AB 514

On March 23, 2010, the federal government enacted the Patient Protection and

Affordable Care Act, which, among other things, imposes requirements and

limitations on health insurance policies and health plans; requires the creation of

American health benefit exchanges, which are health insurance exchanges through

which individuals and small employers can purchase insurance; and creates

incentives for improving access to health care. This bill requires that, before a state

agency, including the governor, takes any action to create or implement an American

health benefit exchange for which the agency would typically promulgate a rule or

issue an executive order, the agency must request the Legislative Reference Bureau

to prepare legislation that allows the agency to take the action. The agency must

then submit the proposed legislation to each standing committee of each house of the

legislature that has jurisdiction over health or insurance matters. The bill prohibits

the agency from taking the action to create or implement an American health benefit

exchange until the legislation allowing the agency to take the action takes effect. The

bill also prohibits an agency from requesting a grant or other moneys from the federal

government to create or implement an American health benefit exchange and from

expending any state moneys, or federal moneys passing through the state treasury,

to assist the federal government in creating an American health benefit exchange.