUSTMENT METHODOLOGIES TO  MEET  THE  REQUIREMENTS  OF  THE
FEDERAL ACT;
  (N)  A  PLAN  TO  AWARD  NAVIGATOR  GRANTS  IN ACCORDANCE WITH SECTION
1311(I) OF THE FEDERAL ACT AND AN ANALYSIS OF THE REQUIREMENTS FOR SERV-
ING AS A NAVIGATOR;
  (O) WAYS TO ENSURE THAT THE EXCHANGE IS  FINANCIALLY  SELF-SUSTAINABLE
BY THE YEAR TWO THOUSAND FIFTEEN, AS REQUIRED BY THE FEDERAL ACT;
  (P)  AN  ANALYSIS  OF  WAYS TO CONFORM THE DEFINITIONS OF MEDICAL LOSS
RATIO IN A MANNER THAT IS CONSISTENT WITH THE FEDERAL ACT;
  (Q) AN ANALYSIS  OF  REGIONAL  VARIATIONS  IN  THE  OPERATION  OF  THE
EXCHANGE AND THEIR INCORPORATION WITHIN THE EXCHANGE; AND
  (R)  CERTIFYING INSURANCE PLANS OPERATING WITHIN THE EXCHANGE PURSUANT
TO THE GUIDELINES ENUMERATED IN THE FEDERAL ACT.
  2. THE EXCHANGE SHALL HAVE NO AUTHORITY NEITHER EXPRESSED NOR  IMPLIED
TO  IMPLEMENT RECOMMENDATIONS ON THE ISSUES SET FORTH IN SUBDIVISION ONE
OF THIS SECTION WITHOUT FURTHER STATUTORY AUTHORITY.
  3. THE BOARD SHALL  CONSIDER  THE  RECOMMENDATIONS  DEVELOPED  BY  THE
REGIONAL   ADVISORY   COMMITTEES,   ESTABLISHED   PURSUANT   TO  SECTION
TWENTY-NINE HUNDRED NINETEEN OF THIS TITLE, WHEN DEVELOPING  THE  RECOM-
MENDATIONS REQUIRED BY THIS SECTION.
  S  2917.    MONEYS  OF  THE  AUTHORITY. 1. THE MONEYS OF THE AUTHORITY
SHALL, EXCEPT AS OTHERWISE PROVIDED IN THIS SECTION, BE DEPOSITED  IN  A
GENERAL  ACCOUNT  CALLED  THE  NEW  YORK  STATE  HEALTH BENEFIT EXCHANGE
ACCOUNT AND SUCH OTHER ACCOUNTS AS THE  AUTHORITY  MAY  DEEM  NECESSARY,
PURSUANT  TO  RESOLUTION  OF THE AUTHORITY BOARD, FOR THE TRANSACTION OF
ITS BUSINESS AND SHALL BE PAID OUT ON CHECKS SIGNED BY THE  CHAIRMAN  OF
THE  AUTHORITY  OR  BY SUCH OTHER PERSON OR PERSONS AS THE AUTHORITY MAY
AUTHORIZE.
  2. ALL MONEYS OF THE AUTHORITY DERIVED FROM STATE APPROPRIATIONS SHALL
BE PAID TO THE COMPTROLLER OF THE STATE AS AGENT OF THE  AUTHORITY,  WHO
SHALL  NOT COMMINGLE SUCH MONEYS WITH OTHER MONEYS. SUCH MONEYS SHALL BE
DEPOSITED IN A SEPARATE BANK ACCOUNT OR ACCOUNTS.  THE  MONEYS  IN  SUCH
ACCOUNTS SHALL BE PAID OUT ON CHECK OF THE COMPTROLLER ON REQUISITION OF
THE  CHAIR  OF  THE  AUTHORITY OR OF SUCH OTHER PERSON OR PERSONS AS THE
AUTHORITY MAY AUTHORIZE TO MAKE SUCH REQUISITIONS. ALL DEPOSITS OF  SUCH
MONEYS  SHALL,  IF  REQUIRED  BY  THE  COMPTROLLER  OR THE AUTHORITY, BE
SECURED BY OBLIGATIONS OF THE UNITED STATES OF AMERICA OR OF  THE  STATE
OF  NEW  YORK  OF A MARKET VALUE EQUAL AT ALL TIMES TO THE AMOUNT OF THE
DEPOSIT AND ALL BANKS AND TRUST COMPANIES ARE AUTHORIZED  TO  GIVE  SUCH
SECURITY FOR SUCH DEPOSITS.
