Establishment of the California Health Benefit Exchange : Governance, Duties and Administration, and Receipt and Expenditure of Funds – Cal. Gov't Code § 100500

The state of California has established the California Health Benefit Exchange as an independent public entity.  The Exchange is governed by a five member executive board appointed by the Governor, Senate, and Assembly Speaker for a four year term.  Appointees to the Board must have expertise in the areas of individual and small employer health care coverage, health benefits plan administration, health care finance, administering a public or private health care system, and purchasing health care coverage.  All Board members are obligated to meet all federal and state laws and regulations, serve the public interest of individuals and small businesses seeking health care coverage on the Exchange, and are obligated to ensure the well-being and financial solvency of the Exchange.  Board members must not maintain associations with health plans, providers, health care facilities or with trade associations representing these interests.  Board members may not be compensated for their work except for a per diem and reimbursement for travel and other necessary expenses.  Board members may not use their positions for financial gain.  Board members may not be held privately liable for actions taken in their official capacity, done in good faith.

The Board must hire an executive director to administer and manage the Board.  Board meetings must be open, except for instances concerning personnel, litigation or contracting.  The Board is authorized to apply for planning grants made available by the U.S. Department of Health and Human Services, and is authorized to use the awarded grant money.  

Cal. Gov't. Code § 100500