SECTION 1. Chapter 32A of the Massachusetts General Laws shall be amended by striking section 3 in its entirety and replace with the following:-

Section 3. There shall be established within the executive office of administration and finance, but not under its jurisdiction, a special unpaid commission, to be known as the group insurance commission, consisting of the commissioner of administration and finance, the commissioner of insurance, and nine members to be appointed by the governor, one of whom shall be a retired state employee, one of whom shall be a health economist, and at least four of whom shall be full time state employees, of whom one shall be a member of the Massachusetts Public Employees Council, #93, AFSCME, Massachusetts State Labor Council, AFL¬CIO, one of whom shall be a member of the Massachusetts State Employees Association, NAGE, and one of whom shall be a member of Local 254, S.E.I.U., Massachusetts State Labor Council, AFL¬CIO, and one of whom shall be a member of the Massachusetts Organization of State Engineers and Scientists. Not more than five appointive members of the commission shall be members of the same political party. No member appointed by the governor shall be an insurance agent, broker, employee or officer of any insurance company. Upon the expiration of the term of office of any appointive member, his successor shall be appointed in like manner for a term of three years. The commission shall be provided with suitable offices and may, subject to appropriation, incur expenses and appoint an executive director who shall be the executive and administrative head thereof and who shall not be subject to the provisions of chapter thirty-one. The commission may empower the executive director to appoint such employees as may be necessary to administer the provisions of this chapter. There shall be paid by the commonwealth to each appointive member of said commission the necessary expenses actually incurred in the discharge of his official duties. The commission shall adopt such reasonable rules and regulations as may be necessary for the administration of this chapter and shall make an annual report to the governor and to the general court which shall include any modifications or amendments made to contracts executed under this chapter and shall be in such form as to enable employees to understand the benefits available from the insurance program, including the cost thereof.