Bureau of Automotive Repair Advisory Group Meeting – April 18, 2019

Bureau of Automotive Repair Advisory Group Meeting – April 18, 2019


good morning welcome to our second bar advisory group meeting for calendar year 2019 my name is Patrick gray I’m the chief of the Bureau of automotive repair and I want to welcome everyone to today’s meeting we have a really busy agenda and it’ll be a challenge to get through it today but I I suspect that we’ll all be courteous of the time constraints and won’t have most likely at time for a break so we’ll just plow through all of the the various presentations we’ll definitely have time for questions and answers after each presentation but yes we do have a very busy agenda I I can’t believe the great weather we’re having here today and it’s been it’s been a long time coming so well I hope you enjoy after we finished today our meeting and get a and during the break between our meeting and our workshop later today get some time to enjoy some lunch maybe out in the sunshine before we get started we’ll go around the room and into the bar advisory group members will introduce themselves and then we’ll kick it off with our first presenter shortly after that start on this end hi Megan mckernon Automobile Club of Southern California Dritz California automotive teachers Jack Mladenov on behalf of the California Auto Body Association Ruben Parra California automotive teachers I’m Dave kusa automotive service council of California Luana Polsky California – dealers association John gallo California automotive business coalition years Jeff Cox the automotive maintenance repair Association Christy Babb automotive oil change Association and Bryan Moss with a California new car dealers association well we have filled all of the seats up here sorry Brian you’re in that actually if you want to join us I got a play I got a bug in for you men in the penalty box hockey playoffs are started so yeah what I should have mentioned at the outset is that we are having this meeting webcast correct as we always do and the meeting and participants who want to join us and have questions or comments and participate that route can do so send us an email at bar meeting hey dot ca.gov is that correct bar meeting all one word at DC AC a govt lastly I want to mention that we have always strive strive striven I don’t we always worked diligently to make sure that our presentations in advance of the meeting get posted to our website unfortunately that was not possible this time we did send all of the presentations out to the bar Advisory Group members after the presentations or excuse me after today’s meeting we’ll have all the presentations posted to our website that is in large part due to some changes that are going on right now to bring our website into compliance with certain ad a requirements by July 1st I believe we’re all boards and bureaus will need to certify that their websites are in compliance so we’re in the midst of transitioning or making sure that all of our content on our website is in compliance with that new legislation one of the things that’s a challenge then of course is oftentimes after we’ve presented here at our meeting there are some minor changes no content-related changes but typos and things like that to some of the some of the presentations that we like to clean up and repost well that becomes a challenge when we are constantly having to post multiple we would be under this new law posting both versions of those documents and it’s a lot of work so we would prefer to do that just once and so I think at least for the foreseeable future we’ll try to get the presentations posted on or shortly after the day of the meeting in advance it will be a challenge will will continue to work towards that goal but that’s that is what we are transitioning into right now and that’s why many of the presentations weren’t available and aren’t available and won’t be until after today’s meeting all right let’s proceed I want to introduce Karen Nelson with the directors office she is the assistant deputy director with the office of board and bureaus services did I get that all right you did it for the first time ever thank you for always promoting me and your your other meetings where I am good morning Karen Nelson assistant deputy director with office of board and Bureau services with the Department of Consumer Affairs chief Jay advisory group members thank you again for always allowing us an opportunity to provide some brief updates about the department and some activities we’ve done it over the past couple of months and I’d like first to start with technology Technology Advisory Council on March 7th the Department hosted its first Technology Advisory Council meeting led by deputy director of information services Jason pitoni the council will discuss trends in technology and government and provide guidance and general direction to our innovative efforts here at DCA the Technology Advisory Council will recommend we’ll recommend strategies about direction and proposed enterprise computing information technologies and we’ll also make recommend about policies consistent with the goals and objectives of DCA for proper use of computing resources I’m continuing on with our technology theme wanted to share with you all the DCA is open data portal back in January DCA’s Office of Information Services announced the launch of DCs open data portal it’s a publicly accessible one-stop-shop for our license licensing statistics and information where users can see trends and changes in licensing data going back about three years which can be filtered by individual board and bureau and even by individual license type this month o is data governance team announced the incorporation of not only licensing but also enforcement and application data into this open data portal and the infirm enforcement section users can access information on the number of complaints received and referred for investigation also available as data on case aging including cases that end with or without disciplinary action in the application section users can access information on average application processing time and initial exams as well as processing times for incomplete applications all in all the open data portal does provide us with customizable ways to access this data and analyze it for our boards and bureaus many of our programs are now using this as a way to really visualize and present to their members about what’s currently happening with their processing times and I do encourage you all to take a look at this new resource which is now available on the DCA website under the tab called data next I’d like to provide an update on the future leadership development program in May this year’s cohort consisting of eight individuals will be graduating and celebrating their accomplishments this year’s cohort have been working very hard for this moment for the past eight months in the eight months participants have worked with their mentors heard from executive officers and board members regarding pertinent qualities and characteristics of executive leadership and completed a team project that directly impacts CCA as a whole and networked with various stakeholders all to reach a better understanding of what it’s like to be an executive level leader again I want to acknowledge mr. Matthew Gibson which I believe is in the audience today there you go who is currently a part of this year’s cohort and again thank you for chief DeRay for your commitment to this program and being a mentor to our attendees and that concludes my department update for today and thank you again for your work and your partnership thank you so much Karen do we have any comments or questions okay thank you again oh we do have one from the audience mr. Peters yes hello my name is Charlie Peters clean air performance professionals and sometimes I start a conversation by indicating that I’m confused and this is into one of those cases that there’s been a couple of items that we perceive that there could be significant improvements in our business and air quality efforts in California with two fairly simple addition one being an absolutely observation of the emissions label with something entered into the smog machine indicating something relating to engine family or something that that could have something to do with warranty overtime another issue is something that it’s software that’s part of this the system where a pro car has failed a previous test within it within a certain time frame that there’s nothing to the to the technician providing the service and our original proposal on that which was incorporated in a letter to the governor and the entire legislature signature required quite a number of years back was under Wilson to give you an idea that we feel to significantly improve the performance of this might check program the combination of the two in our opinion has was possibility of doubling the effectiveness the performance of the smog check program pretty rapidly with a very minimal cost the only thing that’s different about our car that previously failed the our proposal and the implementation are different in that technician is provided notice before any information and smog check is entered in the Machine and we think it should be after all the information has been entered providing flexibility to abort the test fix the car or do anything total flexibility to to change the outcome but all the entries are made and we think that the cars are decided to go ahead small percentages those I’d have to go the referee and be reviewed by somebody from the Bureau of automotive repair as well referee and that audit process and the awareness of the warranty possibilities we think can make a very significant impact on the air quality and performance of the system and the survivability I’m still confused we don’t seem to have any ability to get that accomplished I guess because I’m not smart enough so I just wondered if there was any kind of an update on that possibility and by the way this has gone to the directors position and the previous director and but we seem to always seem to fall down before we get anything actually accomplished and we think that the implementation has a possibility of being reasonably simple and inexpensive to do well thank you for the comments I don’t have an update prepared on the spur of the moment right now but we certainly can have a discussion offline about any updates that have happened and and even provide any information relative to your question at our next meeting thank you can I fail to do a something that I want to make sure that I continue to do but I am kind of disjointed here getting kicking this off this morning I wanted to introduce my executive office team Shelly Whittaker every chief of our administrative division clay leak with our engineering and technology services branch is dead I thought I saw Doug Doug body in the back there Doug assistant chief thank you and I didn’t see till just now I had a script for the reason why the presentations aren’t yet available and I’ll just read it the final web cast and PowerPoint presentation slides for today’s meeting will be posted on bars bar Advisory Group web page by early next week the final presentation slides will include any updates identified during the meeting and will be made available in a format that’s compliant with ex accessibility requirements that were recently implemented by the Department of Consumer Affairs pursuant to government code section one one five four six point seven there you have it and then lastly I wanted to acknowledge publicly our announcement of our director mr. Dean graffito who is going to be leaving the department he announced that he would be leaving probably about a month ago to all of us says all of us bureau chiefs and board executive officers and is he’s the executive office team about a month ago his last day is tomorrow I have thoroughly enjoyed working with him he has been so easy to have a very positive relationship and been Vinh been so supportive of me and the Bureau of automotive repair and this department is really going in a tremendous positive direction and I can’t thank him enough for his leadership it will be missed and we wish him well yeah it is not a bit available publicly yet where he will be moving on to but wherever that is I’m sure he’ll have much success he has done a tremendous job kicking off getting up established the Cannabis Bureau here at the Department of Consumer Affairs in just two short years he’s just barely over two years that was a huge undertaking as well as kicked off an a number of initiatives internally that have helped streamline business processes for all of us boards and bureaus and I just want to publicly say that I’ve enjoyed so much the working relationship with him and his leadership and we wish him well all right having done all the things I should have done at the outset and I’m just now completed that we’ll move on to our legislation and regulations update from Holly O’Connor who was just congratulations are in order just recently promoted to our senior regulations coordinator position you were the junior now you’ve elevated yourself to the senior position with the departure of Brian Clark in the last month or two and that vacancy was available and so happy to see you and your maturity and your transition into this new position you have done a remarkable job in just six months or so on this on this job and with the bureau so congratulations that now means we still have another vacancy to fill but we will do that take care of that in short order but congratulations and welcome to today’s meeting thank you very much good morning everyone I’m Holly O’Connor and I’ll be providing the legislation and regulations update today beginning with legislation I will provide a brief overview of pending bills that may be of interest to the industry and on the regulatory side I will provide an update on bars pending regulatory packages beginning with legislation there are ten bills that I will be reviewing starting with a B 142 this bill would increase the manufacturer fee on lead acid batteries from $1 to $2 currently it’s with the Appropriations Committee and there is no hearing scheduled a B 161 deals with electronic proofs of purchase beginning in 2022 a B 161 would require that a receipt or proof of purchase for goods or services be provided electronically unless a consumer specifically request that it be in paper form a b210 would exempt all motor vehicles including diesel-powered vehicles manufactured prior to the 1983 model year from the smog check program currently vehicles manufactured prior to the 1976 model year are exempt a B 390 deals with fix-it tickets for noise violations California Vehicle Code requires that all vehicles be equipped with an adequate muffler to prevent excessive exhaust noise and last year a v1 eight-to-four passed which changed the way that noise citations work and as of January 1st of this year fix fix it tickets are no longer issued for these noise violations this bill however would revert that and allow the issuance of a fix-it ticket rather than an automatic fine a B 755 increases the California tire fee currently the fee is $1 in 75 cents 75 cents of which goes to the air pollution control fund this bill would increase the tire fee by a dollar 50 bringing it to 325 and that additional dollar 50 would go to the stormwater permit compliance fund and would make the money available to the State Water Resources Control Board a B 949 deals with unsafe tires this bill would prohibit an automotive repair dealer from installing an unsafe used tire on a motor vehicle for use on a highway this would not apply to a tire that is temporarily removed from a vehicle and reinstalled on the same vehicle a B 1 3 5 9 would require the California Highway Patrol to convene an advisory working group that includes representatives from the California Highway Patrol the towing industry the insurance industry and other stakeholders to study the feasibility of developing and maintaining a registry of towing companies operating in California and this advisory group would be required to report its findings and read nations to the assembly and Senate committees on transportation by May 1st 2021 and this bill is currently with the Transportation Committee a b15 3:8 deals with insurance collision coverage existing law requires an insurer issuing a policy for comprehensive coverage for a motor vehicle to make the payment in a specified manner and this bill would make that requirement apply to a policy for automobile call physical damage coverage instead of comprehensive coverage and would state that these provisions do not limit the right of an insured to select the auto body repair shop or repair facility of their choice or decide not to have the vehicle repaired um this bill would prohibit and insurer from withholding payment of reasonable repair cost benefits that are payable under the policy if the insured decides not to have the vehicle repaired this bill was ordered to the Senate on April 11th Senate bill 59 deals with automated vehicles and would establish state policy relating to automated vehicles to ensure that these vehicles support the state’s efforts to reduce greenhouse gas emissions and encourage efficient land use this bill requires the office of planning and research in coordination with the state Air Resources Board to convene an automated vehicle interagency working group to guide policy development for automated vehicle technology SB 460 beginning in 2020 would authorize the DMV to establish a biennial registration period for a vehicle rather than the current annual registration period so that’s it for legislation does anyone have questions at this point Jack I thank you for that report Jack Mladenov I have a question on a B 161 that is the ting bill that prohibits businesses from providing paper receipts that’s except unless the consumer Quest’s the receipt now the bill was recently amended and it included an exemption for invoices the language in there in my opinion is broad enough to cover all the documents and paperwork that auto repair dealers provide including the estimate the repair order and the invoice and I guess my question is and I know you probably is whether what is the opinion of the BER does that exempt the auto repair dealers paperwork does that amendment exempt at this point I’m not sure about that but we’ll definitely figure that before the next well then that’s what the intent is but I wanted at least raise it here just to make sure that the BR believes or is consistent with you know what I think the industry thinks that is exempt from this bill okay thank you thank you you know well we’ll take a look at that wasn’t aware that that amendment had occurred with the bill will definitely bring it up with our legal counsel and internal discussions as well I haven’t seen that language so thank you for bringing that up other comments or questions yeah Rubin do you know what the outcome was from Senate bill 59 apparently was on it went to hearing on April 9th it’s currently with the Environmental Quality committee but there’s no hearing scheduled so he was moved to but it passed out of Transportation Committee were there any amendments or anything that do we know there were no other amendments yeah move forward to another committee what was the committee it’s with the Environmental Quality Quality committee their questions comments you can see some of the accessibility requirements that I referenced to that government code larger font we will not it’ll be difficult for us to have graphs and charts on presentations I don’t know how we’ll display those sorts of information that typically appear in our presentations but that is one of the challenges that we are working on right now with all of our current content on our website and you certainly can see a standardized template of our presentation much bigger font easier to read certainly all right Charlie Peterson Charlie Peters clean air performance professionals I found the automated vehicle technology bill interesting that’s possibly electric self-driving autonomous vehicles and wondered if there is any possibility of a consideration of issues I just brought up with the test procedures of the entering end of the machine something relating to marking issues to provide some identification to awareness of the technician as well as the system and the second issue is there we have a very strong opinion that a waiver of the requirements for ethanol in the gasoline that significantly improve the global warming issues in the state of California and that also as some possibility of incorporating that in this bill to deal with issues of global warming I was even more effective than its being proposed I thank you for the comments like I suspect that Senator Allen would be interested in some of the comments that