  3.  THE  COMPTROLLER  OF  THE  STATE AND HIS OR HER LEGALLY AUTHORIZED
REPRESENTATIVES ARE HEREBY AUTHORIZED AND EMPOWERED FROM TIME TO TIME TO
EXAMINE THE ACCOUNTS AND BOOKS OF THE AUTHORITY, INCLUDING ITS RECEIPTS,
DISBURSEMENTS, CONTRACTS,  SINKING  FUNDS,  INVESTMENTS  AND  ANY  OTHER
MATTERS RELATING TO ITS FINANCIAL STANDING.
  4. THE BOARD SHALL ENSURE THAT THE ESTABLISHMENT, OPERATION AND ADMIN-
ISTRATIVE  FUNCTIONS  OF  THE  EXCHANGE DO NOT EXCEED THE COMBINATION OF
FEDERAL FUNDS, PRIVATE  DONATIONS  AND  OTHER  NON-GENERAL  FUND  MONEYS
AVAILABLE  FOR  THIS  PURPOSE.  NO FUNDS OF THE EXCHANGE SHALL BE TRANS-
FERRED TO THE GENERAL FUND OR ANY SPECIAL REVENUE FUND OR SHALL BE  USED
FOR  ANY  PURPOSE  OTHER  THAN  THE PURPOSES SET FORTH IN THIS TITLE. NO
FUNDS SHALL BE TRANSFERRED FROM THE GENERAL FUND OR ANY SPECIAL  REVENUE
FUND  TO  THE  EXCHANGE. NO LIABILITY INCURRED BY THE EXCHANGE OR ANY OF
ITS OFFICERS OR EMPLOYEES MAY BE SATISFIED USING MONEYS FROM THE GENERAL
FUND.

S. 5652                            10

  5. NOTWITHSTANDING ANY LAW TO THE CONTRARY, THE COMPTROLLER IS  HEREBY
AUTHORIZED AND DIRECTED TO TRANSFER ALL THE UNENCUMBERED BALANCE FOR THE
PURPOSES OF ESTABLISHING AND OPERATING THE NEW YORK STATE HEALTH BENEFIT
EXCHANGE UPON MONIES RECEIVED PURSUANT TO THE FEDERAL PATIENT PROTECTION
AND  AFFORDABLE CARE ACT (PUBLIC LAW 111-148), AS AMENDED BY THE FEDERAL
HEALTH CARE  AND  EDUCATION  RECONCILIATION  ACT  OF  2010  (PUBLIC  LAW
111-152),  AND ANY AMENDMENTS THERETO, OR REGULATIONS OR GUIDANCE ISSUED
UNDER THOSE ACTS, IN THE MEDICAL ASSISTANCE AND SURVEY ACCOUNT,  OR  ANY
OTHER  ACCOUNT  OF  THE  STATE THAT RECEIVES SUCH FUNDS, TO THE NEW YORK
STATE HEALTH  BENEFIT  EXCHANGE,  UNLESS  EXPRESSLY  PROHIBITED  BY  THE
CONTRACT'S TERMS OR BY LAW.
