34640.  (a) A motor carrier permit shall not be granted to any motor
carrier of property until one of the following is filed with the
department:
   (1) A certificate of workers' compensation coverage for its
employees issued by an admitted insurer.
   (2) A certification of consent to self-insure issued by the
Director of Industrial Relations, and the identity of the
administrator of the carrier's workers' compensation self-insurance
plan.
   (3) A statement, under penalty of perjury, stating that, in its
operations as a motor carrier of property, it does not employ any
person in any manner so as to become subject to the workers'
compensation laws of this state.
   (b) The workers' compensation certified under paragraph (1) of
subdivision (a) shall be effective until canceled.  The insurer shall
provide to the motor carrier of property and to the department a
notice of cancellation not less than 30 days in advance of the
effective date.
   (c) If, after filing the statement described in paragraph (3) of
subdivision (a), the carrier becomes subject to the workers'
compensation laws of this state, the carrier shall promptly notify
the department that the carrier is withdrawing its statement under
paragraph (3) of subdivision (a), and shall simultaneously file the
certificate described in either paragraph (1) or (2) of subdivision
(a).
   (d) Whenever the department determines or is notified that the
certificate of workers' compensation insurance or certification to
self-insure a motor carrier of property will lapse or be terminated,
the department shall suspend the carrier's permit effective on the
date of the lapse or termination, unless the motor carrier provides
evidence of valid insurance coverage pursuant to subdivision (a).  If
the carrier's permit is suspended, the carrier shall pay a
reinstatement fee as set forth in Section 34671, and prior to
conducting on-highway operations, present proof of valid insurance
coverage pursuant to subdivision (a) in order to have the permit
reinstated.