you have raised I do want to point out that we are looking at and maybe it would be time for a presentation before the end of the year on some things to incorporate into the smog inspection to identify for the vehicle owner outstanding warranty related items that’s something we’ve been working on so let’s think about maybe a presentation coming up before the end of the year on on that and the efforts that are underway Thank You charlie any other comments questions okay regulations portion of your presentation okay the first regulatory package I’ll be reviewing is the Star program clean up the star program regulation package has three purposes the first is to delete outdated gold shield program provisions the second is to amend star eligibility criteria and the third is to revise the star suspension process to be consistent with statute Barr receives suggested edits from DCA legal and resubmitted the revised package to DCA on March 1st of this year sorry and once DCA has completed their review borrower will file with oal to begin the 45-day public comment period the licensing forms regulatory package has three purposes increasing the bureau’s application review time if an application contains discrepancies or if the physical address where businesses to be conducted was subject to prior disciplinary action or is subject to a pending administrative action this package also unincorporated licensing application forms and lists the application components in regulation and it adds substantial relationship criteria for criminal convictions pursuant to assembly bill 21:38 that was signed by the governor last year Barr submitted this regulation package to DCA legal for informal review On February 15th of this year and once the informal review is complete we will submit it for formal review next is the training provider requirements the purpose of this package is to make requirements for certification of smog check smog check training providers consistent with current licensing requirements also to authorize training for compliance with laws and regulations and make conforming changes to disciplinary guidelines this rulemaking package was minute to DCA and it is back with Barr and we are currently working on revisions once those revisions are complete we will file with oal to begin the 45-day public comment period the purpose of the break in lamp stations and adjusters package is to revise ID numbers for station and adjuster licensing applications license renewal and equipment requirements handbooks providing procedures related to the inspection of Rankine lamp systems and issuance of breaking lamp certificates and the break and lamp certificate of adjustment and compliance also it will eliminate the gross vehicle weight rating restriction of vehicles to be inspected and certified by Class C stations this package was also submitted to DCA and bars currently revising it based on DCA’s preliminary review once we’re finished with those revisions we will resubmit it to DCA for a formal review the purpose of the repair assistance package is to increase smog check repair assistance participation by providing higher repair contributions based on vehicle model year reducing pre repair diagnostic fees for low-income vehicle owners and to remove unnecessary eligibility restrictions pertaining to vehicle registration and this package actually was just submitted to d c– a legal yesterday afternoon so we were excited about that and wants to receive it back we will make the appropriate edits and submit to DCA for formal review any questions regarding the regulatory packages Jack yeah Jack ma ladawna the certified training reg yeah I know that’s one that we’ve been working on for quite a few years now so you said the next steps you’re revising it again we are um we’re working on closing some loopholes and modifying the text a little bit to make it stronger what’s the time frame for your revisions um it’s kind of hard to say but hopefully we’ll have it back to DCA within the next couple of months so you revise it and then send it back to DC yes node respect the dca but it seems like it’s a black hole when it goes back there you know we’ve been working on this since it’s been on quite a few years it’s been over five years six years yeah over half a decade and I know I’ve been raising this issue over and over again so when do you how long will it take now with DCA what’s your anticipation after you revise that it goes back to DCA then they review it then it comes back to you and then potentially additional revisions potentially hopefully not but potentially yes what’s your best estimate when this is going to be submitted to the office administrative law um I really don’t have a solid estimate that I could give right now it just depends on you know how quickly it moves through DCA and how many are the revisions extensive no there’ll be technical or they substantive you substantive but mostly technical but there are a couple subsystems changes that we are working on okay thank you I don’t I don’t recall were there changes that were made to the training requirements as far as the ability to have training provided on laws and regulations and things like that that would be helpful with court-ordered decisions or even stipulated agreements with in some of our cases is that still in that I the proposed changes I haven’t seen yet they’re working on them who’s they you mean DCA no oh okay you haven’t seen him okay yeah okay I think that’s still in there that was one of the central points of that legislation a regulation package yeah being removed so yes mr. Ritz George just a comment that if this requires changes in curriculum for the schools that are providing training yeah that’s a year long process to so I don’t believe that’s a the subject of this break package it was to align it with our current licensing requirements that was the central focus of this package in addition I wanted to make sure that we were able to point to using the the old saying if you build it they will come if we have something that points to the ability for those in the industry potentially have been disciplined to obtain training as part of an action on legislation and regulation requirements and the and the laws that they’re to abide by that would be helpful and we would potentially have programs developed focused on that outside of the small program of course yeah timeline certainly and that will but there is there are no requirements of specific courses relative to laws and regulations training I think we’re not putting any our mandated hours or anything like that together that will be kind of a marketplace decision of the industry you know the training industry in particular didn’t look this way no it looks like we’re good thank you very much I did someone texted me I’m not sure who it came from it’s a 209 area code but it did say SB I’m sure why we didn’t have the latest version of your presentation but SB 59 was last amended on for one April 1st night 2019 passed out of committee on transportation to the Committee on Environmental Quality on April 10 so it apparently was amended I’m not sure if we had that information but I don’t know there seems to be a discrepancy on that but I encourage everyone do can you go back to the slide that has where to find all of the latest information one of the things it’s with with this presentation in particular is trying to it’s a lot like especially in this time of year it’s a lot trying a lot like trying to hit a moving target okay can you go to the slide that shows where to where everyone can go get the latest and greatest information on any of these bills all that was taken off can you then announce where we I would not have I wouldn’t supported that decision but okay and that was Bill who texted me thanks Bill ledge info that’s the ADA no I can look and then we’ll get it to but everyone by the end of the meeting sorry it’s usually up there and it has a actually there was a disclaimer on there that said this information may not be as current as the because the bill process in the legislative process and is what it is and it’s constantly moving so you know I want that try to get that back on our presentation as if possible yeah okay Thank You Holly all right back by popular demand our kal Vista team Eric Schwartz from SGS Tesco and clay leek bar executive office welcome looks like we’ve reversed the order here Eric it looks like you’re going first maybe does that mean I have all the good news then absolutely absolutely I am told yes welcome all right good Thank You chief – right good morning everyone – the bar board and yes actually we do have a lot of good news look at that get rid of it all quickly there so since we are I was last in front of you in January we’ve actually had a lot of progress on the kal Vista project in that time we have actually completed all of the production stages to complete the cutover of the smog inspection system from the legacy environment to the new calvess environment that’s located at CDT RC so what that means now is the smog inspection system is a hundred percent running and fully functional in the new environment on the new hardware at CDT RC and that cutover was completed without any impact or notice to any of the inspection stations any of the customers or any users of the system so it was a highly success successful effort it was done by both teams at SGS and bar and it was through all of their efforts over the past couple years to get the system ready to test it and prepare it that this cutover was so successful and so smoothly and without issue so that’s a huge accomplishment for the project overall and that represents the bulk of the project to get completed was that cut over as of yesterday we just finished separating ourselves from the legacy environment for a while there we are connected to the legacy and now we have completely separated so it is now a hundred percent on the new environment at CDT RC and it is now its new home for the next 10 15 years however long till the next refresh happens along so there’s a lot of efforts done there the other efforts is the D our environment that’s the disaster environment that’s in San Diego has been fully set up and tested as well we have one final test that’s actually coming up next week in which we will move all of our traffic over to that environment to ensure that it’s fully functional operating and then we will the following week move it all back and the environment will be in its steady-state form from there on forward so once we do complete that by the end of April we will be in a stabilization period which involves just tweaking and adjusting the system ten fine-tuning it so that it performs at its maximum capability and then from there we just continue to watch it and begin decommissioning of all the legacy environments and that so from a this one here the completed milestones I mentioned that we’ve all completed those and then our completion dates here so we are on track to complete for the 24th next Wednesday we are also on track to start the stabilization at the beginning of May and complete the project out by the end of October so it has been very successful very busy three months and it has gone very well and pleased to report that we are nearly complete at this point questions excellent thank you and great work you know we worked I mean years to get here so fantastic and my hats off to you you did a great job taking this over mid mid project yes you know probably couple years ago I guess roughly and thank us thank you for bringing us to the finish line more or less I guess where it got a couple minor things left but correct yeah it looks it looks and sounds like it’s going has gone extremely smoothly thank you and great work thank you claim yeah before diving into my night I’d also want to recognize the excellent work that SGS has has done getting us to the finish line in getting production traffic moved over to the new environment I think it was about a year ago I stood in front of this group and and promised that we would do everything we possibly could to make this migration as seamless and transparent to the users as possible the goal was no downtime for smog stations every technology project has risk and I think we did everything we could to make that that transition as seamless as possible that said sometimes you just get unlucky and things happen this time it worked out I just can’t say enough about the team Eric’s leadership the long hours from the SGS team and the bar team and the collaboration and being able to work together to get this done is a real accomplishment so thank you guys for everything that you’ve done getting us here I’m really proud of it both sides all right that said dive in to the second half of the presentation really briefly just a reminder in terms of the Cal Vista project high-level summary of scope first and foremost objective was to negotiate ownership of the system which was done early on refreshed the system to a state owned data center which we can now kind of check off the list for all intensive purposes and finally publish an RFP to obtain ongoing maintenance and operation services so in terms of the status we’ve kind of been reporting against these baseline dates for some time pretty much no changes other than that the one the large one Eric just mentioned which is the successful transition to otech a few days ahead of our drop-dead date so green to indicate it’s a little bit ahead of schedule secondly the award of the RFP which is a little bit behind schedule the 426 date is still a target I anticipate that date may be slipping slightly and we’ll talk a little bit more about that well sure certainly as much as we can about the RFP award process and then finally the contract transition which is still still scheduled for the end of October and we’re on looking on schedule to make that transition RFP as everyone’s aware we received final bids February 12th of 2018 we have completed our review of those bids and we have initiated contract negotiations under public contract code 66 11 as we indicated that we might in the RFP section part 1 part 1 section 2 point 5 point 2 point 3 under negotiations so the award of this contract is pending the completion of those negotiations obviously those negation that those negotiations are confidential at this time so there’s not too much I can talk about just to make sure we stayed in our swim lane I actually have a representative from the Department of Technology here who is responsible to govern this process and ultimately the authority to execute this process is his resides under the Department of Technology I’ll introduce Deborah Chiu so she’s here to make sure I don’t say anything I shouldn’t and make sure we did we stay in our swim aleene’s for the purposes of this meeting and any rfp related topics any questions certainly I’m happy to answer at this time and any questions related to the RFP or the process can that we’re going through Deborah’s available to answer as well thank you clay any comments or questions Jack yeah thank you jack Malloy Donna thank you clay I just on the RFP award you said it was a target date [Music] when do you anticipate May or and why this is sort of the delay you know the negotiation process is obviously a little bit fluid so I think we’re doing everything we can to get through that process as quickly as we can if there is a delay I don’t anticipate it being a larger delay I would say weeks not not months days or days or weeks not months thank you yep other questions or comments okay thank you very much thank you Greg Coburn with our engineering and research branch here to talk to us again about permanent diagnostic trouble codes and the implementation plan relative to that EDD PDT sees as they’re otherwise known we’ve had a workshop and I think we had a higher advisory group presentation from you so this is to kind of this finalize the implementation remind everyone what we have been discussing for probably close to a year and our plans to roll this out I believe in July excuse me but I’ll let you give the the precise details on that in your presentation thank you Greg for being here there we go thank you advisory group numbers for having me out one last time here to talk about permanent diagnostic trouble codes and where we’re at with implementation this will be an abbreviated refresher of the information that’s been covered in the past and implementation status permanent diagnostic trouble codes are is kind of the basic pieces of it 2010 model years and newer that means we’ll basically have the first year we rolled in in 2019 we will have two models the 2010 and 2011 MA beers because we ate your exemption plus a few change of ownership sand things in there these are the exact same codes that are in the normal or the regular diagnostic trouble codes so if you had a p0 420 a normal part diagnostic trouble code it’ll be stored in the permanent exactly the same at p0 420 all right so this is what the industry is used to they’re just literally copied from one place to the other these codes cannot be erased by a code clear from a scan tool or by disconnecting the battery so they stay there unlike the other codes they can only be cleared by the obd system itself and there’s two ways to do that either after the vehicle is repaired and that monitor that triggered that fault has been completed and the fault was resolved so the catalyst was replaced and it was successful so why are we doing this improve program performance using the new obd data coming in has been coming in since 2015 remove some of the other influences that may be influencing an inspection being consumers clearing codes doing different things trying to get through the smog check so some of the things that are outside of necessarily the station’s control the main things that this is dealing with on gasoline is the evaporative system we don’t require the readiness monitors to be set for the evaporative system because it can take a long time to set so we find that this is a large piece it’s half of these situations for these permanent diagnostic trouble codes so because we kind of have this hole in this program it’ll begin to shrink that up a little bit in a reasonable fashion for diesels the majority of the situations are due to the after treatment systems that are getting more complex on diesel vehicles again we allow any two monitors not be set on Diesel’s because these after treatment systems can take quite a while to set and we don’t want to inconvenience that consumer too much sitting at the smog check station so again this will help shrink that pool down a little bit but in a reasonable fashion targeted implementation date is July 1st 2019 there’s no reason that we shouldn’t meet that date we’ve got everything in place to get that going conditions where the permanent diagnostic trouble codes will be ignored I think this is an important piece basically it’s half of what the US EPA standard is of not their standard but their recommended procedure which is what we first presented this group over a year ago is we’re going with 15 warm-ups and 200 miles driven so again trying to inconvenience that motorist the least amount possible this provides for two things the vehicle a reasonable amount of time to recheck for the problems that’s the main piece and we did look at a lot of data analysis we are getting this data already most of these faults will reoccur at that point so a check engine light will pop them back on if if the vehicle is not repaired properly or if it was never repaired in the first place the other thing it does is if we it allows the vehicle owner a reasonable amount of time to satisfy the room to require the requirement so let’s say there was something in the evap system but it’s too cold to run the monitor this is gonna allow the consumer to get out of it for this cycle it’s gonna give them that once they drive 200 miles and made a decent effort we get in what’s the estimated failures on this it’s a small failure rate it’s gonna influence by another 1% less than 1% this will result in approximately 155 additional failure statewide per day so again it’s fairly small we’re only talking about a couple of model years we do want to kind of roll this out to the industry and let them get used to it let consumers get used to it get all of our facts and everything in place I think we’ve also talked about over time that there are some problematic vehicles out there where the permanent diagnostic trouble codes weren’t implemented correctly by manufacturers we are working closely still with Air Resources Board and with manufacturers to get recalls and different things in place to make sure the consumers aren’t hot in that loop the specific vehicles we’ve identified anything with problems at this point there’s already been workarounds put in place on the database so everything’s ready to go from that standpoint so if there’s a