Section 443.431 - Conversion facilities; fee; rules(1) A facility that is licensed as a long term care facility under ORS 441.025 may apply to the Department of Human Services for licensure as a conversion facility. The department shall issue a conversion facility license upon receipt of an application and a fee that meet requirements established by the department by rule.(2)(a) The department shall adopt rules governing the conversion of a facility's license from a long term care facility license to a residential care facility license and the regulation of the facility during the conversion period.(b) As of the date of licensure as a conversion facility, the conversion facility must be in substantial compliance with applicable state and local laws, rules, codes, ordinances and permit requirements.(3) As used in this section, "substantial compliance" means a level of compliance with state law and with rules of the department such that any identified deficiencies pose a risk of no more than negligible harm to the health or safety of residents.