Page 106 - 2026 Lozano Smith Brown Act Handbook

formulas or calculations for these payments, and contract negotiations with providers of health
care for alternative rates are exempt from disclosure for a period of three years after the contract
is fully executed. The transmission of the records, or the information contained therein in an
alternative form, to the board of supervisors shall not constitute a waiver of exemption from
disclosure, and the records and information once transmitted to the board of supervisors shall be
subject to this same exemption.

(b) Notwithstanding any other provision of law, the governing board of a health plan that is
licensed pursuant to the Knox-Keene Health Care Service Plan Act of 1975 (Chapter 2.2
(commencing with Section 1340) of Division 2 of the Health and Safety Code) and that is
governed by a county board of supervisors may order that a meeting held solely for the purpose
of discussion or taking action on health plan trade secrets, as defined in subdivision (f), shall be
held in closed session. The requirements of making a public report of action taken in closed
session, and the vote or abstention of every member present, may be limited to a brief general
description without the information constituting the trade secret.

(c) Notwithstanding any other provision of law, the governing board of a health plan may meet
in closed session to consider and take action on matters pertaining to contracts and contract
negotiations by the health plan with providers of health care services concerning all matters
related to rates of payment. The governing board may delete the portion or portions containing
trade secrets from any documents that were finally approved in the closed session held pursuant
to subdivision (b) that are provided to persons who have made the timely or standing request.

(d) Nothing in this section shall be construed as preventing the governing board from meeting in
closed session as otherwise provided by law.

(e) The provisions of this section shall not prevent access to any records by the Joint Legislative
Audit Committee in the exercise of its powers pursuant to Article 1 (commencing with Section
10500) of Chapter 4 of Part 2 of Division 2 of Title 2. The provisions of this section also shall
not prevent access to any records by the Department of Managed Health Care in the exercise of
its powers pursuant to Article 1 (commencing with Section 1340) of Chapter 2.2 of Division 2 of
the Health and Safety Code.

(f) For purposes of this section, “health plan trade secret” means a trade secret, as defined in
subdivision (d) of Section 3426.1 of the Civil Code, that also meets both of the following
criteria:

(1) The secrecy of the information is necessary for the health plan to initiate a new service,
program, marketing strategy, business plan, or technology, or to add a benefit or product.

(2) Premature disclosure of the trade secret would create a substantial probability of depriving
the health plan of a substantial economic benefit or opportunity.

54956.9. Closed sessions concerning pending litigation; attorney-client privilege

(a) Nothing in this chapter shall be construed to prevent a legislative body of a local agency,
based on advice of its legal counsel, from holding a closed session to confer with, or receive

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