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HomeVehicle CodeDiv. 5Ch. 3.5§ 11604 License Denial Grounds

§ 11604 License Denial Grounds

Vehicle Code·California
AI Summary·Official Text·Key Terms·Related Statutes·References
AI SummaryVerified

§ 11604 License Denial Grounds

This law says the government can refuse to give a special business license to people who have done bad things before, like not paying court orders, breaking license rules, or lying on their application.

Key Takeaways

  • •If you broke license rules before, you might not get a new one.
  • •Lying on your application means you won’t get the license.
  • •You must pay back money you owe, plus extra (10% interest per year), or you won’t get the license.
  • •Your business must be based in California to get this license.

Example

A person wants to open a car rental business but got their last license taken away for scamming customers.

The government can say no to their new license because they broke the rules before.

How to Calculate

Interest = Claim Amount × 0.10 × Years Late

  1. Find out how much money the person owes (the claim amount).
  2. Multiply that amount by 0.10 (which is 10%).
  3. Multiply the result by the number of years the payment is late.

Someone owes $1,000 and is 2 years late paying it back.

Result: $1,000 × 0.10 × 2 = $200 in extra interest

AI-generated — May contain errors. Not legal advice. Always verify source.

Official Source
View on CA.gov

§ 11604 License Denial Grounds

The department may refuse to issue a lessor-retailer license when it makes any of the following determinations: (a) The applicant has outstanding an unsatisfied final court judgment rendered in connection with an activity licensed under the authority of this division. (b) The applicant was previously the holder, or a managerial employee of the holder, of a license issued under this division which was revoked for cause and never reissued by the department, or which was suspended for cause and the terms of suspension have not been fulfilled. (c) The applicant was previously a business representative whose license issued under this division was revoked for cause and never reissued or was suspended for cause and the terms of suspension have not been fulfilled. (d) If the applicant is a business, a business representative was previously the holder of a license, or was a business representative of a business whose license, issued under this division, was revoked for cause and never reissued or was suspended for cause and the terms of suspension have not been fulfilled; or, by reason of the facts and circumstances related to the organization, control, and management of the business, the operation of that business will be directed, controlled, or managed by individuals who, by reason of their conviction of violations of this code, would be ineligible for a license and, by licensing that business, the purposes of this chapter would be defeated. (e) The applicant, or a business representative if the applicant is a business, has been convicted of a crime or committed any act or engaged in conduct involving moral turpitude which is substantially related to the qualifications, functions, or duties of the licensed activity. A conviction after a plea of nolo contendere is a conviction within the meaning of this section. (f) The applicant was previously the holder of an occupational license issued by another state, authorizing the same or similar activities of a license issued under this division; and that license was revoked or suspended for cause and was never reissued, or was suspended for cause, and the terms of suspension have not been fulfilled. (g) The information contained in the application is incorrect. (h) A decision of the department to cancel, suspend, or revoke a license has been made, and the applicant was a business representative of the business regulated under that license. (i) The applicant does not have a principal place of business in California. (j) The applicant has failed to pay the full amount of a claim paid by the Consumer Motor Vehicle Recovery Corporation, plus interest at the rate of 10 percent per annum, as described in subdivision (i) of Section 11703. (Amended by Stats. 2007, Ch. 437, Sec. 3. Effective January 1, 2008.)

Last verified: January 9, 2026

Key Terms

convictionjudgmentcorporationcrimeterminationclaimemployeevehicle

Related Statutes

  • § 2541 License Denial Grounds
  • § 10803 Altering Vehicle Identification Numbers
  • § 12110 Towing Service Kickback Ban
  • § 13351 Driver License Revocation Crimes
  • § 1677 Mature Driver Course Fees

References

  • Official text at leginfo.legislature.ca.gov
  • California Legislature. Vehicle Code. Section 11604.
View Official Source