Amend CSHB 2292 (Senate committee printing), in ARTICLE 2 of 
the bill, by inserting appropriately numbered SECTIONS to read as 
follows and renumber existing SECTIONS accordingly:
	SECTION 2.____.  (a)  Section 1551.002, Insurance Code, as 
effective June 1, 2003, is amended to read as follows:
	Sec. 1551.002.  PURPOSES.  The purposes of this chapter are 
to:              
		(1)  provide uniformity in life, accident, and health 
benefit coverages for all state officers and employees and their 
dependents;
		(2)  enable the state to attract and retain competent 
and able employees by providing employees and their dependents with 
life, accident, and health benefit coverages at least equal to 
those commonly provided in private industry;
		(3)  foster, promote, and encourage employment by and 
service to the state as a career profession for individuals of high 
standards of competence and ability;
		(4)  recognize and protect the state's investment in 
each permanent employee by promoting and preserving economic 
security and good health among employees and their dependents;
		(5)  foster and develop high standards of 
employer-employee relationships between the state and its 
employees; [and]
		(6)  recognize the long and faithful service and 
dedication of state officers and employees and encourage them to 
remain in state service until eligible for retirement by providing 
health benefits for them and their dependents; and
		(7)  recognize the service to the state by employees of 
community centers by extending to them and their dependents the 
same life, health, and accident benefit coverages as those provided 
under this chapter to state employees, retired state employees, and 
their dependents.
	(b)  Subchapter C, Chapter 1551, Insurance Code, as 
effective June 1, 2003, is amended by adding Section 1551.115 to 
read as follows:
	Sec. 1551.115.  PARTICIPATION BY COMMUNITY CENTERS. (a) A 
community center established under Subchapter A, Chapter 534, 
Health and Safety Code, may participate in the group insurance 
program administered by the board of trustees under this chapter. 
Participation under this section is limited to the active employees 
of the community center and the eligible dependents of the active 
employees of the community center.
	(b)  Each full-time active employee of a participating 
community center is automatically covered by the basic coverage for 
employees unless the employee specifically waives coverage or 
unless the employee is expelled from the program. Each part-time 
active employee of a participating community center is eligible to 
participate in the group insurance program on application in the 
manner provided by the board of trustees, unless the employee has 
been expelled from the program. A participating community center 
shall notify each of its part-time employees of the employee's 
eligibility for participation.
	(c)  An employee described by this section is not eligible to 
receive a state contribution for premiums. The board of trustees of 
the participating community center is responsible for payment of 
the contributions and any administrative fees that the state would 
make or pay if the community center employees were state employees.  
Each covered employee shall pay that portion of the cost of group 
coverages selected by the employee that exceeds the amount of board 
of trustees contributions.  The participating community center is 
also responsible for payment of all administrative costs associated 
with the center's employees.
	(d)  All contributions received under this section from 
community centers and active employees of community centers for 
basic, optional, and voluntary coverages under the group insurance 
program, including contributions for administrative fees and 
costs, shall be paid into the employees life, accident, and health 
insurance and benefits fund and shall be used by the board of 
trustees to provide those coverages as provided by this chapter.
	(e)  A community center that elects to participate in the 
group insurance program must notify the board of trustees not later 
than December 31 of each year and shall transfer records relating to 
the employees benefit program described by Section 534.011, Health 
and Safety Code, as required by the board of trustees.
	SECTION 2.____.  (a)  The heading to Section 534.011, Health 
and Safety Code, is amended to read as follows:
	Sec. 534.011.  PERSONNEL; BENEFITS.                                     
	(b)  Section 534.011, Health and Safety Code, is amended by 
amending Subsections (b)-(d) and adding Subsection (g) to read as 
follows:
	(b)  The board of trustees shall provide employees of the 
community center with appropriate rights and [,] privileges[, and 
benefits].
	(c)  The board of trustees may provide appropriate benefits, 
including group benefits described by Subsection (g), to employees 
of the community center. The board of trustees may provide workers' 
compensation benefits.
	(d)  The board of trustees shall prescribe the number of 
employees and their salaries.  The board of trustees may choose to 
set salaries and benefits, other than group benefits described by 
Subsection (g), in compliance with a market analysis or internal 
salary study.  If an internal salary study is used, the board of 
trustees shall conduct the study in accordance with the guidelines 
established by the commissioner.
	(g)  Active employees of a community center are eligible to 
participate in the group insurance program under Chapter 1551, 
Insurance Code, as provided by Section 1551.115, Insurance Code.
	SECTION 2.____.  (a)  During the 2003-2004 state fiscal 
year, the Employees Retirement System of Texas shall develop a plan 
for the extension of benefits under the group insurance program to 
persons eligible for those benefits under Section 1551.115, 
Insurance Code, as added by this article. The system may employ 
persons as necessary to implement this subsection.
	(b)  Coverage under Section 1551.115, Insurance Code, as 
added by this article, shall begin with the 2004-2005 state fiscal 
year, but not later than September 1, 2004.
	SECTION 2.____.  (a)  Section 1551.002, Insurance Code, as 
amended by this article, and Section 1551.115, Insurance Code, as 
added by this article, take effect September 1, 2003.  Section 
534.011, Health and Safety Code, as amended by this article, takes 
effect September 1, 2004.
	(b)  The Employees Retirement System of Texas shall adopt 
rules as necessary to implement Section 1551.115, Insurance Code, 
as added by this article, not later than December 31, 2003.