(a)
The Department of Motor Vehicles may cancel or revoke a distinguishing placard issued pursuant to Section 22511.55 or 22511.59 in any of the following events:(1)
When the department is satisfied that the placard was fraudulently obtained or erroneously issued.(2)
When the department determines that the required fee has not been paid and the fee is not paid upon reasonable notice and demand.(3)
When the placard could have been refused when last issued or renewed.(4)
When the department determines that the owner of the placard has committed any offense described in Section 4461 or 4463, involving the placard to be canceled or revoked.(5)
When the department determines that the owner of the placard is deceased.(b)
Whenever the Department of Motor Vehicles cancels or revokes a distinguishing placard, the owner or person in possession of the placard shall immediately return the placard to the department.
Source:
Section 22511.6, https://leginfo.legislature.ca.gov/faces/codes_displaySection.xhtml?lawCode=VEH§ionNum=22511.6..