we’ve talked about some codes that just never clear they’re always there so once it’s set they never disappear all those have been worked around so the system will see that and I’m going to pass the vehicle through all of those specific instances have been updated in our what we call our obd reference guide so that if you’re if a shop is using a separate scan tool maybe the pre scan the car or the consumer wants to know if they have any of these they will know every single vehicle that we’re bypassing by looking at that paper document out on our website okay and that’s already out there and updated and ready to go this is just an example of the vehicle inspection report the consumer will get and it cut off the bottom here but it’s basically an indicate that it’s a fail at the top the second blue area arrow there is the permanent fault codes and then it will list them so what’s below that is a p0 1 0 1 so if it has a failure it’s going to get what it is in a short description of what that permit diagnostic trouble code was so if it was the catalyst or whatever the consumer will have an idea of what that is as well as the shop further information so an ET blast will be being sent to the industry we’re hoping it was sent before the bag meeting today it is all queued up and ready to go so that’ll be going out here if then the next week we have a series of 3t blasts that will be going out you wanted to get one out this month on out next month and then went out right before implementation just to remind everybody that the information is out there on our website if you have any questions at all or any no bars public website is in the process of being updated again it is really close we were hoping it was already updated a Navy out there if not it should be up by the end of the week so it will give and will basically put it in there in a way that’s really easy to see on our homepage again indicated in the ET blasts just to get the industry up to date talking about the obd reference document and links to that we have frequently asked questions around from the diagnostic trouble codes many of which came out of this forum so thank you all for your questions as well been incorporated in there we got a couple of pages just to link everybody through anything that’s come up to this point that will also be going out and the barn the next bar newsletter is well those same frequently asked questions against the industry I have multiple ways to get out this stuff training materials will go out early June is what we’re shooting for will be fairly simple training but just in case texts need help understand this a little bit more we will have some video series out on bars web page so that instructors and different people can reference that information as well as we’re working on a simple consumer fact sheet just so that if the station has a problem with the specific consumer asking questions they have something to hand them and with that thank you Greg Greg good presentation thank you for doing that we did send an ET blast previously sometime after your last presentation a year ago I don’t know when but at least one I’m not sure okay let let people know that they were coming but obviously we’re getting closer so we’re ramping those up even more so as we get closer to the July 1 date any questions or comments I’ll start here I saw that hand first gray Dave kusa excuse me Dave cous a sec a Greg years go by the 1% increase do we anticipate that to go up go down stay the same as model as more molecules come into the program it’s a good question we’re we’re assuming that we’ll expand over time as more model you’re spinning the program yes thank you mister para ribbon so a couple of things one is on slide number two I thought I heard you state that there was two ways to to get these system to clear but I think what you meant is that there’s a two-step process the vehicle is repaired and then the monitor runs correct you are correct yes and the other one was it’s an an not a nor there and then slide number five so is that 15 warm-up cycles and 200 miles or again or is it 15 form cycles or 200 miles it’s an and this is an end okay got it and the last thing is for the so you say you’re going to send out a ET blast here pretty quick for the technicians and and how soon do you anticipate putting the training on the website so we’re we’re shooting for June 1st is weapon first look at data so we’ll give them about 30 days in there okay see that material thank you are there questions comments anything on the webcast and haven’t been asking but I assume you would flag me down for a ok thank you that’s Garrett Garcia and that would check or monitoring the show today and thank you for your help all right Greg good stuff thank you we’ll probably do a presentation I’m thinking after rollout obviously July will be too early but October maybe give a first 90 days okay yeah oh that website for Bill information which we will make sure is on the slide before it gets posted or that presentation on one of the slides that was missing this time around is ledge info l EG INF o dot legislature dot CA da govt oh say it again ledge info dot legislature dot c– a dot govt okay oh okay all right our next back by popular demand mr. morrison how have you been thank you thank you good to see Alan again my name is Alan Morrison I’m with the California Department of Food and Agriculture Division measurement standards I’m just going to give a kind of a little brief update with what we’re we’re currently doing and also I have some questions for the advisory panel a little bit later to may be deal with some issues that we have moving forward again this is my contact information can everybody hear me I’m Alan Morris and a little before I begin I want to show everybody a picture of why we test this is goo that we found in a drum of ATF it was actually we found identified three drums with this product it’s undissolved viscosity improver so there were multiple transmission failures the shop actually who installed this had like three or four cars that failed immediately so I just thought I would show that to kind of kind of let everybody know that we actually are out there protecting both the consumer also the shops because they could not see inside the drum and when we investigated a drum we found this a little bit about the topics I’m going to touch but on today our program activity to tell you a little bit but we’re doing what our rulemaking activities and then an important part is CDF a role in transmission fluids this is a big problem within the industry the oil change industry in the service industry and I’ll be discussing a little bit about that kind of some of what our labeling requirements are for that some of the specifications and then what our enforcement actions are and then also I have a slide more of a future so a discussion with the advisory group okay real quick program activities I think over the times I’ve been here I’ve told everyone we have gotten into testing diesel exhaust fluid we have all the equipment available we are going out and sampling we haven’t really seen any issues in the diesel exhaust fluid I think we’ve only had two cases where we had somebody using tap water to make up their own def and then selling that but that was more of a case of really fraud they were making up their own def and refilling containers that they were picking up at truck stops and the like most of the places we find even some of the small blenders are meeting the requirements of the death the motor oil and transmission fluids were beginning additive testing we have the capability to do the metal within those fluids so we’re starting to be able to take a look at those fluids and see if they meet some of the requirements either the sae api requirements for the motor oil or some of the requirements for the OEM fluids natural gas compositional analysis we’re putting in place the equipment to do that so we’re we’re in the middle of installing that right now enforcement weary BOPE and our fresno field office so we now have an investigator there we also have an agricultural technician to assist the investigator in collecting samples and dealing with with issues skander’s development process we are we’re in the process of developing fuel quality standard for natural gas when used as a motor vehicle fuel we are doing working with the NC WM about the motor oil labeling and transmission fluid labeling then the interest in the SAE transmission fluid specification that I mentioned the last time I was here that work has been discontinued because of a total lack of interest on the OEMs we when we put together a panel we had some industry representatives the additive companies and the the OEMs were not interested so that has been sort of moved off to the side for for the time being the new fuel related problems I mean not problems but issues we have an alternative fuel quality oversight program that is funded continuously funded under ab32 so there’s no issues with yearly having to go back to the legislature or having to go to the Energy Commission or I like to get funding for that we’re conducting testing of hydrogen and we actually are doing testing every hydrogen fuel station in the state not quite monthly but about semi-monthly we have a lab in Sacramento and a lab in Anaheim that were in the process of putting in place but the state actually goes out and samples each station we have not encountered any issues with fuel quality other than when the stations are initially put into service there’s some residual cutting oils and the like in the put in the system electric vehicle supply equipment we’re developing the capabilities of doing device testing for those meters so when you pull up to a charging station and you you you are charging your vehicle that the amount of electricity you receive is is what it says so it’s accurate we’re developing capabilities level-1 level-2 they’re fairly easy those are AC charging there’s no issue we’re also trying to put in place the DC fast charging and currently that that four hundred volts DC and it anticipated to go up to a thousand volts DC so there’s some issues there with developing the the ability to do that rulemaking activity we’re currently in the review process for proposed regulations for electric vehicle charging systems were in the comment period like you could imagine it’s it’s quite a politically charged regulation so we’re going up we’re reviewing that the state currently has paid or has a lease paid for part of most of the electric vehicles charging stations installed so there’s there’s kind of an issue there and it’s proving to be a little bit problematic some recent regulatory actions we have specification not specifications but mainly labeling requirements for all natural gas fueling stations there’s a posting requirement of what we call the methane number methane number is the equivalent sort of the equivalent of octane so we have a we currently do not have any requirement for that methane number but we have a posting requirement so the consumer at least can be informed about what that is hopefully in the future we’ll eventually have a quality requirement but that’s waiting for those specifications to be completed motor oil sessemann fee our funding source we now have raised our fee from four cent the five cents a gallon so we’re currently collecting five cents a gallon on motor oil being sold in the state so there is a little bit of confusion the California Cal recycle collects a fee on motor oil also but it’s also collected on all lubricants so transmission fluids or industrial lubricants and the like their fee is currently set at twenty four cents a gallon so there’s there’s some some confusion a little bit about whose fee and how much and what products but we did we did finish the rulemaking we kind of modified our documents so they’re a little bit more clear a little easier for the consumer to read but unlike you you they’re probably not 88 compliant so we’re in the process of doing that pre rulemaking one of the real interesting pre rulemaking processes were involved in is automatic temperature compensation at retail motor vehicle fuel station the state is not in the position of requiring that we’re just putting the regulation in place in case a retailer decides to implement that so there have been some confusion the industry thought we were in the process of requiring that no we’re not we’re just putting the process in place that if you so choose this is how you do it it other things we’re working on and kind of a continuing process is the method of sale labeling and advertising as a result of our 8808 which was a few years back so anybody would like to you can go to the website I’ve listed that lists all our regulations where we’re at in the process and all the available documents so any questions about that right now okay okay next slide transmission fluid issues there are there are three things that we encounter one outright fraud that that’s pretty easy to understand what it is we have criminal activities we have falsifying of labels and the like that that fairly easy are not not easy but not complex issue and our investigators are working on various cases the second issue we get it improperly blended fluids we do find producers that incorrectly blend their fluids by production mistakes things like that that we find not too frequently but I would say once a month or so we encounter a product that we determined that’s what’s going on the third issue which is a bigger one is the multi vehicle transmission fluids and that is a misunderstanding of the duty type requirements and that’s one issue I would like to discuss a little later on is is I need some help and guidance and and how the industry would like us to proceed okay a little bit just real quick here this is our statutes concerning our labeling requirements I might just put them on there so you can have it we won’t go through the details other than on thirteen seven eleven one where it says the words required transmission fluid on product that’s pretty easily understandable but one of the issues we have a duty type classification so we are in the process of trying to define what that actually means there has there there’s a current version that the state has and we’re seeing if that really goes along with what industry thinks we should have a little bit this is what’s required on all product again the Duty type classification we currently interpret that as an OEM specification or a consensus specification currently there’s only one consensus organization out there that the Jasso standard sae doesn’t have one but again if they did we would be able to take that specification and use that as a duty type classification okay a little bit about our position on duty type we accept all OM active specifications we accept obsolete OEM specifications so for example a dextran three which is an obsolete specification you can label your product at exon 3 where it were we’re okay with that and then the gas o or other consensus organization specification ja so has a low viscosity and a high viscosity specification so you can label your fluid meeting either one of those we also interpret the terms such as meet recommended requirements or suitable for use in the same as meet so if you say this is suitable for use in a certain vehicle we interpret that as it meets the specification for that vehicle and that’s our current current position so if you if you say it’s usable in a transmission it has to meet the specification for that transmission the statues about the actual specifications I put this up here we as you can see the state law requires that transmission fluids meet all the latest automotive manufacturers and you will note that’s plural so if you put four or five different manufacturer specifications on a label you have to meet all those requirements you cannot just meet one okay we’ll go here again this is a this is a little bit about what they’re fluid requirements are we currently transmission manufacturer than the vehicle manufacturers set those requirements they set them primarily to ensure reliability reduce issues with product failure and to minimize warranty claims those specifications may include specific chemical properties physical properties and performance requirements now I put this slide up here this is this is interesting there are three major additive companies in the world that provide additives for ATF and if you go to each of their websites this is the one of the first these are synopsis of what they say but this is basically what all the three major additive companies say on their website each one of these are basically saying that ATF or transmission fluids are unique fluids unique to OEMs and sometimes unique to specific transmissions and I put that up there it says it’s important to note that that when we interpret the state statute and we go and look at this these seem to be in line with our interpretation and that’s something I like to point out to industry that we’re doing is the additive suppliers are saying this at least publicly and our legislation says pretty much the same thing that all fluids are unique and so so we do have multi vehicle fluids out there and that’s everybody anybody who’s seen it who don’t dealt with transmissions you realize they are and there are out there because OEM sometimes have unique names so they’ll call the same fluid there’ll be four or five different manufacturers with specification but they’re the same specification many of those specifications use the exact same formulation and then also the OEM formulations are often proprietary you cannot get those so a producer doesn’t really know what the OEM has so say for example Toyota has their specification well nobody really knows what that is or the Mercedes specification nobody really knows what that is unless you have a specific contract with those companies and the last thing is shops have a limited capacity I wanted to put up a list here of the transmission fluids and there’s over a hundred or so hundreds of them so it yeah it would be a little eye chart you wouldn’t be able to read it so and the shop has a hard time with that and we understand that so again a little bit what I put on here is the producers and the additive companies are making fluid so that they claim will meet the OEM performance requirement while failing some of the other requirements such as the visca metric requirements or the some of the chemical property requirements but California law of course requires that the OEM requirements be met so you can see our problem in here so I’ll go a little bit about how we do our enforcement we go out we sample we determine the product duty type and claim specification by looking at the label or product datasheet so we look at both of those if you have a product datasheet we’ll look at that if you have just a label we’ll look at that the samples are tested to be there then brought into the laboratory and they’re tested to the physical specifications of iske metric properties of the fluids if we have a failure we take that product off sale we issue a Notice of Violation to both the shop and the producer another step we do though is we also look for possible relabeling in case there’s multiple claims and those need to be taken off so rather than removing that product from the marketplace we’ll have it real able to meet what what in fact does meet so that aside in the future I would like to ask the board or ask far is it a possibility that we can put together a working group so that I can work with the industry I need the repair shops I need the automotive company and those of you that represent the automotive companies and the new car dealers and the like we really need your participation we need everybody to sit down at the table and kind of let us know you know how how we should interpret the statutes we we can’t go into rulemaking on regulations until we really understand what the whole industry wants and we need active participation from all the players the OEMs the additive suppliers the producers and the the service industry so just keep that in mind the one of the things I want to do is I want to identify issues that you know shops have issues they need they need a product for the the post warranty cars for the fill you know what do you what do you do you can’t stock a hundred different fluids it’s impossible like and we also need would like to through bar conduct some more out outreach to consumers and to the industry representatives I don’t know I have real quick a little bit of in here real shortly but go to the first page of the word document if you can make that a little bit bigger I know this is this is from our statute right there okay I have a couple issues that I need everyone to start thinking about our statute says that first of all we’re doing good and defining the transmission fluid so we have a CVT transmission