(a) Other than the rules for formal applications pursuant to this section, the formal application submitted by a priority winner shall be subject to the same laws and regulations as all other license applications submitted to the department.

(b) A priority winner shall submit their formal application to the department by close of business on the 90^th calendar day following the date notification is sent by the department to the applicant that the applicant is a priority winner. By failing to submit a valid formal application by the 90^th calendar day, the priority winner withdraws their participation from the priority drawing.

(c) A replacement priority winner notified pursuant to Title 4 California Code of Regulations section 69.3(d) shall have 90 calendar days following the date notification is sent by the department to the applicant that the applicant is a replacement priority winner to submit their formal application. By failing to submit a valid formal application by the 90^th calendar day, the replacement priority winner withdraws their participation from the priority drawing.

(d) Submission of a formal application shall be either the date the department receives the formal application or the postmark date if the formal application is sent via the United States Postal Service.

(e) A priority winner can only submit a formal application with the same individuals and entities listed in its priority application unless it is under the exceptions in this subsection. A completed formal application with other individuals or entities included, which do not meet an exception pursuant to this subsection, will be rejected by the department as an invalid formal application.

(f) The submission of a rejected formal application prior to the close of business on the 90^th calendar day will not be considered compliant with Title 4 California Code of Regulations section 69.4(b) or 69.4(c).

(g) The burden for the validity of the submitted formal application is upon the priority winner. Even if submitted early, the department may, but is not required to, review submitted applications for compliance pursuant to Title 4 California Code of Regulations section 69.4(e) prior to the deadline pursuant to Title 4 California Code of Regulations section 69.4(b) or 69.4(c). If the department finds an application is incomplete or erroneous through its early review, the department may contact the applicant to suggest necessary corrections to complete the formal application. Any such corrections must be made and submitted to the department before the expiration of the deadline established by Title 4 California Code of Regulations section 69.4(b) or 69.4(c). This provision shall not be construed to require the department to contact any applicant or to contact all applicants that may have incomplete or erroneous applications if any applicant is contacted. It shall always be the responsibility of an applicant to ensure its formal application is complete and accurate. If the department rejects a formal application pursuant to Title 4 California Code of Regulations section 69.4(e) after the deadline in Title 4 California Code of Regulations section 69.4(b) or 69.4(c) the priority winner will be deemed to withdraw their participation in the priority drawing and a new priority winner will be chosen pursuant to Title 4 California Code of Regulations section 69.3(d).

(h) If a priority winner can show good cause as to why they will not be able to meet the deadline for the submission of their formal application by close of business of the 90^th calendar day, they can request only one extension of up to 30 calendar days. The written request for extension must be received by the department on or before the 90^th calendar day, and the current 90 calendar day period shall continue while the department determines if there is good cause to extend the period.

(i) A 30-calendar day extension pursuant to Title 4 California Code of Regulations section 69.4(h) shall begin from the date the department notifies the priority winner that the extension request has been granted. The department shall provide the new date of the deadline pursuant to Title 4 California Code of Regulations section 69.4(b) or 69.4(c) in its notice to the priority winner that their request was granted.

(j) If the department determines that there is no good cause to extend the period, the department shall provide notice of its decision to the priority winner. The priority winner shall then have 5 additional business days from the date notice is sent by the department to submit their formal application or their participation in the priority drawing shall be withdrawn pursuant to Title 4 California Code of Regulations section 69.4(b) or 69.4(c). The department shall include the date of the new deadline pursuant to Title 4 California Code of Regulations section 69.4(b) or 69.4(c) in the notice of rejection of extension sent to the priority winner.

(k) The department shall not grant any further extensions to a priority winner except for those issued on a request pursuant to Title 4 California Code of Regulations section 69.4(h).

(l) If it is determined while investigating a formal application, or through the addition of persons to the application pursuant to Title 4 California Code of Regulations section 69.4(e), that the applicant improperly participated in the priority drawing, the department may retrospectively disqualify the priority application and cancel the formal application. Any disqualification pursuant to this subsection is subject to the selection of a new priority winner pursuant to Title 4 California Code of Regulations section 69.3(d).