(1) Except as provided in subsection (2) of this section, at least one-third of the group of persons vested with managing the affairs of a health care service contractor, as defined in ORS 750.005 (4)(a), must be representatives of the public who are not:
(a) Practicing doctors; or
(b) Employees or trustees of a participant hospital.
(2)(a) Notwithstanding subsection (1) of this section, the group of persons vested with managing the affairs of a nonprofit private organization described in paragraph (b) of this subsection must have at least two representatives of the public who are not:
(A) Practicing doctors, as defined in ORS 750.005; or
(B) Employees or trustees of a participant hospital.
(b) This subsection applies to a nonprofit private organization that is a health maintenance organization, as defined in ORS 442.015, that is controlled by a single nonprofit hospital or by a group of nonprofit hospitals under common ownership and that operates in a county with a population of 200,000 or more.