(a) The department shall convene a hospital diversity commission comprised of the public and health care, diversity, and procurement stakeholders, as set forth in this section.

(b) The hospital diversity commission shall be comprised of the following commissioners who are appointed by the director:

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(1) One commissioner who is a member of the public and shall serve as the chair of the commission.

(2) Two commissioners who are representatives of the hospital industry who, at the time of appointment, serve as practitioners in the field of supplier diversity.

(3) Two commissioners who are representatives of a minority business enterprise.

(4) Two commissioners who are representatives of a women business enterprise.

(5) One commissioner who is a representative of a disabled veteran business enterprise.

(6) One commissioner who is a representative of an LGBT business enterprise.

(7) Two commissioners with expertise in the field of supplier diversity.

(8) One commissioner who is a representative of a group purchasing organization, manufacturer, or vendor of goods and services for hospitals who, at the time of appointment, is a practitioner or expert in the field of supplier diversity.

(9) An additional commissioner, at the discretion of the director.

(c) (1) The initial terms of the commissioners shall be established to create staggered terms of office by drawing lots at the first meeting of the commission. Half of the commissioners shall serve a two-year term, and the other half of the commissioners shall serve a one-year term.

(2) After an initial term of office is complete, a commissioner shall serve a two-year term.

(3) The director shall fill a vacancy in the term of a commissioner.

(d) The functions of the hospital diversity commission shall include, but not be limited to, both of the following:

(1) Advise and provide recommendations to the director and the hospital industry on the best methods to increase procurement with diverse suppliers within the hospital industry.

(2) Meet quarterly or as deemed necessary by the director.

(e) The department may, upon appropriation by the Legislature for this purpose, provide compensation to the commissioners for their services, and the department may reimburse the commissioners for their actual and necessary expenses incurred in connection with attending a meeting of the commission.

(f) The department shall undertake outreach and provide assistance, based on the commission’s recommendations, to hospitals, manufacturers, vendors, or group purchasing organizations of hospital goods and services seeking to adopt the recommendations described in paragraph (1) of subdivision (d) or to increase procurement from minority, women, LGBT, and disabled veteran business enterprises.

(g) The department shall undertake outreach and provide assistance, based on the commission’s recommendations, to minority, women, LGBT, and disabled veteran business enterprises seeking to be a supplier for a hospital, manufacturer, vendor, or group purchasing organization of hospital goods and services.

(h) The department shall review and revise, if necessary, the department’s conflicts of interest regulations to ensure that each commissioner is required to disclose conflicts of interest to the public.

(i) The hospital diversity commission shall comply with the Bagley-Keene Open Meeting Act (Article 9 (commencing with Section 11120) of Chapter 1 of Part 1 of Division 3 of Title 2 of the Government Code) and the California Public Records Act (Division 10 (commencing with Section 7920.000) of Title 1 of the Government Code).

(Amended by Stats. 2023, Ch. 840, Sec. 5. (AB 1392) Effective January 1, 2024.)