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AB-1040 Department of Justice: permits.(2017-2018)

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Date Published: 02/16/2017 09:00 PM
AB1040:v99#DOCUMENT


CALIFORNIA LEGISLATURE— 2017–2018 REGULAR SESSION

Assembly Bill No. 1040


Introduced by Assembly Member Mathis

February 16, 2017


An act to amend Section 1789.37 of the Civil Code, to amend Section 11106 of the Health and Safety Code, and to amend Sections 18900, 23010, 31005, 32655, 32715, and 33305 of the Penal Code, relating to permits.


LEGISLATIVE COUNSEL'S DIGEST


AB 1040, as introduced, Mathis. Department of Justice: permits.
(1) Existing law generally regulates the business of check cashing businesses, defined as a person or entity that for compensation engages in the business of cashing checks, warrants, drafts, money orders, or other commercial paper serving the same purpose. Existing law requires every owner of a check casher’s business to obtain a permit from the Department of Justice to conduct a check casher’s business.
This bill would require the department, within 30 days of receiving the application, to notify the applicant of whether the department deems the application to be complete and the date of that determination. The bill would require the department to grant or deny the application within 180 calendar days of that date, except the bill would allow the department to extend this time period by an additional 30 days, as provided. The bill would require an application for a check casher’s business that has neither been granted nor denied by the department within these time frames to be deemed to have been granted, as specified.
(2) Existing law requires a manufacturer, wholesaler, retailer or any other entity that sells, transfers, or furnishes specified controlled substances to a person or business entity in this state or any other state or who obtains specified controlled substances from a source outside of the state to obtain a permit from the Department of Justice.
This bill would require the department, within 30 days of receiving the application, to notify the applicant of whether the department deems the application to be complete and the date of that determination. The bill would require the department to grant or deny the application within 180 calendar days of that date, except the bill would allow the department to extend this time period by an additional 30 days, as provided. The bill would require an application for a permit for the above activities that has neither been granted nor denied by the department within these time frames to be deemed to have been granted, as specified.
(3) Existing law generally prohibits the possession or sale of a destructive device without a permit. Existing law requires every dealer, manufacturer, importer, and exporter of a destructive device, or any motion picture or television studio using destructive devices, to obtain a permit from the Department of Justice to participate in those activities. Existing law generally allows for the possession of tear gas when used solely for self-defense, but requires a permit for the possession and transportation of tear gas or a tear gas weapon that is not intended or certified for personal self-defense. Existing law prohibits the manufacture or sale of assault weapons and .50 BMG rifles unless a permit has been issued for the manufacture or sale of assault weapons or .50 BMG rifles by the department. Existing law generally prohibits the possession or knowing transportation of machineguns, unless a permit for the possession, manufacture, or transportation of machineguns has been issued by the department. Existing law generally prohibits the sale of machineguns without a license. Existing law generally prohibits the sale, importation, manufacture, or possession of short-barreled rifles and short-barreled shotguns without a permit from the department.
This bill would require the department, within 30 days of receiving the application, to notify the applicant of whether the department deems the application to be complete and the date of that determination. The bill would require the department to grant or deny the application within 180 calendar days of that date, except the bill would allow the department to extend this time period by an additional 30 days, as provided. The bill would require an application for a permit or license for the above activities that has neither been granted nor denied by the department within these time frames to be deemed to have been granted, as specified.
Vote: MAJORITY   Appropriation: NO   Fiscal Committee: YES   Local Program: NO  

The people of the State of California do enact as follows:


SECTION 1.

 Section 1789.37 of the Civil Code is amended to read:

1789.37.
 (a) Every owner of a check casher’s business shall obtain a permit from the Department of Justice to conduct a check casher’s business.
(b) All applications for a permit to conduct a check casher’s business shall be filed with the department in writing, signed by the applicant, if an individual, or by a member or officer authorized to sign, if the applicant is a corporation or other entity, and shall state the name of the business, the type of business engaged in, and the business address. Each applicant shall be fingerprinted.
(c) Each applicant for a permit to conduct a check casher’s business shall pay a fee not to exceed the cost of processing the application, fingerprinting the applicant, and checking or obtaining the criminal record of the applicant, at the time of filing the application.
(d) Each applicant shall annually, beginning one year from the date of issuance of a check casher’s permit, file an application for renewal of the permit with the department, along with payment of a renewal fee not to exceed the cost of processing the application for renewal and checking or obtaining the criminal record of the applicant.
(e) The department shall deny an application for a permit to conduct a check casher’s business, or for renewal of a permit, if the applicant has a felony conviction involving dishonesty, fraud, or deceit, if the crime is substantially related to the qualifications, functions, or duties of a person engaged in the business of check cashing.
(f) (1) Within 30 days of receiving the application, the department shall notify the applicant of whether the department deems the application to be complete and the date of that determination. The department shall grant or deny the application within 180 calendar days of determining an application is complete, except that the department may extend this 180-day period for an additional 30 calendar days for circumstances beyond the department’s control if it provides written notice to the applicant of the reasons it is making the extension and the date on which a determination will likely be made.
(2) An application that has neither been granted nor denied by the Department of Justice within the time periods specified in paragraph (1) shall be deemed to have been granted on the 180th or 210th day after the determination is made that the application is complete, as applicable, and the applicant shall not be subject to the penalties specified in subdivisions (h) and (i) for activities conducted after that time, provided the applicant has paid the required fee and otherwise meets the requirements of this title.

(f)

(g) The department shall adopt regulations to implement this section and shall determine the amount of the application fees required by this section. The department shall prescribe forms for the applications and permit required by this section, which shall be uniform throughout the state.

(g)

(h) In any action brought by a city attorney or district attorney to enforce a violation of this section, an owner of a check casher’s business who engages in the business of check cashing without holding a current and valid permit issued by the department pursuant to this section is subject to a civil penalty, as follows:
(1) For the first offense, not more than one thousand dollars ($1,000).
(2) For the second offense, not more than five thousand dollars ($5,000).

(h)

(i) Any person who has twice been found in violation of subdivision (g) and who, within 10 years of the date of the first offense, engages in the business of check cashing without holding a current and valid permit issued by the department pursuant to this section is guilty of a misdemeanor punishable by imprisonment in a county jail not exceeding six months, or by a fine not exceeding five thousand dollars ($5,000), or by both that fine and imprisonment.

(i)

(j) All civil penalties, forfeited bail, or fines received by any court pursuant to this section shall, as soon as practicable after the receipt thereof, be deposited with the county treasurer of the county in which the court is situated. Fines and forfeitures deposited shall be disbursed pursuant to the Penal Code. Civil penalties deposited shall be paid at least once a month as follows:
(1) Fifty percent to the Treasurer by warrant of the county auditor drawn upon the requisition of the clerk or judge of the court, to be deposited in the State Treasury on order of the Controller.
(2) Fifty percent to the city treasurer of the city, if the offense occurred in a city, otherwise to the treasurer of the county in which the prosecution is conducted. Any money deposited in the State Treasury under this section that is determined by the Controller to have been erroneously deposited shall be refunded out of any money in the State Treasury that is available by law for that purpose.

(j)This section shall become operative December 31, 2004.

SEC. 2.

 Section 11106 of the Health and Safety Code is amended to read:

11106.
 (a) (1) (A) Any manufacturer, wholesaler, retailer, or any other person or entity in this state that sells, transfers, or otherwise furnishes any substance specified in subdivision (a) of Section 11100 to a person or business entity in this state or any other state or who obtains from a source outside of the state any substance specified in subdivision (a) of Section 11100 shall submit an application to, and obtain a permit for the conduct of that business from, the Department of Justice. For any substance added to the list set forth in subdivision (a) of Section 11100 on or after January 1, 2002, the Department of Justice may postpone the effective date of the requirement for a permit for a period not to exceed six months from the listing date of the substance.
(B) An intracompany transfer does not require a permit if the transferor is a permittee. Transfers between company partners or between a company and an analytical laboratory do not require a permit if the transferor is a permittee and a report as to the nature and extent of the transfer is made to the Department of Justice pursuant to Section 11100 or 11100.1.
(C) This paragraph shall not apply to any manufacturer, wholesaler, or wholesale distributor who is licensed by the California State Board of Pharmacy and also registered with the federal Drug Enforcement Administration of the United States Department of Justice; any pharmacist or other authorized person who sells or furnishes a substance upon the prescription of a physician, dentist, podiatrist, or veterinarian; any state-licensed health care facility, physician, dentist, podiatrist, veterinarian, or veterinary food-animal drug retailer licensed by the California State Board of Pharmacy that administers or furnishes a substance to a patient; or any analytical research facility that is registered with the federal Drug Enforcement Administration of the United States Department of Justice.
(D) This paragraph shall not apply to the sale, transfer, furnishing, or receipt of any betadine or povidone solution with an iodine content not exceeding 1 percent in containers of eight ounces or less, or any tincture of iodine not exceeding 2 percent in containers of one ounce or less, that is sold over the counter.
(2) Except as provided in paragraph (3), no permit shall be required of any manufacturer, wholesaler, retailer, or other person or entity for the sale, transfer, furnishing, or obtaining of any product which contains ephedrine, pseudoephedrine, norpseudoephedrine, or phenylpropanolamine and which is lawfully sold, transferred, or furnished over the counter without a prescription or by a prescription pursuant to the federal Food, Drug, and Cosmetic Act (21 U.S.C. Sec. 301 et seq.) or regulations adopted thereunder.
(3) A permit shall be required for the sale, transfer, furnishing, or obtaining of preparations in solid or liquid dosage form containing ephedrine, pseudoephedrine, norpseudoephedrine, or phenylpropanolamine, unless (A) the transaction involves the sale of ephedrine, pseudoephedrine, norpseudoephedrine, or phenylpropanolamine products by retail distributors as defined by this article over the counter and without a prescription, or (B) the transaction is made by a person or business entity exempted from the permitting requirements of this subdivision under paragraph (1).
(b) (1) The department shall provide application forms, which are to be completed under penalty of perjury, in order to obtain information relating to the identity of any applicant applying for a permit, including, but not limited to, the business name of the applicant or the individual name, and if a corporate entity, the names of its board of directors, the business in which the applicant is engaged, the business address of the applicant, a full description of any substance to be sold, transferred, or otherwise furnished or to be obtained, the specific purpose for the use, sale, or transfer of those substances specified in subdivision (a) of Section 11100, the training, experience, or education relating to this use, and any additional information requested by the department relating to possible grounds for denial as set forth in this section, or by applicable regulations adopted by the department.
(2) The requirement for the specific purpose for the use, sale, or transfer of those substances specified in subdivision (a) of Section 11100 does not require applicants or permittees to reveal their chemical processes that are typically considered trade secrets and proprietary business information.
(c) Applicants and permittees shall authorize the department, or any of its duly authorized representatives, as a condition of being permitted, to make any examination of the books and records of any applicant, permittee, or other person, or visit and inspect the business premises of any applicant or permittee during normal business hours, as deemed necessary to enforce this chapter.
(d) An application may be denied, or a permit may be revoked or suspended, for reasons which include, but are not limited to, the following:
(1) Materially falsifying an application for a permit or an application for the renewal of a permit.
(2) If any individual owner, manager, agent, representative, or employee for the applicant who has direct access, management, or control for any substance listed under subdivision (a) of Section 11100, is or has been convicted of a misdemeanor or felony relating to any of the substances listed under subdivision (a) of Section 11100, any misdemeanor drug-related offense, or any felony under the laws of this state or the United States.
(3) Failure to maintain effective controls against the diversion of precursors to unauthorized persons or entities.
(4) Failure to comply with this article or any regulations of the department adopted thereunder.
(5) Failure to provide the department, or any duly authorized federal or state official, with access to any place for which a permit has been issued, or for which an application for a permit has been submitted, in the course of conducting a site investigation, inspection, or audit; or failure to promptly produce for the official conducting the site investigation, inspection, or audit any book, record, or document requested by the official.
(6) Failure to provide adequate documentation of a legitimate business purpose involving the applicant’s or permittee’s use of any substance listed in subdivision (a) of Section 11100.
(7) Commission of any act which would demonstrate actual or potential unfitness to hold a permit in light of the public safety and welfare, which act is substantially related to the qualifications, functions, or duties of a permitholder.
(8) If any individual owner, manager, agent, representative, or employee for the applicant who has direct access, management, or control for any substance listed under subdivision (a) of Section 11100, willfully violates or has been convicted of violating, any federal, state, or local criminal statute, rule, or ordinance regulating the manufacture, maintenance, disposal, sale, transfer, or furnishing of any of those substances.
(e) Notwithstanding any other provision of law, an investigation of an individual applicant’s qualifications, or the qualifications of an applicant’s owner, manager, agent, representative, or employee who has direct access, management, or control of any substance listed under subdivision (a) of Section 11100, for a permit may include review of his or her summary criminal history information pursuant to Sections 11105 and 13300 of the Penal Code, including, but not limited to, records of convictions, regardless of whether those convictions have been expunged pursuant to Section 1203.4 of the Penal Code, and any arrests pending adjudication.
(f) The department may retain jurisdiction of a canceled or expired permit in order to proceed with any investigation or disciplinary action relating to a permittee.
(g) The department may grant permits on forms prescribed by it, which shall be effective for not more than one year from the date of issuance and which shall not be transferable. Applications and permits shall be uniform throughout the state, on forms prescribed by the department.
(h) Each applicant shall pay at the time of filing an application for a permit a fee determined by the department which shall not exceed the application processing costs of the department.
(i) A permit granted pursuant to this article may be renewed one year from the date of issuance, and annually thereafter, following the timely filing of a complete renewal application with all supporting documents, the payment of a permit renewal fee not to exceed the application processing costs of the department, and a review of the application by the department.
(j) Selling, transferring, or otherwise furnishing or obtaining any substance specified in subdivision (a) of Section 11100 without a permit is a misdemeanor or a felony.
(k) (1) No person under 18 years of age shall be eligible for a permit under this section.
(2) No business for which a permit has been issued shall employ a person under 18 years of age in the capacity of a manager, agent, or representative.
(l) (1) An applicant, or an applicant’s employees who have direct access, management, or control of any substance listed under subdivision (a) of Section 11100, for an initial permit shall submit with the application one set of 10-print fingerprints for each individual acting in the capacity of an owner, manager, agent, or representative for the applicant, unless the applicant’s employees are exempted from this requirement by the Department of Justice. These exemptions may only be obtained upon the written request of the applicant.
(2) In the event of subsequent changes in ownership, management, or employment, the permittee shall notify the department in writing within 15 calendar days of the changes, and shall submit one set of 10-print fingerprints for each individual not previously fingerprinted under this section.
(m) (1) Within 30 days of receiving the application, the department shall notify the applicant of whether the department deems the application to be complete and the date of that determination. The department shall grant or deny the application within 180 calendar days of determining an application is complete, except that the department may extend this 180-day period for an additional 30 calendar days for circumstances beyond the department’s control if it provides written notice to the applicant of the reasons it is making the extension and the date on which a determination will likely be made.
(2) An application that has neither been granted nor denied by the Department of Justice within the time periods specified in paragraph (1) shall be deemed to have been granted on the 180th or 210th day after the determination is made that the application is complete, as applicable, and the applicant shall not be subject to the penalties specified in subdivision (j) for activities conducted after that time, provided the applicant has paid the required fee and otherwise meets the requirements of this section.

