Amend CSHB 109 as follows:                                                   

(1)  On page 2, line 16, strike "Subsection (b)" and 	substitute "Subsections (a) and (b)".
	(2)  On page 2, between lines 17 and 18, insert the 
following:               
	(a)  A child is eligible for health benefits coverage under 
the child health plan if the child:
		(1)  is younger than 19 years of age;                                         
		(2)  is not eligible for medical assistance under the 
Medicaid program;     
		(3)  is not covered by a health benefits plan offering 
adequate benefits, as determined by the commission;
		(4)  has a family income that is less than or equal to 
the income eligibility level established under Subsection (b);  
[and]
		(5)  is not eligible for reasonably affordable coverage 
as a dependent under a group health benefits plan offered by an 
employer, as described by Section 62.1012; and
		(6)  satisfies any other eligibility standard imposed 
under the child health plan program in accordance with 42 U.S.C. 
Section 1397bb, as amended, and any other applicable law or 
regulations.
	(3)  Add the following appropriately numbered SECTION to the 
bill and renumber subsequent SECTIONS of the bill accordingly:
	SECTION ____.  Subchapter C, Chapter 62, Health and Safety 
Code, is amended by adding Section 62.1012 to read as follows:
	Sec. 62.1012.  REASONABLY AFFORDABLE COVERAGE OFFERED BY 
EMPLOYER.  (a) A child is not eligible for health benefits coverage 
under the child health plan if:
		(1)  the child is eligible for coverage as a dependent 
under a group health benefits plan offered by an employer; and
		(2)  the cost of coverage to the employee does not 
exceed 10 percent of the employee's gross income.
	(b)  The commission shall require each person considered in 
the calculation of family income who is employed to submit for each 
eligibility determination an affidavit by the person's employer 
stating that the employer does not offer health benefits coverage 
for the child at a cost to the employee, including any cost of 
employee coverage or other dependent coverage necessary to obtain 
dependent coverage for the child, that is 10 percent or less of the 
employee's gross income.