A. As used in this section:

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(1)     “commercial driver’s license downgrade” means the division’s removal of the commercial driver’s license or commercial driver’s permit privilege from a driver’s license;

(2)     “commercial driver’s license drug and alcohol clearinghouse” means the federal motor carrier safety administration database that requires employers and service agents to report information to and to query regarding drivers who are subject to United States department of transportation controlled substance and alcohol testing regulations;

(3)     “qualified” means the passage of the drug or alcohol test; and

(4)     “not qualified” means a failure or refusal of the drug or alcohol test. B. The division shall request all commercial driver’s drug test results from the commercial driver’s license drug and alcohol clearinghouse that determine whether the commercial driver is qualified or not qualified as required by the federal motor carrier safety administration. Pursuant to this section, if a commercial driver’s drug or alcohol test results indicate that the commercial driver is prohibited from operating a commercial motor vehicle, the division shall refuse a request for:

(1)     issuance or renewal of a commercial learner’s permit or a commercial driver’s license;

(2)     an upgrade of a commercial learner’s permit to a commercial driver’s license; and

(3)     transfer of an out-of-state commercial driver’s license to this state.

C. The division shall request commercial driver’s license drug and alcohol clearinghouse records of an applicant for a commercial driver’s license at the time of application. Pursuant to this subsection, if the records indicate that the commercial driver’s license applicant is prohibited from operating a commercial motor vehicle, the division shall refuse to:

(1)     renew the commercial driver’s license or H endorsement; (2)     advance a commercial driver’s permit;

(3)     issue an upgrade of the commercial driver’s license to include an H endorsement; and

(4)     issue, renew, transfer or upgrade a non-domiciled commercial driver’s permit or commercial driver’s license.

D. The division shall downgrade a commercial driver’s license or commercial driver’s permit to a class D noncommercial license upon receiving a commercial driver’s license drug and alcohol clearinghouse record that indicates that a commercial driver’s license or commercial driver’s permit holder is prohibited from operating a commercial motor vehicle. The division shall complete the downgrade and enter it on the commercial driver’s license information system driver record within sixty days of the division’s receipt of the drug and alcohol clearinghouse record.

E. The division shall amend a driver’s eligibility to operate a commercial motor vehicle if the division finds that a condition resulting in a restriction on a commercial driver’s license or a commercial learner’s permit no longer exists or was erroneous. Pursuant to this subsection, the division shall:

(1)     terminate the commercial driver’s license downgrade process without removing the commercial driver’s license or commercial learner’s permit privilege from the driver’s license if the division finds that the commercial driver’s license or commercial learner’s permit holder is no longer prohibited from operating a commercial motor vehicle;

(2)     allow reinstatement of a commercial driver’s license or commercial learner’s permit privilege to the driver’s license of a downgraded driver record upon notification from the federal motor carrier safety administration that the driver is no longer prohibited from operating a commercial motor vehicle; or

(3)     reinstate a commercial driver’s license or commercial learner’s permit privilege to the driver’s license, expunge a commercial driver’s license downgrade from the commercial driver’s license information system driver record and, if applicable, expunge from the motor vehicle record any reference to prohibited status upon notice from the federal motor carrier safety administration that the driver was erroneously identified as prohibited from operating a commercial motor vehicle.