HSC §1266.5: (a) Whenever any entity required to pay fees pursuant to Section 1266 continues to operate beyond its license expiration date, without the Licensing and Certification Program annual license fees first

(a) Whenever any entity required to pay fees pursuant to Section 1266 continues to operate beyond its license expiration date, without the Licensing and Certification Program annual license fees first having been paid as required by this division, those fees are delinquent. (b) A late payment penalty shall be added to any delinquent annual license fees made later than midnight of the license expiration date. The late payment penalty shall be computed as follows: (1) For a delinquency period of 30 days or less, the penalty shall be 10 percent of the fee. (2) For a delinquency period of more than 30 days to and including 60 days, the penalty shall be 20 percent of the fee. (3) For a delinquency period of more than 60 days, the penalty shall be 60 percent of the fee. (c) A license may not be renewed without payment of the Licensing and Certification Program annual license fee plus any late payment penalty. (d) Whenever any entity required to pay a report of change or written notification fee pursuant to Section 1266 fails to both submit a timely report of change or written notification and pay the applicable fee, those fees are delinquent. (e) A late payment penalty shall be added to any delinquent fees due with a report of change or written notification made later than midnight of the required submission date. The late payment penalty shall be computed as follows: (1) For a delinquency period of 30 days or less, the penalty shall be 10 percent of the fee. (2) For a delinquency period of more than 30 days to and including 60 days, the penalty shall be 20 percent of the fee. (3) For a delinquency period of more than 60 days, the penalty shall be 60 percent of the fee. (f) The Licensing and Certification Program may, upon written notification to the licensee, offset any moneys owed to the licensee by the Medi-Cal program or any other payment program administered by the department to recoup any annual license, report of change, or written notification fee along with any associated late payment penalties.