CCLME.ORG - DIVISION 1. DEPARTMENT OF MOTOR VEHICLES

(continued)
(A) The Quarterly Physical Inventory of Accountable Items shall include a listing of receipts for new and used boats, as evidenced by the beginning and ending number of Certificates of Number and Temporary Certificates of Numbers issued, and the number of each on hand; a listing of the number of vessel stickers issued, as evidenced by the beginning and ending number of stickers issued and the number on hand, a listing of void receipts, and an authorized signature.

Note: Authority cited: Sections 1651 and 9858, Vehicle Code. Reference: Sections 9858 and 9859, Vehicle Code.

s 190.38. Agreement for Appointment as an Undocumented Vessel Registration Agent.
(a) Each applicant for appointment as an Undocumented Vessel Registration Agent shall complete an Agreement for Appointment as an Undocumented Vessel Registration Agency to Represent the California Department of Motor Vehicles, Form OL 54 (REV. 3/2003) page 2 on which the owner, all partners of a co-partnership, or all principal officers of a corporation, agree to assume the duties and responsibilities which are outlined in the agreement and reflect the requirements specified in the Vehicle Code and in regulation. The signature of the applicant on page 1 of this form shall serve as acknowledgement of this agreement.
(1) Another department-approved version of this form with a different revision date shall be acceptable if the content of the form is in substantial compliance with the requirements of this section.

Note: Authority cited: Sections 1651 and 9858, Vehicle Code. Reference: Sections 9858, 9858.1 and 9859, Vehicle Code.

s 191.00. Non-Motorized Surfboard-Like Vessels Exempted Under Vehicle Code Section 9873(e).
Non-motorized surfboard-like vessels over 8 feet in length, propelled solely by sail, and with a mast which is required to be held upright by the operator in order to sail are exempt from the numbering requirements of Vehicle Code Section 9850.

Note: Authority cited: Section 1651, Vehicle Code. Reference: Section 9873, Vehicle Code.

s 192.00. Proof Documents Re Lien Sale Vessels.
All applications for the transfer of title of an undocumented vessel after a lien sale of such vessel under Article 4 (commencing with Section 500) of the Harbors and Navigation Code shall be accompanied by proof of the possessory character of the lien so that the department may be satisfied of the genuineness and regularity of the transfer pursuant to Vehicle Code Section 9915(b). For the purposes of such proof, "storage" means services rendered in the safekeeping of a vessel by a person not the owner who has a right of possession together with a duty to care for the vessel and may include mooring, berthage, wharfing and anchorage and rental of vessel trailer parking space done in the process of the storage of a vessel. "Storage" does not include the rental of mooring space or of vessel trailer parking space when there is no duty to keep the vessel safe when occupying such space. Costs of repair means all material and labor of a repairman when a vessel is put in his keeping for such purposes and may include costs of mooring, berthage, wharfing and anchorage and rental of vessel trailer parking space if such services are included in the repairman's cost of handling a vessel for the purpose of repairing it.

Note: Authority cited: Section 1651, Vehicle Code. Reference: Section 9915, Vehicle Code.

s 201.00. Use of Special Plates Issued to a Dealer, Manufacturer, Remanufacturer, or Distributor.
(a) Special plates referenced in this section may only be used on vehicles that a dealer, manufacturer, remanufacturer, or distributor owns or lawfully possesses.
(b) The following individuals may operate a vehicle with special plates for any purpose:
(1) An individual who is the sole owner, a general partner, a manager of a limited liability company, or a corporate officer or director of a dealer, manufacturer, remanufacturer, or distributor, provided that individual is actively engaged in the management and control of the business operations of the dealer, manufacturer, remanufacturer, or distributor;
(2) A general manager, or business manager, or sales manager who is actively engaged in the management and control of the business operations of the dealer, manufacturer, remanufacturer, or distributor when no other individual meets the criteria in (1) above;
(3) An individual employed by a manufacturer or distributor and licensed as a representative.
(c) Any licensed driver may operate a vehicle with special plates for any purpose if an individual identified in section (b) is also in the vehicle.
(1) An unaccompanied licensed driver, who regularly resides in the immediate household of an individual identified in section (b), may operate a vehicle with special plates solely to pick up or drop off that individual.
(d) A licensed driver who is an employee of a dealer, manufacturer, remanufacturer or distributor may drive a vehicle with special plates when that employee is acting within the course and scope of his or her employment.
(e) Any licensed driver may operate a vehicle with dealer, manufacturer, remanufacturer, or distributor special plates for special event purposes if the operator carries a letter of authorization from the licensee identifying the vehicle, duration, and location of operation, and person(s) authorized to operate the vehicle.
(f) Any licensed driver, who is a prospective buyer or lessee, may test drive a vehicle with special plates for up to seven days.
(1) A salesperson is not required to be present.
(2) If a salesperson is not present, the operator must carry a letter of authorization from the licensee identifying the vehicle, duration, and person(s) authorized to operate the vehicle.
(g) Employees of a commercial vehicle dealer, manufacturer, remanufacturer, or distributor who must operate a commercial vehicle in the course of their employment, may take a commercial drive test in a commercial vehicle displaying dealer, manufacturer, remanufacturer, or distributor special plates.
(h) A trailer, displaying special plates, may be towed by a vehicle with Vehicle Code authority to operate on the highways.
(i) Any use of special plates issued to a dealer, manufacturer, remanufacturer, or distributor except as specified is prohibited.

