(II) and (III), no such member is an owner, officer, director, or employee of, or partner in, a contract administrator or other service provider to the plan. (II) Limited exception for providers of services solely on behalf of the sponsor Officers or employees of a sponsor which is a service provider (other than a contract administrator) to the plan may be members of the board if they constitute not more than 25 percent of the membership of the board and they do not provide services to the plan other than on behalf of the sponsor. (III) Treatment of providers of medical care In the case of a sponsor which is an association whose membership consists primarily of providers of medical care, subclause (I) shall not apply in the case of any service provider described in subclause (I) who is a provider of medical care under the plan. (iii) Certain plans excluded Clause (i) shall not apply to a small business health plan that is in existence on the date of the enactment of this Act. (B) Plan administrator The requirements of this section are met with respect to section 7705 professional employer organizations if the requirements of subsections (a) and (b) of section 804 have been met. (C) Sole authority The board or plan administrator has sole authority under the plan to approve applications for participation in the plan and to contract with insurers. (c) Treatment of franchises In the case of a group health plan that is established and maintained by a franchisor for the benefit of the employees of the franchisor and its franchisees, by multiple franchisors for the benefit of the employees of such franchisors and their franchisees, or by multiple franchisees for the benefit of the employees of such franchisees— (1) the requirements of subsection (a) and section 801(a) shall be deemed met if such requirements would otherwise be met if all franchisors or franchisees establishing and maintaining such plan, as applicable, were deemed to be the sponsor described in section 801(b) and each employee of such franchisors or