Amend CSHB 7 as follows:                                                     

(1)  In ARTICLE 15 of the bill, strike SECTION 15.05 of the 	bill (page 16, line 50 through page 17, line 37, senate committee 
printing) and substitute the following:
	SECTION 15.05.  Section 1575.004, Insurance Code, as amended 
by Chapters 201, 1231, and 1276, Acts of the 78th Legislature, 
Regular Session, 2003, is reenacted and amended to read as follows:
	Sec. 1575.004.  DEFINITION OF RETIREE.  (a)  In this chapter, 
"retiree" means:
		(1)  an individual not eligible for coverage under a 
plan provided under Chapter 1551 or 1601 who:
			(A)  is at least 65 years of age and has taken a 
service retirement under the Teacher Retirement System of Texas 
with at least 10 years of service credit in the system, which may 
include up to five years of military service credit, but which may 
not include any other service credit purchased for equivalent or 
special service credit [for actual service in public schools in 
this state]; [or]
			(B)  was employed in actual service in public 
schools in this state during or before the 2003-2004 school year and 
at the time of retirement meets the requirements for eligibility as 
a retiree as those requirements existed on August 31, 2004;
			(C)  purchased service credit under Chapter 823, 
Government Code,  and:
				(i)  had that service credited on or before 
August 31, 2004; and   
				(ii)  at the time of retirement, meets the 
requirements for eligibility as a retiree as those requirements 
existed on August 31, 2004, including using up to five years of 
out-of-state service toward retiree eligibility;
			(D)  has taken a service retirement under the 
Teacher Retirement System of Texas and who has at least 10 years of 
service credit in the system, which may include up to [for actual 
public service in the public schools in this state or has at least 
five years of service credit for actual public service in the public 
schools in this state and has] five years of military service 
credit, but which may not include any other service credit 
purchased for equivalent or special service credit [credited in the 
Teacher Retirement System of Texas], and the sum of the 
individual's age and amount of any service credit in the system
[earned for service in the public schools of this state] equals or 
exceeds the number 80; or
			(E)  has taken a service retirement under the 
Teacher Retirement System of Texas on or before August 31, 2004, and 
who is enrolled in the group program on August 31, 2004; or
		(2)  an individual who:                                                       
			(A)  has taken a disability retirement under the 
Teacher Retirement System of Texas; and
			(B)  is entitled to receive monthly benefits from 
the Teacher Retirement System of Texas.
	(b)  In this section, "public school" has the meaning 
assigned by Section 821.001, Government Code.
	(2)  In ARTICLE 15 of the bill, strike SECTION 15.08 of the 
bill (page 17, line 59 through page 18, line 6, senate committee 
printing).
	(3)  In SECTION 15.10 of the bill, strike Subsection (b) of 
that SECTION (page 19, lines 43-44, senate committee printing) and 
substitute the following:
	(b)  Section 15.05 of this article takes effect September 1, 
2004.