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	Amend SB 654 as follows:                                                     

(1)  Add the following appropriately numbered SECTION to the 	bill (page 1, between lines 22 and 23):
	SECTION ____.  Chapter 175, Local Government Code, is 
amended by adding Section 175.0015 to read as follows:
	Sec. 175.0015.  DEFINITION.  In this chapter, "early 
retiree" means a person who retires from county or municipal 
employment before the person is eligible for federal Medicare 
benefits.
	(2)  In SECTION 3 of the bill, in the recital for that section 
(page 1, lines 23 and 24), strike "Subsections (a) and (b), Section 
175.002, Local Government Code, are amended" and substitute 
"Section 175.002, Local Government Code, is amended by amending 
Subsections (a) and (b) and adding Subsections (a-1) and (a-2)".
	(3)  In SECTION 3 of the bill, in amended Section 175.002(a), 
Local Government Code (page 2, line 5), strike "The" and substitute 
"Except as provided by Subsections (a-1) and (a-2), the [The]".
	(4)  In SECTION 3 of the bill, in amended Section 175.002, 
Local Government Code (page 2, between lines 8 and 9), insert the 
following:
	(a-1)  In addition to providing health benefits coverage for 
early retirees under a group health insurance plan or group health 
coverage plan offered to active employees, a county or municipality 
may provide coverage for early retirees under:
		(1)  a fully insured health benefits plan or a 
self-insured health benefits plan that is separate from the plans 
offered to its active employees; or
		(2)  a group health insurance plan or group health 
coverage plan offered by a pool established under Chapter 172 or a 
health benefits plan issuer authorized to do business in this state 
and designated by the municipality or county as exclusively for 
early retirees.
	(a-2)  Participation by an early retiree in the health 
benefits coverage provided under Subsection (a-1) is at the early 
retiree's discretion.  An early retiree may not be forced to change 
coverage from a group health insurance plan or group health 
coverage plan offered to active employees.  An early retiree may 
elect to return to participation in the active employee group 
health insurance plans during open enrollment.
	(5)  In SECTION 4 of the bill, in amended Section 175.003(b), 
Local Government Code (page 2, line 27, through page 3, line 2), 
strike "is the same level of coverage provided to current employees 
of the political subdivision [county or municipality] at that 
time." and substitute the following:
	is:                                                                     
		(1)  for persons other than early retirees who do not 
choose to use the early retiree health benefits coverage provided 
under Section 175.002(a-1), the same level of coverage provided to 
current employees of the political subdivision [county or 
municipality] at that time; and
		(2)  for early retirees, a level of coverage that is 
comparable to the level of coverage provided to active employees of 
the political subdivision, as determined by the governing body of 
the political subdivision for each enrollment period.
	(b-1)  For purposes of Subsection (b)(2), "comparable" means 
the health benefits defined in the contract and summary plan 
description do not limit the choices of the person or the person's 
health care provider in any way that is not also limited for active 
employees.
	(6)  In SECTION 5 of the bill, immediately after Subsection 
(b) of that section (page 5, between lines 24 and 25), insert the 
following:
	(c)  Sections 175.002 and 175.003, Local Government Code, as 
amended by this Act, apply to a person who retires from county or 
municipal employment regardless of the date on which the person 
retires.