Note: Authority cited: Section 1651, Vehicle Code. Reference: Sections 11714, 11715 and 11716, Vehicle Code.

s 212.04. Conduct of the Hearing.
(a) The department shall fix a time and place for the hearing as early as may be arranged in the county where the person requesting the hearing resides, and shall give ten (10) days' notice of the hearing to the registered owner, the legal owner, and to any other person known to be claiming an interest in the vehicle,except that the hearing may be set for a different place with the concurrence of the person requesting the hearing and the period of notice may be waived.
(b) The hearing shall be conducted by the Registrar or by a referee appointed by him from officers or employees of the department.
(c) The entire proceedings shall be recorded by a phonographic recorder or otherwise perpetuated by mechanical, electronic, or other means capable of reproduction or transcription.
(d) All evidence shall be taken only on oath or affirmation.
(e) Each party shall have these rights: to call and examine witnesses; to introduce exhibits; to cross-examine opposing witnesses on any matter relevant to the issues even though that matter was not covered in the direct examination; to impeach any witness regardless of which party first called him to testify; and to rebut the evidence against him. The registered owner may be called and examined as if under cross-examination.
(f) Each party upon written request made to another party, prior to the hearing and within thirty (30) days after service by the department of the notice of lien, is entitled to
(1) obtain the names and addresses of witnesses known to the other party, intended to be called to testify at the hearing, and
(2) inspect and make a copy of all writings to include statements of witnesses, investigative reports, traffic or parking citations or any other thing which is relevant and which would be admissible in evidence at the hearing; this right does not extend to any writing or thing which is privileged from disclosure by law or otherwise made confidential or protected as attorney's work product.
(g) Before the hearing is commenced, the department shall issue subpoenas and subpoenas duces tecum at the request of any party for attendance or production of documents at the hearing, in accordance with Section 11510 of the Administrative Procedure Act.
(h) The hearing need not be conducted according to technical rules relating to evidence and witnesses. Any relevant evidence shall be admitted if it is the sort of evidence upon which responsible persons are accustomed to rely in the conduct of serious affairs, regardless of the existence of any common law or statutory rule which might make improper the admission of such evidence over objection in civil action. Hearsay evidence may be used for the purpose of supplementing or explaining other evidence but shall not be sufficient in itself to support a finding unless it be admissible over objection in civil actions. The rules of privilege shall be effective to the extent that they are otherwise required by statute to be recognized at the hearing, and irrelevant and unduly repetitious evidence shall be excluded.
(i) In reaching a decision, official notice may be taken, either before or after submission of the case for decision, of any fact which may be judicially noticed by the courts of this state. Parties present at the hearing shall be informed of the matters to be noticed, and those matters shall be noted in the record, referred to therein, or appended thereto. Any such party shall be given a reasonable opportunity on request to refute the officially noticed matters by evidence or by written or oral presentation of authority, the manner of such representation to be determined by the department.
(j) Upon the conclusions of the hearing, the referee shall make findings on the matters under consideration and shall prepare and submit recommendations to the Registrar.
(k) The Registrar, or an employee designated by the Registrar to act on his behalf, following the hearing, upon review of the record, evidence, and the findings, shall render his decision concerning the validity of the imposition of the fees or penalties. The decision of the Registrar or his designee shall be effective on notice to the registered and legal owners.

Note: Authority cited: Section 1651, Vehicle Code; and Sections 11180, 11181 and 11182, Government Code. Reference: Section 9801, Vehicle Code.

s 220.00. Definitions.
As used in this article, the following definitions shall apply:
(a) "Administrative costs" shall be defined as attorney fees and support staff costs incurred in determining legal entitlement to all or a portion of the cash deposit(s) or savings account(s) held in assignment(s) pursuant to Vehicle Code section 34631(c).
(b) An "applicant" shall be defined as a motor carrier applying as an original applicant for or a current holder of a motor carrier permit.
(c) An "assignor" shall be defined as a motor carrier who is granted a certificate of self-insurance.
(d) The "Deputy Director" shall be defined as the deputy director of the Department of Motor Vehicles for the State of California, who administers the Motor Carrier Permit Program.
(e) The "Director" shall be defined as the Director of Motor Vehicles for the State of California and any other department employee designated to act on behalf of the Director.
(f) A "fictitious name" as used in Vehicle Code section 34621(b)(1) shall be defined as a DBA (Doing Business As) and/or a trade name.
(g) "Licensed to write insurance in this state" as stated in Vehicle Code section 34631 shall be defined as an "admitted insurer" as stated in Insurance Code section 700.
(h) A "motor carrier" shall be defined as a business entity who operates vehicles in California and participates or qualifies to participate in the Motor Carrier Permit program.
(i) A "permit term" shall be defined as twelve (12) months starting on the first day of the month that the original application was received and ending on the last day of the following 12th month. The permit term shall establish the annual renewal date.
(j) For the purpose of this article, the terms "Motor Carrier of Property Permit" and "Motor Carrier Permit" shall be used interchangeably.