SEC. 3.

 Section 18900 of the Penal Code is amended to read:

18900.
 (a) Every dealer, manufacturer, importer, and exporter of any destructive device, or any motion picture or television studio using destructive devices in the conduct of its business, shall obtain a permit for the conduct of that business from the Department of Justice.
(b) Any person, firm, or corporation not mentioned in subdivision (a) shall obtain a permit from the Department of Justice in order to possess or transport any destructive device. No permit shall be issued to any person who meets any of the following criteria:
(1) Has been convicted of any felony.
(2) Is addicted to the use of any narcotic drug.
(3) Is prohibited by state or federal law from possessing, receiving, owning, or purchasing a firearm.
(c) An application for a permit shall comply with all of the following:
(1) It shall be filed in writing.
(2) It shall be signed by the applicant if an individual, or by a member or officer qualified to sign if the applicant is a firm or corporation.
(3) It shall state the name, business in which engaged, business address, and a full description of the use to which the destructive devices are to be put.
(d) Applications and permits shall be uniform throughout the state on forms prescribed by the Department of Justice.
(e) (1) Within 30 days of receiving the application, the department shall notify the applicant of whether the department deems the application to be complete and the date of that determination. The department shall grant or deny the application within 180 calendar days of determining an application is complete, except that the department may extend this 180-day period for an additional 30 calendar days for circumstances beyond the department’s control if it provides written notice to the applicant of the reasons it is making the extension and the date on which a determination will likely be made.
(2) An application that has neither been granted nor denied by the Department of Justice within the time periods specified in paragraph (1) shall be deemed to have been granted on the 180th or 210th day after the determination is made that the application is complete, as applicable, and the applicant shall not be subject to the penalties specified in Section 18710 for activities conducted after that time, provided the applicant has paid the required fee and otherwise meets the requirements of this article.

