CA SB1244

Requires brokers, agents, consultants, and advisors providing health benefits services to California public agencies to disclose all direct and indirect compensation exceeding $1,000, including commissions, bonuses, referral fees, and noncash benefits over $250, before entering into or renewing service contracts

Mandates disclosure of compensation from all sources, including carriers, vendors, pharmacy benefit managers, and joint powers authorities, with breakdowns showing payments to individual brokers, their firms, and affiliated parties

Prohibits covered service providers from accepting undisclosed compensation or structuring arrangements to evade disclosure requirements, with administrative penalties of $2,500 for first violations and $5,000-$50,000 for subsequent or knowing violations

Requires annual updated disclosures at least 60 days before renewal dates, plus a true-up reconciliation within 90 days after each contract year comparing actual compensation to estimates

Takes effect January 1, 2028, with the Insurance Commissioner required to develop standardized disclosure forms by July 1, 2027