Note: Authority cited: Sections 1651 and 34604, Vehicle Code. Reference: Sections 34621 and 34631,Vehicle Code; and Section 700, Insurance Code.

s 220.02. Application for a Motor Carrier Permit.
(a) An applicant for an original Motor Carrier Permit shall complete, sign and certify, under penalty of perjury under the laws of the State of California, an Application for Motor Carrier Permit form [DMV 706 MCP (REV. 4/2003)], which is hereby incorporated by reference.
(b) A change of motor carrier ownership status shall require a completed Application for Motor Carrier Permit form [DMV 706 MCP (REV. 4/2003)], signed under penalty of perjury under the laws of the State of California. This change shall be processed as an original application.
(1) A change of a motor carrier's Employer Identification Number (EIN) requires a new application.
(c) A change of motor carrier name shall require a completed Notice of Change form [DMV 152 MCP (REV. 8/2002)] signed under penalty of perjury under the laws of the State of California. The Notice of Change form is hereby incorporated by reference.
(d) An addition or deletion of "DBA" name or trade name shall require a completed and signed Notice of Change form [DMV 152 MCP (REV. 8/2002)].
(e) A change of motor carrier physical or mailing address shall require a completed and signed Notice of Change form [DMV 152 MCP (REV. 8/2002)] indicating a change of address within ten (10) days of the change.
(f) A list of vehicles shall be submitted with an original, reinstatement and renewal application and contain the full Vehicle Identification Number (VIN), license plate number and state of plate issuance for all motor vehicles the motor carrier intends to use during the permit period.
(g) The department shall notify an applicant in writing within ten (10) days of receipt of the application, that it is complete or deficient.
(1) An application is considered complete when the applicable requirements of the Motor Carriers of Property Permit Act and these regulations have been fulfilled.
(A) With the determination that an application is complete, a permit shall be issued.
(2) An application is considered deficient when the applicable requirements of the Motor Carriers of Property Permit Act and these regulations are not fulfilled.
(A) With the determination that an application is deficient, the department shall identify the specific requirement(s) needed to complete the application.

Note: Authority cited: Sections 1651 and 34604, Vehicle Code. Reference: Sections 1652, 1653, 34621 and 34632, Vehicle Code; and Section 15376, Government Code.

s 220.04. Expiration and Renewal of a Motor Carrier Permit.
(a) Motor Carrier of Property Permit Renewal Application form [DMV 134 MCP (REV. 1/2004)], which is hereby incorporated by reference, shall be completed and submitted to the department, prior to the date of expiration, when a motor carrier applies for renewal of a Motor Carrier Permit.
(b) The permit term shall remain the same unless the permit is withdrawn pursuant to Section 220.18 of these regulations or is suspended or revoked pursuant to California Vehicle Code sections 34505.6, 34623, or 34624(d).
(c) A permit term shall be limited to 12 months.

Note: Authority cited: Sections 1651 and 34604, Vehicle Code. Reference: Sections 1652, 34620 and 34621, Vehicle Code.

s 220.05. Manner of Submission of Renewal Registration Transactions to the Department.

Note: Authority cited: Section 1651, Vehicle Code. Reference: Section 4610, Vehicle Code; and Section 12155, Insurance Code.

s 220.06. Motor Carrier Financial Responsibility.
(a) Acceptable proof of financial responsibility, pursuant to Vehicle Code section 34630, shall be submitted to the department in the form of a Certificate of Insurance, [DMV 65 MCP (REV. 7/2002)] pursuant to Vehicle Code section 34631(a); or a surety bond, [DMV 55 MCP (REV. 10/2003)] pursuant to Vehicle Code Section 34631(b); or a Certificate of Self-Insurance, [DMV 131 MCP (NEW 4/98)] pursuant to Vehicle Code Section 34631(c), which are hereby incorporated by reference.
(1) The Certificate of Insurance [DMV 65 MCP (REV. 7/2002)] shall be submitted to the department by the motor carrier's insurance provider.
(2) Proof of financial responsibility pursuant to Division 7, Vehicle Code section 16000 et seq., shall not be substituted for the proof required for a Motor Carrier Permit.
(3) The name of the motor carrier on the Certificate of Insurance, surety bond or Self-Insurance Certificate shall match the name of the motor carrier entered in Part 2 of an Application for Motor Carrier Permit form [DMV 706 MCP, (REV. 4/2003).]
(b) An Insurance Policy Endorsement, [DMV 67 MCP (REV. 6/2001)], which is hereby incorporated by reference, amending the insurance policy to comply with insurance requirements imposed by the Motor Carriers of Property Permit Act, commencing with Vehicle Code section 34630, shall be attached to and made part of, the insurance policy insuring the motor carrier.
(1) The Insurance Policy Endorsement, [DMV 67 MCP (REV. 6/2001)] shall be retained by the insurer and a copy provided to the insured motor carrier.
(2) A duplicate and all related documentation shall be provided to the department upon request.
(c) Written notice of cancellation of the Certificate of Insurance, required under Vehicle Code section 34630(b), shall be submitted by the insurer to the department on a Notice of Cancellation of Insurance, [DMV 66 MCP (REV. 6/2001)], which is hereby incorporated by reference.

