Amend HB 1795 by adding the following appropriately numbered 
SECTIONS to the bill and renumbering subsequent SECTIONS of the 
bill accordingly:
	SECTION 1.  Subdivision (2), Section 62.002, Health and 
Safety Code, is amended to read as follows:
		(2)  "Executive commissioner" or "commissioner
[Commissioner]" means the executive commissioner of the Health
[health] and Human Services Commission [human services].
	SECTION 2.  Subsection (b), Section 62.101, Health and 
Safety Code, is amended to read as follows:
	(b)  The commission shall establish income eligibility 
levels consistent with Title XXI, Social Security Act (42 U.S.C. 
Section 1397aa et seq.), as amended, and any other applicable law or 
regulations, and subject to the availability of appropriated money, 
so that a child who is younger than 19 years of age and whose net 
family income is at or below 300 [200] percent of the federal 
poverty level is eligible for health benefits coverage under the 
program.  In addition, the commission may establish eligibility 
standards regarding the amount and types of allowable assets for a 
family whose net family income is above 250 [150] percent of the 
federal poverty level.
	SECTION 3.  Subsections (b) and (c), Section 62.102, Health 
and Safety Code, are amended to read as follows:
	(b)  During the sixth month following the date of initial 
enrollment or reenrollment of an individual whose net family income 
exceeds 285 [185] percent of the federal poverty level, the 
commission shall:
		(1)  review the individual's net family income and may 
use electronic technology if available and appropriate; and
		(2)  continue to provide coverage if the individual's 
net family income does not exceed the income eligibility limits 
prescribed by Section 62.101 [this chapter].
	(c)  If, during the review required under Subsection (b), the 
commission determines that the individual's net family income 
exceeds the income eligibility limits prescribed by Section 62.101
[this chapter], the commission may not disenroll the individual 
until:
		(1)  the commission has provided the family an 
opportunity to demonstrate that the family's net family income is 
within the income eligibility limits prescribed by Section 62.101
[this chapter]; and
		(2)  the family fails to demonstrate such eligibility.                        
	SECTION 4.  Section 62.151, Health and Safety Code, is 
amended by adding Subsection (g) to read as follows:
	(g)  In developing the plan, the commission, subject to 
federal requirements, may choose to provide dental benefits at full 
cost to the enrollee as an available plan option for a child whose 
net family income is greater than 200 percent but not greater than 
300 percent of the federal poverty level.
	SECTION 5.  Section 62.153, Health and Safety Code, is 
amended by amending Subsections (a) and (c) and adding Subsections 
(a-1) and (a-2) to read as follows:
	(a)  To the extent permitted under 42 U.S.C. Section 1397cc, 
as amended, and any other applicable law or regulations, the 
commission shall require enrollees whose net family incomes are at 
or below 200 percent of the federal poverty level to share the cost 
of the child health plan, including provisions requiring enrollees 
under the child health plan to pay:
		(1)  a copayment for services provided under the plan;                        
		(2)  an enrollment fee; or                                                    
		(3)  a portion of the plan premium.                                           
	(a-1)  The commission shall require enrollees whose net 
family incomes are greater than 200 percent but not greater than 300 
percent of the federal poverty level to pay a share of the cost of 
the child health plan through copayments, fees, and a portion of the 
plan premium.  The total amount of the share required to be paid 
must:
		(1)  include a portion of the plan premium set at an 
amount determined by the commission that is not more than 2.5 
percent of an enrollee's net family income;
		(2)  exceed the amount required to be paid by enrollees 
described by Subsection (a), but the total amount required to be 
paid may not exceed five percent of an enrollee's net family income; 
and
		(3)  increase incrementally, as determined by the 
commission, as an enrollee's net family income increases.
	(a-2)  In establishing the cost required to be paid by an 
enrollee described by Subsection (a-1) as a portion of the plan 
premium, the commission shall ensure that the cost progressively 
increases as the number of children in the enrollee's family 
provided coverage increases.
	(c)  The [If cost-sharing provisions imposed under 
Subsection (a) include requirements that enrollees pay a portion of 
the plan premium, the] commission shall specify the manner of 
payment for any portion of the plan premium required to be paid by 
an enrollee under this section [in which the premium is paid].  The 
commission may require that the premium be paid to the [Texas 
Department of] Health and Human Services Commission, the [Texas] 
Department of State Health [Human] Services, or the health plan 
provider.  The commission shall develop an option for an enrollee to 
pay monthly premiums using direct debits to bank accounts or credit 
cards.
	SECTION 6.  Section 62.154, Health and Safety Code, is 
amended by amending Subsection (d) and adding Subsection (e) to 
read as follows:
	(d)  The waiting period required by Subsection (a) for a 
child whose net family income is at or below 200 percent of the 
federal poverty level must:
		(1)  extend for a period of 90 days after the last date 
on which the applicant was covered under a health benefits plan; and
		(2)  apply to a child who was covered by a health 
benefits plan at any time during the 90 days before the date of 
application for coverage under the child health plan.
	(e)  The waiting period required by Subsection (a) for a 
child whose net family income is greater than 200 percent but not 
greater than 300 percent of the federal poverty level must:
		(1)  extend for a period of 180 days after  the last 
date on which the applicant was covered under a health benefits 
plan; and
		(2)  apply to a child who was covered by a health 
benefits plan at any time during the 180 days before the date of 
application for coverage under the child health plan.
	SECTION 7.  Subchapter D, Chapter 62, Health and Safety 
Code, is amended by adding Section 62.1551 to read as follows:
	Sec. 62.1551.  TERMINATION OF COVERAGE FOR NONPAYMENT OF 
PREMIUMS.  (a)  In this section, "lock-out period" means a period 
after coverage is terminated for nonpayment of premiums during 
which a child may not be reenrolled in the child health plan 
program.
	(b)  The executive commissioner by rule shall establish a 
process that allows for the termination of coverage under the child 
health plan of an enrollee whose net family income is greater than 
200 percent but not greater than 300 percent of the federal poverty 
level if the enrollee does not pay the premiums required under 
Section 62.153(a-1).
	(c)  The rules required by Subsection (b) must:                         
		(1)  address the number of payments that may be missed 
before coverage terminates;
		(2)  address the process for notifying an enrollee of 
pending coverage termination; and
		(3)  provide for an appropriate lock-out period after 
termination for nonpayment.
	SECTION 8.  If before implementing any provision of this Act 
a state agency determines that a waiver or authorization from a 
federal agency is necessary for implementation of that provision, 
the agency affected by the provision shall request the waiver or 
authorization and may delay implementing that provision until the 
waiver or authorization is granted.
	SECTION 9.  This Act does not make an appropriation.  This 
Act takes effect only if a specific appropriation for the 
implementation of the Act is provided in a general appropriations 
act of the 81st Legislature.
	SECTION 10.  This Act takes effect September 1, 2009.