or continuously variable transmission Louis that’s fine automatic transmission fluid dual clutch transmission fluid we’re doing real good on the labeling on that and I think some of the changes has allowed those fluids to to be in the marketplace go down a little bit the next this is somewhat the problem our code requirements there you go i underlied require that a transmission fluid shall meet all and it says all the transmissions disclosed on the label of the container and then it also says in the second line for the type of transmission that’s intended for I’m not really sure how to interpret that I need help from industry currently we have been interpreting as automatic transmission fluid dextran three but it’s dextran three really a transmission type this is a question that we we have and so we we need to take a look and discuss with the industry how nobody labels automatic transmission fluid for transmission type s and Warner you know type 1 2 3 or something like that so we need a little bit of discussion within industry it’s the way we have been interpreting it meet what industry feels that it should meet um the next part if you look on the mislabeling again it says duty type classification there really no definition anywhere what duty type classification is CDFA has for as long as I’d known for last 30 years assume that would be we’ll go back to the earlier one type a you know type F that was pretty simple when we had type a and type AB we migrated into the dextrins and the merkins you know we sort of followed that pattern along you know do we continue following that pattern over that of a mode that may be outdated so those are things that I need you guys to think about I need some input I don’t need a decision today it’s not possible but I do need some input so with that I think we’ll go back to my presentation I all the stuff that I put on here I put both our statutes and I also have listed I don’t know if they can include this in my presentation are a summary of what is found in handbook 130 from the National weights and conference and weights and measures to sort of compare and look at how state statute and regulations compare with what the National Conference has okay the next slide just just I think I got the slides in here this is where our statutes and regulations can be found and here’s my contact information yes John Ellen it’s good to have you back we appreciate it when you came to Cal ABC’s meeting to really talk about this issue on automatic transmission fluids and especially given as you mentioned and pointed out in your presentation I mean it’s impossible for shops to carry absolutely every fluid type for every vehicle and that while you have a lot of manufacturers and producers that have an all-encompassing fluid that says meets all requirements for whatever vehicle but I think your idea to have a workshop on this to really clarify it because there’s a lot of confusion with our members you know they’re very concerned they want to be in compliance they want to be able to offer the right product to the customer without having an entire stock room full of fluids right and so you know when we talked before it was very clear in your presentation that if you’re going to take a generic fluid and then put an additive for a specific manufacturer into that fluid you basically violated the law because that label no longer reflects what that fluid really is correct and so when we were going through that everybody kind of sat back in their chair and said well wait a minute we’ve been doing that for a long time right and so I think to try and put together maybe with Chief DeRay and the rest of the advisory to either do like a workshop but after one of the other bag meetings to really delve into this I think it’s critical because there’s a lot of confusion in the marketplace and I know our members and the other associations around the room here they want to be in compliance but they also want to find a better solution than what we currently have right okay yeah I would I would like to I’d like to make one comment about the additives our position at the shops were worse were in the position that a shop is not the place where to produce or to change the specifications of the fluid and and the reason why is they don’t have the ability to properly measure properly mix and like the the multi-vehicle fluid set i prefer or i like to look at are those that are actually made at the producers where they’re made to a specific specification they’re they’re blended correctly because we’ve seen in shops they basically taketh you know thing in 40 and I’ll say I think I have enough and put it in there and so that that’s that’s an issue but as far as the shop being able to have one or two like I say a high viscosity and a low viscosity transmission fluid or something like that I think would serve their needs and and I think we’ve seen seeing that as a in in other places so other questions yes okay thank you Dave Kusa seca so I think of the workshop as John recommended be great working group certainly a CCA would like to participate in that question on the enforcement activities how often does that happen you know the the where you go to a shop sample find a problem and then and then issue a Notice of Violation is that often you have any number I don’t have a specific number but I can tell you our biggest problem is the mislabeling prop the the number three on the bullet point and we’re running it it’s not it’s not as good as I would like it’s probably in the of our 20% of our time that we sample we’re finding that and that is because of the labeling of the multi vehicle transmission fluid and we are working we’re working with all the producers and I mean major producers it’s not just it’s not just a little corner guy but all the oil companies they all have multi vehicle products that we’ve gone through and sort of pared down the list of what they say on the label and if you even go to some product datasheets you’ll see that it says not for use in California under this application and you know you know Chevron Valvoline Exxon Mobil Pennzoil all those companies have had the same issue so it’s a pretty big problem and as far as the labeling as far as the other ones the prod not not very often I mean we we have one area that we just discovered which is in the contract area and this is something we haven’t been doing going out looking at contract between say public agencies and suppliers we we have found a couple cases where a contractor is providing a one Brant a branded product and it’s in fact not that branded product so that’s kind of a new area that we’re going into but they’re very few that do that was really the only time I’ve seen something that bad in in my 20 years of being with the state so and then the the product as far as production issues maybe once a quarter we run across the production issue the wrong stuffs in the wrong bottle and you call them up and they say well are our retained samples say this and then they come back and whoops well yeah we got a mixed up so that does happen so in in this is all new to me and the Notice of Violation stuff right so um assuming there’s a notice of violation and it’s you know fraud from the supplier right I mean shopped in good faith bought fluid thought they were getting what they bought is there assuming no no you know no fraud on the or collusion on the the shops side of the equation if there’s a notice of violation what penalties to shop suffer um any our program primarily Notice of Violation entails removing the product from sale we very very infrequently actually go to the monetary to the monetary level we we don’t normally cite we don’t for fines and like that we we do that very infrequently it’s it’s usually one there been a you go up to the producer level or there’s some sort of systematic or sort of process within the producer where we may get up to a citation level for the shops in in essence we don’t give a monetary fine it’s mainly pull the product off sale that’s your fine you know you have to replace that product and if it’s from the producer then the producer needs to replace a product and in most cases they will come in the distributors will come in pull that product out and put new product in so okay thank you yeah one other question I know it’s been a couple years since you gave your presentation the one of the issues that year team in the field was finding is a lot of cross contamination in the bulk tanks for oil between synthetic full synthetic and regular oil is that still a problem in the marketplace or not as bad anymore well what we tend to find the problem tend to be related to specific distributors and it’s a training issue we’ll find we will find one distributor will have a driver that will go in and it it mainly with motor oil with the different viscosity grades as as when it first started with the five W’s we would get a lot of contamination from the ten double use and the single weights now we don’t see single weights at all they’re not out there some of the zero w0w 20 and all that their cross contamination but we haven’t we don’t find that very frequently anymore the probably our biggest failure on motor oil now are low quality providers not meeting the base stock so we we have so the oil meets viscosity requirement but we have another test that looks at the base oil it’s a colder temperature test that’s in the specification and that would be one of our major not major but we’re talking less than 5% failures on motor oils so that would be probably one of the larger ones now just quickly I don’t have it on there on the fuel side so you know our real only problem with fuels in California are water contamination we have high quality gasoline our diesel fuel we have a little bit of a problem with a low flash point from gasoline contamination and we’re speaking five gallons into five thousand gallon level contamination any other questions or Jack oh yeah Jack Molly Donna Thank You Alan for the presentation I I do agree with the working group or the workshop and probably makes sense happen it after a bag meeting and that makes a lot of sense and and I think you’ll get a you get some participation from other stakeholders as well as the the the group here you mentioned a B 808 I remember the legislation dealing with the oil and and you’re in the process of updating the regulations or doing regulations or creating regulations in that arena I know that’s taken a long time this part of this feedback you’re asking for is that tied in to the eight oh eight oh eight regulations or correct I the 808 regulations reside basically in me I mean I’m our whole regulations Department with that so you know I don’t have a big you see Holly you have it so good idea and and we we within our division would like to finish that we started that process in 2016 I think it was that’s only three years ago right [Laughter] that’s not too long ago right my daughter made it through high school so I will be back yeah she’ll probably be finished with college by the time we get it going but no it’s part of that is this transmission fluid issue last week I was at an Illinois meeting and I spent a lot of time with a gentleman who had worked with the OEM developing the dextran six specification and I have some new information about that and it it’s moved this up a little bit and that’s why I didn’t put it in the presentation I didn’t really have too much time to prepare it but in the discussion with that discussion with with with that group and here I mean those of you who I don’t know who represents the automotive manufacturers association that’s somewhere over here right I think somebody somebody represents and that’s one thing I don’t have and I would like to say I need them to come to the table because the our law basically protects them right and so they need to come to the table and say this is what we can live with or this is what we can’t live with and then from there we can work work sort of within the system and see you have how we can craft some regulations that are useful and meaningful to everybody right now we’re not going to get legislation none of us have the ability to do that I don’t have the ability to go to the legislature I would probably be out of work if I did so but thank you thank you for that I kind of clarify because I was involved in a tabi 808 and I know you were as well and that legislation gave you the authority and not you personally but your department authority to create the regulation right and questions have been raised like where are we on eight of eight oh eight and now you’ve clarified that your source and person doing this and you’re you’re still trying to get feedback from industry well my comital to to a working group and I think that will help I mean if we have a working group where we have input from individuals it will help the process because it won’t be done in a vacuum yeah and that’s the way I felt before it this is all being done in a vacuum and I want to bring in your side which is the vehicle side you guys represent the the cars you represent the transmissions they go into and the shops that put the stuff in there and I think you will be a great asset in moving that forward Thank You chief DeRay Brian Moss with that California new car dealers oh we don’t represent the manufacturers but we can certainly endeavor if you schedule a workshop to work with the manufacturer representatives here in town to get you the appropriate context that you need to have an effective workshop okay obviously they’re the ones that make the cars they decide what the specifications are and we also along with whatever they decide so you’re not gonna have a very successful workshop unless you get them there so I will I will Mike now that we’ve committed Kirk to to this so again I know you’re limited on time I could talk forever I apologize Thank You Bernie we had one here Jeff Jeff Cox the automotive maintenance repair Association I also just wanna echo I think a working group would be very beneficial we we talked about this topic in one of our meetings and with a lot of the producers that you had talked about and then API and there was a lot of confusion from service providers on what should they should stunt excuse me which they should stock and just you know how do you service transmissions with all the variety of different types of fluids so I’m I have some presentations that I can share with you from them if that helps you in in any way okay I probably could help you with producers if can I ask when your next meeting is and and I do I say July 18th here in this room okay so I will I will start the process I will go back to my my director and and make sure she doesn’t you know slay me for for making but this is a process that I you know it’s my desire to start this so that I don’t like the way the state of the industry right now I don’t like the way our opposition is to the shops the producer to the OEM there’s a lot of confusion CDFA and measurement standards in general we’re about compliance but we’re also about leveling the playing field we want industry to be able to do their do their job we want consumers to be protected at the same time but you know we want industry to function as effectively and as well as they can so thank you Thank You Alan just hold on just a bit yes our next meeting is July 18th we have one the final one for the year will be in October I don’t have the exact date but if July comes up too soon for everyone I don’t know that can’t be pulled off will certainly help facilitate it if that’s the desire of everyone obviously it’s CDFA is regulatory workshop and we can certainly get out invitations or notices public notices from your department to our stakeholders I’m sure you would do the same with your stakeholder list okay there was one comment via the webcast from the automotive oil change Association Joanna Johnson AOC a would like to participate in the transmission fluid work group with CDFA Alan Morrison it’s a great idea thanks to CDFA for offering it thanks to bar for inviting mr. Morrison to talk with us today also it would be very helpful if mr. Morrison could discuss how the N ist handbook 130s current acceptance of the quote suitable for use end quote transmission fluid standard which is established by proving performance in equipment rather than making any claims about meeting specific OAM fluid recipes fits or does not fit in with CDF phase current transmission fluid regulations make sense to you I hope it’s within the handbook handbook 130 is a is for those of you who do not know weights and measures laws are the provenance of the states it is not a federal government requirement but what the states have done in conjunction with NIST the National Institute of Standards and Technology is put a handbook that the guide for states to establish either to adopt directly or to establish laws and regulations based on that within that they have no quality standards and labeling requirements for various products for the transmission fluids what they say to summarize if they allow me to say this is Alan’s transmission fluid and it meets the performance requirements of all these transmissions and then me as a weights and measures official can go if I adopt this law to you and say ok this is Alan’s transmission fluid now prove that it meets these claim five performance claims so that is written into handbook 130 we also have within state statute within our section on let me move back on our code section 1370 41 we have the same authority within the state of California I can go to you as a manufacturer and request from you documentation proving you meet all the claims so they’re in both of them they’re there it’s already in state statute currently at this time we don’t do that we don’t go to you and say here prove this is all meets all these claims primarily because our statute says you must meet all the OEM specifications so the handbook 130 and state law are actually in step with each other pretty much they’re pretty much in step with each other but we would like to take maybe what they have in the handbook look at that look at state law see how some regulations can be crafted that use that meets both of those so Joanna comment is well well taken and and it will be part of our discussion so okay thank you so much oh one final comment it looks like from bud Rice did you I was gonna give you this a copy of that document he showed could you send us a copy of that document or cement the word document yeah it’s on it they have a copy of it on the presentation okay great so it could be attached to it okay we’ll send it out to all of you advisory group members if it’s not in the package or the today is it not it’s a hard copy okay it’s not not yet I added it this morning so I probably thanks okay appreciate it hi bud rice with quality chin-up shops Alan one comment that you had made I think moves the bar a little bit tonight and I don’t want to I don’t want to feel like he missed it like that one comment and that one comment was you don’t believe that shop should be able to make this modification at the shop level at the location right correct if if you if that’s your feeling and and I agree let’s have a workshop and let’s talk it out but that one position statement changes the game dramatically for for operators okay so so at that point in time either we have to stock a tremendous amount of fluid or we have to have some ability to order quickly from either an OEM or some kind of a fluid integrative integrator that allows us to be able to operate and it’s going to force us into a box of being able to only say 69.95 for a transmission service plus fluid I mean they’re you forcing us into that box if we don’t have any flexibility in increasing our options because nobody can stock all this well again the multi-vehicle fluids you know there’s another currently there’s another state statute that prohibits you from being able to add at the shop something to a fluid and change the properties of the fluid so that is that is current state law I don’t I didn’t list it here but it it’s if you go into our our statutes and I can I can get that to provide you so there is a current state law that prohibits a shop from taking a fluid adding something to it and changing the physical properties of that fluid or changing the performance properties of that fluid that that’s where we’re at with the shop right right but but in a workshop type format a large segment of the participation of that workshop would be us trying to figure out an answer to that question and if the answer is you don’t get to answer that question it just changes the whole dynamic okay well well we you know in I will I will take that under consideration I would need input from those persons providing that product in fact that I so I can somehow look at is providing this product to a shop the shop then becomes the producer so we could take the