(a)  Any entity may apply to the department for a Letter of Nonapplicability for reasons other than those specified in Section 1771.3, which states that the provisions of this chapter do not apply to its community, project, or proposed project.

(b)  Applications for Letters of Nonapplicability shall be made to the department in writing and include the following:

(1)  A nonrefundable one thousand dollar ($1,000) application fee.

(2)  A list of the reasons why the existing or proposed project may not be subject to this chapter.

(3)  A copy of the existing or proposed contract between the entity and residents.

(4)  Copies of all advertising material.

(5)  Any other information reasonably requested by the department.

(c)  The department shall do both of the following:

(1)  Within seven calendar days, acknowledge receipt of the request for a Letter of Nonapplicability.

(2)  Within 30 calendar days after all materials are received, either issue the Letter of Nonapplicability or notify the entity of the department’s reasons for denial of the request.

(d)  (1)  If the department determines that the entity does not qualify for a Letter of Nonapplicability, the entity shall refrain from, or immediately cease, entering into continuing care contracts.

(2)  If an entity to which this subdivision applies intends to provide continuing care, an application for a certificate of authority shall be required to be filed with the department pursuant to this chapter.

(3)  If an entity to which this subdivision applies does not intend to provide continuing care, it shall alter its plan of operation so that the project is not subject to this chapter. To obtain a Letter of Nonapplicability for the revised project, the entity shall submit a new application and fee.

(Repealed and added by Stats. 2000, Ch. 820, Sec. 10. Effective January 1, 2001.)