As a condition of eligibility for loans under this chapter, any hospital district having a licensed bed capacity of less than 100 beds and which participates in a joint powers agreement described in Section 32351 shall submit the following to the state department within 60 days after the effective date of this chapter:

1. (a) A health quality assurance program which assures adequate review of health services rendered;
2. (b) Adequate procedures for providing resources for liability coverage, including provisions for the payment of all medical injury tort claims or portions of claims under three hundred thousand dollars ($300,000), and for investment of funds or resources set aside for liability reserves; and
3. (c) Adequate procedures for obtaining legal services in connection with medical injury tort claims filed against the hospital district.
4. (d) Adequate procedures to repay loans under Government Code and Health and Safety Code sections relating to district hospitals.