Amend HB 2064 (Senate committee report) as follows:                          
	(1)  Add the following appropriately numbered SECTIONS to 
the bill and renumber subsequent SECTIONS of the bill accordingly:

	SECTION ____.  Section 843.342, Insurance Code, is amended 
by adding Subsections (m) and (n) to read as follows:
	(m)  Notwithstanding any other provision of this section, 
this subsection governs the payment of a penalty under this 
section.  For a penalty under this section relating to a clean claim 
submitted by a physician or provider other than an institutional 
provider, the health maintenance organization shall pay the entire 
penalty to the physician or provider, except for any interest 
computed under Subsection (c), which shall be paid to the Texas 
Health Insurance Risk Pool.  For a penalty under this section 
relating to a clean claim submitted by an institutional provider, 
the health maintenance organization shall pay 50 percent of the 
total penalty amount computed under this section, including 
interest, to the institutional provider and the remaining 50 
percent of that amount to the Texas Health Insurance Risk Pool.
	(n)  In this section, "institutional provider" means a 
hospital or other medical or health-related service facility that 
provides care for the sick or injured or other care that may be 
covered in an evidence of coverage.
	SECTION ____.  Section 1301.137, Insurance Code, is amended 
by adding Subsection (l) to read as follows:
	(l)  Notwithstanding any other provision of this section, 
this subsection governs the payment of a penalty under this 
section.  For a penalty under this section relating to a clean claim 
submitted by a preferred provider other than an institutional 
provider, the insurer shall pay the entire penalty to the preferred 
provider, except for any interest computed under Subsection (c), 
which shall be paid to the Texas Health Insurance Risk Pool.  For a 
penalty under this section relating to a clean claim submitted by an 
institutional provider, the insurer shall pay 50 percent of the 
penalty amount computed under this section, including interest, to 
the institutional provider and the remaining 50 percent of that 
amount to the Texas Health Insurance Risk Pool.
	(2)  In the recital to SECTION 1 of the bill (page 1, line 
13), strike "adding Subsections (e-1) and (e-2)" and substitute 
"adding Subsection (e-1)".
	(3)  In SECTION 1 of the bill, in amended Section 
1506.105(e-1), Insurance Code (page 1, line 23), strike "Subsection 
(e-2)" and substitute "the availability of funds under Section 
1506.260".
	(4)  In SECTION 1 of the bill (page 1, lines 38-44), strike 
added Section 1506.105(e-2), Insurance Code.
	(5)  In SECTION 2 of the bill (page 1, line 47, through page 
2, line 3), strike added Section 1506.260, Insurance Code, and 
substitute the following new Section 1506.260, Insurance Code:
	Sec. 1506.260.  FUNDING FOR PREMIUM DISCOUNTS.  The board 
shall collect penalty payments and interest paid by health 
maintenance organizations as provided by Section 843.342 and 
insurers as provided by Section 1301.137. The board may use funds 
collected under this section only to finance premium discounts 
under Section 1506.105(e-1).  The board may require a health 
maintenance organization or an insurer to make payments under this 
section and make reports concerning those payments in a manner 
determined by the board.
	(6)  In SECTION 3 of the bill (page 2, line 4), insert the 
following between "3." and "(a)":
	(a)  Sections 843.342 and 1301.137, Insurance Code, as 
amended by this Act, apply only to a penalty or interest on a 
penalty owed with respect to a clean claim paid on or after the 
effective date of this Act.  A penalty or interest on a penalty owed 
with respect to a clean claim paid before the effective date of this 
Act is governed by the law in effect immediately before that date, 
and that law is continued in effect for that purpose.
	(7)  In SECTION 3(a) of the bill (page 2, lines 7 and 8), 
strike "2010" each place it appears and substitute "2011".
	(8)  In SECTION 3 of the bill, strike existing Subsection (b) 
(page 2, lines 11-14).
	(9)  In SECTION 3 of the bill, reletter subsections 
appropriately.