Note: Authority cited: Sections 1651 and 34604, Vehicle Code. Reference: Sections 1652, 34630, 34631 and 34631.5, Vehicle Code.

s 220.08. Verification of Vehicles Used by Motor Carriers.
(a) The annual list of motor vehicles, pursuant to Vehicle Code section 34632, shall be submitted to the department upon original application, renewal or reinstatement of a Motor Carrier Permit. The list shall contain the full Vehicle Identification Number (VIN), license plate number and state of plate issuance for all motor vehicles used in transportation during the previous permit term. The requirement to furnish the department with an annual list shall be satisfied by submitting the annual list signed and certified under penalty of perjury under the laws of the State of California.
(b) Each motor vehicle operated under the Motor Carrier Permit for thirty-one (31) days or longer shall be included in the list of motor vehicles submitted in accordance with Vehicle Code section 34632, upon renewal or reinstatement.
(1) This list shall include vehicles owned, rented, leased, or used on a seasonal or independent contract basis under the authority of the Motor Carrier Permit.

Note: Authority cited: Sections 1651 and 34604, Vehicle Code. Reference: Section 34632, Vehicle Code.

s 220.10. Motor Carriers' Employees.
(a) The annual report of employees and owner-operator drivers, pursuant to Vehicle Code Section 34633, shall be submitted to the department by a Motor Carrier with a carrier fleet of 20 or more commercial motor vehicles, upon renewal or reinstatement of a Motor Carrier Permit. The report shall contain the total number of employees and owner-operator drivers, employee classifications (job titles), and compensation (annual gross salary).
(b) The requirement to file a report under oath shall be satisfied by submitting the list in the form of a sworn statement signed under the penalty of perjury under the laws of the State of California.

Note: Authority cited: Sections 1651 and 34604, Vehicle Code. Reference: Sections 34633 and 34640,Vehicle Code.

s 220.12. Owner-Operators.
(a) A motor carrier may submit a written statement to the department, within fifteen (15) calendar days of the date of service of the order of suspension, showing why good cause exists not to suspend the Motor Carrier Permit pursuant to Section 34624(d) of the Vehicle Code.
(b) Good cause pursuant to Vehicle Code section 34624(d) shall be as follows:
(1) The motor vehicle(s) listed under an owner-operator's Motor Carrier Permit shall be operated by family members and other drivers who are enrolled in the department's Employer Pull Notice system, pursuant to Vehicle Code section 1808.1(a) and (e). This requirement shall be fulfilled prior to operating any motor vehicle defined in Vehicle Code section 1808.1(k) and operated under the owner-operator's Motor Carrier Permit.
(2) The motor vehicle(s) listed under an owner-operator's Motor Carrier Permit shall be operated by casual drivers, as defined in Vehicle Code section 1808.1(j), and under the owner-operator's Motor Carrier Permit.
(A) The owner-operator shall have possession of the casual driver's current public record prior to operating any motor vehicle identified in Vehicle Code section 1808.1(k) and operated under the owner-operator's Motor Carrier Permit.
(c) An owner-operator whose Motor Carrier Permit has been suspended pursuant to Vehicle Code section 34624(d) shall not be entitled to a hearing to show why the permit should not be suspended.

Note: Authority cited: Sections 1651 and 34604, Vehicle Code. Reference: Sections 1808.1 and 34624, Vehicle Code.

s 220.14. Reinstatement Fee.
There shall be one reinstatement fee due after a single, overlapping or concurrent suspension period. Payment may be made upon receipt of the notice of suspension. Checks or money orders shall be made payable to the Department of Motor Vehicles and mailed to the following address: Department of Motor Vehicles, Motor Carrier Permit Branch, Mail Station G875, P.O. Box 932370, Sacramento, CA 94232-3700.

Note: Authority cited: Sections 1651 and 34604, Vehicle Code. Reference: Section 34623.5, Vehicle Code.

s 220.16. Workers' Compensation.
(a) Acceptable evidence of compliance with Workers' Compensation laws, pursuant to Vehicle Code section 34640(a)(1), shall be submitted to the department on a Certificate of Insurance form [DMV 65 MCP (REV. 7/2002)] or Workers' Compensation letter, [SCIF 10262 (REV. 5/01)] or [SCIF 10265 (no revision date)], which are hereby incorporated by reference or certification of consent to self-insure issued by the Director of Industrial Relations pursuant to Vehicle Code section 34640(a)(2).
(b) An applicant for a Motor Carrier Permit that does not employ any persons in the motor carrier operation shall certify on an Application for Motor Carrier Permit form [DMV 706 MCP (REV. 4/2003)], under penalty of perjury under the laws of the State of California, that as a motor carrier, no person is employed in any manner so as to become subject to California Workers' Compensation laws pursuant to Vehicle Code section 34640(a)(3).
(c) A motor carrier that becomes subject to California Workers' Compensation laws shall file with the department, within thirty (30) days, a certificate of workers' compensation coverage pursuant to Vehicle Code section 34640(a)(1), or certification of consent to self-insure issued by the Director of Industrial Relations pursuant to Vehicle Code section 34640(a)(2).
(d) Departmental notification of cancellation of insurance shall be on a Notice of Cancellation of Insurance form [DMV 66 MCP (REV. 6/2001)] or Workers' Compensation Notice of Cancellation letter [SCIF 19102 (NO REVISION)], which are hereby incorporated by reference.