SEC. 4.

 Section 23010 of the Penal Code is amended to read:

23010.
 (a) Each applicant for a permit shall pay, at the time of filing the application, a fee determined by the Department of Justice, not to exceed the application processing costs of the Department of Justice.
(b) A permit granted pursuant to this chapter may be renewed one year from the date of issuance, and annually thereafter, upon the filing of a renewal application and the payment of a permit renewal fee, not to exceed the application processing costs of the Department of Justice.
(c) After the department establishes fees sufficient to reimburse the department for processing costs, fees charged shall increase at a rate not to exceed the legislatively approved annual cost-of-living adjustments for the department’s budget.
(d) (1) Within 30 days of receiving the application, the department shall notify the applicant of whether the department deems the application to be complete and the date of that determination. The department shall grant or deny the application within 180 calendar days of determining an application is complete, except that the department may extend this 180-day period for an additional 30 calendar days for circumstances beyond the department’s control if it provides written notice to the applicant of the reasons it is making the extension and the date on which a determination will likely be made.
(2) An application that has neither been granted nor denied by the Department of Justice within the time periods specified in paragraph (1) shall be deemed to have been granted on the 180th or 210th day after the determination is made that the application is complete, as applicable, and the applicant shall not be subject to the penalties specified in Section 22900 for activities conducted after that time, provided the applicant has paid the required fee and otherwise meets the requirements of this article.

SEC. 5.

 Section 31005 of the Penal Code is amended to read:

31005.
 (a) The Department of Justice may, upon a finding of good cause, issue permits for the manufacture or sale of assault weapons or .50 BMG rifles for the sale to, purchase by, or possession of assault weapons or .50 BMG rifles by, any of the following:
(1) The agencies listed in Section 30625, and the officers described in Section 30630.
(2) Entities and persons who have been issued permits pursuant to this section or Section 31000.
(3) Federal law enforcement and military agencies.
(4) Law enforcement and military agencies of other states.
(5) Foreign governments and agencies approved by the United States State Department.
(6) Entities outside the state who have, in effect, a federal firearms dealer’s license solely for the purpose of distribution to an entity listed in paragraphs (3) to (5), inclusive.
(b) Application for the permits, the keeping and inspection thereof, and the revocation of permits shall be undertaken in the same manner as specified in Article 3 (commencing with Section 32650) of Chapter 6.
(c) (1) Within 30 days of receiving the application, the department shall notify the applicant of whether the department deems the application to be complete and the date of that determination. The department shall grant or deny the application within 180 calendar days of determining an application is complete, except that the department may extend this 180-day period for an additional 30 calendar days for circumstances beyond the department’s control if it provides written notice to the applicant of the reasons it is making the extension and the date on which a determination will likely be made.
(2) An application that has neither been granted nor denied by the Department of Justice within the time periods specified in paragraph (1) shall be deemed to have been granted on the 180th or 210th day after the determination is made that the application is complete, as applicable, and the applicant shall not be subject to the penalties specified in Sections 30600, 30605, and 30610 for activities conducted after that time, provided the applicant has paid the required fee and otherwise meets the requirements of this article.

SEC. 6.

 Section 32655 of the Penal Code is amended to read:

32655.
 (a) An application for a permit under this article shall satisfy all of the following conditions:
(1) It shall be filed in writing.
(2) It shall be signed by the applicant if an individual, or by a member or officer qualified to sign if the applicant is a firm or corporation.
(3) It shall state the applicant’s name.
(4) It shall state the business in which the applicant is engaged.
(5) It shall state the applicant’s business address.
(6) It shall include a full description of the use to which the firearms are to be put.
(b) Applications and permits shall be uniform throughout the state on forms prescribed by the Department of Justice.
(c) Each applicant for a permit shall pay at the time of filing the application a fee determined by the Department of Justice. The fee shall not exceed the application processing costs of the Department of Justice.
(d) A permit granted pursuant to this article may be renewed one year from the date of issuance, and annually thereafter, upon the filing of a renewal application and the payment of a permit renewal fee, which shall not exceed the application processing costs of the Department of Justice.
(e) (1) Within 30 days of receiving the application, the department shall notify the applicant of whether the department deems the application to be complete and the date of that determination. The department shall grant or deny the application within 180 calendar days of determining an application is complete, except that the department may extend this 180-day period for an additional 30 calendar days for circumstances beyond the department’s control if it provides written notice to the applicant of the reasons it is making the extension and the date on which a determination will likely be made.
(2) An application that has neither been granted nor denied by the Department of Justice within the time periods specified in paragraph (1) shall be deemed to have been granted on the 180th or 210th day after the determination is made that the application is complete, as applicable, and the applicant shall not be subject to the penalties specified in Section 32625 for activities conducted after that time, provided the applicant has paid the required fee and otherwise meets the requirements of this article.

