California Code, Insurance Code - INS § 10720

(a) The fund shall be governed by a board of directors, which shall initially be elected by small employer carriers and small employer health care service plans.  The initial board shall be elected by a weighted vote based on net health insurance premiums derived from the state in the previous calendar year in the small employer market.  The initial board shall consist of at least five and not more than nine representatives of small employer carriers and small employer health care service plans.

(b) Within 180 days of the election of the initial board, the board shall adopt a plan of operation which provides for the reasonable and equitable administration of the fund.

(c) The plan of operation shall, among other things, do all of the following:

(d) Within 60 days of the board's adoption of the plan of operation, small employer carriers and small employer health care service plans shall elect to be either a participant or nonparticipant of the fund.  All participants of the fund shall be members of the fund, and only members of the fund shall continue to be members of the board.  Members may elect new members of the board, if necessary, to replace initial board members who elect to be nonparticipants of the fund, subject to subdivision (a).  The election shall be binding for a three-year period.  Thereafter, each small employer carrier shall notify the board 90 days prior to the end of the election period whether or not they will be a member of the fund.