Note: Authority cited: Sections 1651 and 34604, Vehicle Code. Reference: Sections 1652, 34621(b)(7) and 34640, Vehicle Code.

s 220.18. Voluntary Withdrawal.
(a) A motor carrier, who wishes to cease operations as a permitted motor carrier, prior to canceling or terminating liability insurance, shall submit a written request on a Request for Voluntary Withdrawal Motor Carriers of Property Permit form [DMV 716 MPC (REV. 6/2001)], which is hereby incorporated by reference.
(b) A refund of the fees for the next permit term shall only be issued when the vehicle will not be operated intrastate in California during the next permit term, and the term of the permit has not yet begun.

Note: Authority cited: Sections 1651 and 34604, Vehicle Code. Reference: Section 34630(b), Vehicle Code.

s 220.20. Seasonal Operations.
(a) A seasonal permit shall be issued for a period of no less than six (6) months and no more than eleven (11) months within an assigned twelve (12)-month permit term.
(1) The months may or may not be contiguous.

Note: Authority cited: Sections 1651 and 34604, Vehicle Code. Reference: Section 7236(a)(3), Revenue and Taxation Code.

s 221.00. Requirements to Self-Insure.
Qualifications as a self-insurer shall include all of the following requirements:
(a) The applicant shall have more than twenty-five (25) motor vehicles registered in the name of the motor carrier on the Application for Motor Carrier Permit form [DMV 706 MCP (REV. 4/2003)].
(b) The applicant shall complete and submit to the department an assignment(s) of a cash deposit(s) or savings account(s) equal to the monetary amounts as specified in Vehicle Code section 34631.5, subdivision (a), paragraphs (1) and (2) and an additional $5,000 to offset potential administrative costs along with the Assignment to the Department of Motor Vehicles [DMV 133 MCP, (REV. 8/2002)], which is hereby incorporated by reference, assigning the money to the department.
(c) The applicant shall have no unsatisfied final judgment(s) against the motor carrier name, the "Doing Business As" (DBA) name, or trade names listed on the Application for Motor Carrier Permit form [DMV 706 MCP (REV. 4/2003)] resulting from property damages and/or bodily injury (including death) caused by a motor vehicle accident.

Note: Authority cited: Sections 1651 and 34604, Vehicle Code. Reference: Section 34630, Vehicle Code.

s 221.02. Application to Self-Insure.
(a) An applicant requesting a Certificate of Self-Insurance [DMV 131 MCP (NEW4/98)] shall complete, sign and certify under penalty of perjury under the laws of the State of California, an Application for a Certificate of Self-Insurance form [DMV 130 MCP (REV. 7/2002)], which is hereby incorporated by reference, to the department. The application shall be processed at no charge.
(b) The applicant shall indicate the level of financial responsibility requested and statutorily required for the type of commercial transportation operation(s) specified in Vehicle Code section 34631.5, subdivision (a), paragraphs (1) and (2).
(c) The department shall consider and may approve the Application for a Certificate of Self-Insurance in accordance with the provisions of Division 14.85 of the Vehicle Code and Sections 221.00 et seq. of Title 13, Division 1, Chapter 1 of the California Code of Regulations.
(d) The department shall notify an applicant in writing, within seven (7) days of receipt of an application, that it is complete or deficient.
(1) An application is considered complete when the applicable requirements of the Motor Carriers of Property Permit Act self- insurance statutes and these regulations have been fulfilled.
(A) With the determination that an application is complete, a certificate shall be issued.
(2) An application is considered deficient when the applicable requirements of the Motor Carrier of Property Permit Act self-insurance statutes and these regulations are not fulfilled.
(A) With the determination that an application is deficient, the department shall identify the specific requirement(s) needed to complete the application.
(e) An applicant shall respond in ten (10) days with supporting data requested by the department to determine initial eligibility as a self-insurer. Failure to respond may cause immediate cancellation of the application.

Note: Authority cited: Sections 1651 and 34604, Vehicle Code. Reference: Sections 34630, 34631 and 34631.5, Vehicle Code; and Section 15376, Government Code.

s 221.04. Assignment of Funds to the Department.
After approval, an applicant shall assign funds to the department in the manner described in this section.
(a) The applicant shall assign one or more cash deposits or savings accounts that accumulatively contain the monetary amounts specified in Vehicle Code section 34631.5, subdivision (a), paragraphs (1) and (2).
(b) The assignment of the monetary amount may be accepted on more than one assignment form, an Assignment for a Motor Carrier Certificate of Self-Insurance form [DMV 133 MCP (REV. 8/2002)].
(c) In addition to the statutorily required amount, the applicant shall deposit an additional $5,000 to offset potential administrative costs. Administrative costs that exceed $5,000 shall be paid out of the principal.
(d) An account shall be held in a bank(s) guaranteed by the Federal Deposit Insurance Corporation (FDIC); a savings association(s) guaranteed by the Savings Association Insurance Fund (SAIF); and/or a credit union(s) guaranteed by the National Credit Union Administration (NCUA). The financial institutions holding the funds assigned to the department shall have a physical office located in California.
(e) The applicant shall instruct the financial institution(s) to prepare and forward to the department an Assignment for a Motor Carrier Certificate of Self-Insurance, [DMV 133 MCP (REV. 8/2002)] assigning the above described funds to the department.

