HB2693 - 571R

Be it enacted by the Legislature of the State of Arizona:

Section 1. Title 20, chapter 4, article 3, Arizona Revised Statutes, is amended by adding section 20-826.05, to read:

START_STATUTE20-826.05. Genetic sequencing; insurance coverage prohibition; applicability; definitions

A. A subscription contract may limit coverage to a subscriber for genetic sequencing if the genetic sequencing is performed on a device that is either of the following:

1. Produced by a company that is domiciled in a foreign adversary.

2. Produced by a company that is owned or substantially controlled by a company that is domiciled in a foreign adversary.

b. This section does not:

1. Require coverage for genetic sequencing.

2. Limit a hospital service corporation or medical service corporation from denying coverage for any valid reason.

c. For the purposes of this section:

1. "Company" means a for-profit sole proprietorship, organization, association, corporation, partnership, joint venture, limited partnership, limited liability partnership, limited liability company, including a wholly owned subsidiary, majority owned subsidiary, parent company or affiliate of the entities or business associations or a nonprofit organization.

2. "Domiciled" means either of the following:

(a) The country in which a company is registered.

(b) The location in which the company's affairs are primarily completed or where a majority of the ownership shares are held.

3. "Foreign adversary":

(a) Means the People's Republic of China, Russia, Iran, North Korea, Cuba, Venezuela or Syria or the hong kong special administrative region.

(b) Includes:

(i) A country designated as a foreign adversary by the federal government.

(ii) Any agent or entity under significant control of a foreign adversary.

4. "Genetic sequencing" means any method to determine the identity and order of nucleotide bases in the human genome. END_STATUTE

Sec. 2. Title 20, chapter 4, article 9, Arizona Revised Statutes, is amended by adding section 20-1057.20, to read:

START_STATUTE20-1057.20. Genetic sequencing; insurance coverage prohibition; applicability; definitions

A. An evidence of coverage may limit coverage to an enrollee for genetic sequencing if the genetic sequencing is performed on a device that is either of the following:

1. Produced by a company that is domiciled in a foreign adversary.

2. Produced by a company that is owned or substantially controlled by a company that is domiciled in a foreign adversary.

b. This section does not:

1. Require coverage for genetic sequencing.

2. Limit a health care services organization from denying coverage for any valid reason.

c. For the purposes of this section:

1. "Company" means a for profit sole proprietorship, organization, association, corporation, partnership, joint venture, limited partnership, limited liability partnership, limited liability company, including a wholly owned subsidiary, majority owned subsidiary, parent company or affiliate of the entities or business associations or a nonprofit organization.

2. "Domiciled" means either of the following:

(a) THE COUNTRY IN WHICH A COMPANY IS REGISTERED.

(b) THE LOCATION IN WHICH THE COMPANY'S AFFAIRS ARE PRIMARILY COMPLETED OR WHERE A MAJORITY OF THE OWNERSHIP SHARES are HELD.

3. "FOREIGN ADVERSARY":

(a) MEANS the People's Republic of CHINA, RUSSIA, IRAN, NORTH KOREA, CUBA, VENEZUELA OR SYRIA or the hong kong special administrative region.

(b) INCLUDES:

(i) A COUNTRY DESIGNATED AS A FOREIGN ADVERSARY BY THE federal government.

(ii) ANY AGENT OR ENTITY UNDER SIGNIFICANT CONTROL OF A FOREIGN ADVERSARY.

4. "GENETIC SEQUENCING" MEANS ANY METHOD TO DETERMINE THE IDENTItY AND ORDER OF NUCLEOTIDE BASES IN THE HUMAN GENOME. END_STATUTE

Sec. 3. Title 20, chapter 6, article 4, Arizona Revised Statutes, is amended by adding section 20-1342.08, to read:

START_STATUTE20-1342.08. Genetic sequencing; insurance coverage prohibition; applicability; definitions

A. A disability insurance policy may limit coverage to an insured for genetic sequencing if the genetic sequencing is performed on a device that is either of the following:

1. Produced by a company that is domiciled in a foreign adversary.

2. Produced by a company that is owned or substantially controlled by a company that is domiciled in a foreign adversary.

b. This section does not:

1. Require coverage for genetic sequencing.

2. Limit a disability insurer from denying coverage for any valid reason.

c. For the purposes of this section:

2. "Domiciled" means either of the following:

(a) the country in which a company is registered.

(b) The location in which the company's affairs are primarily completed or where a majority of the ownership shares are held.

3. "Foreign adversary":

(a) Means the People's Republic of China, Russia, Iran, North Korea, Cuba, Venezuela or Syria or the hong kong special administrative region.

(b) Includes:

(i) A country designated as a foreign adversary by the federal government.

(ii) Any agent or entity under significant control of a foreign adversary.