  S  2918.  ACTIONS  AGAINST  THE  EXCHANGE. NEITHER ANY DIRECTOR OF THE
EXCHANGE NOR ANY OFFICER, EMPLOYEE, OR  AGENT  OF  THE  EXCHANGE,  WHILE
ACTING  WITHIN  THE  SCOPE  OF  THEIR AUTHORITY, SHALL BE SUBJECT TO ANY
PERSONAL LIABILITY RESULTING FROM THE EXERCISE OR CARRYING OUT OF ANY OF
THE EXCHANGE'S PURPOSES OR POWERS.
  S 2919. REGIONAL ADVISORY COMMITTEES. 1. THERE SHALL BE EIGHT REGIONAL
ADVISORY COMMITTEES. THERE SHALL BE SIX MEMBERS OF EACH  REGIONAL  ADVI-
SORY  COMMITTEE.  SUCH REGIONAL ADVISORY COMMITTEES SHALL PROVIDE EXPER-
TISE AND RECOMMENDATIONS TO THE BOARD. THE REGIONAL ADVISORY  COMMITTEES
SHALL  BE COMPOSED OF INDIVIDUAL STAKEHOLDERS FROM THE GEOGRAPHIC REGION
INCLUDING, BUT NOT LIMITED TO,  CARRIERS,  PRODUCERS,  AGENTS,  BROKERS,
CHAMBERS  OF  COMMERCE,  EMPLOYER  ASSOCIATIONS,  HEALTH CARE PROVIDERS,
SMALL EMPLOYERS, AND CONSUMERS.    MEMBERS  OF  EACH  REGIONAL  ADVISORY
COMMITTEE  SHALL  BE  APPOINTED  IN  EQUAL  NUMBERS BY THE GOVERNOR, THE
TEMPORARY PRESIDENT OF THE SENATE AND THE SPEAKER OF THE  ASSEMBLY.  THE
APPOINTING  OFFICERS SHALL SUBMIT TO THE BOARD THEIR APPOINTMENTS TO THE
REGIONAL ADVISORY COMMITTEES NO LATER THAN SIXTY DAYS AFTER  THE  EFFEC-
TIVE  DATE OF THIS TITLE.  IN THE EVENT THAT A PARTICULAR APPOINTMENT IS
NOT MADE WITHIN SIXTY DAYS, THE GOVERNOR SHALL APPOINT AN INDIVIDUAL  OF
HIS  OR  HER CHOOSING TO FILL THE VACANCY. THE REGIONAL ADVISORY COMMIT-
TEES SHALL COMMENCE THEIR DUTIES SIXTY DAYS AFTER THE EFFECTIVE DATE  OF
THIS TITLE.
  2. THERE SHALL BE THE FOLLOWING EIGHT REGIONS:
  (A) LONG ISLAND, CONSISTING OF NASSAU AND SUFFOLK COUNTIES;
  (B) NEW YORK CITY;
  (C)  HUDSON  VALLEY,  CONSISTING  OF  ULSTER, DUCHESS, ORANGE, PUTNAM,
ROCKLAND, AND WESTCHESTER COUNTIES;
  (D) CAPITAL DISTRICT, CONSISTING OF ALBANY, COLUMBIA, FULTON,  GREENE,
MONTGOMERY,  RENSSELAER,  SARATOGA,  SCHENECTADY, SCHOHARIE, WARREN, AND
WASHINGTON COUNTIES;
  (E) CENTRAL, CONSISTING OF CAYUGA, CORTLAND, HERKIMER, MADISON,  ONEI-
DA, ONONDAGA, OSWEGO, SENECA, AND TOMPKINS COUNTIES;
  (F)  NORTH  COUNTRY, CONSISTING OF CLINTON, ESSEX, FRANKLIN, HAMILTON,
JEFFERSON, LEWIS, AND ST. LAWRENCE COUNTIES;
  (G) WESTERN, CONSISTING  OF  CHAUTAUQUA,  ERIE,  GENESEE,  LIVINGSTON,
MONROE, NIAGARA, ONTARIO, ORLEANS, WAYNE, WYOMING AND YATES COUNTIES;
  (H)  SOUTHERN  TIER,  CONSISTING  OF  ALLEGANY,  CATTARAUGUS,  BROOME,
CHEMUNG, CHENANGO, DELAWARE, OTSEGO, SCHUYLER,  STEUBEN,  SULLIVAN,  AND
TIOGA COUNTIES.