Note: Authority cited: Sections 1651 and 34604, Vehicle Code. Reference: Sections 34630 and 34631.5, Vehicle Code.

s 221.06. Issuance of the Certificate of Self-Insurance.
(a) After the application and assignment(s) are approved, the department shall issue a Certificate of Self-Insurance [DMV 131 MCP (NEW 4/98)], which shall contain an assigned number that serves as written evidence of self-insurance.
(b) The Certificate of Self-Insurance shall only serve as proof of financial responsibility under Vehicle Code section 34631.5, subdivision (a), paragraphs (1) and (2).

Note: Authority cited: Sections 1651 and 34604, Vehicle Code. Reference: Section 34630(b), Vehicle Code.

s 221.08. Cancellation of the Certificate of Self-Insurance.
(a) Cancellation of a Certificate of Self-Insurance [DMV 131 MCP (NEW 4/98)], which is hereby incorporated by reference, and self insurance status may be initiated by the department for the following:
(1) Failure to maintain the requirements for obtaining a certificate pursuant to Section 221.020 of Title 13, Division 1, Chapter 1 of the California Code of Regulations.
(2) Failure to submit data in ten (10) days that is requested by the department to investigate and determine ongoing eligibility.
(3) Failure to provide adequate financial responsibility or greater financial responsibility that may be required in the future as a result of a change in statute.
(b) The department retains the authority to cancel the Certificate of Self-Insurance and self insurance status if the motor carrier fails to provide adequate financial responsibility as required in Vehicle Code section 34630.

Note: Authority cited: Sections 1651 and 34604, Vehicle Code. Reference: Sections 34630 and 34631, Vehicle Code.

s 221.10. Disbursement of Assignment.
(a) The assignment gives the Director the authority to disburse money from the principal and from the $5,000 set aside for administrative costs.
(b) The money shall be disbursed for the following purposes:
(1) A final unsatisfied judgment against the assignor, to the limits set forth in Vehicle Code section 34631.5, subdivision (a), paragraphs (1) and (2), for damages to or destruction of property (other than the property being transported by the carrier), or bodily injury or death to any person arising from the use or operation of a motor vehicle under the Motor Carrier Permit.
(2) Administrative costs incurred by the department to determine legal entitlement to all or a portion of the cash deposit(s) or savings account(s). Costs that exceed $5,000 shall be paid out of the principal.
(3) If the Director, the department, any of its officers or employees, or the State of California is a defendant in any action instituted to recover all or any part of the assigned account, or any action is instituted by the Director, the department, or the State of California to determine those entitled to any part of the account, the department shall be reimbursed for administrative costs from the account(s).

Note: Authority cited: Sections 1651 and 34604, Vehicle Code. Reference: Section 34630, Vehicle Code.

s 221.12. Termination of Assignment.
(a) A request for termination submitted on a Request to Terminate Self Insurance form [DMV 132 MCP (REV. 3/2001)] shall be deemed a termination of the assignment of the cash deposit(s) or savings account(s) and self-insurance status. The termination shall be processed at no charge.
(b) The Director shall release the money held by the assignment to the assignor seven years after the termination of the Motor Carrier Permit; or when acceptable proof of financial responsibility pursuant to Vehicle Code section 34630 is submitted to the department in the form of a Certificate of Insurance, [DMV 65 MCP (REV. 7/2002)] or a surety bond, [DMV 55 MCP (REV. 10/2003)]; or receipt of an incomplete Application for Motor Carrier Permit form [DMV 706 MCP (REV. 4/2003)] with no further activity. The Director may utilize his/her discretion and release the assignment before the seven-year period is complete when he/she is satisfied that there are no outstanding claims and unsatisfied final judgments against the motor carrier or former motor carrier. A judge of a superior court may order the return of the money held by the assignment prior to the expiration upon evidence satisfactory to the judge that there are no outstanding claims against the money held by the assignment.
(c) The assignment shall be released when the Director orders the assigned account(s) returned.

Note: Authority cited: Sections 1651 and 34604, Vehicle Code. Reference: Section 34630, Vehicle Code.

s 225.00. Definitions.
The following definitions shall apply to this article.
(a) The term "BPA" shall identify the Business Partner Automation Program.
(b) The term "BPA contract" shall be defined as an agreement between the State and a qualified private industry partner as authorized under Section 1685 of the Vehicle Code.
(c) The term "accountable inventory" shall be defined as inventory identified by a unique serial number that is assigned by the department. These items are the department issued license plates and year stickers. These items are at all times the property of the department.
(d) The term "controlled inventory" shall be defined as inventory that may impact the registration of vehicles and collection of fees. These items are the department issued computer DMV95A paper and month stickers. These items are at all times the property of the department.
(e) The terms "first-line business partner," "first-line service provider," and "second-line business partner" shall be defined as set forth in Section 1685(b)(1)(A) through (C) of the Vehicle Code. A business partner that acts as a registration service is subject to Chapter 2.5, Division 5 of the Vehicle Code unless otherwise exempt.
(f) The term "interface" shall be defined as the electronic exchange of information.
(g) A "change in legal structure" shall be defined as a change between sole owner, partnership, corporation, Limited Liability Company or other legal entity.
(h) The term "owner" shall be defined as sole owner, partner (except for limited partner), Limited Liability Company members, or private and public corporation shareholders with 10% or more interest in the corporation.

