Section 227.12 - Certificate of Self-Insurance(a) A manufacturer may satisfy the requirement of Vehicle Code section 38750(b)(3) to provide evidence of financial responsibility as a precondition of conducting testing of autonomous vehicles on public roads by applying to the department for and being issued a certificate of self-insurance. The application shall be submitted on the Autonomous Vehicle Tester Program Application for Certificate of Self-Insurance, form OL 319 (REV 2/2017), which is hereby incorporated by reference.(b) The manufacturer shall also submit with the application audited financial statements reflecting a net worth of not less than five million dollars ($5,000,000) for the three year period immediately preceding the date of the application including, but not limited to, documents commonly known as balance sheets, profit and loss statements, explanatory notes or other documents which allow the department to determine the manufacturer's net worth.(1) When an applicant has not been in existence for three years prior to the date of the application, the department may accept a financial statement covering the period the applicant has been in existence.(2) The manufacturer shall submit an opinion of the financial condition of the manufacturer rendered by an independent certified public accountant, and not an employee or a person with a financial interest in the manufacturer, licensed to audit financial statements and render an opinion as to the subject's financial condition.(c) The department shall not permit a manufacturer to operate under a certificate of self-insurance if its net worth is less than five million dollars ($5,000,000), or if there are any outstanding unsatisfied final judgments against the manufacturer arising out of a motor vehicle collision.(d) The department shall review the application. If the application is incomplete or insufficient, the department shall notify the manufacturer of the incompleteness or insufficiency and provide the manufacturer with a reasonable opportunity to cure the deficiencies. If the application is complete and the manufacturer meets all requirements for issuance, the department shall issue the manufacturer a certificate reciting that the manufacturer has permission from the department to satisfy the requirements of Vehicle Code section 38750(b)(3) by self-insurance.(e) In the event the department receives information suggesting that the manufacturer no longer meets the requirements for permission to satisfy the requirements of Vehicle Code section 38750(b)(3) by self-insurance, the department may require additional evidence of the manufacturer's ability to respond to damage, and the manufacturer shall be required to provide additional evidence.(f) The department may cancel a certificate of self-insurance for any of the following reasons: (1) The holder of the certificate has not provided the additional evidence required by subdivision (e).(2) Inability, refusal or failure of the holder of the certificate to submit financial statements and supporting documentation as required by subdivision (b).(3) The submission of fraudulent or incomplete documents.(g) Any suspension, revocation, or other involuntary termination of the permission to satisfy the requirements of Vehicle Code section 38750(b)(3) shall be subject to the hearing requirements provided in these regulations for the suspension or revocation of permits or authorizations under Vehicle Code section 38750.Cal. Code Regs. Tit. 13, § 227.12
1. New section filed 5-19-2014; operative 9-16-2014 pursuant to Vehicle Code section 38750(f) (Register 2014, No. 21).
2. Renumbering of former section 227.12 to section 227.14 and renumbering of former section 227.14 to section 227.12, including amendment of subsections (a) and (c) and new subsection (g), filed 2-26-2018; operative 4-1-2018 (Register 2018, No. 9). Note: Authority cited: Sections 1651 and 38750, Vehicle Code. Reference: Sections 16053 and 38750, Vehicle Code.
1. New section filed 5-19-2014; operative 9/16/2014 pursuant to Vehicle Code section 38750(f) (Register 2014, No. 21).
2. Renumbering of former section 227.12 to section 227.14 and renumbering of former section 227.14 to section 227.12, including amendment of subsections (a) and (c) and new subsection (g), filed 2-26-2018; operative 4/1/2018 (Register 2018, No. 9).