NY Ins L § 4301 (2021)
2021 New York Laws ISC - Insurance Article 43 - Non-Profit Medical and Dental Indemnity, or Health and Hospital Service Corporations 4301 - Organization of Corporation; Purposes; Board of Directors.

§ 4301. Organization of corporation; purposes; board of directors. (a) A corporation may be organized under the not-for-profit corporation law, and  a  consumers'  cooperative stock corporation may be organized under article two of the cooperative corporations  law,  for  the  purpose  of furnishing medical expense indemnity, dental expense indemnity, hospital service,  or  health  service  or,  upon  compliance with the applicable provisions of subsection (h)  of  this  section,  both  medical  expense indemnity  and  hospital  service,  to  persons who become covered under contracts with such corporations.  (b) (1) Medical expense indemnity shall consist of reimbursement for:  (A) medical care provided through licensed physicians,  (B) dental care provided through licensed dentists,  (C) optometric care provided through licensed optometrists,  (D) podiatrical care provided through licensed podiatrists,  (E) chiropractic care provided through licensed chiropractors,  (F) psychiatric or psychological services provided through physicians, psychiatrists or certified and registered psychologists,  (G) physical and occupational therapy care provided  through  licensed physical   and  occupational  therapists  upon  the  prescription  of  a physician,  (H) nursing service,  (I) speech-language pathology or audiology services  provided  through licensed speech-language pathologists or audiologists, provided however, that  nothing contained herein shall be construed to prohibit a contract from requiring said service from being performed pursuant to  a  medical order  or  similar  or  related  service  of  a physician, in which case coverage need not be provided for any tests, evaluations or diagnoses if such tests, evaluations or diagnoses have already been  provided  by  or through  a  physician within twelve months of the referral or order from the physician. However, nothing herein shall be construed as  preventing a corporation from covering more than one test or evaluation provided by a  speech-language  pathologist  or  audiologist  within  a twelve-month period where such tests or evaluations is  ordered  by  a  physician  as medically   necessary.   Nor  shall  anything  herein  be  construed  as prohibiting the limitation of such services, where covered, to specified settings other than offices, such as hospitals or to  services  provided by such professionals as part of a home care agency's services,  (J) necessary appliances, drugs, medicines and supplies, and  (K)  bio-analytical  or  clinical  laboratory examinations and reports thereof  reported  to  a  physician,  osteopath,  dentist,  optometrist, podiatrist,  chiropractor  or  physical  therapist made by any privately operated bioanalytical or clinical laboratory.  (2) It is not mandatory that a contract issued by  a  medical  expense indemnity  corporation  provide  for  and  offer  all  of  the  services hereinabove described, but when any service is  provided  which  can  be performed  by  more  than one of the practitioners hereinbefore referred to, benefits under the contract shall be provided  regardless  of  which practitioner  performed  the  service,  provided that the performance of such service was within the scope of the license of  such  practitioner. Unless   such  contract  shall  otherwise  provide  there  shall  be  no reimbursement for ophthalmic materials, lenses, spectacles,  eyeglasses, and/or appurtenances thereto.  (3)  Every  medical expense indemnity corporation shall be open to the participation  of  licensed  physicians,   podiatrists,   chiropractors, optometrists,  physical  and  occupational  therapists,  speech-language pathologists,  audiologists,  and  dentists,  certified  and  registered psychologists   without   discrimination   against  schools  of  medical practice, podiatry practice, chiropractic practice, optometric practice,  physical   and   occupational   therapy   practice,   dental   practice, speech-language pathology practice (subject to the permitted limitations of paragraph one of this subsection), audiology practice (subject to the permitted   limitations  of  paragraph  one  of  this  subsection),  and psychological training as defined in the education law.  (c) Dental expense indemnity shall consist of reimbursement for dental care provided through licensed  dentists  and  of  furnishing  necessary appliances,  drugs,  medicines,  and  supplies,  prosthetic  appliances, orthodontic appliances, precious metal and ceramic restorations.  (d) (1) Hospital service shall consist of in-patient hospital care and out-patient hospital care when such hospital care is provided through  a hospital  which  is  maintained  by  the  state  or any of its political subdivisions, or maintained by  a  corporation  organized  for  hospital purposes  under the laws of this state, or such other hospitals as shall be designated by the state department of health, and hospitals of  other states subject to the supervision of such other state, convalescent care provided  by  any  convalescent institution, or nursing care provided by any nursing home.  (2) A hospital service corporation may also provide reimbursement  for expenses  incurred  outside of the hospital, convalescent institution or nursing  home,  for  nursing  service,  necessary   appliances,   drugs, medicines,  supplies,  and  any  other  services  which  would have been available in the hospital,  convalescent  institution  or  nursing  home (excluding  physicians'  services),  whether  or  not provided through a hospital, convalescent institution or nursing home.  (3) A hospital service corporation may also furnish reimbursement  for ambulance service expenses.  (e)  (1) Health service, as used in this article, shall consist of the types of services referred to in this section.  (2) A health service corporation, in any hospital, facility or  center directly  operated by it may provide hospital or medical care to persons other than persons covered under contracts issued by such corporation.  (3) A health service corporation may:  (A) exercise all of the powers of a medical expense indemnity,  dental expense indemnity and hospital service corporation;  (B)  organize, manage and promote a health maintenance organization as such term is defined in article forty-four of the public health law;  (C) contract or otherwise act  jointly  with  a  hospital  corporation organized  under  article  twenty-eight  of  the  public  health  law, a hospital service corporation  organized  pursuant  to  this  article,  a health  maintenance  organization  possessing a certificate of authority pursuant to article forty-four of the public health law, a  professional service  corporation  organized  under  article  fifteen of the business corporation law, a university  faculty  practice  corporation  organized under  section fourteen hundred twelve of the not-for-profit corporation law or a  partnership  for  the  purpose  of  organizing,  managing  and promoting such prepaid comprehensive health services plan;  (D)  contract  or  otherwise  act  jointly  with an insurance company, authorized to do an accident  and  health  insurance  business  in  this state,  for  the  purpose  of  organizing, managing and promoting such a health maintenance organization.  (4) A health service corporation engaged  in  providing  medical  care through  medical  groups, hospital services and dental care, may include as a component of its rate a sum of five per centum of such rate  to  be used  for  the purchase or construction of facilities for the conduct of its business, and for the implementation of its program, or  for  making loans for the purposes of implementing the program of such corporation.  (5)  To  encourage the development in this state of health maintenance organizations as such term is  defined  in  article  forty-four  of  the public  health  law,  the  superintendent  may  modify  any  requirement applicable  to  health  service  corporations  and  other   corporations organized  under this article to permit such corporations to make fuller use of their resources in the development of such plans,  including  the acquisition  and  construction of hospitals, medical service centers and other health facilities and the  equipment  therefor,  subject  to  such limitations  as  the  superintendent  shall  deem necessary or proper to ensure the performance of contracts issued by such corporations  and  to protect the interests of persons covered under such contracts.  (6)  Any  other  corporation subject to the provisions of this article may by appropriate amendment to its certificate of incorporation  become a health service corporation.  (f)  No foreign or alien medical expense indemnity corporation, dental expense indemnity corporation, health service corporation,  or  hospital service corporation shall be authorized to do business in this state. No person,  firm, association or corporation shall in this state furnish or contract to furnish medical expense indemnity, dental expense indemnity, hospital service or health  service  under  any  insurance  plan  unless authorized so to do under the provisions of this chapter.  (g)  Two  or more corporations organized pursuant to the provisions of this article may, upon compliance  with  the  applicable  provisions  of article  seventy-one of this chapter, consolidate, if the superintendent finds that such consolidation  will  promote  the  public  interest.  No corporation  resulting  from any such consolidation shall operate in any county in which none of the corporations so consolidated  was  empowered to operate immediately prior to such consolidation.  (h)  A  medical  expense  indemnity  corporation or a hospital service corporation may, pursuant to a plan submitted to  and  approved  by  the superintendent,  furnish  both  medical  expense  indemnity and hospital service benefits, as these are defined in subsections  (b)  and  (d)  of this section, by amending its certificate or act of incorporation in the manner  provided  in  the  applicable  provisions  of the not-for-profit corporation law and the cooperative  corporations  law.  Except  as  the context  otherwise  requires, a corporation writing both medical expense indemnity and hospital service benefits shall be subject to all  of  the provisions  of  this article applicable to medical expense indemnity and hospital service corporations.  (i) Subject to the provisions of the preceding subsections, a hospital service corporation and a medical expense indemnity  corporation  and  a dental expense indemnity corporation or any two of such corporations may issue  a  combined  contract  providing  for  hospital  service, medical expense indemnity or dental  expense  indemnity,  but  no  one  of  such corporations  shall  issue any such combined contract unless it complies with the applicable provisions of  subsection  (h)  hereof.  A  hospital service  corporation  and  a medical expense indemnity corporation and a dental expense indemnity corporation or any two of such corporations may underwrite jointly in such a combined contract  such  benefits  as  each might otherwise individually provide under this article. Any one of such corporations  may  act  as agent for the other without being required to obtain a license as an agent under article twenty-one of this chapter.  (j) (1) Except as provided in  this  subsection,  no  medical  expense indemnity  corporation,  dental  expense  indemnity  corporation, health service corporation, or hospital service corporation shall be  converted into   a   corporation   organized  for  pecuniary  profit.  Every  such corporation shall be maintained and operated  for  the  benefit  of  its members and subscribers as a co-operative corporation.  (2)  An  article  forty-three  corporation which was the subject of an initial opinion and decision issued by the superintendent on  or  before December  thirty-first, nineteen hundred ninety-nine, as the same may be amended or one or  more  article  forty-three  corporations  whose  main offices  on January first, two thousand seven were located in one of the counties listed in section one thousand two  hundred  sixty-two  of  the public  authorities  law  and  its  or their not-for-profit subsidiaries (including, without limitation, any such subsidiary licensed as a health service corporation pursuant to this chapter or as a health  maintenance organization  organized  pursuant  to  article  forty-four of the public health law), hereinafter referred to in the singular, may  be  converted into  one or more corporations or other entities organized for pecuniary profit, or into one or more for-profit organizations, in any such  case, in  accordance  with  the  provisions  of  section  seven thousand three hundred seventeen of this chapter.  (3) For the purposes of this subsection  and  section  seven  thousand three  hundred  seventeen  of  this  chapter,  "public asset" shall mean assets representing ninety-five percent of the fair market value of  the corporation  seeking  to  convert  into  a  corporation  or other entity organized for  pecuniary  profit  pursuant  to  paragraph  two  of  this subsection;  provided,  however, that for the purposes of the conversion of a corporation or corporations after the effective date of the chapter of the laws of two thousand seven which amended this paragraph,  "public asset"  shall mean assets representing ninety percent of the fair market value of the corporation or corporations. Fair market value, as  defined in  subsection  (l) of section seven thousand three hundred seventeen of this chapter, shall be determined as  of  the  date  the  superintendent approves  the  conversion  transaction  pursuant  to  subsection  (f) of section seven thousand three hundred seventeen of this chapter.  (4) In addition to any other requirements of law, rule or  regulation, the following requirements shall be applicable to the public asset:  (A)  The  public  asset  shall  be transferred to the fund established pursuant to subsection (e)  of  section  seven  thousand  three  hundred seventeen  of  this  chapter  and  the public asset shall be irrevocably dedicated to the purpose as set forth in such section;  (B) There is hereby established a board for the  purpose  of  advising and making decisions with respect to the investment of assets and moneys in the fund created pursuant to subsection (e) of section seven thousand three hundred seventeen of this chapter. Such board shall be composed of five  members  appointed as follows: three members shall be appointed by the governor; one member appointed by the  temporary  president  of  the senate;  and  one  member appointed by the speaker of the assembly. Each member of the board shall be appointed for a term of three years and may be reappointed at the end of said term by the same person that made  the original  appointment. A vacancy in the membership of the board shall be filled for the unexpired  portion  of  the  term  provided  for  by  the original   appointment  by  the  same  person  that  made  the  original appointment. Each member may be removed, other than upon the  expiration of  his  or her term, only for neglect of duty, misconduct or other good cause. Each member of the board shall be a member  of  the  public  with knowledge and expertise in capital markets and a demonstrated commitment to  ensuring  continued  access  to,  and  availability  of, health care services and may not be an officer or  employee  of  the  state  or  any municipal subdivision thereof;  (C) The members shall serve without compensation for their services as members, but shall be entitled to reimbursement for actual and necessary expenses  incurred  in  the  performance  of their official duties. Such  members, except as otherwise provided by  law,  may  engage  in  private employment, or in a profession or business;  (D)  The  board and its corporate existence shall continue until there are no longer any assets or moneys  in  the  fund  created  pursuant  to subsection (e) of section seven thousand three hundred seventeen of this chapter available for distribution;  (E)  The  affirmative  vote of three of the members shall be necessary for the transaction of any business or the  exercise  of  any  power  or function  of  the  board.  The  board may delegate to one or more of its members, or its agents, such powers and duties as it may deem proper;  (F) The board shall have the power to:  (i) direct, in consultation with the director of the division  of  the budget  regarding the anticipated schedule of payments to the state, the manner in which moneys in the fund created pursuant to subsection (e) of section seven thousand three  hundred  seventeen  of  this  chapter  are invested  so  as  to  maximize  the  value  of  the  assets in such fund consistent with the board's statutory obligation to direct disbursements as described below and in subsection (e) of section seven thousand three hundred seventeen of this chapter;  (ii) direct that disbursements be made from such  fund  in  accordance with  the direction of the director of the division of the budget and as described in subsection (e) of  section  seven  thousand  three  hundred seventeen of this chapter; and  (iii)  make  and  execute  contracts and all other instruments, and to exercise such other powers, necessary or convenient for the exercise  of its powers and functions.   In  directing  investments  pursuant  to  this subparagraph, the board shall not be limited by any restrictions on investments contained in any other section of law, subject only to the board's  obligations  and  the considerations set forth above;  (G) (i) Neither the members of the board nor any agent or other person or  persons acting on its behalf, while acting within the scope of their authority as members or agents of the board, shall  be  subject  to  any personal  liability  resulting  from  the  carrying  out  of  the powers conferred hereunder, and (ii) the provisions of section seventeen of the public officers law shall apply to members of the board  and  agents  or other  persons  acting  on  its  behalf,  in connection with any and all claims, demands, suits, actions or proceedings  which  may  be  made  or brought  against  any  of  them arising out of any determination made or actions taken or omitted to be taken in compliance with any  obligations under or pursuant to the terms of this section or section seven thousand three  hundred  seventeen  of  this  chapter.  The  provisions  of  this subparagraph shall  be  severable  from  and  shall  survive  any  legal challenge  to  the  legality,  validity,  or  constitutionality  of this section;  (H) Any action or proceeding in which any question arises  as  to  the validity  of  any  provision  in  this  subsection  or  in section seven thousand three hundred seventeen of this  chapter,  shall  be  preferred over  all other civil causes except election causes in all courts of the state of New York and shall be heard and determined in preference to all other  civil  business   pending   therein   except   election   causes, irrespective  of  position on the calendar. The same preference shall be granted upon application of counsel  to  the  board  in  any  action  or proceeding  questioning the validity of any provision herein in which he or she may be allowed to intervene;  (I) To assist in carrying  out  its  functions,  the  board  shall  be authorized  to  hire  independent financial, legal and other experts and consultants;  (J) Inconsistent provisions of other laws are superseded.  Insofar  as any provision in this section is inconsistent with the provisions of any other  law,  general,  special  or local, the provisions in this section shall be controlling;  (K) This section, being necessary for the welfare of the state and its inhabitants,  shall  be  liberally  construed  so  as  to effectuate its purposes;  (L) Each member of the board shall be and shall remain independent  of any control or influence by the surviving corporation or other surviving entity organized for pecuniary profit and its affiliates and successors. Such  requirement  shall  not  prevent  the board from voting its equity shares in the for-profit organization in accordance with the voting  and shareholders  rights agreement. No person who is an officer, director or employee  of  the  corporation  seeking  conversion  at  the  time  such corporation  applies  to  the  superintendent  for permission to convert shall be a member of the board;  (M) The board shall establish formal mechanisms to avoid conflicts  of interest;  (N)  The  board  shall enter into an asset preservation agreement with the converted corporation; and  (O) Notwithstanding any other provision of law, the board shall direct that such proceeds of the public asset are disbursed in accordance  with direction   from  the  director  of  the  division  of  the  budget  and transferred  to  the  credit  of  the  tobacco  control  and   insurance initiatives pool, or its successor to be used for the exclusive purposes provided therein.  (P) Section one hundred twelve of the state finance law shall apply to the  fund  established  pursuant  to  subsection  (e)  of  section seven thousand three hundred seventeen of this chapter and  its  board  solely and exclusively with respect to procurement contracts for consulting and professional  services  recommended  for  award  by  the fund after June twenty-third, two  thousand  five;  provided  that  all  such  contracts recommended  for  award  by the fund on or before June twenty-third, two thousand five shall be valid and  effective  in  accordance  with  their terms.  (Q)  Section  one  hundred  twelve  of the state finance law shall not otherwise apply to the fund established pursuant to  subsection  (e)  of section  seven  thousand three hundred seventeen of this chapter and its board except as provided in subparagraph (P) of this paragraph.  Without in  any  way  limiting  the foregoing, section one hundred twelve of the state finance law specifically shall not apply to any and all agreements such fund, its board, or  any  medical  expense  indemnity  corporation, dental  expense  indemnity  corporation,  health  service corporation or hospital service corporation that has  converted  to  for-profit  status pursuant  to  this  section  and  section  seven  thousand three hundred seventeen of this chapter, may enter  into,  or  has  entered  into,  in connection  with,  or  in anticipation of, sales of stock including, but not limited to, any and all underwriting agreements, pricing  agreements and  other  documents related to such sales of stock or stock offerings, whether such agreements are entered  into  in  connection  with  initial public offerings or subsequent public or private sales of stock.  (R) All disbursements from the fund established pursuant to subsection (e)  of  section  seven thousand three hundred seventeen of this chapter shall be made pursuant to the provisions of  this  section  and  section seven  thousand  three  hundred  seventeen  of  this  chapter without an appropriation. The provisions of this section and section seven thousand three hundred seventeen of this chapter shall be controlling, any  other general, special or local law inconsistent therewith notwithstanding.  (5)  For  the  purpose  of  this subsection and section seven thousand three hundred seventeen of this chapter, "charitable asset"  shall  mean assets  representing  five  percent  of  the  fair  market  value of the corporation seeking to  convert  into  a  corporation  or  other  entity organized  for  pecuniary  profit  pursuant  to  paragraph  two  of this subsection; provided, however, that for the purposes of  the  conversion of a corporation or corporations after the effective date of the chapter of  the  laws  of  two  thousand  seven  which  amended  this paragraph, "charitable asset" shall mean assets representing  ten  percent  of  the fair market value of the corporation or corporations. Fair market value, as  defined  in  subsection  (l) of section seven thousand three hundred seventeen of this chapter, shall  be  determined  as  of  the  date  the superintendent   approves   the   conversion   transaction  pursuant  to subsection (f) of section seven thousand three hundred seventeen of this chapter. If one hundred percent of  the  stock  is  not  transferred  in connection  with  the conversion transaction, the proportion of stock to cash that is distributed as the charitable asset shall be  the  same  as the proportion of stock to cash that is distributed as the public asset.  (k)  (1)  The  board  of  directors  of  each health service, hospital service or medical expense indemnity corporation subject to this article shall be composed of  persons  who  are  representative  of  the  member hospitals or licensed medical professionals of such corporation, persons covered  under  its  contracts  and  the  general  public.  The board of directors  of  such  corporations  may  also  include  persons  who  are employees  of  such  corporations and who also serve as officers of such corporations. Not more than one-fifth  of  the  directors  of  any  such corporation  shall  be  persons who are licensed to practice medicine in this state (other than physicians employed on a full-time basis  in  the fields  of  public  health,  public welfare, medical research or medical education) or who are trustees, directors or employees of a  corporation organized  for  hospital  purposes, or any combination thereof. Not more than one-eighth of the  directors  of  any  such  corporation  shall  be persons  who  are  employees  of  such corporation and who also serve as officers of such corporation. Any person  who  is  an  officer  of  such corporation  but not an employee of such corporation shall be considered under one of the other classifications of directors set  forth  in  this section,  as  appropriate.  Whenever  the maximum number of directors in either of the classifications  set  forth  in  the  preceding  sentences includes  a  fractional  number  equal  to or greater than one-half, the number shall be rounded to the next greater whole number.  Whenever  the maximum  number  of directors in either of the classifications set forth in the preceding  sentences  includes  a  fractional  number  less  than one-half,  the  number shall be rounded to the next lesser whole number. Of the directors not included in the classifications set  forth  in  the preceding sentences,  (A)  one-half  in  number,  as  nearly  as  possible, shall be persons covered under a contract or contracts issued  by  such  health  service, hospital  service  or medical expense indemnity corporation, and who are generally representative of broad segments of such covered persons, and  (B) one-half in number, as nearly as possible, shall be persons  whose background and experience indicate that they are qualified to act in the broad  public  interest, whether or not they are persons covered under a contract or contracts issued by such health service, hospital service or medical expense indemnity corporation.  (C) A person who, or whose spouse  or  minor  child,  is  an  officer, director,  or  owner  of  more  than  ten  per  centum of the stock of a corporation whose aggregate sales  to  hospitals  and  licensed  medical professionals and to facilities of a health service, hospital service or  medical  expense  indemnity  corporation  exceed  five per centum of its total sales may not serve as a director under subparagraph  (A)  or  (B) hereof.  (D)  Each  such  health  service,  hospital service or medical expense indemnity corporation shall have an executive committee the  members  of which  shall  be  composed, as nearly as possible, of representatives of any  member  hospitals  or  licensed  medical  professionals   of   such corporation,  employee-officers  of  such  corporation,  persons covered under its contracts and the general public in the  same  proportions  as the membership of the board of directors.  (E)  The  board  of directors of a health service, hospital service or medical expense indemnity corporation with  a  combined  premium  volume exceeding  two  billion  dollars  annually  as of December thirty-first, nineteen  hundred  ninety-six  shall,   in   addition   to   its   other responsibilities,  have responsibility for ensuring that the corporation implements  and  maintains  effective  standards  and   procedures   for operating  efficiency  and  for  quality  of consumer service and claims payment, including but not limited to coordination of benefits and fraud prevention and shall establish one or more committees  comprised  solely of  directors who are not officers or employees of the corporation. Such committee or committees shall have responsibility for  recommending  the selection  of  independent  certified  public accountants, reviewing the corporation's  financial  condition,  the  scope  and  results  of   the independent  audit  and  any  internal  audit, nominating candidates for director for election by members,  and  evaluating  the  performance  of officers deemed by such committee or committees to be principal officers of  the company and recommending to the board of directors the selection and compensation of such principal officers.  (2) (A) Compliance with the provisions of paragraph one  hereof  shall be under the supervision of the superintendent.  (B)  Within  ten  days  after a vacancy in the board of directors of a health  service,  hospital  service   or   medical   expense   indemnity corporation   shall   occur,   such   corporation   shall   notify   the superintendent in writing that such vacancy exists. Not  more  than  ten days  after  the election of a person as a director of a health service, hospital  service  or  medical  expense  indemnity   corporation,   such corporation  shall furnish, in writing, the following information to the superintendent: the name and address of the person so  elected;  whether such person is representative of any member hospital or licensed medical professional  of such corporation or persons covered under its contracts or the general public and qualified to serve pursuant to the  provisions of  paragraph  one hereof or is an employee-officer of such corporation; and  a  biographical  statement   concerning   such   person.   If   the superintendent finds, after a hearing, that the composition of the board of  directors  of  a health service, hospital service or medical expense indemnity corporation is  not  in  compliance  with  the  provisions  of paragraph  one  hereof,  he  may  direct that such board of directors be reconstituted in accordance with his finding.  (3) No person who has served as a director of any corporation  subject to  this  article  for ten consecutive years shall thereafter be elected for an additional term of office as such until at  least  one  year  has elapsed  since the expiration of his prior term of office. The preceding sentence shall not apply to a director of  any  corporation  subject  to this  article  who is an employee of the corporation and who also serves as an officer of the corporation. The superintendent,  upon  application by  a  corporation  subject to the provisions of this article, may waive the ten year limit in this  paragraph  for  a  non-employee  serving  as chairman of its board of directors.  (4)  A  director  of  a  corporation  subject  to  this  article shall automatically forfeit his office if (i) he fails to attend at least  one of the regular meetings of the board of directors held during any period of  eighteen  consecutive months, or (ii) unless excused by the board of directors  of which he is a member, which action shall be entered on the minutes of such board, it shall appear at the end of any  calendar  year that  he  failed  to attend at least one-half of the regular meetings of such board held in such calendar year. A director whose  office  becomes vacant  pursuant  to  the  provisions  of  this  paragraph  shall not be eligible for election to such office for a period of one year  from  the date the vacancy occurred.