California Code, Business and Professions Code - BPC § 19274

A permit shall remain in effect until suspended or terminated as provided in this chapter. Any permit not exercised for a period of one year, inclusive of all periods of suspension, shall lapse and terminate.

A permit shall not be sold, leased, assigned, or otherwise transferred or encumbered by the holder of the permit without the holder first having secured from the bureau an order authorizing the transfer or encumbrance. The bureau shall not authorize any transfer or encumbrance of a permit except pursuant to a finding made by the bureau that the permit authorized to be transferred or encumbered has not lapsed or been terminated by nonexercise as provided in this section. Any sale, lease, assignment, or other transfer or encumbrance is void unless made in accordance with the order of the bureau authorizing it.