1-1                                   AN ACT
 1-2     relating to the designation of a hospital as a rural hospital.
 1-3           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
 1-4           SECTION 1.  Subchapter B, Chapter 106, Health and Safety
 1-5     Code, is amended by adding Section 106.029 to read as follows:
 1-6           Sec. 106.029.  DESIGNATING RURAL HOSPITALS.  (a)  The center
 1-7     shall adopt rules that establish a procedure for designating a
 1-8     hospital as a rural hospital in order for the hospital to qualify
 1-9     for federal funds under 42 C.F.R. Part 412.
1-10           (b)  At the hospital's request, the center shall designate
1-11     the hospital as a rural hospital if the hospital meets the
1-12     requirements for a rural hospital under the center's rules.
1-13           SECTION 2.  This Act takes effect September 1, 2001.
         _______________________________     _______________________________
             President of the Senate              Speaker of the House
               I certify that H.B. No. 2423 was passed by the House on May
         5, 2001, by a non-record vote.
                                             _______________________________
                                                 Chief Clerk of the House
               I certify that H.B. No. 2423 was passed by the Senate on May
         22, 2001, by the following vote:  Yeas 30, Nays 0, 1 present, not
         voting.
                                             _______________________________
                                                 Secretary of the Senate
         APPROVED:  __________________________
                              Date
                    __________________________
                            Governor