Amend CSHB 31 as follows:                                                    
	(1)  On page 1, line 23, strike "out-of-state" and substitute 
"equivalent or special".
	(2)  On page 2, lines 2-3, strike "2009, and, at the time of 
retirement; and" and substitute "2009;".
	(3)  On page 2, line 7, after the semicolon, insert the 
following:           

and                                                                    
				(iv)  has taken a service retirement without 
reduction for early age;
	(4)  On page 2, line 17, strike "in the system" and substitute 
"described by this paragraph".
	(5)  On page 2, line 20, strike "take" and substitute "taken".   
	(6)  On page 3, strike lines 1-2 and substitute the following:                 
	(b)  Each year of service credit in the system that an 
individual would have received but for the individual's 
participation in the deferred retirement option plan under 
Subchapter I, Chapter 824, Government Code, is considered a year of 
service credit solely for the purpose of meeting the definition of 
"retiree" under Subsection (a)(1)(A) or (D).
	(c)  In this section, "public school" has the meaning 
assigned by Section 821.001, Government Code.
	SECTION 2.  Section 1575.161(b), Insurance Code, as added by 
Chapter 1231 and Chapter 201, Acts of the 78th Legislature, Regular 
Session, 2003, is reenacted and amended to read as follows:
	(b)  In addition to the enrollment periods authorized under 
Subsection (a), a retiree who:
		(1)  is enrolled in the group program as of August 31, 
2004, and who is 65 years of age or older on that date may select 
coverage as described by Subsections (c) and (d) on September 1, 
2004; [or]
		(2)  is enrolled in the group program as of August 31, 
2004, and who is 65 years of age after that date may select coverage 
as described by Subsections (c) and (d) on the date that the retiree 
is 65 years of age; or
		(3)  enrolls in the group program on or after September 
1, 2004, and who is 65 years of age or older on or after that date 
may select coverage as described in Subsections (c) and (d) on the 
date that the retiree is 65 years of age.
	SECTION 3.  Section 1575.161, Insurance Code, as added by 
Chapter 213, Acts of the 78th Legislature, Regular Session, 2003, 
is redesignated as Section 1575.170, Insurance Code.
	(7)  On page 3, lines 11-12, strike "65 years of age" and 
substitute "eligible under Section 1575.004".
	(8)  On page 3, line 18, before the period, insert "at the 
time of retirement".
	(9)  On page 6, line 18, strike "or whether".                           
	(10)  On page 6, lines 20-21, strike "either reported or 
spent".      
	(11)  Renumber SECTIONS of the bill appropriately.