public business. We conclude that this is the case even though the funds are wUected from HMOs, private entities, to aid other HMOs. While the committee supetvises the collection of the assessments and may bring legal action to recover unpaid assessments, the wmmissioner determines when an assessment will be wllected and can excuse particular HMOs from paying the assessment in whole or in part. Furthermore, the assessments are used to provide timds for the State Board of Insurance's administrative expenses "regarding rehabiitation, liquidation, supervision, or conservation" of impaired HMOs. See V.T.C.S. art. 20A36(c). Because these funds are used by the State Board of Insurance to carry out its statutory duty to supervise the rehabilitation, liquidation, supervision or wnserva tion of impaired HMOs under article 20A21, the wlkction of the funds is public business. Therefore, the wmmittee's supervision of the wlkction of the assessments makes it a governmental body subject to the Open Meetings Acts
2. The LAEESI Guaranty Association
a. The Statutory Scheme
Tbe LAHHSI guaranty association is a nonprofit legal entity, Ins. Code art. 21.28-D. 5 6. the purpose of which is to protect insurance policyholders from insurers fkihue to perUorm wmmctual obligations because of insolvency or other fmancial . . mpaumu& id. 4 2. "To provide this protection, an association of insurem is created to
9Subscdion(X90()of article204136 addremu the disclosnte of cettaln reportsand lnformatkn disusedbytheomuni~. 1tpmvidesthatnponsregatdingtheftthan&conditionofHMosliwnxd in Texas and HMCkin rehabilitation,liquidation,supervision,or wnsermtion shall be pmvidedto the wmmitIec mcmhw5 at meetings. It liuthcr providesthat '[c]ommittcemembersshall not remI the ~wofnoramlinfwmationsocuredinthccourstofatlymedingoItheSolvcncyS~ commiaawi~m~tosnycorpnation,fo~orpersonuraminedbytbccommittet. Gnnmittee ~shalIbeflIcdwithlbe wmmkionerandqxvtedtothemembersoftheStateBwrdof Iasnmnw? Ins. Codeart. 20A36@)(2).
Wedo notbelievethat sobseuion (b)(Z)of ankle 20A.36 Is evidencethat the kgishre did not intadfortheopCnu&tingsActtoapplytothcHMOrolvcncysurvtillanaamunitt&. Arguably,this provisionsuggeststhat the legklatwe did not intend for the committeeto be s&j@ to the act becauseit pmhii membersfrom revealingcertainkinds of informationobtainedin a wmmittee me&ng, which ~dmaLelitllcscnscI~n~~wenoDentothclic. Webelieve.howmr.tbatthisomvisionis
winen infonnkon about &e fin&cial condition of HMO6during meetings ahd pmldii them from ~thewntentsofthismaterialinatneetingorel.5ewhem. Werwliithatthismaypmmnt pactid difFiadtiu for committeediscussion. It may be possible for the committee to avoid these di6ienlUu by discmbg such wntidential informationin a public meetingwithout revealingthe identity ofthe 'wrporation,formor personexaminedby the committee."See also disco&on inqiap. 17. Mr. J. Robert Hunter - Page 7 (DM-284)
pay benefits and to continue coverages. . and members of the association are subject to assessment to provide hmds." Id.
Its membership includes all insurers providing life, accident, health, and hospital service coverage licensed or holding a certiticate of authority to transact business in this state. Id. $9 3, S(7). Membership is a condition of such an insurer's authority to transact business in the state. Id. 8 6. The LAHHSI guamnty amociauon performs its timctions under a plan of operation approved by the wmnnssr * 'oner. Id. $5 6, lo(a). The State Board of Insurance is authorized to issue rules and regulations necessary to carry out the act. Id. $21. The association exercises its powers through a board of directors, id. @6, 7, which wnsists of nine members appointed by the State Board of Insurance, id. 5 7.1°
Section 8 of article 21.28-D provides that