Where this sits
- Chapter 4.5.
- Division of Workers' Compensation
- Subchapter 1. Administrative Director--Administrative Rules
- Article 4. Certification Standards for Health Care Organizations
The regulation, as printed
(a) An organization shall not enter into any transaction with a person currently named in Item D of its application under Rule 9771.62 unless, prior thereto, each of the following conditions is met: (1) The material facts concerning the transaction and the person's interest therein are disclosed to the governing body of the organization. (2) The transaction is approved by a disinterested majority of the governing body. (3) Such facts and such approval are made a part of the minutes of such governing body or, if no minutes are required of such governing body, otherwise retained as a record of the organization. (b) An organization shall promptly give written notice to the Administrative Director if a transaction with a person currently named in Item D of its application under Rule 9771.62 is entered into otherwise than in conformity with the terms of this section. (c) For the purposes of this section, “governing body” means the board of directors, all general partners, the sole proprietor, the board of trustees, and any other persons occupying a similar position or performing similar functions.
Official text at dir.ca.gov →
Authority and history
Note: Authority cited: Stats. 1997, Ch. 346, Section 5. Reference: Sections 4600.3, 4500.5 and 4600.6, Labor Code.
1. New section filed 4-15-98; operative 4-15-98. Submitted to OAL for printing only pursuant to Stats. 1997, Ch. 346, Section 5 (Register 98, No. 16).
No released decision named this rule
Not a comment on the rule — most of Title 8 never reaches a published panel decision, because most of it is followed without argument. The text above is the state's own.
Rules beside this one
Article 4. Certification Standards for Health Care Organizations — regulations rarely stand alone, and the answer is often two sections away.
- § 9771.68Deceptive Workers' Compensation Health Care Provider Organization Names.
- § 9771.69Workers' Compensation Health Care Contracts.
- § 9771.70Contracts with Providers.
- § 9771.72Contracts with Solicitor Firms.
- § 9771.73Fiscal Soundness, Insurance, and Other Arrangements.
- § 9771.74Fidelity Bond.