Note: Authority cited: Sections 1651 and 1685, Vehicle Code. Reference: Section 1685, Vehicle Code.

s 225.03. Application Requirements.
A business partner applicant shall complete all requirements and submit to the BPA Program Administrator the following:
(a) A business partner applicant shall complete, sign and submit an application form for the appropriate type of business.
(1) The application form for a first-line business partner is a Business Partner Automation Application, First-Line Business Partner form, REG 4024 (REV. 4/2005).
(2) The application form for a first-line service provider is a Business Partner Automation Application, First-Line Service Provider form, REG 4023 (REV. 4/2005).
(3) The application form for a second-line business partner is a Business Partner Automation Application, Second-Line Business Partner form, REG 4025 (REV. 4/2005).
(4) The application forms identified in Section 225.03(a)(1) through (3) of these regulations are hereby incorporated by reference.
(5) Each business partner owner shall be identified on the application form submitted pursuant to Section 225.03(a)(1) through (3) of these regulations.
(b) A business partner applicant shall pay a non-refundable application fee of three hundred and twenty-four dollars ($324) for its principal place of business and one hundred and thirty dollars ($130) for each site added with the application. Checks shall be made payable to the Department of Motor Vehicles. This fee shall be paid at the time the application is submitted. An application for a BPA contract shall be submitted via US mail or private courier to the following address: Department of Motor Vehicles, BPA Program Administrator, 2415 1st Avenue, MS E383, Sacramento, CA 95818.
(1) An application shall be valid for one year from the date the application is first received by the department. An applicant who fails to fulfill the requirements identified in this section within one year from the date the application is first received by the department must reapply and pay a new application fee.
(c) A business partner applicant shall provide the information required by the Business Partner Automation Program Information Security Pre-Implementation Checklist for First-Line Business Partner and First-Line Service Provider form, INV5555A (NEW 11/2002) or the Business Partner Automation Program Information Security Pre-Implementation Checklist for Second-Line Business Partner form, INV 5555B (NEW 11/2002) and in the BPA contract.
(d) A business partner applicant shall submit a photocopy of the completed and signed Request for Live Scan Service form, DMV8016 (Rev. 11/2002) in accordance with Section 225.06 of these regulations and a Statement of Personal History form, REG 4019 (Rev. 11/2002) for each owner and each employee. The Statement of Personal History form is hereby incorporated by reference. A business partner applicant shall submit the documents required by this section for all owners, managers, and administrative staff responsible for the oversight of the program or who manage, administer, supervise, or monitor transactions, inventory, employees, or money; order or account for inventory; and employees who process vehicle registration transactions or work directly with customers.
(1) A business partner applicant located out-of-state or with BPA site locations out-of-state shall submit fingerprints for each owner identified on the application form and each of its employees on a Fingerprint Card form, ADM1316 (Rev. 1/97) or on a Request for Live Scan Service form in accordance with Section 225.06 of these regulations.
(A) The Fingerprint Card form shall be submitted to a local law enforcement agency. After the local law enforcement agency completes the form, processes for fingerprints, and signs and identifies itself, the form shall be returned to the business partner owner or employee, who will submit the form to the BPA Program Administrator.
(B) The completed original fingerprint forms, along with a copy of the receipt from the local law enforcement agency for processing the form, a photocopy of each person's valid driver license or identification card issued by the state where the site is located, a completed and signed Personal History Statement form for each person, and the fee as authorized in Penal Code section 11105(e) for the Department of Justice (DOJ) fingerprint checks for each set of fingerprints shall be sent by trackable mail. Checks shall be made payable to the Department of Motor Vehicles.
(e) Fingerprints shall not be required when the person to be fingerprinted is a business partner owner who is currently an occupational licensee of the department and whose fingerprints have already been submitted to the department.
(f) The business partner applicant shall submit evidence of compliance with Section 225.09 of these regulations.
(g) A business partner applicant shall complete, sign and submit the Information Security and Disclosure Statement (Firm) form EXEC201X (REV. 3/2003), which is hereby incorporated by reference.
(h) A business partner applicant that is a registration service, a dismantler or a vehicle dealer licensed by the department shall submit a copy of the Occupational License form, OL 39 (REV. 7/2004) form as evidence of a valid occupational license. The form is hereby incorporated by reference.
(i) A business partner with BPA site locations out-of-state shall maintain an office in the State of California or designate a registered agent within the State of California for service of process.
(1) The identification of a registered agent within the State of California that is available for service of process shall be provided on an application form identified in Section 225.03(a)(1) through (3) of these regulations.
(j) The department will review a submitted application package and determine whether or not the application package is complete within thirty (30) days of the receipt of the application package as required by Section 225.03 of these regulations. After a determination has been made by the department; written notification shall be sent to the applicant inform the applicant that the application is complete and acceptable for filing or that the application is deficient and what specific information is required by the applicant. The department will review a complete application package and decide whether or not to enter into a BPA contract within ninety (90) days of receipt of the complete package.

