BILL NUMBER: SB 972	AMENDED
	BILL TEXT

	AMENDED IN ASSEMBLY  JUNE 16, 2014
	AMENDED IN SENATE  MAY 6, 2014

INTRODUCED BY   Senator Torres
   (Coauthors: Senators Anderson, Beall, Calderon, Correa, De León,
Evans, Gaines, Galgiani, Hueso, Lara, Lieu, Liu, and Yee)
    (   Coauthors:   Assembly Members 
 Campos,   V. Manuel Pérez,   and Rodriguez
  ) 

                        FEBRUARY 10, 2014

   An act to amend Section 100500 of the Government Code, relating to
the California Health Benefit Exchange.


	LEGISLATIVE COUNSEL'S DIGEST


   SB 972, as amended, Torres. California Health Benefit Exchange:
board: membership.
   Existing law created the California Health Benefit Exchange
(Exchange) as an independent public entity in the state government,
not affiliated with an agency or department. The Exchange is governed
by an executive board consisting of 5 members who are residents of
California. Of the members of the board, 2 are appointed by the
Governor, one is appointed by the Senate Committee on Rules, and one
is appointed by the Speaker of the Assembly. The Secretary of
California Health and Human Services or his or her designee serves as
a voting, ex officio member of the board. Each person  appointed
to the board  is required to have demonstrated and acknowledged
expertise in at least 2 listed areas, including, but not limited to,
individual health care coverage, health care finance, and purchasing
health plan coverage.
   This bill would add marketing of health insurance products,
information technology system management, management information
systems, and enrollment counseling assistance, with priority to
cultural and linguistic competency, to the list of areas of
expertise.
   Vote: majority. Appropriation: no. Fiscal committee: no.
State-mandated local program: no.


THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:

  SECTION 1.  Section 100500 of the Government Code is amended to
read:
   100500.  (a) There is in state government the California Health
Benefit Exchange, an independent public entity not affiliated with an
agency or department, which shall be known as the Exchange. The
Exchange shall be governed by an executive board consisting of five
members who are residents of California. Of the members of the board,
two shall be appointed by the Governor, one shall be appointed by
the Senate Committee on Rules, and one shall be appointed by the
Speaker of the Assembly. The Secretary of California Health and Human
Services or his or her designee shall serve as a voting, ex officio
member of the board.
   (b) Members of the board, other than an ex officio member, shall
be appointed for a term of four years, except that the initial
appointment by the Senate Committee on Rules shall be for a term of
five years, and the initial appointment by the Speaker of the
Assembly shall be for a term of two years. Appointments by the
Governor made after January 2, 2011, shall be subject to confirmation
by the Senate. A member of the board may continue to serve until the
appointment and qualification of his or her successor. Vacancies
shall be filled by appointment for the unexpired term. The board
shall elect a chairperson on an annual basis.
   (c) (1) Each person appointed to the board shall have demonstrated
and acknowledged expertise in at least two of the following areas:
   (A) Individual health care coverage.
   (B) Small employer health care coverage.
   (C) Health benefits plan administration.
   (D) Health care finance.
   (E) Administering a public or private health care delivery system.

   (F) Purchasing health plan coverage.
   (G) Marketing of health insurance products.
   (H) Information technology system management.
   (I) Management information systems.
    (J) Enrollment counseling assistance, with priority to cultural
and linguistic competency.
   (2) Appointing authorities shall consider the expertise of the
other members of the board and attempt to make appointments so that
the board's composition reflects a diversity of expertise.
   (d) Each member of the board shall have the responsibility and
duty to meet the requirements of this title, the federal act, and all
applicable state and federal laws and regulations, to serve the
public interest of the individuals and small businesses seeking
health care coverage through the Exchange, and to ensure the
operational well-being and fiscal solvency of the Exchange.
   (e) 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
reflects the communities of California.
   (f) (1) A member of the board or of the staff of the Exchange
shall not be employed by, a consultant to, a member of the board of
directors of, affiliated with, or otherwise a representative of, a
carrier or other insurer, an agent or broker, a health care provider,
or a health care facility or health clinic while serving on the
board or on the staff of the Exchange. A member of the board or of
the staff of the Exchange shall not be a member, a board member, or
an employee of a trade association of carriers, health facilities,
health clinics, or health care providers while serving on the board
or on the staff of the Exchange. A member of the board or of the
staff of the Exchange shall not be a health care provider unless he
or she receives no compensation for rendering services as a health
care provider and does not have an ownership interest in a
professional health care practice.
   (2) A board member shall not receive compensation for his or her
service on the board, but may receive a per diem and reimbursement
for travel and other necessary expenses, as provided in Section 103
of the Business and Professions Code, while engaged in the
performance of official duties of the board.
   (3) For purposes of this subdivision, "health care provider" means
a person licensed or certified pursuant to Division 2 (commencing
with Section 500) of the Business and Professions Code, or licensed
pursuant to the Osteopathic Act or the Chiropractic Act.
   (g)  A member of the board shall not make, participate in making,
or in any way attempt to use his or her official position to
influence the making of  any   a  decision
that he or she knows or has reason to know will have a reasonably
foreseeable material financial effect, distinguishable from its
effect on the public generally, on him or her or a member of his or
her immediate family, or on either of the following:
   (1) Any source of income, other than gifts and other than loans by
a commercial lending institution in the regular course of business
on terms available to the public without regard to official status
aggregating two hundred fifty dollars ($250) or more in value
provided to, received by, or promised to the member within 12 months
prior to the time when the decision is made.
   (2) Any business entity in which the member is a director,
officer, partner, trustee, employee, or holds any position of
management.
   (h) There shall not be  any  liability in a
private capacity on the part of the board or  any 
 a  member of the board, or  any   an
 officer or employee of the board, for or on account of 
any   an  act performed or obligation entered into
in an official capacity, when done in good faith, without intent to
defraud, and in connection with the administration, management, or
conduct of this title or affairs related to this title.
   (i) The board shall hire an executive director to organize,
administer, and manage the operations of the Exchange. The executive
director shall be exempt from civil service and shall serve at the
pleasure of the board.
   (j) The board shall be subject to the Bagley-Keene Open Meeting
Act (Article 9 (commencing with Section 11120) of Chapter 1 of Part 1
of Division 3 of Title 2), except that the board may hold closed
sessions when considering matters related to litigation, personnel,
contracting, and rates.
   (k) (1) The board shall apply for planning and establishment
grants made available to the Exchange pursuant to Section 1311 of the
federal act. If an executive director has not been hired under
subdivision (i) when the United States Secretary of Health and Human
Services makes the planning and establishment grants available, the
California Health and Human Services Agency shall, upon request of
the board, submit the initial application for planning and
establishment grants to the United States Secretary of Health and
Human Services.
   (2) If a majority of the board has not been appointed when the
United States Secretary of Health and Human Services makes the
planning and establishment grants available, the California Health
and Human Services Agency shall submit the initial application for
planning and establishment grants to the United States Secretary of
Health and Human Services. Any subsequent applications shall be made
as described in paragraph (1) once a majority of the members have
been appointed to the board.
   (3) The board shall be responsible for using the funds awarded by
the United States Secretary of Health and Human Services for the
planning and establishment of the Exchange, consistent with
subdivision (b) of Section 1311 of the federal act.