(a) The hospital district shall make application for a State loan to the Director of Health Services, 714 P Street, Sacramento, CA 95814.

(b) Within ninety (90) days after the receipt of the application the Department of Health Services will notify the applicant of its preliminary finding and recommendation. The notice will contain the information that the Department's final recommendation to the Legislature must be made within the next thirty (30) days and that any information that the applicant has that will affect the preliminary recommendation should be forwarded immediately.