(a) (1) With the approval of the Governor, the Board shall appoint an Executive Director of the Exchange. (2) The Executive Director shall serve at the pleasure of the Board. (3) The Board shall determine the appropriate compensation for the Executive Director. (b) Under the direction of the Board, the Executive Director shall: (1) be the chief administrative officer of the Exchange; (2) direct, administer, and manage the operations of the Exchange; and (3) perform all duties necessary to comply with and carry out the provisions of this subtitle, other State law and regulations, and the Affordable Care Act. (c) (1) In accordance with the State budget, the Executive Director may employ and retain a staff for the Exchange. (2) (i) The Executive Director may set the compensation of an Exchange employee in a position that: 1. is unique to the Exchange; 2. requires specific skills or experience to perform the duties of the position; and 3. does not require the employee to perform functions that are comparable to functions performed in other units of the Executive Branch of State government. (ii) The Secretary of Budget and Management, in consultation with the Executive Director, shall determine the positions for which the Executive Director may set compensation under subparagraph (i) of this paragraph. (3) Except as provided in paragraphs (4) and (5) of this subsection, or otherwise by law, the Executive Director's appointment, retention, and removal of staff of the Exchange are not subject to Division I of the State Personnel and Pensions Article. (4) In hiring staff for functions that must be performed by State personnel under the Affordable Care Act or other applicable federal or State laws, the Executive Director's appointment, retention, and removal of staff shall be in accordance with Division I of the State Personnel and Pensions Article. (5) In hiring staff for functions that have been and currently are performed by State personnel, the Executive Director's appointment, retention, and removal of staff shall be in accordance with Division I of the State Personnel and Pensions Article. (6) Except as provided in paragraph (7) of this subsection, staff for all other positions necessary to carry out the purposes of this subtitle shall be positions in the executive service or management service, or special appointments of the skilled service or the professional service in the State Personnel Management System. (7) The Executive Director may retain as independent contractors, and set compensation for, attorneys, financial consultants, and any other professionals or consultants necessary to carry out the planning, development, and operations of the Exchange and the provisions of this subtitle. (d) The Executive Director shall determine the classification, grade, and compensation of those positions designated under subsection (c)(2) of this section: (1) in consultation with the Secretary of Budget and Management; (2) with the approval of the Board; and (3) when possible, in accordance with the State pay plan. (e) (1) With respect to staff of the Exchange designated under subsection (c)(2) of this section, the Executive Director shall submit to the Secretary of Budget and Management, at least 45 days before the effective date of the change, each change to the Exchange's salary plans that involves increases or decreases in salary ranges other than those associated with routine reclassifications and promotions or general salary increases approved by the General Assembly. (2) Reportable changes include: (i) the creation or abolition of classes; (ii) the regrading of classes from one established range to another; and (iii) the creation of new pay schedules or ranges. (3) The Secretary of Budget and Management shall: (i) review the proposed change; and (ii) at least 15 days before the effective date of the proposed change: 1. advise the Executive Director whether the change would have an adverse effect on comparable State jobs; and 2. if there would be an adverse effect, recommend an alternative change that would not have an adverse effect on comparable State jobs. (4) Failure of the Secretary of Budget and Management to respond in a timely manner is deemed to be agreement with the change as submitted. (f) Except as otherwise provided in this subtitle, an employee or independent contractor of the Exchange is not subject to any law, regulation, or executive order governing State compensation, including furloughs, pay cuts, or any other General Fund cost savings measure.
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