Note: Authority cited: Sections 1651 and 1685, Vehicle Code. Reference: Sections 1652, 1653 and 1685, Vehicle Code.

s 225.06. Fingerprints.
(a) A business partner applicant shall submit fingerprints for business partner owners and employees located in California to a Live Scan facility for each person identified in Section 225.03(d) of these regulations. A copy of the Request for Live Scan Service form, DMV 8016 (Rev. 11/2001) shall be submitted for any and all persons being fingerprinted prior to participation in the BPA.
(1) The Request for Live Scan Service form shall contain the following:
(A) The typed or printed true, full name of the person fingerprinted.
(B) Any aliases used by the person fingerprinted.
(C) The birth date of the person fingerprinted.
(D) The birthplace of the person fingerprinted.
(E) The sex, height, weight, eye color and hair color of the person fingerprinted.
(F) The driver license or identification card number of the person fingerprinted and state of issue.
(G) The social security number of the person fingerprinted.
(H) The date the fingerprints are taken.
(I) The signature of the person taking the fingerprints.
(J) A statement that the Request for Live Scan Service form shall be for the purpose of determining approval to participate in the BPA.
(K) The home address and telephone number of the person fingerprinted.
(b) A business partner applicant shall submit fingerprints for business partner owners and employees located out-of-state for each person identified in Section 225.03(d) of these regulations to a Live Scan facility or to any local law enforcement agency. A Fingerprint Card form, ADM1316 (Rev. 1/97) shall be submitted for the person being fingerprinted prior to participation in the BPA.
(1) The Fingerprint Card form shall contain the following:
(A) The true, full name of the person fingerprinted.
(B) The signature of the person fingerprinted.
(C) The date the person is fingerprinted.
(D) The signature of the official at the local law enforcement agency taking the fingerprints.
(E) The name and address of the law enforcement agency performing the fingerprinting.
(F) Aliases (AKA) of the person fingerprinted.
(G) The driver license or state issued identification card number of the person fingerprinted.
(H) The sex, height, weight, eye color and hair color of the person fingerprinted.
(I) The birthplace of the person fingerprinted.
(J) The date of birth of the person fingerprinted.
(K) The social security number of the person fingerprinted.
(L) On the reverse side, the "Occupational Licensing Branch" box and "Other" box shall be checked and the notation "BPA" added to explain why the "Other" box is checked.
(M) The name of the business partner that is owned by or employs the person fingerprinted.
(N) The street address and city of the business partner that is owned by or employs the person fingerprinted.
(O) The position (title) in the business of the person fingerprinted.
(P) The street address and city of the person fingerprinted.

Note: Authority cited: Sections 1651 and 1685, Vehicle Code. Reference: Section 1685, Vehicle Code.

s 225.09. Financial Security Requirements.
(a) Every applicant for issuance or renewal of a business partner permit shall submit the bond required by Vehicle Code section 1685(b)(2)(C) to the department on a Business Partner Automation Surety Bond form, REG 866 (Rev. 4/2005), which is hereby incorporated by reference.
(1) The surety bond shall be valid for the term of its BPA contract plus three (3) months.
(2) A cash deposit as provided in Section 995.710 of the Code of Civil Procedure shall be acceptable in lieu of the surety bond.
(b) The amount of financial security required shall be as follows:
(1) A first-line business partner shall maintain a bond in the amount of six hundred and fifty thousand dollars ($650,000).
(2) A first-line service provider shall maintain a bond in the amount of one million dollars ($1,000,000).
(3) A second-line business partner processing new vehicle reports of sale, vehicle transfer, vehicle license fee (VLF) refund, salvage, junk, or nonrepairable vehicle transactions or any combination thereof shall maintain a bond in the amount of fifty thousand dollars ($50,000). A second-line business partner processing registration renewal transactions only shall maintain a bond in the amount of ten thousand dollars ($10,000).
(c) A business partner shall hold the State of California and any political subdivision thereof or any of its officers, agents, or employees harmless for monetary losses caused by the business partner's misuse of the information obtained from the department or obtained from customers for transactions processed by the business partner and secured by the bond.
(d) A rider for the surety bond may be accepted when adding processing transaction(s) to the surety bond.
(e) A business partner shall pay to the department monies collected by the business partner and due to the department, including any transaction fee imposed in regulation or statute by the State under Vehicle Code section 1685.
(f) A business partner shall reimburse the State of California, or any political subdivision thereof, for any loss or damage that the State of California, or any political subdivision thereof, may suffer by reason of any act of the business partner, its agents or employees arising out of or related to the business partner's duties, functions or obligations as a business partner, in any amount up to the maximum amount secured under the bond, when any of the following conditions occur:
(1) Information obtained from the department or customers by false or misleading representations while performing the duties, functions and obligations of a business partner.
(2) Information obtained from the department and customers and used for any purpose other than specified in the regulations or BPA contract.
(3) Any other act resulting in monetary losses being suffered by the State of California, any political subdivision of the State of California, or any of its officers, agents or employees arising out of or related to the duties, functions and obligations of a business partner.
(g) A cash deposit shall be released by the department five (5) years after the business partner ceases to do business in the BPA program or when the contract and permit expires and is not renewed and the department is satisfied that there are no outstanding claims and unsatisfied final judgments against the business partner arising out of or related to the duties, functions or obligations as a business partner.

Note: Authority cited: Sections 1651 and 1685, Vehicle Code. Reference: Section 1685, Vehicle Code.

s 225.12. Business Partner Contract.
(a) A business partner applicant shall sign the BPA contract prepared on a State of California, Standard Agreement form, STD213 (NEW 2/98) and executed in accordance with the Department of General Services requirements and the State Contracting Manual. (continued)