(a) The department may suspend, cancel, or revoke the registration of a vehicle or a certificate of ownership, registration card, license plate, or permit under any of the following circumstances:
(1) When the department is satisfied that the registration or the certificate, card, plate, or permit was fraudulently obtained or erroneously issued.
(2) When the department determines that a registered vehicle is mechanically unfit or unsafe to be operated or moved upon the highways.
(3) When a registered vehicle has been dismantled or wrecked.
(4) When the department determines that the required fee has not been paid and the same is not paid upon reasonable notice and demand.
(5) When a registration card, license plate, or permit is knowingly displayed upon a vehicle other than the one for which issued.
(6) When the registration could have been refused when last issued or renewed.
(7) When the department determines that the owner or legal owner has committed an offense under Sections 20 (with respect to an application for the registration of a vehicle), 4000, 4159 to 4163, inclusive, 4454, 4456, 4461, 4463, 5202, 10750, and 10751, involving the registration or the certificate, card, plate, or permit to be suspended, canceled, or revoked.
(8) When the department is so authorized pursuant to any other provision of law.
(b) The department may suspend the registration of all vehicles registered in the name of a person, under any of the following circumstances:
(1) When the United States Secretary of the Department of Transportation or his or her designee issues a lawful out-of-service order pursuant to Title 49 of the Code of Federal Regulations.
(2) When the department suspends or revokes a motor carrier of property permit.
(3) When the Public Utilities Commission suspends or revokes operating authority or private registration.
(c) A suspension imposed pursuant to subdivision (b) shall remain in effect and a vehicle for which registration has been suspended shall not be registered in the name of the person until the department verifies that person's federal registration, federal operating authority, California operating authority, California private registration, or motor carrier of property permit is reissued.
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