(1) Pending a hearing pursuant to the Administrative Procedure Act of the Government Code commencing with Section 11500, the department may refuse to issue a new CA number or delete a CA number which has been already been issued to a legal entity that is owned or managed, in whole or in part, by an individual against whom the department, the Department of Motor Vehicles, or the Public Utilities Commission has an unresolved action, and, in the department's opinion, the individual's purpose in applying for the new CA number is to circumvent or thwart the action.

(1) If a person ceases operations in California or fails to notify the department of a change of address pursuant to Section 1233.5 of this title for three or more years, the department may consider the person inactive and may place the person's CA number in inactive status. If the person subsequently resumes operations in California. the person's inactive CA number and its associated carrier record shall be restored to active status. The person shall not be assigned a new CA number.

(2) If a person ceases operations in California, or fails to notify the department of a change of address pursuant to Section 1233.5 of this title for six or more years, the department may consider the person no longer to exist, or no longer subject to Section 34507.5 of the Vehicle Code, and may purge the CA number and its associated records from the department's record system. If the person resumes operations in California subsequent to the purge of the records, the person's original CA number shall not be restored, and the person shall be treated as a new applicant pursuant to section 1235.1.

(3) The department may delay purging an inactive CA number and its associated record from its automated system beyond the time frames in subsections (1) or (2) for any reason, and is not obligated to place a record in inactive status at any particular time.

(1) When a new partnership, corporation, or limited liability company is formed from former entities, some or all of whom held CA numbers, the resulting new organization is a new person and shall apply for a new CA number pursuant to Section 1235.1. The CA number of any former entity that no longer exists or no longer operates vehicles that would make it subject to Section 34507.5 of the Vehicle Code, may be placed in inactive status by the department.

(2) When a person acquires another person's business assets and will continue to operate as the same person he or she was prior to making the acquisition, as opposed to reorganizing as a new legal entity, that person shall retain his or her existing CA number and shall advise the department which terminals purchased from the former owner, if any, will be operated by the new owner. If vehicles described in Vehicle Code Section 34500 are to be operated from any of those terminals, the department will create new terminal records under the new owner's existing CA number for those terminals, and will place the terminals at those addresses that are under the former owner's CA number in inactive status.

(3) All vehicles acquired in the transaction that are the subject of Section 34507.5 of the Vehicle Code shall be remarked with the name or DBA name and CA number of that person pursuant to that section, Sections 27900 and 27901 of that code, and Sections 1256 or 1256.5 of this title.

(4) When ownership of a business operated as a sole proprietorship passes from one individual to another, including the passage of ownership between individual members of a family, the new owner is a different person and shall apply for a new CA number unless he or she already has one, in which case the transaction shall be treated as indicated in subsection (2).

(5) The new owner shall identify to the department the former entities that were acquired and that no longer exist as separate legal entities. In the case of acquisitions from an individual who will cease operations that would cause him or her to be subject to Section 34507.5 of the Vehicle Code, the new owner shall identify the former owner of the business or other organization to the department.

(6) If the new owner is a motor carrier as defined in Section 408 of the Vehicle Code, he or she shall identify which motor carrier terminals belonging to the former owner will continue to be operated as terminals of the new owner. If the new owner is subject to Section 34507.5 of the Vehicle Code solely because it is a motor carrier of property as defined in Section 34601 of the Vehicle Code, but is not a motor carrier as defined in Section 408 of the Vehicle Code, no business locations need be identified to the department except the new owner's principal place of business.

(1) When the original motor carrier or motor carrier of property continues to exist as the same legal entity, it shall retain the CA number it had before the division, pursuant to subsection (d)(2).

(2) When the original motor carrier or motor carrier of property reorganizes as a different entity type, or as the same type but a new legal entity, that entity shall apply for a new CA number pursuant to Section 1235.1.

(3) The portion of the original legal entity which has been separated and formed into a new legal entity shall apply for a new CA number pursuant to Section 1235.1.