Bill > SB1244

This bill, known as the Public Agency Benefits Intermediary Compensation Disclosure Act, requires any broker, agent, consultant, or advisor (referred to as a "covered service provider") that works with public agencies on their employee health care benefits to disclose all direct and indirect compensation they expect to receive. This disclosure must happen before entering into, extending, renewing, or significantly changing a contract for brokerage or consulting services. The bill defines "compensation" broadly to include anything of monetary value, whether cash or non-cash, and specifies that disclosures are required if the provider expects to receive $1,000 or more. It also mandates disclosure of compensation related to any health care benefits arrangement that the provider recommends or influences. The legislation aims to increase transparency for public agencies, which often rely on these intermediaries for health benefit decisions, and to prevent conflicts of interest that might arise from undisclosed payments from various sources like insurance carriers or vendors. The Insurance Commissioner is authorized to investigate violations and impose administrative penalties, including fines and potential license suspension or revocation. The provisions of this act are set to take effect on January 1, 2028.

https://leginfo.legislature.ca.gov/faces/billStatusClient.xhtml?bill_id=202520260SB1244