(e)

(f) After the department establishes fees sufficient to reimburse the department for processing costs, fees charged shall increase at a rate not to exceed the legislatively approved annual cost-of-living adjustments for the department’s budget.

SEC. 7.

 Section 32715 of the Penal Code is amended to read:

32715.
 (a) Each applicant for a license under this article shall pay at the time of filing the application a fee determined by the Department of Justice. The fee shall not exceed the application processing costs of the Department of Justice.
(b) A license granted pursuant to this article may be renewed one year from the date of issuance, and annually thereafter, upon the filing of a renewal application and the payment of a license renewal fee, which shall not exceed the application processing costs of the Department of Justice.
(c) After the department establishes fees sufficient to reimburse the department for processing costs, fees charged shall increase at a rate not to exceed the legislatively approved annual cost-of-living adjustments for the department’s budget.
(d) (1) Within 30 days of receiving the application, the department shall notify the applicant of whether the department deems the application to be complete and the date of that determination. The department shall grant or deny the application within 180 calendar days of determining an application is complete, except that the department may extend this 180-day period for an additional 30 calendar days for circumstances beyond the department’s control if it provides written notice to the applicant of the reasons it is making the extension and the date on which a determination will likely be made.
(2) An application that has neither been granted nor denied by the Department of Justice within the time periods specified in paragraph (1) shall be deemed to have been granted on the 180th or 210th day after the determination is made that the application is complete, as applicable, and the applicant shall not be subject to the penalties specified in Section 32625 for activities conducted after that time, provided the applicant has paid the required fee and otherwise meets the requirements of this article.

SEC. 8.

 Section 33305 of the Penal Code is amended to read:

33305.
 (a) An application for a permit under this article shall satisfy all of the following conditions:
(1) It shall be filed in writing.
(2) It shall be signed by the applicant if an individual, or by a member or officer qualified to sign if the applicant is a firm or corporation.
(3) It shall state the applicant’s name.
(4) It shall state the business in which the applicant is engaged.
(5) It shall state the applicant’s business address.
(6) It shall include a full description of the use to which the short-barreled rifles or short-barreled shotguns are to be put.
(b) Applications and permits shall be uniform throughout the state on forms prescribed by the Department of Justice.
(c) Each applicant for a permit shall pay at the time of filing the application a fee determined by the Department of Justice. The fee shall not exceed the application processing costs of the Department of Justice.
(d) A permit granted pursuant to this article may be renewed one year from the date of issuance, and annually thereafter, upon the filing of a renewal application and the payment of a permit renewal fee, which shall not exceed the application processing costs of the Department of Justice.
(e) (1) Within 30 days of receiving the application, the department shall notify the applicant of whether the department deems the application to be complete and the date of that determination. The department shall grant or deny the application within 180 calendar days of determining an application is complete, except that the department may extend this 180-day period for an additional 30 calendar days for circumstances beyond the department’s control if it provides written notice to the applicant of the reasons it is making the extension and the date on which a determination will likely be made.
(2) An application that has neither been granted nor denied by the Department of Justice within the time periods specified in paragraph (1) shall be deemed to have been granted on the 180th or 210th day after the determination is made that the application is complete, as applicable, and the applicant shall not be subject to the penalties specified in Section 33215 for activities conducted after that time, provided the applicant has paid the required fee and otherwise meets the requirements of this article.

(e)

(f) After the department establishes fees sufficient to reimburse the department for processing costs, fees charged shall increase at a rate not to exceed the legislatively approved annual cost-of-living adjustments for the department’s budget.