code section that says okay now that you’ve made this product can you in fact demonstrate that you meet the performance and the the requirements of that product so that would put a little bit more issues on the shop for example if there’s a certain treat rate if something has a 4.5% treat rate and I test it for a 4.5% treat rate do you in fact meet that treat rate and things like that so shop would have to become aware they would become a producer at that point and then they would be required to to to demonstrate those claims right now we treat the shops more as consumers there they’re kind of passing through the fluid they’re not making the fluid they’re just passing it through from a distributor from producer/distributor to the shop to the consumer so what you do is you put the shop in the position of the producer and and there becomes potentially a lot more requirement that that shop would have to be concerned about so okay yes thanks Alan Dave kusa so something you just said so there are a number of companies that produce oil additives you know or engine oil and transmission fluid coolant I don’t know if you’d monitor coolant or not but so if if we were to do an oil change right with and using you know supplied oil that meets all the manufacturers specification put the additive in the oil that the documentation claims that you know increases this and that and the oil makes it a better product does that would that be in violation I mean is that changing the the the formulation of the fluid well right now the the statutes on motor oils there is no there is no statute prohibiting you from adding an additive motor oil it’s only for what we call automotive products and in transmission fluids so I mean there are a number of additives for transmission fluids as well that that are added to a fluid that meets all the manufacturer specifications right now the the an installer is prohibited from adding that the consumer can add it and I’d like to make a note here that the CDFA position if the consumer decided they wanted to put straight motor oil in their transmission we cannot prohibit that what we mainly are looking at if the product that you’re selling to the consumer does it in fact meet what it’s labeled to me I know I’m sorry one last question because I have a lot of suppliers to approach based on this the specific for the transmission fluid additives do you know the regulation number specifically I’m not I’ll find it ii-i’ll research it when I go back to my silicon and I should know the number off the top of my head but my head is right thank you thank you thank you so much Alan appreciate it we’ll work together in the coming weeks to see if we can get workshop coordinator or scheduled in coordination with our next advisory group meeting if not that one the October one okay yeah and and I’ll be at my seat so at the end of the meeting I’ll have that for you Thank You Patrick yeah all right moving on case processing overview bill thomas with our enforcement operations branch at bar this was something I thought was it’d be good for everyone to see we’ve had some unwanted media attention it comes about like Haley’s comment every few years and actually almost to the day three years ago dealt with something similar but in February this year we had a news story that was I think a little bit of sensationalism in my mind but you know it’s it’s it’s worth I think kind of sharing a story on from our perspective of what goes into an investigation and what we do to get information available to consumers about shops that potentially they might be can have concerns with or might want to avoid and so I thought we and and and also to potentially you know there could be a legislative response so I want to certainly do some education on the front end to make sure that everybody knows what goes into our investigative process bill is here with us to talk about kind of the various steps including after it leaves our hands when we’ve completed the investigation there is a formal process that goes through the attorney includes the attorney general’s office and the Office of Administrative Hearings as well as our own department on the back end of any hearing to give a final decision of the proposed decision that comes from the ALJ that that heard that case so there’s a lot involved in this so I wanted bill to come before us to give an overview of what that case processing of a formal disciplinary action entails thank you for being here Thank You Pat for having me and thank you to the advisory group so as Pat said recently NBC Bay Area ran an article involving an oil change that turned into an engine failure due to improper installation of the filter assembly one of the contentions made during the report was that the registrant that performed the oil change we had actually filed an accusation against them for other violations of the automotive repair act and that the reporter lamented the difficulties a consumer would have in finding that information it that is and I’ve talked to this group made presentations before about our web license lookup now called the license search program and that accusation was certainly posted to the web under the license search for that ard and so was available to the consumer at the time they chose to do business with that ard so we always encourage consumers to go to the license search click on the advanced search and then type in the city they were wanting to do business in and it’ll bring up all our registrants and any documents that the bureau has filed associated with that registrant is there the reporter attempted to demonstrate it may have been in the wrong area of our website and that’s unfortunate so I wanted to cover that first I also want to talk about in the report it covered that it was almost three years from the time of the that we first began investigating this facility to when a hearing was going to be held on that matter and obviously I think everybody in this room would be concerned that really if it takes that long you know that is a concern that something has to be addressed so I want to talk about that a little more the deed in many years ago like 2000 and you know 2009 2010 the department looked at the DCA consumer protection enforcement initiative but I know it by the acronym CPE I Heather double-check my site to make sure I got those words right in that initiative for just about all the boards and bureaus under the Department there’s a goal of completion of an investigation to an imposition of discipline of 540 days and that goal applies to the Bureau as well my web link did happen to stay in the in the slideshow I’m happy to see that so anybody can go to that web link it’s dc-8s ca.gov publications and you can find the annual reports that lists our cycle times also on their their publications is consumer protection enforcement initiative numbers that might also be under enforcement as Karen from the Department mentioned at the beginning of the meeting that has now been changed to a new there’s a new link for data enforcement data and it is a very good page I encourage everybody to look at it so for the DCA annual reports for the bureau in 2017 and 18 fiscal year our number showed eight hundred and eight days to impose from the day we began the investigation open the investigation number two the effective date of the decision it was a hundred days to complete eight hundred and eight days to complete that process we want to highlight in there and it’s also in the annual report on those pages in the DCA report that within that eight hundred and eight days it’s six hundred and forty eight days from the day the bureau completes its investigation and forms it through the office of the Attorney General to the imposition of discipline to the decision effective date so doing the math the bureau’s cycle time is a hundred and sixty days or was 160 days in 1718 – from the beginning of initiation of the investigation to forwarding it off to our partners at the AG in 1617 it was 719 days in our annual report and 607 days from our culture to forwarding are from forwarding to the age eight imposition of discipline so there again doing the math is 112 days internal in the bar to complete negation and forwarded out to our partners so what prompts the initiation of an investigation there are several things that will lead to the field office determined in a the need to investigate a restaurant one of those and I’ve mentioned it numerous times when presenting the enforcement statistics to this group is complaint trends we look at the transit if we see a pattern of violations on the part of a repair facility that will often prompt an investigation same with our auto body inspection program if we identified the potential for fraud ooh certainly perform an invested more detailed investigation into the ARD anonymous tips and I want to be very clear there we do receive a number of anonymous tips tips those are fully vetted and discussed between the field office supervisor the investigator and Gerald field operations management before going you know full full-on into an investigation obviously tips can be very credible or they can be a little less than credible depending on the source I’ll leave it at that we also use smog check inspection data certainly we capture through the smog check program just immense amounts of data that can be used to point to possible fraudulent inspections within inspection data I would also there’s a subcategory there of data that we capture during an audit of a smog check station observations made by the auditor and things such as that and then other sources that’s the top secret I’m not going to discuss on the record sources but those could be you know audit findings as I said also a rep can be driving by and this is mostly for unlicensed activity see a repair shop and and wonder if they’re licensed to look on their phone or on their laptop while in the field and see that they are not and will serve an unlicensed activity citation on that facility so drive-bys involvement in the computer community knowing their area or our field reps enforce the automotive repair act will often lead to an investigation [Music] so once we have determined an investigation is necessary the representative will work with the field office supervisor and conduct the investigation many of the techniques used I mean are well known the bureau’s undercover vehicle operations program is well known within the industry we also do surveillance and we have submitted thousands thousands of hours of video surveillance to hear in hearings as part of investigative cases we will review advertising for repair facilities and see if it appears to be in compliance or if they’re dependent appears to be some misleading statements within the advertising designed to and induce customers to come in when it shouldn’t and will also go out and review documents at the ard as part of an investigation look at their estimates and invoices and make sure everything is in compliance with the law once sufficient evidence has been obtained a report will be written that report is prepared by the investigator in the field office and submitted to the field office supervisor or his or her designee and is reviewed obviously for grammar and spelling formatting making sure the information is correct dates times license numbers so on and so forth and that the evidence supports the allegations in other words we state the repair facility violated this law does the evidence prove that violation once the field office has approved the report they route it through their management team and it comes to bar headquarters specifically my branch enforcement operations branch and is reviewed again we have a very detailed and long quality control process but it results in a very successful product from the bureau my unit will review the same items grammar spelling formatting factual information and also we’ll look at the exhibits and make sure those are accurate and correctly numbered and correctly referenced once it is approved within the enforcement operations branch and within headquarters it is forward to the Attorney General the Attorney General will it’s afforded to the supervising Deputy Attorney General and each of the AG’s five field offices a part of me six i sometimes count the bay area as one because oakland the San Francisco yeah okay thanks Lou submitted to the Attorney General the supervising Deputy Attorney General who will sign it to one of the Deputy Attorney General’s within the office he will review the report he or she will review the report and determined is there evidence to sustain an accusation another way of phrasing that is do they see the evidence in the report are they comfortable walkk going before an administrative law judge and arguing that these violations took place based upon this evidence they will then prepare the accusation the the pleading document is drafted by the Deputy Attorney General it is sent back to the case analysts within my unit they will review the accusation for accuracy again dates backs times so so on and so forth we don’t really do a whole lot of review on the legal clinic pleadings and those sections of law cited that’s why we have the Attorney General they will work with the Deputy Attorney General to make any necessary edits once the final draft of the accusation is received it is placed in a folder with a copy of the original investigative report and presented to to pat to the chief of the bureau for final approval and signature an accusation is considered filed by the government code the day it is signed by the chief not wanted to serve but when when the chief signs to the accusation it is considered to have been filed see the ARD it becomes a public record at that point the accusation is when it’s signed the signed accusation is served returned back to the attorney general’s office to the dag who will execute service of the accusation prepare the proof of service and attach several legally required documents there’s a couple sections of the government code the Administrative Procedures Act that are required to be provided including you know discussions of discovery and so on and so forth there’s also a blank notice of defense get included in those documents the respondent to address an accusation once it has been served upon them and they must file a notice of defense stating they wish to contest the accusation possibly settle the accusation or within 15 days and they can at with when filing the notice of defense they can as I said request a hearing before an administrative law judge and request settlement there’s a box to check for the dag to begin settlement procedures or they can elect not to file a notice of defense if a notice the defense is not received within the 15 days the director may and will issue a default decision against the respondent if the hearing is requested the following will will occur the dag will work with the respondent to set a mutually agreeable hearing date this is important and is somewhat of a new step previously knew being within the last two three four years I’m not occur sure of the exact date the previously once the attorney general’s office served the accusation they would contact the Office of Administrative Hearings to set a hearing date to have it on the calendar and kind of reserve our spot to get it done what that generally what that resulted in was a lot of requests for continuance on the respondent because the dates may have worked for the attorney general’s office and bar but maybe not so much for the respondent so Oh aah now requires the Attorney General to wait for a notice of defense and work with the respondent and/or their counsel to set a hearing date that’s mutually agreeable so that continuances don’t occur as frequently as they had in the past once the hearing and the hearing is held both parties will prevent evidence to the administrative law judge at the close of the hearing the matter will be formally submitted to the administrative law judge to prepare a proposed decision the ALJ the administrative law judge has 30 days to submit a proposed decision to the bureau the bureau then follows three steps the decision and the accusation are forwarded to the Department of Consumer Affairs legal affairs this division we refer to it as DCA illegal to review on behalf of the director the director will generally take one of the following actions on the proposed decision they will adopt it as as written as the directors decision reject the proposed decision and turn determine the matter based upon the record or reject the decision and remand a batterer matter back to the ALJ to take additional evidence as far as adopting there’s a couple other things they can do when they adopt a decision the director can you can adopt it with modifications to the penalty if they determine it’s inappropriate or they can adopt it with minor technical changes say something was incorrectly typed with in the proposed decision we didn’t put it in here but the government code specifies that with a proposed decision the director has 100 days to act upon it after receipt by the agency to issue a decision or the decision becomes final by operation of law then there’s enforcement of the order the directors final decision will be sent back to bar for service and enforcement bar will serve the decision on all parties and counsel generally a decision will take effect within 30 days 30 days from the date of service that’s specified in government code it may be it sometimes it sometimes it can be extended beyond the 30 days such as if the respondent files a petition for reconsideration or a files a motion to stay the effective date both of those frequently happen or do happen and the effective date can be extended beyond that bar will enforce the decision as detailed in the order section of the decision we don’t have the luxury of applying any interpretation it is the order of the director and we will so we enforce it as written it could include probation suspension or revocation or any combination thereof if probation is ordered it’ll often include cost recovery training suspension as said before and thought we had deleted revocation because that’s kind of redundant and that’s the general process from start to finish questions thank you very much bill I’m sure we do have some questions mr. Gallow John Galloway California automotive business coalition you know I think the the sad thing about this whole situation is we continuously let the me have with us into a frenzy whenever they have these types of stories and don’t get me wrong the consumer has a right to complain and has a right to have restitution or any kind of corrective action taken too often I see it happen with members of the legislature where they get ambushed put into position forced to create a piece of legislation that goes after the industry to put more regulations in place when we already have the bureau in place to do the things that they do and I think what’s sad about the way this whole thing happens is we’ve seen it ever since Joe Grover came out here from Minnesota and went to Los Angeles and started this media frenzy every quarter when it’s sweeps period and whether he’s going you know the sad part with this particular complaint is the industry is the meat and a sandwich here because they’re being used as the vehicle because for whatever reason this particular reporter wants to go after the bureau we’re not happy about that any more than you guys are you know and the sad part about it is we’re now looking at potential grading system that Assemblymember Lowe has been talked about in this particular interview or he was talking about well maybe we should have a restaurant grading system for automotive repair well having worked on rocky daddy-o’s panel for three years in Los Angeles trying to come up with a grading system it was quickly determined that nobody in their right mind is gonna want to put a Scarlet Letter in their front window like they have restaurants do when there’s such turnover in our industry is there is to create a grading system for automotive repair is just not feasible but going back to this whole situation with a reporter and with all these things that happen every time we’re in a sweeps period you know this is why the advisories here we sit with the bureau we sit with all the interested parties consumers manufacturers doesn’t matter who to try and resolve the issues and fix the problems in our industry we’ve been doing it ever since the advisory was formed and I think sometimes is one of my former co-workers used to say we have to be smarter than the tool and the tool is the media and the problem with the media is it’s like any of you that ever remember the old movie the war game at the end of the movie the answer was the best game is not to play you can’t win with the meeting and because they’re ultimately in control of their message has nothing to do with the