4. "Genetic sequencing" means any method to determine the identity and order of nucleotide bases in the human genome. END_STATUTE

Sec. 4. Title 20, chapter 6, article 5, Arizona Revised Statutes, is amended by adding section 20-1404.06, to read:

START_STATUTE20-1404.06. Genetic sequencing; insurance coverage prohibition; applicability; definitions

A. A group or blanket disability insurance policy may limit coverage to an insured for genetic sequencing if the genetic sequencing is performed on a device that is either of the following:

1. Produced by a company that is domiciled in a foreign adversary.

2. Produced by a company that is owned or substantially controlled by a company that is domiciled in a foreign adversary.

b. This section does not:

1. Require coverage for genetic.

2. Limit a group or blanket disability insurer from denying coverage for any valid reason.

c. For the purposes of this section:

2. "Domiciled" means either of the following:

(a) The country in which a company is registered.

(b) The location in which the company's affairs are primarily completed or where a majority of the ownership shares are held.

3. "Foreign adversary":

(a) Means the People's Republic of China, Russia, Iran, North Korea, Cuba, Venezuela or Syria or the hong kong special administrative region.

(b) Includes:

(i) A country designated as a foreign adversary by the federal government.

(ii) Any agent or entity under significant control of a foreign adversary.

4. "Genetic sequencing" means any method to determine the identity and order of nucleotide bases in the human genome. END_STATUTE

Sec. 5. Title 36, chapter 4, article 1, Arizona Revised Statutes, is amended by adding section 36-407.04, to read:

START_STATUTE36-407.04. Prohibition on certain genetic sequencers; compliance certification; penalties; storage; definition

A. A health care institution or research facility shall not use genetic sequencers or any operational or research software used for genetic sequencing for the purposes of conducting genetic sequencing if the genetic sequencers or research software is produced in or by any of the following:

1. A foreign adversary or the foreign adversary's affiliate, subsidiary or company.

2. A company, subsidiary or enterprise that is deemed a chinese military company or an affiliate of the chinese military company pursuant to the annual publication requirements of section 1260H of the William M. Thornberry National Defense Authorization Act for fiscal year 2021 (P.L. 116-283; 134 Stat. 3965).

3. A company, subsidiary or enterprise that is domiciled within a foreign adversary or the foreign adversary's affiliate.

4. A company owned or controlled subsidiary of a company that is domiciled in a foreign adversary or the foreign adversary's affiliate.

B. All genetic sequencers and operational and research software used for genetic sequencers or genetic sequencing devices that are prohibited under subsection A of this section and that are not permanently disabled shall be removed and replaced with genetic sequencers and operational and research software used for genetic sequencers or genetic sequencing devices that are not prohibited by this section.

c. On or before December 31, 2026 and each year thereafter, an attorney for the health care institution or research facility shall certify in writing that the health care institution or research facility is in compliance with this section.

d. A health care institution or research facility that spends state monies in violation of this section is subject to a civil penalty of $20,000 for each violation. For the purposes of this subsection, "violation" means each instance of an individual's genome having undergone genetic sequencing using genetic sequencers or operational and research software used for genetic sequencers or genetic sequencing that are prohibited under this section.

e. Any individual may notify the attorney general of a violation or suspected violation of this section and the following apply:

1. If the notifying individual is an employee of the health care institution or research facility, the employee has whistleblower protection.

2. If the notifying individual is a PATIENT or research subject and the provider of the human genome used in the violation, that individual is entitled to recover statutory damages of not less than $1,000 for each instance in which that individual's human genome was processed using prohibited technology.

f. All genetic sequencing data shall be stored in the United States. Any remote access of data storage, other than open data, is prohibited unless approved in writing by the director.

g. Health care institutions and research facilities that store genetic sequencing data, including through contracts with third-party data storage companies, shall ensure that the data is secured through reasonable encryption methods, restriction on access and other cybersecurity methods.

h. For the purposes of this section, "foreign adversary":

1. means the People's Republic of China, Russia, Iran, North Korea, Cuba, Venezuela or Syria or the Hong Kong Special Administrative Region.

2. Includes:

(a) A country designated as a foreign adversary of the federal government.

(b) Any agent or entity under significant control of a foreign adversary.END_STATUTE

Sec. 6. Title 36, chapter 29, article 1, Arizona Revised Statutes, is amended by adding section 36-2907.16, to read:

START_STATUTE36-2907.16. Genetic sequencing; insurance coverage prohibition; applicability; definitions

A. Subject to the approval of the Centers for Medicare and Medicaid Services, the administration may limit coverage to a member for genetic sequencing if the genetic sequencing is performed on a device that is either of the following:

1. Produced by a company that is domiciled in a foreign adversary.

2. Produced by a company that is owned or substantially controlled by a company that is domiciled in a foreign adversary.

b. This section does not:

1. Require coverage for genetic sequencing.

2. Limit the administration from denying coverage for any valid reason.

c. For the purposes of this section:

2. "Domiciled" means either of the following:

(a) The country in which a company is registered.

(b) The location in which the company's affairs are primarily completed or where a majority of the ownership shares are held.

3. "Foreign adversary":

(a) Means the people's republic of China, Russia, Iran, North Korea, Cuba, Venezuela or Syria or the hong kong special administrative region.

(b) Includes:

(i) A country designated as a foreign adversary by the federal government.

(ii) Any agent or entity under significant control of a foreign adversary.

4. "Genetic sequencing" means any method to determine the identity and order of nucleotide bases in the human genome. END_STATUTE