(a) Except as provided by subsections (b) and (c) of this section, members of the stakeholder advisory group designated under Insurance Code §38.403(b)(2) - (4), concerning Stakeholder Advisory Group, serve fixed terms of three years.
(b) Initial terms of the stakeholder advisory group will end December 31, 2024.
(c) Subsequent designations of the stakeholder advisory group will begin January 1, 2025, and will be staggered as follows:
  (1) two members representing the business community, as provided by Insurance Code §38.403(b)(4)(A), and two members representing consumers, as provided by Insurance Code §38.403(b)(4)(B), with terms to expire December 31, 2026;
  (2) the member designated by the Teacher Retirement System of Texas; two members representing hospitals, as provided by Insurance Code §38.403(b)(4)(C); and two members representing health benefit plan issuers, as provided by Insurance Code §38.403(b)(4)(D), with terms to expire December 31, 2027; and
  (3) the member designated by the Employees Retirement System; two members representing physicians, as provided by Insurance Code §38.403(b)(4)(E); and two members not professionally involved in the purchase, provision, administration, or review of health care services, supplies, or devices, or health benefit plans, as provided by Insurance Code §38.403(b)(4)(F), with terms to expire December 31, 2028.
(d) If a member does not complete the member's three-year term, a replacement member must be designated to complete the remainder of the term. A member designated by the Center to serve a partial term of less than two years will not be prevented from serving for an additional two consecutive terms.
(e) Except as provided by subsection (d) of this section, members designated by the Center under Insurance Code §38.403(b)(4) may not serve more than two consecutive terms.
(f) Members and prospective members of the stakeholder advisory group are subject to the conflicts of interest and standards of conduct provisions in paragraphs (1) - (4) of this subsection.
  (1) A prospective member of the stakeholder advisory group must disclose to the designating entity any conflict of interest before being designated to the group.
  (2) A member of the stakeholder advisory group must immediately disclose to the Center and the member's designating entity any conflict of interest that arises or is discovered while serving on the group.
  (3) A conflict of interest means a personal or financial interest that would lead a reasonable person to question the member's objectivity or impartiality. An example of a conflict of interest is employment by or financial interest in an organization with a financial interest in work before the stakeholder advisory group, such as evaluating data requests from qualified research entities under Insurance Code §38.404(e)(2), concerning Establishment and Administration of Database.
  (4) A member of the stakeholder advisory group must comply with Government Code §572.051(a), concerning Standards of Conduct; State Agency Ethics Policy, to the same extent as a state officer or employee.
(g) A member may be removed from the stakeholder advisory group for good cause by the member's designating entity.

Source Note: The provisions of this §21.5406 adopted to be effective June 16, 2022, 47 TexReg 3475