§33-16G-4. Duties of exchange; decrease in funding or invalidation of the Federal Act.
     (a) In carrying out the duties under this article, the exchange shall:

     (1) Consult with stakeholders, including but not limited to consumers, carriers, producers, providers and advocates for hard to reach populations; and

     (2) Meet the following financial integrity requirements:

     (A) Keep an accurate accounting of all activities, receipts and expenditures and annually submit to the secretary, the Governor, the commissioner and the Legislature a report concerning such accountings;

     (B) 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 Humans Services, to:

     (i) Investigate the affairs of the exchange;

     (ii) Examine the properties and records of the exchange; and

     (iii) Require periodic reports in relation to the activities undertaken by the exchange; and

     (C) In carrying out its activities under this article, not use any funds 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.

     (b) (1) The implementation of the provisions of this article, other than this subsection, section three of this article, and section five of this article, shall be contingent on a determination by the board that sufficient financial resources exist or will exist in the fund, which determination shall be based on, at a minimum:

     (A) Financial projections identifying that sufficient resources exist or will exist in the fund to implement the exchange; and

     (B) A comparison of the projected resources available to support the exchange and the projected costs of activities required by this article.

     (2) In the event any portion of the Federal Act or of any regulation or other guidance issued thereunder is legislatively or judicially invalidated and rendered of no effect in this state, the board shall immediately issue a bulletin setting forth its legal opinion as to the effect of such legislative or judicial action on the legal status of the corresponding provisions of such act, regulation or guidance as set forth in this article or in rules promulgated hereunder; the board shall also issue recommendations to the Legislature for amendments to this article necessitated by such judicial or legislative action.