Amend CSSB 358 by adding the following appropriately numbered
section and by renumbering subsequent sections appropriately:
SECTION ____. Subchapter C, Chapter 534, Health and Safety
Code, is amended by adding Section 534.106 to read as follows:
Sec. 534.106. CONDITIONS FOR CERTAIN CONTRACTS. (a) The
department may not contract with a health maintenance organization
formed by one or more community centers unless the board of
directors of the health maintenance organization:
(1) includes an individual appointed by the governor;
and
(2) does not include a trustee or executive director
of a community center.
(b) A contract between the department and a health
maintenance organization formed by one or more community centers
must provide that the health maintenance organization may not form
a for-profit entity unless the organization transfers all of the
organization's assets to the control of the boards of trustees of
the community centers that formed the organization.