Section 1347.15 Of Article 2. Administration From California Health And Safety Code >> Division 2. >> Chapter 2.2. >> Article 2.
1347.15
. (a) There is hereby established in the Department of
Managed Health Care the Financial Solvency Standards Board composed
of eight members. The members shall consist of the director, or the
director's designee, and seven members appointed by the director. The
seven members appointed by the director may be, but are not
necessarily limited to, individuals with training and experience in
the following subject areas or fields: medical and health care
economics; accountancy, with experience in integrated or affiliated
health care delivery systems; excess loss insurance underwriting in
the medical, hospital, and health plan business; actuarial studies in
the area of health care delivery systems; management and
administration in integrated or affiliated health care delivery
systems; investment banking; and information technology in integrated
or affiliated health care delivery systems. The members appointed by
the director shall be appointed for a term of three years, but may
be removed or reappointed by the director before the expiration of
the term.
(b) The purpose of the board is to do all of the following:
(1) Advise the director on matters of financial solvency affecting
the delivery of health care services.
(2) Develop and recommend to the director financial solvency
requirements and standards relating to plan operations,
plan-affiliate operations and transactions, plan-provider contractual
relationships, and provider-affiliate operations and transactions.
(3) Periodically monitor and report on the implementation and
results of the financial solvency requirements and standards.
(c) Financial solvency requirements and standards recommended to
the director by the board may, after a period of review and comment
not to exceed 45 days, be noticed for adoption as regulations as
proposed or modified under the rulemaking provisions of the
Administrative Procedure Act (Chapter 3.5 (commencing with Section
11340) of Part 1 of Division 3 of Title 2 of the Government Code).
During the director's 45-day review and comment period, the director,
in consultation with the board, may postpone the adoption of the
requirements and standards pending further review and comment.
Nothing in this subdivision prohibits the director from adopting
regulations, including emergency regulations, under the rulemaking
provisions of the Administrative Procedure Act.
(d) The board shall meet at least quarterly and at the call of the
chair. In order to preserve the independence of the board, the
director shall not serve as chair. The members of the board may
establish their own rules and procedures. All members shall serve
without compensation, but shall be reimbursed from department funds
for expenses actually and necessarily incurred in the performance of
their duties.
(e) For purposes of this section, "board" means the Financial
Solvency Standards Board.