problems that we have has nothing to do with any kind of resolve other than ratings period in the end we sit here quarterly to resolve the issues that we need for our industry to provide a level playing field to provide a better service to the consumers and to work with the bureau to create regulations that help level the playing field and get everybody on the same page and so with that I appreciate you going through this whole process I think we’ve said it all along whenever we have any of our members that have had action taken against them it does seem to take a long time for this to make it through the process and ultimately be heard and I realize that now that the websites been redesigned and these allegations are now posted some members already comment with me that you know what aren’t we judging jury all of a sudden the things already posted no decisions been rendered whether or not the shops guilty of anything you’ve now got it on the website and anybody that goes to search for that is going to see it and assume that you’re guilty by association so I think we have to go back to what I said earlier we have to be smarter than the tool and we have to figure out a way to work on this together to resolve it so we don’t become the vehicle for the media to do nothing more than it always does and tell its story because your statement or any of our statements that really is the most impactful is going to be on the editor’s floor thank you okay Thank You Pat bill thank you Dave Cruz a SCCA on slide two with the dates the number of days so you’re 160 days in 1718 hundred twelve days is that all-inclusive of bars action or activity on this because it you know it sounds like it’s going back and forth from bar 2 to the administrative law so and so forth is that every moment I mean every day that or is that just from beginning of the investigation – when is the use your hands in that first step that the total days to 802 8 days in the 719 days is inclusive of the entire process right that I just laid out so the day bar begins – determines an investigation is necessary and opens it until the day the director issues a final decision and that decision has become final the 30 days after right right so the so the that’s a quiet time AG time OAH time Office of Administrative Hearings times that’s all all the parties necessary in implementing administrative discipline right there so you so it’s so and and I’m I’m getting I’ll tell you why so 808 days is the is the total 648 is from closure and so that’s from so 648 days from when bar closes the investigation yes right goes through there comes back for the chief to sign it right is that clear cluded in that bar time correct okay great good that that’s very helpful so so Evan as someone Lowe is I’m my shops in his district right so I’ve been trying to arrange meetings with him or a staff to find out if there’s any proposed legislation as they were talking about so far doesn’t look like there is but well you know I’m working on that and the only thing I wanted to say too is you know based on this one specific report the just to remind everybody to reform everybody the system worked right when they when they when they closed the story they said that an agreement had been reached between the the the shop the company and the vehicle owner right so she either got her $12,000 check she got new cars she got a motor put in whatever it was right the system worked so you guys are doing your job I would I think John’s last comment that or would one of John’s comments that that part may have ended up on the editing right floor yeah where it did I think we all know things are gonna happen we’re dealing with cars we’re dealing with human beings things are gonna go sideways it’s how it’s resolved that that’s really important and that’s really what bar looks at agree yeah and this and this this so thank you for creating this this presentation because this would be this is great information to put in front of someone low right and say here’s the process right you know wherever this disconnect is wherever this three-year thing took place it’s not bar you know it’s it’s not the industry right it’s somewhere else out there in that process now I’m not saying that the process shouldn’t take three years right I mean investigations and processes take what they take right but I don’t think bars side of the of the issue needs invest there he needs scrutiny right it’s it’s not it’s not it’s not bar that’s slowing it down we apply enough scrutiny to our process on a daily basis we yeah we do so thank you thanks Dave any others [Laughter] thank you Bill for the presentation so I just wanted to clarify something you said early on you said that in in news story they or at least the part of the news story that the subject shop the the attorney general accusation was on the website it was posted yes but neglected to be mentioned during the story is that because I that wasn’t clear this story was this reason about that the story didn’t the the reporter showed looking through our accusations filed but lament he lamented on the the accusations filed is a table the bureau puts up monthly that lists the accusations that have been filed by the bureau that month and that’s where the reporter was looking and he might have had more success finding the actual accusation had he looked under the license search because at the time the story ran I know the accusation was up on the web so I just wanted to clarify that I just want to make sure so in terms of the Disciplinary discussion you’ve had here today we really are talking about the most egregious type cases here the fraud cases what I call the fraud cases because there’s other disciplinary action the biere may take based on a complaint right they can go through and have an office conference or a con the educational process or a proactive conference so what you’re talking about here from start to finish is primarily an attorney general that what I consider the serious most egregious fraudulent type cases yes okay so from the time the case is initiated and then there’s a determination at some point with bar that you’re going to go to the Attorney General right there’s there’s a complaint or whatever you go in and and based on what you find at that point if you think this is a very egregious type fraudulent case you may say hey this is something where we’ve got to go this is really a bad situation and you may want you know immediately you’re going to go to the Attorney General or file an accusation to take away the the shops license and put them out of business right I mean that’s you’ll know that at some point initially during the investigation or how do you how is that determined it’s part of the that that’s incumbent compass tin the number that’s not up there the hundred and sixty days in 1718 and hundred twelve days in 1617 of bars portion of the investigation and so to answer your question yes at some point that that conversation takes place between the investigator and supervisor and the field off field operations management team the within that period because we opened far more investigations and we actually forward to the attorney general’s office so not every investigation that we open do does it go to the right attorney general the the number is in a typical year two to four hundred cases go to the Attorney General but at the same time we conduct and these aren’t exact numbers but in those 2000 investigations that resulted something different like I said a proactive conference an office conference something like that a citation so I’m just running the timeline so the time of initiation and then during that hundred twelve days or whatever you mentioned you determine it needs to go to the Attorney General is it sent to the Attorney General or is that what internally you determine it’s gonna go do the determination of it going to the Attorney General is within the first first portions of that hundred and twenty days or that hundred and sixty days it’s very early on because once that determination is made then we have to make sure we have sufficient evidence to support filing with the Attorney General okay so it’s very early on in the process the determination is made as as to whether this is going to go to the Attorney General or something less than that is gonna take place then you do the reports and then they goes to the then you review write and then it goes to the Attorney General correct so the timeframe from an initiation to it’s handed over to the Attorney General how many days is that 160 in 1718 and 112 and 1617 okay 160 days okay so that’s the average so that’s there are some that run longer some that matter of just a couple weeks yeah I know I’m just trying to focus on what the BA are in terms of the initiation your report internally and when you hand it to the Attorney General and you said it was 164 160 days in 2017 yes 18 17 18 which is probably what five months what is that okay that’s what it takes that’s the like kind of the minimum or round that’s the average average that’s the average so sometimes it could take sooner than that yes sometimes later okay so that and and so but as we were going through all these days 800 days that there’s just us seems like a lot of you know there it’s out of your hands it goes to the Attorney General in what’s the average from the time you give it to the Attorney General and then it comes back to you for additional review I mean how long does it take them to do the pleadings on average I don’t know that I have that number okay I mean we could run a report and get it I could make it estimation but I’m not the reason I’m probing is I wanted to find out if there’s any way to kind of speed up you know speed up the process it’ll vary from office to office and tagged a day yeah depending on their caseload you know they’re serving I don’t know how many other licensing entities not just a DCA but other departments presumably so they’ve got and I don’t know what mostly just dca disease the licensing section of the AG think covers most okay that there were others but yeah it is 38 programs here at DCA including bar the number I’ve heard in conversations and I have a lot of conversation with supervising in regular general Deputy Attorney General’s attorneys general the attorneys general it had a long discussion of the plural of that the typical number I hear frequently is a 120 cases per per day I just want to comment on 160 days average in 1718 and 112 yeah 112 days for 1617 you’ve made the comment some are just weeks like some of our smog check data only cases exactly days weeks yeah those are getting much faster but a transmission case with potentially two three undercover vehicle runs may take a bit longer in yeah will take some time documenting that I I mean a vehicle of that was forgot how many hours I heard the other day 180 was someone saying per vehicle yeah and I know transmission I don’t know if someone was telling me that it’s and then the DDOT process of each vehicle I mean you know there’s a number of hours associated with that so a case of that magnitude that complex is going to take months yes I mean maybe here and all of it is we’re not gonna rush the process because like you said Jack we’re essentially putting somebody out of business or we’re seeking to put somebody out of business we don’t go into an investigation hoping for probation the recognition is is that we’re looking to revoke the license and their opportunity to do business we don’t want to have less than high quality evidence to support that action yeah okay well thank you very much I just wanted to you know the timeline cuz when I hear three years and the media takes so long and now you tell them you know average is five and a half months and there’s that other people involved in the process including the Attorney General and reviews I think that’s important information to put in context as to why it’s taking so long here and we’re trying to figure out ways to maybe assist to be the VAR in terms of if there’s areas where we can improve the process and and streamline it you know quicker I just wanted to explore that a little bit and answer and probe those questions but thank you very much yes mr. Gallow just a quick follow up comment I think it really just to finish my other comment earlier I think if we really go back to the first time this reporter came at the industry came at bar it all centered around the fact that they wanted all the complaint history posted on be a ours website I mean that was the real issue the reporter had at the time he wanted all the numbers all the facts and figures and everybody was saying no we’ve already gone this round we went through it with the Nov issue we went through it with the lawsuits that were filed after all the trevor law group and for other frivolous lawsuits and we said no we’re not putting that information out there you won’t find out more or an allegation or a charge against facility okay that’ll be out there but all these other complaints that you’re looking for we’re just not going to have it out there and that’s really where this whole thing started almost three years ago now Thank You Pat what I wanted to do was just make some observations about bills case processing overview which was very accurate first of all you mentioned the bar investigatory report we’ve been defending bar cases for over 35 years now and so we’re very familiar with was the process that you that you’ve laid out in the bar investigative report it’s more than just the findings of the investigators it’s supported by affidavits it’s supported by all kinds of different documents things that we study to make sure that bar as billa said that bar has done their their work and has documented the case to the fullest extent that they can many times in the investigative report the bar investigators will will set forth the series of alleged violations or violations of the law that they think has occurred when that report gets forwarded over to the deputy attorney general’s office for a review and an accusation is filed not all of the charges in the investigative report find their way into the accusation so there’s a a further filtering of further vetting of the evidence at the bar is uncovered so I think that’s important to understand that not everything that the bar investigators believe they found by way of violations of the law are charged in the accusation for a variety of reasons in the S to the hearing itself when the the the it’s I think it’s important for the audience to understand that the vast majority of accusations that are filed by the Deputy Attorney General on behalf of the bar they’re settled they don’t go to hearing and there’s a multitude of reasons why these accusations get settled first you saw the different the different things that the bar can do different actions the bar can take after the administrative law judge renders a proposed decision the key word is proposed that decision proposed decision is not a decision of the bar it only becomes a decision of the bar after the proposed decision is given to the bar after a hearing we don’t see the proposed decision we don’t see that proposed decision until after adoption or rejection we’re barking to an alternate decision so we don’t even know for a long time after a hearing what is the proposed decision of the administrative law judge but one of the reasons that we frequently find ourselves recommending settlement of cases is because it’s a very expensive endeavor to to defend an administrative law case especially when you have a case where you have multiple shops that have been charged and multiple undercover runs it would be hard for me to remember a case where I defended a an ard where there was a single undercover run most of the time the bars gonna run at least two or more undercover runs on a single shop just to make sure that their allegations are solid that takes time in the investigative report you will find the declarations of the bar technicians who work on the undercover cars how much time it takes them the chain of custody so on and so forth and it doesn’t happen overnight to set up an undercover car and to run the car it’s going to take it’s going to take a couple months and then there’s if there’s going to be more than one undercover operation it’s going to take more than just a couple months before the the bar is satisfied that the investigation has been complete when the investigation report when we were served with the investigation report and we can really see what happened there’s different ways that that shop owners look at that report now typically in a situation where you have multiple shops the shop owner can’t be present at each shop all day long to supervise the operations the shop owner has to has to depend upon their managers and regional managers to really watch what’s going on but many many times that investigative report when we get it when we get it and we review it the shop owner then becomes aware of the problem and more than just the act what it’s what’s stated in the accusation which which comes before the discovery the shop owner doesn’t know about the problem so the the whole process can become one of Education for the shop and the shop owner uncover the problem and most importantly figure out why it occurred and how they’re going to prevent it from reoccurring in the future so yes it’s an adversarial process yes Bart for our clients is the prosecutor but it’s also an opportunity to learn about your own business model your own operational model and look to how to improve the model and really use it constructively as an educational process and to the extent that we can work with the bar in that regard we do try to do that Thank You Lou any others I’ll go to the audience bud rice [Music] bud rice with quality tune-up shops I kind of wanted to make a couple of comments Charlie Aires and I were having a conversation earlier before the meeting started and it had to do with the work of a compliance officer working for an organization and if they’re on it and they’re really concentrating on making sure that the organization follows all the rules and regulations and that kind of thing then you managed to avoid any of the stuff that we were seeing on the on the chart here today the issue happens though is that upper management goes you know we haven’t had any complaints or any issues for a long time what do we have this guy yes so so the reason you don’t is because you had the guy and that’s then that’s the truth of the matter okay I’d like to talk for a second though at the front end of this process and that is if in fact bar has an indication I’m kind of following up a little bit on what Lou Lou said a second ago if there’s an indication that there’s something going on I love the process to be Bill calls me up says bud hi it’s Bill Thomas well hi Bill how you doing he goes well I’ve got some concerns okay well if you’ve got some concerns I’ve got some concerns that’s your about and he lays out some things that aren’t straight and I go whoa whoa okay I got it so then I go to work and I clean that stuff up right you know and I assure him I’m gonna go to work that conversation took four minutes it certainly didn’t take a hundred and sixty-five days okay it took four minutes and with that four minutes he’s gonna have an impact on everything that happens at our organization from that four minutes okay and from that we got a chance to get all the way around this now bill has an obligation to then say okay buddy help me out here now because we got to get this straight because if not we got to jump to slide number 12 and I go I don’t want to go to slide number 12 so you got it okay so so this this back and forth stuff here can go a long way towards getting around all this stuff and then to finish my story then Pat gets to go in front of the legislature when they have their their thing every four years or whenever and they go so how many guys did you throw in the pokey the key goes well cheese we haven’t had a lot of problems well why do we have the bar you have the bar so you don’t have these problems just like you had this issue with the compliance officer so I I love my four minutes when I try to say give me my four minutes excellent comments thank you but we didn’t lay out some of those other processes but I think we could do that another meeting this was just to look at the formal disciplinary cases there are other avenues educational avenues and yeah and other meetings office conferences in particular that many are chiming in on that we could share some of those other communication methods or methods let’s just say to gain compliance this is this is when it’s so egregious or there have been many attempts through office conferences and other educational attempts to gain compliance to knows success with no success so yeah this was just looking at the formal disciplinary process there are informal well take