ARTICLE 5. Denial, Suspension and Revocation [2540. - 2549.]

Cal. Vehicle Code - VEH 5.

in effect

Cal. Vehicle Code - VEH § 2540. Section 2540.

Any license issued may be suspended or revoked by the commissioner. The commissioner may refuse to issue a license to any applicant for the reasons set forth in Section 2531 or 2541. The proceedings under this article shall be conducted in accordance with Chapter 5 (commencing with Section 11500) of Part 1 of Division 3 of Title 2 of the Government Code, and the commissioner shall have all the powers granted therein.

Cal. Vehicle Code - VEH § 2541. Section 2541.

(a) The commissioner may deny a license if the applicant or any partner, officer, or director thereof: (1) Fails to meet the qualifications established by the department pursuant to this chapter for the issuance of the license applied for. (2) Was previously the holder of a license issued under this chapter which license has been revoked and never reissued or which license was suspended and the terms of the suspension have not been fulfilled. (3) Has committed any act which, if committed by any licensee, would be grounds for the suspension or revocation of a license issued pursuant to this chapter. (4) Has committed any act involving dishonesty, fraud, or deceit whereby another is injured or whereby the applicant has benefited. (5) Has acted in the capacity of a licensed person or firm under this chapter without having a license therefor. (6) Has entered a plea of guilty or nolo contendere to, or been found guilty of, or been convicted of, a felony, or a crime involving moral turpitude, and the time for appeal has elapsed or the judgment of conviction has been affirmed on appeal, irrespective of an order granting probation following such conviction, suspending the imposition of sentence, or of a subsequent order under the provisions of Section 1203.4 of the Penal Code allowing such person to withdraw his plea of guilty and to enter a plea of not guilty, or setting aside the plea or verdict of guilty, or dismissing the accusation or information. (b) The commissioner may also deny a license if a corporation is the applicant and the policy or activities of the corporation are or will be directed, controlled, or managed by individuals or shareholders who are ineligible for a license, and the licensing of that corporation would likely defeat the purpose of this section.

Cal. Vehicle Code - VEH § 2542. Section 2542.

The commissioner may suspend, revoke, or take other disciplinary action against a license as provided in this article if the licensee or any partner, officer, director, controlling shareholder, or manager thereof: (a) Violates any section of this code which relates to his or her licensed activities. (b) Is convicted of any felony. (c) Is convicted of any misdemeanor involving moral turpitude. (d) Violates any of the regulations promulgated by the commissioner pursuant to this chapter. (e) Commits any act involving dishonesty, fraud, or deceit whereby another is injured or any act involving moral turpitude. (f) Has misrepresented a material fact in obtaining a license. (g) Aids or abets an unlicensed person to evade this chapter. (h) Fails to make and keep records showing his or her transactions as a licensee, or fails to have these records available for inspection by the commissioner or his or her duly authorized representative for a period of not less than three years after completion of any transaction to which the records refer, or refuses to comply with a written request of the commissioner to make such record available for inspection. (i) Violates or attempts to violate this chapter relating to the particular activity for which he or she is licensed. (j) Fails to equip or maintain his or her vehicles, as required by this code or by the regulations adopted pursuant to this code.

Cal. Vehicle Code - VEH § 2543. Section 2543.

A plea or verdict of guilty or a conviction following a plea of nolo contendere is deemed to be a conviction within the meaning of this article. The commissioner may order the license suspended or revoked, or may decline to issue a license, when the time for appeal has elapsed, or the judgment of conviction has been affirmed on appeal, or when an order granting probation is made suspending the imposition of sentence, irrespective of a subsequent order under the provisions of Section 1203.4 of the Penal Code allowing such person to withdraw his plea of guilty and to enter a plea of not guilty, or setting aside the verdict of guilty, or dismissing the accusation, information or indictment.

Cal. Vehicle Code - VEH § 2544. Section 2544.

The commissioner may take disciplinary action against any licensee after a hearing as provided in this chapter by any of the following: (a) Imposing probation upon terms and conditions to be set forth by the commissioner. (b) Suspending the license. (c) Revoking the license.

Cal. Vehicle Code - VEH § 2545. Section 2545.

Upon the effective date of any order of suspension or revocation of any license governed by this chapter, the licensee shall surrender the license to the commissioner.

Cal. Vehicle Code - VEH § 2546. Section 2546.

The expiration or suspension of a license by operation of law or by order or decision of the commissioner or a court of law, or the voluntary surrender of a license by a licensee shall not deprive the commissioner of jurisdiction to proceed with any investigation of or action or disciplinary proceedings against such licensee, or to render a decision suspending or revoking such license.

Cal. Vehicle Code - VEH § 2547. Section 2547.

All accusations against licensees shall be filed within three years after the act or omission alleged as the ground for disciplinary action, except that with respect to an accusation alleging a violation of subdivision (f) of Section 2542, the accusation may be filed within two years after the discovery by the California Highway Patrol of the alleged facts constituting the fraud or misrepresentation prohibited by said section.

Cal. Vehicle Code - VEH § 2548. Section 2548.

When any license has been revoked or suspended following a hearing under the provisions of this chapter, any additional license issued under this chapter in the name of the licensee may be likewise revoked or suspended by the commissioner.

Cal. Vehicle Code - VEH § 2549. Section 2549.

After suspension of the license upon any of the grounds set forth in this article, the commissioner may reinstate the license upon proof of compliance by the applicant with all provisions of the decision as to reinstatement. After revocation of a license upon any of the grounds set forth in this article, the license shall not be reinstated or reissued within a period of one year after the effective date of revocation.

Source: CA Legislative Counsel Bulk DataURL: https://downloads.leginfo.legislature.ca.gov/pubinfo_2025.zipFetched: 6/27/2026