1. (a) A community clinic or free clinic which:

   1. (1) Is providing primary health services on 1/1/80.
   2. (2) Has a clinic license issued by the Department.
   3. (3) If a free clinic, makes no charges directly to the patient for services rendered or for drugs, medicine applications; or
   4. (4) Charges for primary care services based on the patient's ability to pay, utilizing a sliding fee scale.
   5. (5) Has not lost public funds due to failure to meet the terms of the agreement or contract.
2. (b) An association of clinics which is comprised of clinics meeting requirements of (a) above.

Note: Authority cited: Sections 208, 1225 and 1248, Health and Safety Code. Reference: Section 1247, Health and Safety Code.