Public Agency Benefits Intermediary Compensation Disclosure Act.
Vote required
Majority
Fiscal committee
No
Appropriation
No
Current location
Passed
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Progress
Where this bill stands in the legislative process.
- Introduced
- Passed Senate
- Passed Assembly
- To Governor
- Became Law
Overview
This bill, the Public Agency Benefits Intermediary Compensation Disclosure Act, requires covered service providers – such as brokers and consultants – to disclose any direct or indirect compensation they expect to receive from public agencies or their health plans before entering into, extending, or renewing contracts for services. This includes compensation from vendors, pharmacy benefit managers, and other related parties. The goal is to increase transparency in how public funds are spent on employee health benefits and to prevent conflicts of interest. The bill also prohibits service providers from receiving compensation without disclosure and requires them to maintain records to support their disclosures.
Key provisions
- Requires covered service providers to disclose direct and indirect compensation to public agencies and their health plans before entering into contracts.
- Defines ‘covered service provider’ to include brokers, agents, consultants, and advisors who meet specific criteria.
- Establishes a threshold of $1,000 in expected compensation to trigger disclosure requirements.
- Prohibits service providers from receiving compensation without prior disclosure.
- Requires disclosure of compensation paid through affiliates or related parties.
- Specifies a timeline for disclosure – at the initial contract, and annually thereafter.
- Includes a provision addressing compensation related to joint powers authorities.
- Establishes a date for when the bill’s requirements will take effect (January 1, 2028).
Who is affected
Bill text
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