(a) Four members of the public, two representing organized labor and two representing
insured employers, appointed pursuant to subdivision (b) of Section 11751.3, shall be entitled to serve on the managing or governing committee of a rating organization
licensed under this article.A public member shall be entitled to vote on all issues involving pure premium rates, classifications,
rating plans, rating systems, manual rules and policy, and endorsement forms which
are properly brought before the committee.A public member shall be removed by the commissioner only for cause.
(b) In the event a public member is unable or unwilling to complete his or her term, after consultation with the California Labor Federation, AFL-CIO, other statewide
organized labor organizations, and statewide organizations representing business,
as the case may be, the commissioner shall appoint a successor from organized labor
or an insured employer to complete the unexpired term.
(c) The public members who serve on the governing committee of a rating organization
licensed under this article together may, by a majority vote, retain experts who shall
include a fellow of the Casualty Actuarial Society, to advise them on any matter specified
in subdivision (a). The actuary hired may participate in all proceedings of the actuarial committee
of the rating organization. The reasonable expense of retaining these experts shall not exceed one hundred thousand
dollars ($100,000) per year and shall be paid from the budget of the department. The commissioner shall increase this amount annually to reflect any needed cost-of-living
adjustments. The public members may submit information obtained from these experts, as well as
any other information they deem appropriate, to the commissioner for his or her consideration
in approving a change of any matter specified in subdivision (a).
(d) In addition to the expenses authorized pursuant to subdivision (c), the public
members who serve on the governing committee of a rating organization licensed under
this article may expend up to an additional one hundred thousand dollars ($100,000)
per year, which shall be paid by insurer members of the rating organization. Those funds shall be used to retain staff, who shall be hired by a majority vote
of the public members.
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