  3.  EACH REGIONAL ADVISORY COMMITTEE SHALL DEVELOP RECOMMENDATIONS FOR
THE ESTABLISHMENT, IMPLEMENTATION, AND OPERATION OF THE NEW  YORK  STATE
HEALTH  BENEFIT  EXCHANGE  INCLUDING  RECOMMENDATIONS FOR REGIONAL VARI-
ATIONS IN THE OPERATION OF THE EXCHANGE.  IN CARRYING OUT ITS FUNCTIONS,
A REGIONAL  ADVISORY  COMMITTEE  SHALL  FOSTER  DISCUSSIONS  AMONG,  AND
CONDUCT  FORMAL  PUBLIC HEARINGS WITH REQUISITE PUBLIC NOTICE TO SOLICIT

S. 5652                            11

INPUT FROM, LOCAL STAKEHOLDER INTERESTS, INCLUDING BUT NOT  LIMITED  TO,
CARRIERS,  INSURANCE  PRODUCERS, CONSUMERS, HEALTH CARE PROVIDERS, CHAM-
BERS OF COMMERCE AND OTHER EMPLOYER ASSOCIATIONS, SMALL BUSINESSES,  AND
COMMUNITY-BASED  ORGANIZATIONS. NOT LATER THAN DECEMBER FIRST, TWO THOU-
SAND ELEVEN, AND ANNUALLY THEREAFTER, EACH REGIONAL  ADVISORY  COMMITTEE
SHALL TRANSMIT TO THE BOARD A REPORT CONTAINING ITS RECOMMENDATIONS. THE
FAILURE OF ANY REGIONAL ADVISORY COMMITTEE TO PERFORM THE DUTIES IMPOSED
BY  THIS SECTION SHALL NOT AFFECT THE OBLIGATION OF THE BOARD TO PERFORM
THE DUTIES IMPOSED BY SECTION TWENTY-NINE HUNDRED SIXTEEN OF THIS TITLE.
  S 2920. OFFICERS AND EMPLOYEES. 1. THE BOARD SHALL HAVE THE  POWER  TO
APPOINT EMPLOYEES TO SERVE AS SENIOR MANAGERIAL STAFF OF THE EXCHANGE AS
NECESSARY,  WHO  SHALL  BE DESIGNATED TO BE IN THE EXEMPT CLASS OF CIVIL
SERVICE. THE BOARD SHALL ALSO HAVE THE POWER TO FIX THE SALARIES OF SUCH
EMPLOYEES.
  2. ANY PUBLIC OFFICER OR EMPLOYEE OF A  STATE  DEPARTMENT,  AGENCY  OR
COMMISSION  MAY  BE  TRANSFERRED TO THE EXCHANGE WITHOUT EXAMINATION AND
WITHOUT LOSS OF ANY CIVIL SERVICE  STATUS  OR  RIGHTS  TO  A  COMPARABLE
OFFICE,  POSITION OR EMPLOYMENT WITH THE EXCHANGE; PROVIDED, HOWEVER, NO
SUCH TRANSFER MAY BE MADE WITHOUT THE CONSENT OF THE HEAD OF THE DEPART-
MENT, AGENCY OR COMMISSION.
  3. THE SALARY OR COMPENSATION OF ANY SUCH OFFICER OR  EMPLOYEE,  AFTER
SUCH TRANSFER, SHALL BE PAID BY THE EXCHANGE.
