(1) The Department of Transportation may cancel the registration or title or both of a vehicle if the department determines that:
(a) A holder is not entitled to the registration or title or both; or
(b) All fees applicable to a vehicle, payable to the department under any provision of law have not been paid.
(2) Before cancellation under this section, the department must give opportunity for a hearing upon 10 days’ notice. The department shall serve notice in a manner determined by the department by rule.