SB 707

Small Business Health Options Program Authority

This bill creates the Small Business Health Options Program Authority

(authority) that is a public body corporate and politic that is created by state law but

that is not a state agency. The authority is governed by a board of directors consisting

of the commissioner of insurance (commissioner), the secretary of employee trust

funds, the director of the state Medical Assistance program, the executive director

of the Health Insurance Risk-Sharing Plan Authority, and the following members

who are nominated by the governor, and with the advice and consent of the senate

appointed, for three-year terms: a member in good-standing of the American

Academy of Actuaries, a health economist, an employee benefits specialist, a

representative of small employers, a representative of an organization that

represents consumer interests, and a representative of organized labor. The

chairperson of the board is the commissioner, who must appoint an executive director

of the authority. The executive director must, among other duties, supervise the

administrative affairs and general management and operation of the authority,

employ professional and clerical staff, as necessary, and prepare the authority's

annual budget.

The authority is not a state agency, so numerous laws that apply to state

agencies do not apply to the authority. However, the authority is treated like a state

agency in the following ways, among others: it is subject to auditing by the

Legislative Audit Bureau; it is subject to open meeting and open records laws; and

it is exempt from property tax, income tax, and sales and uses taxes. The authority

has powers, including adopting bylaws and policies and procedures for the

regulation of its affairs and conduct of its business; hiring employees; incurring debt;

suing and being sued in its own name; and executing contracts. The bill establishes

a process that the authority must use when it contracts for professional services.

Under the bill, the authority is subject to civil liability for its acts or omissions except

that the maximum amount recoverable in a civil action against the authority is

$100,000. However, a member of the authority's board of directors, the authority's

executive director, or an authority employee is exempt from civil liability unless the

member, director, or employee acted with willful misconduct or in intentional

violation of the law.

Health benefit plan exchange

Under the bill, the authority must establish and, by January 1, 2011, begin

operating a health benefit plan exchange (exchange), except that the authority must

seek federal grant moneys for the exchange and the exchange may not begin

operating unless federal grant moneys are received for that purpose. The

commissioner must determine the initial health benefit plan designs, including the

minimum benefit levels, and the authority must approve the plans that may be

offered through the exchange. The authority must rank the plans offered through