  4.  ANY  OFFICER  OR  EMPLOYEE TRANSFERRED TO THE EXCHANGE PURSUANT TO
THIS SECTION, WHO ARE MEMBERS OF OR BENEFIT UNDER ANY  EXISTING  PENSION
OR  RETIREMENT FUND OR SYSTEM, SHALL CONTINUE TO HAVE ALL RIGHTS, PRIVI-
LEGES, OBLIGATIONS AND STATUS WITH RESPECT TO SUCH FUND OR SYSTEM AS ARE
NOW PRESCRIBED BY LAW, BUT DURING THE PERIOD OF THEIR EMPLOYMENT BY  THE
EXCHANGE,  ALL  CONTRIBUTIONS TO SUCH FUNDS OR SYSTEMS TO BE PAID BY THE
EMPLOYER ON ACCOUNT OF SUCH OFFICERS OR EMPLOYEES SHALL BE PAID  BY  THE
EXCHANGE.
  5. A TRANSFERRED EMPLOYEE SHALL REMAIN IN THE SAME COLLECTIVE BARGAIN-
ING UNIT AS WAS THE CASE PRIOR TO HIS OR HER TRANSFER; SUCCESSOR EMPLOY-
EES  TO THE POSITIONS HELD BY SUCH TRANSFERRED EMPLOYEES SHALL, CONSIST-
ENT WITH THE PROVISIONS OF ARTICLE FOURTEEN OF THE CIVIL SERVICE LAW, BE
INCLUDED IN THE SAME UNIT AS THEIR PREDECESSORS.  EMPLOYEES  SERVING  IN
POSITIONS  IN NEWLY CREATED TITLES SHALL BE ASSIGNED TO THE SAME COLLEC-
TIVE BARGAINING UNIT AS THEY WOULD  HAVE  BEEN  ASSIGNED  TO  WERE  SUCH
TITLES  CREATED  PRIOR  TO  THE  ESTABLISHMENT  OF THE EXCHANGE. NOTHING
CONTAINED IN THIS ARTICLE SHALL BE CONSTRUED (A) TO DIMINISH THE  RIGHTS
OF  EMPLOYEES  PURSUANT  TO  A COLLECTIVE BARGAINING AGREEMENT OR (B) TO
AFFECT EXISTING LAW WITH RESPECT TO AN APPLICATION TO THE PUBLIC EMPLOY-
MENT RELATIONS BOARD SEEKING A DESIGNATION BY  THE  BOARD  THAT  CERTAIN
PERSONS ARE MANAGERIAL OR CONFIDENTIAL.
  S  2921.  RELATION TO OTHER LAWS. NOTHING IN THIS TITLE, AND NO ACTION
TAKEN BY THE EXCHANGE PURSUANT TO THIS  TITLE,  SHALL  BE  CONSTRUED  TO
PREEMPT OR SUPERSEDE THE AUTHORITY OF THE SUPERINTENDENT TO REGULATE THE
BUSINESS  OF INSURANCE WITHIN THIS STATE OR THE AUTHORITY OF THE COMMIS-
SIONER TO REGULATE ENTITIES CERTIFIED PURSUANT TO ARTICLE FORTY-FOUR  OF
THE PUBLIC HEALTH LAW.
  S  2.  Severability clause. If any clause, sentence, paragraph, subdi-
vision, section or part of this act shall be adjudged by  any  court  of
competent  jurisdiction  to  be invalid, such judgment shall not affect,
impair, or invalidate the remainder thereof, but shall  be  confined  in
its  operation  to the clause, sentence, paragraph, subdivision, section
or part thereof directly involved in the controversy in which such judg-
ment shall have been rendered. It is hereby declared to be the intent of

S. 5652                            12

the legislature that this act would  have  been  enacted  even  if  such
invalid  provisions  had  not  been included herein, except in the event
that, if any provision of the federal Patient Protection and  Affordable
Care  Act or the federal Health Care and Education Reconciliation Act of
2010 is held to be unconstitutional by the United States  Supreme  Court
or  is  repealed  by  the United States Congress, then this act shall be
null and void.
  S 3. This act shall take effect immediately.

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