disciplinary but educational type processes to gain compliance and we can share those or talk about those at a future meeting I would say those conversations I can say those conversations take place every day those four minute conversations between field reps and repair facilities and generally but just just to let you know most of the accusations we file if we have that conference if I have that conversation with the respondent their response is not bill your problem is my problem that’s generally different than that [Laughter] all right we gotta wrap it up I’ll take one more Charlie quickly I’ve got it still a little bit of the agenda to get through and actually something I really want this group to participate in which is there’s an exercise a little demonstration a interactive process that we want to engage you in with respect to our enforcement licensing modernization so hold on and now we’ll turn to Charlie for one comment hopefully representing motorists and the unfortunate part of this discussion is the bad behavior ends up at the end of the day being bad behavior whatever whatever and we don’t really fix the problem in spite of the amount of assets being distributed I once heard a story a rumor and a member of the Bureau of automotive repair got a complaint the complaint was from a single mom she bought a car two years before got a smog check fail for everything possible on this car the guy goes and looks at the car everything on the car is bad he goes to the station that certifies the car two years before sold as-is but gets all the data and information for that used-car dealer goes to the dealer says I want to see the smog check certs under on the vehicles on this lot Oh none of these cars have been sold there are no certificates on any of them he says well that’s very interesting because I got all the lists in here this lady her car is not fixed I’d like to see it fixed I’d like to see all the cars on your lot fixed and I’ll be back that process resulted in her car cut fix every car on the lot got fixed a year later they were still all fixed three years later there was still all fixed one conversation fixed it but we don’t do that ever we need to start giving that some real consideration not degrading at all that when we got a badass actor he needs to be gone but unfortunately we’re never getting them gone so we need to put something out in front that might function a whole lot better and that didn’t happen in just in one hot shop it happened in many shops this story has been been here many times over time but so far we haven’t got anybody to listen but I’m gonna continue this day and I’m not going away and I’m going to get this done one way or than another because the public deserves better air and better quality services in California starting today Thank You mr. direct thank you Charlie any others looks like it bill excellent presentation thought it was very necessary that we come forward today and can lay it all out and I think maybe coming back with the kind of a educational piece and describing in more detail than non formal disciplinary processes and all the tactics or techniques that we use would be a good idea to kind of a good bar bad bar type but we did the bad first thank you I gotta move on all right we have a handout that’s referenced on the agenda the enforcement statistics update are there any questions relative to that handed and out it’s become pretty boilerplate information just comparing enforcement statistics from calendar year quarter to then from last year to this year I don’t think there’s anything new there new and surprising it’s all same kind of data just new different year new different quarter okay we are gonna take a 5-minute break because our next and final fairly substantive agenda item on the enforcement licensing modernization overview needs some setup it is interactive I encourage you to stick around don’t leave for the this is gonna be good this is we really need some valuable input from all of our stakeholders and this group is certainly one of them so stick around take a few minutes to use the restroom or whatever you need to do but let’s get started back up here at 12:15 thank you you a formal presentation of the day well it was a busy agenda we were going so well too until bill had to come up here I should have known better all right welcome everyone back to after the five minute break we had to our bar advisory group meeting I just wanted to give everyone that additives Bella Morrison looked it up the additives citation the legal citation is business and Professions Code section one three seven zero one all right this is a Professions Code section one three seven zero one Thank You Alan alright our final presentation enforcement licensing modernization or what we’re calling elm because calvess says you know we’re done and clay wanted another big project to takes three more years of his life so we’re gonna give an overview of where we are and where we’re headed clay from our executive office clay leak and Tim Nye with our ma consulting are here thank you Thank You Pat I know everybody’s probably getting hungry and restless so we’ll kind of do this as quickly as we can I definitely want to get to Tim’s part of the presentation which is really kind of the meat of today get some creative juices flowing and maybe get some people even out of their seats and moving around so Elm background so a lot of you may have been familiar or heard of the breeze project it was a project undertaken by the Department of Consumer Affairs several years ago with the goal of consolidating all the dca regulatory entities into a single licensing and enforcement system released three which included bar CSLB other boards and bureaus was cancelled in January of 2015 18 regulatory entities successfully moved on to breeze and our using breeze 16 regulatory entities are still seeking to modernize our business processes including bar we have been tasked with moving forward with a formal project to modernize the enforcement and licensing programs and have been working to do so about over the last year so I know I provided a brief presentation on Elm a ways back but but a lots happened between now and then just a little bit more background a be 111 was passed with some with some language that included some direction from the legislature in terms of modernization requirements and also included some reporting requirements that we are that we are currently meeting secondly DCA published a business modernization plan in response to a b1 11 which provided further direction to the 16 boards and bureaus seeking to modernize our enforcement and licensing programs Elm phases so obviously this project is still kind of in its infancy I would call it in a concept phase or initiation phase so phase 1 right now is really an emphasis on business process re-engineering looking at our enforcement processes looking at our licensing processes and making sure we understand them making sure we are applying them consistently making sure that we optimize these processes prior to a technology response prior to a large technology effort so over on the left side over here if you’re interested in some of the work that’s been going on Tim and his team have been engaged with bar for the last year so spent a lot of time with our enforcement and licensing programs getting into the weeds of every business process in licensing every business processes associated with enforcement and documenting them so we all understand what they are and what they aren’t they’ve done some fantastic works I’d like to thank you and your team and also the subject matter experts for bar that have done a fantastic job so far these are high level business process models there are hundreds of pages of detailed business process models supporting these kind of higher level pictures so I think to date we’re up to at 253 processes within enforcement in licensing very complex and a lot of work but it’s very critical work very necessary work and again they’re on the wall if you’re interested in kind of taking a look at that’s kind of the picture that we’re painting in terms of business processes and how they work phase 2 system which according which would include our last presentation our formal disciplinary process absolutely even used car lot inspections and other processes that we conduct regularly phase 2 system requirements and business needs so again this is kind of part of what I would call business readiness activities again defining solution requirements at a fairly high level and developing user stories and use cases that support those requirements so from the from the perspective of a user of the system how do you represent that interaction and how do you document that and today’s exercise will kind of touch on that a little bit because everybody in this room is is potentially a user phase 3 the project approval lifecycle or the project inside the project is I like to call it prior to a formal project being being started we have to work with the Department of Technology go through the stage the four stages which I’ll touch on briefly in my niche next slide and finally system implementation incremental delivery versus big bang is something I’ll talk about a little bit certainly the direction that we’ve received from the department and other interested stakeholders like the legislature is some smaller incremental functionality with with less risk is the desired path and that’s something that we are certainly going to evaluate as part of the scoping of this project project approval lifecycle I don’t want to belabor the details of this because I know everybody’s already tired and I don’t want everybody to go to sleep but the project approval lifecycle for phases this s1ba or the stage 1 business analysis is the first document that’s produced the stage 2 alternatives analysis in which we look at market solutions commercial off-the-shelf software custom development right what are the options what are the alternatives that we have on the on our plate in order to meet our our goals and objectives stage 3 which is the procurement stage 4 which is the finalization of project details and execution of any associated solicitations our PRF owes RFI is etc historically this a lot of you may have known this as the FS our process the FS our process is no more the project approval lifecycle is the new way in which the state Rises projects to be initiated and started pictures worth a thousand words I wanted to touch briefly on agile verse waterfall software development methodologies I don’t want to certainly belabor the point but you know traditional IT projects sometimes fail as we all know and a lot of the challenges can be really simplified this is a comic book strip that’s been floating around for years but I thought it was really applicable and I just kind of wanted to to to walk everybody through the traditional process and where a lot of IT projects fail you see the first the first picture here is how the customer explained it looks like a pretty simple simple swing right with with three steps the second is how picture is how the project leader understood it so you have an IT person running the project that gathered these requirements and they missed a few a few things but it’s pretty close right we could still use the swing the third picture is how the systems analyst designed it so we’ve now handed off our requirements to a business analyst that’s writing functional specifications I don’t know if that’s gonna work I got to be honest I’m not sure that that one’s that one’s gonna get us where we need to be finally how the programmer wrote it so we’ve handed off our design specifications to a programmer who’s now developing code doesn’t look like much where we started finally what the customer really needed it was a tire swing the whole time and we kind of missed the boat and we spent a lot of time and money getting to an answer that we didn’t need and we didn’t want to be at so the whole concept of agile iterative software development methodology and delivery is is something that’s really come a long way over the last 15 years it’s it’s a practice I’ve adopted and used for 15 plus years something the states really come around and is adopting the goal of this iterative agile approach is to make sure we understand what you need right up front and make sure there’s a lot more iterations and a lot more interaction between our subject matter experts our business users and our programming team and you eliminate this misunderstanding so that’s really the goal of what we’re setting up from a methodology perspective and that’s really why we’re we want to have this exercise at the tail half of this meeting we want to get an understanding for what you as end-users need and we want to start that dialogue today and we want to continue having that dialogue through the course of this whole project because we don’t want to end up where that swings tighter on the side and it’s hanging on the ground and that’s not what we want we want to build what you need so timeline this is something that we’ve shared in our reporting to the legislature it’s obviously the projects in concept phase so this is you know could change dramatically depending on the scope and how we kind of move this project forward as we go through the project to prove a life cycle the other reason I want to show this timeline is to just briefly talk about the the plain analogy you know any IT project requires a ton of resources both from the IT side and from the program side as we move through this project a ton of resources from both licensing and enforcement will be redirected to support this project they have a ton of really intensive activities like developing test cases writing functional specifications the actual testing development implementation right these are all activities that are going to take resources so just something to be aware of obviously we will continue to regulate the industry as effectively as we can but but this is a huge a huge level of effort for bar and I want everybody to understand that so real talk you know the applications we use to support licensing and enforcement are ancient modernization is way way overdue I briefly mentioned pal the California Department of Technology state information management manual sim 19 is really what guides us and that’s the law that we’re required to follow so there are some constraints and some limitations in terms of what we can’t do and how fast we can move and where the approval points are we obviously intend on following all those that’s where that direction is minimization of risk I’ve talked about incremental delivery the concept of a minimally Viable Product is a really powerful concept we don’t need to build everything that we could possibly ever need to modernize enforcement and licensing to go live we need to meet a set of minimum requirements a set of minimum functionality that allows us to move forward and we need to build a framework to improve that over time how do you how you get to this MVP we get to there by prioritizing measure and during business value excuse me prioritizing business value measurable business value again kind of touches on the exercise we want to do today but understanding the program’s understanding the processes and understanding where the potential efficiencies are is how is how we prioritize that and how we how we get to an MVP finally you know increasing efficiency is really the goal of all this and it’s not just technology this technology isn’t gonna fix all of our problems it’s always a blend of people processes and technology and that’s something that we’ll continue to preach as we move through this this project the people have to be trained the people have to be ready formal change management is really important the processes have to be in place we have to understand what these processes are and why we do them and and once we understand those two things and we have those two pieces that technology can help us fill in the rest internal versus external capabilities I think this is a lot of stakeholders for this project obviously internally we’re really focused on efficiencies externally different stakeholders have a lot of different priorities so this is something we’ll be continuing to balance and work on through this project as well and obviously we want to engage this group as much as possible and make sure we understand your needs and we’re able to prioritize those as efficiently as possible finally continuous improvement a lot of the applications we use today we’re built I don’t know in the 60s or 70s and have remained a pretty stagnant I think my goal is not just to build a new system my goal is to build a new system and establish a framework for continuous improvement so when we do have changes that are needed we can make those changes efficiently we can make those changes quickly and we can be reactive that’s the ultimate goal is to build something that that that breathes and lives and evolves rapidly not slowly and with that I will hand it off to Tim I apologize I probably went a little longer than two [Music] so for for you to get the improvement state that you need we have to look at it from three perspectives we get to I think your mics not on there’s a button at the bottom so for for elm to succeed we really have to look at three fundamental aspects it is going to be a system which means that it’s more than just technology technology enables processes processes are performed by people all three have to work harmoniously together for Elm to be successful so when as we’re looking at this right now we’re just in the foundational steps of understanding what Elm needs to be to to achieve the the efficiencies that bar needs what are the opportunities that we can improve upon what are some of the problems that bar has meeting it’s it’s mandatory functions and so on to the next slide Elm will support bar so if we if we start from the very base premise of bar let’s look at the mission the vision and the values because the system has to support all of that including the strategic plan and right now just in terms of just kind of an update we are going through an effort right now to define the feasibility and the business case for Elm and we’re starting very much at this high level of what is the mission of bar what is the vision of bar and what are its core values and then we’re actually looking at what are the problems and opportunities that we can that we can address as part of our business case or feasibility study that we’ll end up going through that project approval lifecycle and that project approval lifecycle is very much as clay said it’s controlled by the the 20 Department of Technology we don’t have a lot of control over that so it may we may fly through it we may run into roadblocks I’m sure we’ll run into roadblocks but we’ll get through those on the next slide Elm presents opportunities and that’s really where where we’re at today is some of the opportunities that have been defined to date as part of the modernization is to increase the standardization across existing business processes that that first bullet right there is is probably one of the most important which is why we’ve spent an inordinate amount of time to document over 250 business processes we really need to get an understanding for how Bar operates today what’s it what’s the technology footprint look like how how efficient are the processes what are some of the problems what are some of the staffing problems are there training issues so we need to increase standardization so that regardless of you’re in the Irvine field office or a year in the San Francisco field office the process looks very much similar they are similar right now it’s just that because of various criteria staffing issues things of that nature each office operates a little bit differently so we want to increase that standardization we want to improve efficiency of the existing business processes bill gave a great presentation earlier on how long it takes to get through the formal investigation process working with the attorney general’s office what are some of the things that we can do to improve the efficiency on bars end and also provide information to the Attorney General that they need so it can help improve their timeliness in in closing those cases as well improved workload management you know who’s working on a case who’s working on a various step of a process do we have clear roles and responsibilities in place from organizational units within bar clearly defined key performance indicators these right here the vision of moving towards modernization technology exists today to where we can really implement something to capture those KPIs from the system versus having to have manual check offs or something because the process is paper-based as much of the processes are right now improved reporting and access to data