(1) Except as otherwise provided in this section, an individual, before operating a commercial motor vehicle, shall obtain the required vehicle group designation as follows:

    (a) An individual, before operating a combination of motor vehicles with a gross combination weight rating or gross combination weight of 26,001 pounds or more, whichever is greater, inclusive of towed units with a gross vehicle weight rating or gross vehicle weight of more than 10,000 pounds, shall procure a group A vehicle designation on his or her operator’s or chauffeur’s license. Unless an endorsement or the removal of restrictions is required, an individual licensed to operate a group A vehicle may operate a group B or C vehicle without taking another test.

    (b) An individual, before operating a single vehicle having a gross vehicle weight rating or gross vehicle weight of 26,001 pounds or more, whichever is greater, including while towing a vehicle having a gross vehicle weight rating or gross vehicle weight of not more than 10,000 pounds, shall procure a group B vehicle designation on his or her operator’s or chauffeur’s license. Unless an endorsement or the removal of restrictions is required, an individual licensed to operate a group B vehicle may operate a group C vehicle without taking another test.

    (c) An individual, before operating a single vehicle or a combination of vehicles that fits the definition of small vehicle (group C) under 49 C.F.R. § 383.91(a)(3) shall procure a group C vehicle designation and a hazardous material or passenger vehicle endorsement on his or her operator’s or chauffeur’s license.

    (2) An applicant for a vehicle group designation shall take knowledge and driving skills tests that comply with minimum federal standards prescribed in 49 C.F.R. part 383 as required under this act and, beginning February 7, 2022, complete the entry level driver training described and required under 49 C.F.R. part 380.

    (3) The license must be issued, suspended, revoked, canceled, or renewed in accordance with this act.

    (4) Except as provided in this subsection, all of the following apply:

    (a) If an individual operates a group B passenger vehicle while taking his or her driving skills test for a P endorsement, he or she is restricted to operating only group B or C passenger vehicles under that P endorsement. If an individual operates a group B school bus while taking his or her driving skills test for an S endorsement, he or she is restricted to operating only group B or C school buses under that S endorsement. Except as provided in this section, beginning July 8, 2015, the secretary of state shall place on the commercial learner’s permit or commercial driver license the following restriction code as provided under 49 C.F.R. § 383.95 and 383.153: not valid to operate a group A passenger commercial motor vehicle.

    (b) If an individual operates a group C passenger vehicle while taking his or her driving skills test for a P endorsement, he or she is restricted to operating only group C passenger vehicles under that P endorsement. If an individual operates a group C school bus while taking his or her driving skills test for an S endorsement, he or she is restricted to operating only group C school buses under that S endorsement. Except as provided in this section, beginning July 8, 2015, the secretary of state shall place on the commercial learner’s permit or commercial driver license the following restriction code as provided under 49 C.F.R. § 383.95 and 383.153: not valid to operate a group A or group B passenger commercial motor vehicle.

    (c) An individual who fails the air brake portion of the written or driving skills test provided under section 312f or who takes the driving skills test provided under that section in a commercial motor vehicle that is not equipped with air brakes shall not operate a commercial motor vehicle equipped with air brakes. Except as provided in this section, beginning July 8, 2015, the secretary of state shall place on the commercial learner’s permit or commercial driver license the following restriction code as provided under 49 C.F.R. § 383.95 and 383.153: CDL not valid for vehicle with air brakes.

    (d) Except as provided in this section, beginning July 8, 2015, the secretary of state shall place on a commercial learner’s permit or commercial driver license the following restriction codes as provided under 49 C.F.R. § 383.95 and 383.153:

    (i) For a commercial learner’s permit:

    (A) No passengers in a commercial motor vehicle bus.

    (B) No cargo in a commercial motor vehicle tank vehicle.

    (C) Commercial motor vehicle operation with medical variance.

    (D) Commercial motor vehicle operation intrastate only.

    (ii) For a commercial driver license:

    (A) Not valid to operate commercial motor vehicle equipped with full air brakes.

    (B) Not valid to operate commercial motor vehicle equipped with manual transmission.

    (C) Not valid to operate a group A commercial vehicle tractor-trailer combination connected by fifth wheel.

    (D) Commercial motor vehicle operation intrastate only.

    (E) Commercial motor vehicle operation with medical variance.

    (5) An individual, before operating a commercial motor vehicle, shall obtain the following vehicle endorsements as provided under 49 C.F.R. § 383.93 and 383.153:

    (a) An individual, before operating a commercial motor vehicle pulling double trailers, shall obtain the appropriate vehicle group designation and a T vehicle endorsement under this act.

    (b) An individual applying for a commercial learner’s permit to operate an empty tank motor vehicle shall obtain the appropriate vehicle group designation and an N endorsement. An individual, before operating a tank motor vehicle, shall have on a commercial driver license the appropriate vehicle group designation and an N vehicle endorsement under this act.

    (c) Until February 6, 2022, an individual, before operating a commercial motor vehicle carrying hazardous materials on which a placard is required under 49 C.F.R. § part parts 100 to 199, shall procure the appropriate vehicle group designation and an H vehicle endorsement under this act. Beginning February 7, 2022, an individual, before operating a commercial motor vehicle carrying hazardous materials on which a placard is required under 49 C.F.R. § part parts 100 to 199, shall complete the entry level driver training described and required under 49 C.F.R. part 380 to procure the appropriate vehicle group designation and an H vehicle endorsement under this act.

