Chapter 616

2006 -- S 2056

Enacted 07/14/06

A N A C T

RELATING TO INSURANCE - NONPROFIT HOSPITAL AND MEDICAL SERVICE CORPORATIONS

Introduced By: Senators J Montalbano, Roberts, and Walaska

Date Introduced: January 12, 2006

It is enacted by the General Assembly as follows:

SECTION 1. Section 27-19.2-5 of the General Laws in Chapter 27-19.2 entitled

"Nonprofit Hospital and Medical Service Corporations" is hereby amended to read as follows:

27-19.2-5. Composition of the board of directors. -- (a) (1) Notwithstanding any public

law, rule or regulation to the contrary, six (6) positions on the board of directors of a nonprofit

hospital and/or medical service corporation, shall be filled by public appointment for a maximum

of three (3) three (3) year terms. Public appointment of two (2) of the directors shall be made by

the Governor, two (2) shall be made by the Speaker of the House, and two (2) shall be made by

the President of the Senate. Neither state ~~government~~ employees nor elected state officials shall

serve as public members of the board of directors. Each appointing authority shall make one such

appointment on or after July 1, 2004, and the remaining will be made on or after July 1, 2005.

Once appointed, public members may only be removed in accordance with the bylaws of the

nonprofit hospital and/or medical service corporation. When sufficient public appointments have

been made, vacancies shall thereafter be filled for a maximum of three (3) three (3) year terms as

the board of directors may determine, and consistent with subsection (2) hereof, except that seats

filled by public appointment pursuant to this subsection shall always remain subject to such

public appointment, upon the resignation, removal, incapacity or retirement of the incumbent

public appointee. Public appointees shall not constitute a majority of the board.

(2) Future vacancies not filled by public appointment pursuant to subsection (1) hereof

shall be filled by an open and public process of recruitment and appointment, to be determined by

the board and within its discretion, but to include public solicitation of candidates.

(3) At the end of their term, directors shall continue to serve until their successors are

appointed and qualified. Nothing herein prevents the reappointment of a board member presently

serving.

(4) Public appointees may not:

(i) ~~Be a licensee of or otherwise be subject to regulation by the department of health;~~

~~(ii)~~ Be employed by or have a financial interest in:

(A) A nonprofit hospital and/or medical service plan or its affiliates or subsidiaries;

(B) A person regulated under this article; or

~~(iii)~~ (ii) Within three (3) years before appointment, have been employed by, had a

financial interest in or have received compensation from:

(A) A nonprofit hospital and/or medical service plan or its affiliates or subsidiaries; or

(B) A person regulated under this article.

(b) An officer or employee of a nonprofit hospital and/or medical service plan or any of

its affiliates or subsidiaries may not be appointed or elected to the board.

members.

SECTION 2. This act shall take effect upon passage and shall apply to all public

appointments made since June 30, 2004.

=======

LC00104

=======