similarly by having an integrated set of software that all communicates with one another we can improve that reporting so it’s not a matter right now the it’s a it’s a very manual process to put those statistical figures together all the information is available but it’s all in different systems and different software packages improved consumer access to licensee performance data shifting to paperless processing the industry has been talking about moving to paperless for 30 years we really are at a crux right now in the industry where we’re starting to see a lot of this move towards electronic format digital transformation I’m sure a lot of you are familiar with so business modernization is now the term that that’s kind of being coined now is digital transformation but it really is a shift to move towards paperless electronic digital processing improved online capabilities for licensees and consumers we very much want to to leverage that so that there’s more self-service for the repair facilities as well as consumers to file complaints and so forth and stakeholders like yourselves that may want a presentation on what bar does online application processing and reduce costs so these are just a few of the opportunities that we’ve identified so far but we really want to kind of peel back the layer and look at all the various stakeholders and their interactions with bar and ask you what are some of the challenges that you’re facing and do you have any ideas for if if we could define the future right what would the optimal state be and so moving on to the the next slide who will benefit from Elm this is where we’re going to take a little activity and we’re gonna ask you to think of any challenges that that that you’re experiencing right now that maybe some of your constituents are experiencing right now if you have any ideas readily available to alleviate some of the problems that you know of and this is this is not defining firm requirements we’re really just kind of brainstorming right now to just get the ideas out and we want to think digitally we want to thank future because whatever we implement for elm needs to be with bar for just like cal vista said for the next 10 to 15 years right so we need to we need to design a scalable system that’s going to meet bars needs today and into the future and so when I kind of put my hat on originally thinking about the future I just naturally go to the Jetsons right I mean what’s more futuristic than a flying car and a robot and of course the dog is awesome also but if it’s done using paper today it can likely be done digitally in the future digital devices today they include PCs tablets mobile phones even VR glasses how do VR glasses get integrated with with bar well if you think about technicians and training right VR glasses can can there they’re already being used in the industry not necessarily automotive repair but say in the plumbing industry I know that they actually developed training now where he can have VR glasses and it can pinpoint specific areas to train people on how to do things not necessarily that will be part of them but let’s let’s explore all those opportunities and then we can then we can settle on the Minimum Viable Product once we get there how can manual tasks be automated voice to text I’m sure everyone gets robo calls here those are not real people optical character recognition this is scanning documents that converted directly to text that you can copy into a Word document predictive analytics if you seeing trends that stations are exhibiting behaviors there’s technology today with artificial intelligence and so forth that can help kind of pinpoint where where the logical next step that that is that that person is going to take in terms of that that pattern behavior and then think about how technology is used today in your personal life we all have iPhones we all have tablets we all have pcs think about you know how you use your phone today just to interact with very services that you do how could that be extended to bar and then what do you need from em Elm let’s just think broadly what if what if anything was possible what if you could have anything that you wanted for for Bart for a new system that would help bar to achieve its mission and and reach its vision very clearly so that everyone has access to the same information with that real quick before we dive into the exercise we’ve done this internally with bar staff and planned to continue doing it with other stakeholders one of the interesting outputs some of these ideas that have come up we’ve looked at these ideas and thought well gee we don’t need to wait for Elm this is something we could do today so one of the ideas that came up was actually putting a QR code for those that know what a QR code is on an ard station wall license a QR code is basically a bar code in a square format that when you scan it with your cell phone or tablet will take you directly to a website so a QR code is very flexible it’s not just a website you can actually embed data into the QR code so it could take you to a very specific website so the the use case for this particular example was if a consumer is in a station and say an ard wall license happen to have a QR code on it and a consumer could scan that QR code and they’d be taken to a website that said would you like to file a complaint would you like to see disciplinary history for this station or would you like to schedule an auto body inspection and when they clicked I want it to see disciplinary history it would take them to the DCA search page specific to that station they wouldn’t have to click down they wouldn’t have to enter the ARD number they wouldn’t have to search for the name it would take them straight to the disciplinary history page and they could see if that station had any disciplinary history or if they wanted to file a complaint it would pre populate our complaint form with that station information so they wouldn’t have to do any of that quicker to route easier for us to receive and process a lot of efficiencies to be gained so that’s something we’re looking seriously at right now but there’s no bad ideas at this point and and some of these ideas I guess my point is we may not have to wait some of these could happen sooner than later so great point so so with that we’re gonna take we’re gonna take about five minutes per we have four user profiles or customer profiles that we’ve put together for you hopefully they’re relevant to this audience and the first one that we have up here is the consumer and so kind of on on what clay was talking about if we think about what a consumer would say in the future after elma has been implemented or even before right if it’s something that bar could do aside from Elm I filed a complaint simply by scanning the bar QR code posted at the repair facility versus having to search for the bar consumer information number called DCA log a complaint wait for someone to call them back right they could instantly just scan it with their phone it could go into an automated workflow queue within the Elm system be assigned to a program representative in the field office and that’s in the region that that complaint is is for and automatically be assigned and so now there’s there’s no delay in terms of bar getting an understanding of oh we have a new complaint it’s it’s now instantly there it’s in a queue and all they have to do now is just do a little bit of research call that person back get the information and proceed with the complaint so some of the other common interactions that consumers do their request Auto Body inspections they file complaints and they seek information about bar programs as well as other California programs so let’s take five minutes I’ve given everyone you know post-it notes if you have any ideas in terms of challenges that you know from a consumer standpoint that you’ve heard from from your various constituents and so forth that they have problems with bar or they have ideas if you just have any ideas let’s jot them down and I encourage people in the audience also to to jot those down as well and we can come along and pick those up and we’ve got some post-it we’ve got some posters in the back that will put those on so we capture those for the record and again this is just a brainstorming exercise just to kind of get its place ed the creative juices flowing but we really want to look at it from a a customer perspective first sure there you go I like those alright we gotta go okay let’s uh let’s move on to the next one here you want to read any of them or just a the mic is Tim you got a mic right here at mobile Mike real quick just read a couple off just to give people a sense of some of the ideas coming out all right so we have a couple of ideas handwriting may be an issue I’m gonna be totally honest I’ve got one here for include QR codes on all key bar documents and booklets pre-populate consumer complaint form when they enter the ARD list registered ard s in my zip code area it sounds like a website idea simplify officer and name changes for ard applications consumer receiving receipt of smog test transmission are a few of the ideas thank you guys all good stuff so the next one is a repair facility owner so if we’re looking into the future one thought is a repair facility owner could come back and say it took less than five minutes to renew my license and pay the fee using the bar phone app so think about that we all have iPhones if bar has it has a phone app and an ard has has an account with bar they could literally get an alert on their phone saying your your renewal is up would you like to renew now or they could have an automatic renewal where they don’t even have to do anything they just get a text say confirmation text saying your application has been renewed congratulations so they submit so let’s take a few minutes I’ll read out some of these interactions while everyone’s kind of brainstorming they submit registration and license applications they pay application and license fees for both initial renewal and Lai they maintain appropriate automotive repair certifications they perform auto repair in smog testing they comply with California laws and regulations they pay citation fines and they attend education and disciplinary conferences now there’s probably a lot more but these are just some some of the more common ones so again just think what if I as a automotive repair dealer anything that would make my life easier interacting with bar take yours up okay so and if you if you still have some on consumer or repair facility feel free to continue doing that we’ll just go through these other two real quickly the third one is a consumer advocate so I like the virtual assistant feature I just said what I wanted and the system translated my voice message and sent me a text confirmation right so consumer advocates they request presentations such as a right at Wright senior scam stoppers things of that nature right we have we have an intake process currently for for taking in those requests but how cool would that be if they could just call the phone and through voice detects recognition the the system just automatically translate their voice and then submits that request directly into that workflow queue like we talked about earlier and it gets assigned and and now there’s it it’s it’s simplified the intake process considerably through the use of technology and then the other one and so so go ahead and continue brainstorming on on all three of those and then the fourth one that you can think about also is an industry training provider so they provide training to automotive repair technicians they verify the status of certifications maintain training certification and requirements and programs and thinking in the future I am able to link our database directly with them to provide training reminders and Eve Arif occations of training certification versus having to call and figure out who I’m gonna call next and quite honestly I don’t have a lot of details on this external process so I’m a little I’m a little ignorant in terms of what exactly that the training providers do so just being being upfront with you but I would think that that that could be something that technology could absolutely do in terms of me verification we do it for electronic health records today there’s no reason why we can’t do it for automotive repair cert training certifications so that’s let’s let’s take a few minutes and so while everybody’s finishing up I know we’re losing a little steam I think everybody’s suffering from low blood sugar I know I am but I mean you guys get the idea right this project is a blank slate everybody in here is a key stakeholder of this project and we want to we want to solicit that input obviously this exercise will probably get a few good ideas I’ll be totally honest every time we’ve done this we get some good ideas we haven’t haven’t thought of but this is really a dialogue I want to continue having with everybody and bar wants to continue having so as you have these ideas I’m all ears what we’re gonna put them all up on the board and talk about them also is the dialogue we want to continue having and we want to understand all the stakeholder needs and make sure we prioritize those thank you clay and and thank you very much Tim I yeah this was just a kind of a demonstration of what we’re going to be doing over the months ahead and I mean beyond months maybe even into the next year and this is by no means the final opportunity to weigh in on this this was just kind of a kind of a sample of what we’re going through a trial run of sorts of the brainstorming sessions we’ve already initiated and some really good ideas have come up and we thought what a another great venue to do that is before stakeholders who are on this advisory group we could certainly schedule a more formal presentation with a more dedicated almost in a workshop fashion at a future bar advisory group meeting or following a bar advisor group meeting but we just wanted to kind of whet everyone’s appetite for what we’re going to be working on and how to be a part of that okay any questions or comments any final yellow sticky notes feel free to throw them up on the on the on the four pages that are posted on the wall thank you oh what’s that yeah oh you had a comment by Oh a couple comments yeah come forward forgotten your name I’m sorry oh come on thank you appreciate that my name is Bob du Bois golden smog Wes my family operates five Northern California test only smog checks I just had a general commentary to make with with one small specific request the general commentary is is that test providers have suffered significantly in the last year first we had the the new gen three machines and then more importantly and dramatically more importantly a be 1274 came in a place that extended smog testing from six years to eight years exemptions and I realize that that both of these changes have had real benefits obviously we want to monitor modernize the bar ninety seven machines and the point of a b12 74 is to reallocate resources that we ideally be more effective to benefiting the environment but the burden has been on the small shops and so I just wanted to take a moment to emphasize that and really point out that that that ultimately it’s going to fall on consumers right now we’re really seeing an upheaval in all the stations that that people are reacting to the loss of volume by lowering prices and so you know that’s extending the impact and ultimately there will be fewer shops and higher prices for the consumer so my specific request is that we track this I see in the enhancement stats that there is a number there that shows the number of stations I’d like us to follow how many stations are actively testing not just license but are actively testing I expect that number to reduce significantly the next year year and a half and I think that one I’d like to know that information but two I’d like it to be on the forefront of the bars mind about the impact that the stations have had particularly that I’m just concerned about new impacts obviously a B to ten is a concern love a lot of the things that clay and others are presenting and so forth you know we’re concerned that that will become cost for us as station owners so just with I’d really like to see that we’re tracking what’s what is the impact on the industry over the next year and a half and keep it in our minds as some of these new improvements are rolled out so thank you very much thank you Bob and thank you for transitioning us on the agenda to the public comment on items not on the agenda I didn’t I didn’t close off the last presenters officially but I think we were pretty much done with that exercise but I appreciate your comments as you know some of these things are are the acts of the legislature we certainly weigh in on bills and are asked what it what does a expected opposition or support of any bill you’re always with respect to exemptions are always the the battle is the you know weighing against the impacts on the environment versus impacts on the on the industry there’s always that and are we are we testing to all the cars that need to be tested do you know is there values or essentially with the bang for the buck and so those are things that we always present and we’re always balanced and fair about what the projected impacts on the industry are going to be but we also have to do an assessment of what the environmental impacts or sacrifice will be for giving up potential number of vehicles as they have so yeah legislation will obviously be a driving force for any significant additional changes beyond what we’ve already seen but it’s been I remember the days before you probably in this business that we tested everything after the first two years and then it slowly went to and then went to four I went to six and now we’re at eight and I was the vehicle tall technology in this expectation that these vehicles are staying clean producing well in some cases no emissions you know there’ll be those vehicles won’t be in the program there might be some other program for them but certainly the emissions program that we have today doesn’t doesn’t suit those kinds of vehicles certainly or a longer duration before their next inspection I just want to I just want to share with you it’s not that the bureau doesn’t support and and understand what your industry as as we’ve heard from all facets of the industry not just an smog check what they experience with changes in our laws and we do our best to represent those views obviously you know that’s kind of our job and we get asked to kind of discuss all the impacts on all facets of the industry or environmental as well so try to do a balanced job of doing that of course and we recognize that the industry is always going to change and that and we imagine that this will stabilize just want to be make sure that that the group is aware that the next few months year and a half is tough on our industry and we’d like some sensitivity to that certainly absolutely thank you other comments public comment on items that were not on the agenda mr. Peters yes I’m not sure if the mic is on Charlie could you turn on like for those who are hello listen Charlie Peters plein air performance professional is that better mr. Dre I can hear you fine with or without the mic but I thought others might be challenging challenge to hear you answered my question is that better sir yes for me thank you sir possibly for the other day I just want to know who the gentleman that was sitting in this seat who he is who he works for or has worked for that’s taking on this enormous project I like to have him identified as to who he is and if he works for you or if he works for a contractor who that contractor would be well he’s a it works for us but he works for a contractor by the name of RM a consulting RM a consulting can I get information as yeah his contact information is on the cover the slide presentation and the company he works for is on the slide presentation as well thank you are there comments not on the agenda for agenda items not on that we’re not on the agenda no Mike wants lunch as do all of us as do everyone to my left is gone all right well let me remind everyone there is a regulatory workshop coming up today at 2 o’clock in this very same room on collision repair and some draft regulations that we have put forth and we want to discuss with some everyone our stakeholders bar advisory group members members of the audience here are welcome to attend we’ll see you back here our next meeting two o’clock if you’re so inclined our next meeting will be in this room on Thursday July 18th 2019 yeah July 18th thank you all thank you for your patience I appreciate your attendance today great great meeting I thought we got through a lot of lot of information today thank you you


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