    (d) An individual, before operating a tank motor vehicle carrying hazardous materials, shall obtain the appropriate vehicle group designation and both an N and H vehicle endorsement, which must be designated by the code letter X on the individual’s operator’s or chauffeur’s license.

    (e) An individual applying for a commercial learner’s permit to operate a passenger commercial motor vehicle that is not a school bus, as set forth in section 306a(2)(e), shall obtain the appropriate commercial vehicle group designation and a P endorsement. An individual, before operating a vehicle that is designed to transport 16 or more passengers including the driver but that is not a school bus must have on a commercial driver license the appropriate vehicle group designation and a P vehicle endorsement under this act. An applicant for a P vehicle endorsement must take the driving skills test in a vehicle designed to transport 16 or more passengers including the driver and, beginning February 7, 2022, complete the entry level driver training described and required under 49 C.F.R. part 380.

    (f) An individual applying for a commercial learner’s permit to operate a school bus designed to transport 16 or more passengers, including the driver, as set forth in section 306a(2)(e), who does not currently possess a P endorsement, shall obtain the appropriate vehicle group designation and pass the knowledge tests for both the P and S endorsements. An individual, before operating a school bus, must have on a commercial driver license the appropriate vehicle group designation and both the P and S vehicle endorsements under this act. An applicant for an S vehicle endorsement shall take a driving skills test in a school bus designed to transport 16 or more passengers, including the driver, that represents the same type of vehicle that the applicant intends to operate as a school bus and, beginning February 7, 2022, complete the entry level driver training described and required under 49 C.F.R. part 380.

    (g) An individual who currently possesses a P endorsement and is applying for a commercial learner’s permit to operate a school bus designed to transport 16 or more passengers, including the driver, as set forth in section 306(a)(2)(e), shall obtain the appropriate vehicle group designation and pass the knowledge test for the S endorsement. An individual who currently possesses a P endorsement, before operating a school bus designed to transport 16 or more passengers, including the driver, shall obtain the appropriate vehicle group designation, pass the knowledge test for an S endorsement, and obtain an S vehicle endorsement for his or her commercial driver license under this act. An applicant for an S vehicle endorsement shall take a driving skills test in a school bus designed to transport 16 or more passengers, including the driver, that represents the same type of vehicle that the applicant intends to operate as a school bus and, beginning February 7, 2022, complete the entry level driver training described and required under 49 C.F.R. part 380.

    (6) An applicant for an endorsement shall take the knowledge and driving skills tests described and required under 49 C.F.R. part 383 and, beginning February 7, 2022, complete the entry level driver training described and required under 49 C.F.R. part 380.

    (7) The holder of an unexpired operator’s or chauffeur’s license may be issued a vehicle group designation and endorsement valid for the remainder of the license upon meeting the qualifications of section 312f and payment of the original vehicle group designation fee of $25.00 and an endorsement fee of $5.00 per endorsement, and a corrected license fee of $18.00. An individual required to procure an F vehicle endorsement under subsection (9) shall pay an endorsement fee of $5.00.

    (8) Except as otherwise provided in subsections (9) and (10), this section does not apply to a driver or operator of a vehicle under all of the following conditions:

    (a) The vehicle is controlled and operated by a farmer or an employee or family member of the farmer.

    (b) The vehicle is used to transport agricultural products, farm machinery, farm supplies, or a combination of these items, to or from a farm.

    (c) The vehicle is not used in the operation of a common or contract motor carrier.

    (d) The vehicle is operated within 150 miles of the farm.

    (9) An individual, before driving or operating a combination of vehicles having a gross vehicle weight rating of 26,001 pounds or more on the power unit that is used as described in subsection (8)(a) to (d), shall obtain an F vehicle endorsement. The F vehicle endorsement must be issued upon successful completion of a knowledge test only.

    (10) An individual, before driving or operating a single vehicle truck having a gross vehicle weight rating of 26,001 pounds or more or a combination of vehicles having a gross vehicle weight rating of 26,001 pounds or more on the power unit that is used as described in subsection (8)(a) to (d) for carrying hazardous materials on which a placard is required under 49 C.F.R. § part parts 100 to 199, shall successfully complete both a knowledge test and a driving skills test. Upon successful completion of the knowledge test and driving skills test, the individual shall be issued the appropriate vehicle group designation and any vehicle endorsement necessary under this act.

    (11) This section does not apply to a police officer operating an authorized emergency vehicle or to a firefighter operating an authorized emergency vehicle who has met the driver training standards published under the firefighters training council act, 1966 PA 291, MCL 29.361 to 29.377.

    (12) This section does not apply to an individual operating a vehicle used exclusively to transport personal possessions or family members for nonbusiness purposes.

    (13) The money collected under subsection (7) for a vehicle group designation or endorsement must be deposited in the state treasury to the credit of the general fund. The secretary of state shall refund out of the fees collected to each county or municipality acting as an examining officer or examining bureau $3.00 for each applicant examined for a first designation or endorsement to an operator’s or chauffeur’s license and $1.50 for each renewal designation or endorsement to an operator’s or chauffeur’s license, whose application is not denied, on the condition that the money refunded must be paid to the county or local treasurer and is appropriated to the county, municipality, or officer or bureau receiving that money for the purpose of carrying out this act.

    (14) Notwithstanding any other provision of this section, an individual operating a vehicle described in subsections (8) and (9) is subject to the provisions of section 303 and 319b.

    (15) This state shall comply with the requirements of the American Association of Motor Vehicle Administrators’ AAMVAnet, Incorporated’s “Commercial Driver License Information System (CDLIS) State Procedures Manual” that the secretary of state determines are required for implementing and enforcing federal law.