Creation of board

(1) (a) There is created in the division the workers' compensation cost containment board, to be composed of seven members as follows: (I) The commissioner of insurance; (II) The chief executive officer of Pinnacol Assurance; and (III) Five members appointed by the governor and confirmed by the senate. The appointed members of the board shall be chosen among the following: (A) Employers or their designated representatives engaged in businesses having workers' compensation insurance rates in the upper five percent of the rate schedule; (B) Actuaries or executives with risk management experience in the insurance industry; or (C) Employers who have demonstrated good risk management experience with respect to their workers' compensation insurance. (b) (I) The appointed members of the board shall serve for terms of three years and may be reappointed; except that the terms shall be staggered so that no more than three members' terms expire the same year. (II) The chief executive officer of Pinnacol Assurance and the commissioner of insurance shall serve continuously. (2) Members of the board serve without compensation but are entitled to reimbursement for actual and necessary traveling and subsistence expenses incurred in the performance of their official duties as members of the board. (3) The board is a type 2 entity, as defined in section 24-1-105, and exercises its powers and performs its duties and functions under the department and the director of the division.