Bill > SB1244

This bill, known as the Public Agency Benefits Intermediary Compensation Disclosure Act, requires brokers, agents, consultants, or advisors (collectively referred to as "covered service providers") who work with public agencies (defined as local governmental entities like counties, cities, and school districts) on 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 financial interests related to any health care benefits arrangement recommended or influenced by the provider. The bill prohibits providers from accepting compensation unless it's disclosed and allows the Insurance Commissioner to investigate violations and impose administrative penalties. The new requirements are set to take effect on January 1, 2028, with voluntary compliance encouraged beforehand.