(a) A first-line business partner or first-line service provider 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 first-line business partner's or first-line service provider's and/or that provider's second-line business partner's misuse of the information obtained from the department or obtained from customers for transactions processed by the first-line business partner or first-line service provider and secured under the bond required by Section 225.09.

(b) A first-line business partner or first-line service provider shall pay to the department monies collected by the first-line business partner or first-line service provider and due to the department, including any transaction fee imposed in regulation or statute by the State under Vehicle Code section 1685.

(c) A first-line business partner or first-line service provider 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 first-line business partner or first-line service provider, its agents or employees or that provider's second-line business partners arising out of or related to the first-line business partner's or first-line service provider's duties, functions or obligations as a first-line business partneror first-line service provider, in any amount up to the maximum amount secured under the bond required by Section 225.09, when any of the following conditions occur: