BEFORE THE DIRECTOR STATE OF CALIFORNIA LATINO...

BEFORE THE DIRECTOR DEPARTMENT OF CONSUMER AFFAIRS

BUREAU OF AUTOMOTIVE REPAIR STATE OF CALIFORNIA

In the Matter of the Accusation Against:

LATINO SMOG CHECK, RICARDO GRANADOS, Owner 2105 Edison Hwy. B8 Bakersfield, CA 93305 Mailing Address: 2812 Berger St. Bakersfield, CA 93305

Automotive Repair Dealer Registration No. ARD272202 Smog Check Station License No. TC 272202;

RICARDO GRANADOS 2812 Berger St. Baicersfield, CA 93305

Smog Check Inspector License No. EO 635080 (formerly Advanced Emission Specialist Technician License No. EA 635080);

and

DAVID GRANADOS 3217 Haley St. Bakersfield, CA 93305

Advanced Emission Specialist Technician License No. EA 143913,

Respondents.

Case No. 79/14-6500

OAHNo. 2017090152

DECISION

The attached Proposed Decision of the Administrative Law Judge is hereby accepted and adopted by the Director of Consumer Affairs as the Decision in the above-entitled matter, except

that, pursuant to Government Code section 11517, subdivision (c)(2)(C), teclmical or other minor changes in the Proposed Decision are made as follows:

1. Page 13, paragraph 3 under Order: License number "EA 635080" is corrected to "EO 635080."

The teclmical or minor change made above does not affect the factual or legal basis of the Proposed Decision.

This Decision shall become effective -~-~~--=---~____:_,,L-+-\iJ.::..__1 _~ __ <L __ _

DATED: ~ .. GRACE ARUPO RODRIGUEZ Assistant Deputy Director Legal Affairs Division Department of Consumer Affairs

BEFORE THE DEPARTMENT OF CONSUMER AFFAIRS

FOR THE BUREAU OF AUTOMOTIVE REPAIR STATE OF CALIFORNIA

In the Matter of the Accusation Against:

LATINO SMOG CHECK, RICARDO GRANADOS, Owner 2105 Edison Hwy. B8 Bakersfield, CA 93305 Mailing Address: 2812 Berger St. Bakersfield, CA 93305

Automotive Repair Dealer Registration No. ARD 272202 Smog Check Station License No. TC 272202;

RICARDO GRANADOS 2812 Berger St. Bakersfield, CA 93305

Smog Check Inspector License No. EO 635080 (formerly Advanced Emission Specialist Technician License No. EA 635080);

and



Respondents.

Case No. 79/14-6500

OAH No. 2017090152

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PROPOSED DECISION

Carla L. Garrett, Administrative Law Judge, Office of Administrative Hearings, State of California, heard this matter on October 30, 2017, in Los Angeles, California.

Terrence Mason, Deputy Attorney General (DAG Mason), represented Patrick Dorais (Complainant), Chief of the Bureau of Automotive Repair (Bureau), Department of Consumer Affairs (Department).

No appearance was made by or on behalf of Latino Smog Check (Respondent Latino), Ricardo Granados (Respondent Ricardo), or Respondent David Granados (Respondent David) (collectively, Respondents).

Complainant requested that Respondents' default be entered and that Complainant be permitted to prove up the allegations set forth in the Accusation. This matter proceeded as a default under Government Code section 11520. Complainant presented documentary evidence.

The record was closed and the matter was submitted for decision on October 30, 2017.

FACTUAL FINDINGS

Jurisdiction

1. On October 3, 2016, Complainant filed the Accusation in his official capacity, and on October 7, 2016, caused it to be served on Respondents via U.S. certified mail at their respective addresses of record. Specifically, Respondent Latino and Respondent Ricardo were served at 2812 Berger Street, Bakersfield, CA 93305, and Respondent David was served at 3217 Haley Street, Bakersfield, CA 93305.

2. On October 18, 2016, DAG Mason received a faxed letter from Kimberly H. Savage, Attorney at Law (Attorney Savage), stating that she had been retained to represent Respondents in this matter.

3. On September 25, 2017, a Notice of Assigned Hearing Dates setting this matter for hearing on October 30, 2017, was served on Respondents individually, and on Attorney Savage at 1712 19th Street, Suite 103, Bakersfield, CA 93301.

4. On October 6, 2017, DAG Mason received a faxed letter from William Ferreira, Attorney at Law (Attorney Ferreira), stating that his firm would be representing Respondent Latino and Respondent Ricardo, and that the firm would be taking over from the prior attorney.

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5. Respondents did not appear at the hearing, and neither did Attorney Savage, Attorney Ferreira, or any other legal representative.

6. Factual Findings 1 through 5 reflect that Respondents' failure to appear at the hearing constituted a default. The hearing proceeded as a default prove-up.

7. On March 18, 2013, the Bureau issued Automotive Repair Dealer Registration Number ARD 272202 (ARD Registration) to Ricardo Granados, owner, doing business as Latino Smog Check. The ARD Registration for Respondent Latino was in full force and effect at all relevant times, and is due to expire on March 31, 2018, unless renewed.

8. On April 2, 2013, the Bureau issued Smog Check, Test Only, Station License Number TC 272202 (Station License) to Ricardo Granados, owner, doing business as Latino Smog Check. The Station License for Respondent Latino was in full force and effect at all relevant times, and is due to expire on March 31, 2018, unless renewed.

9. On January 4, 2013, the Bureau issued Advanced Emission Specialist Technician License No. EA 635080 to Respondent Ricardo. Respondent Ricardo's Advanced Emission Specialist Technician License was due to expire on November 30, 2014, however, it was cancelled on September 17, 2014. Pursuant to California Code of Regulations, title 16, section 3340.28, subdivision (e), the license was renewed as Smog Check Inspector License No. EO 635080, effective September 17, 2014. Respondent Ricardo's license was in full force and effect at all relevant times, and is due to expire on November 30, 2018, unless renewed.

10. In 2001, the Bureau issued Advanced Emission Specialist Technician License No. EA 143913 to Respondent David. The license expired on July 31, 2013, and has not been renewed. Business and Professions Code section 9884.13 provides that the expiration of a valid registration shall not deprive Complainant of jurisdiction to proceed with a disciplinary proceeding against a registrant.

Smog Check Program Background (BAR97)

11. The BAR97 Emissions Inspection System (EIS) is a computer-based analyzer used in the performance of Smog Check tests. EIS samples a vehicle's exhaust emissions through an exhaust sample probe that is placed in the tailpipe of the vehicle being inspected. The EIS accepts entries from the licensed technician per his/her visual and functional inspection of the vehicle, as well as the information specific to the particular vehicle, such as the vehicle's model year, make, model, license plate number, vehicle identification number (YIN), etc. The licensed technician gains access to the EIS by using a confidential personal access code assigned by the Bureau. The EIS uses the information entered by the technician, along with the data from the analyzer, to determine whether the vehicle passes the test.

12. The Smog Check test consists of a three-part inspection: (1) a visual inspection of the vehicle's emission control components; (2) an exhaust emission sample;

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and (3) a functional test of certain emission-related components. If the vehicle passes the test, the EIS issues a Certificate of Compliance number. This certificate number and all test information are automatically transmitted via modem to the Bureau's Vehicle Information Database (VID). A dishonest Smog Check technician can circumvent the Smog Check program by using the clean-piping method. The clean-piping method involves a technician entering vehicle information into the EIS for the vehicle he/she wishes to certify and then sampling the exhaust of a different clean-running vehicle. By using this method, the technician is able to issue a smog certificate to a vehicle that is not presently at the facility for testing and/or cannot pass the test on its own.

Undercover Operation]

13. When the Bureau received information transmitted to its VID from Respondent Latino, it noted that the data showed similar revolutions per minute (RPM) and emission readings for a wide variety of tested vehicles. This prompted the Bureau to initiate an investigation regarding the suspicious pattern of data, and to ascertain whether Respondents were performing fraudulent inspections using the clean-piping method.

14. On September 6, 2014, Bureau Program Representative I, Jose Salas, participated in an undercover operation in furtherance of the Bureau's investigation. Specifically, Mr. Salas, who testified a hearing, drove to Respondent Latino and met with Respondent Ricardo. Mr. Salas informed Respondent Ricardo that he had a 1980's Chevrolet that would not pass its smog test and asked Respondent Ricardo if he performed smog repairs. Respondent Ricardo stated that he did not perform repairs and told Mr. Salas that it would be best to perform a "crooked" smog check on older vehicles. Mr. Salas inquired into the cost of a crooked smog check, to which Respondent Ricardo replied, $250, and that Mr. Salas would need to leave the vehicle at Respondent Latino. 1 Respondent Ricardo explained that he would make arrangements with an individual, "Ghost", to perform the illegal Smog Check inspection.

15. In October 2014, a Bureau Documentation Laboratory Representative, Ricardo Pantoja, prepared a 1986 Chevrolet Monte Carlo (Monte Carlo) to fail a proper smog inspection by producing excessive emissions. Specifically, Mr. Pantoja disconnected the air injection system (AIR) and removed the catalytic converter, and utilized tamper seals to detect any subsequent adjusting and/or removing of the carburetor. Mr. Pantoja then performed a smog check inspection of the Monte Carlo which it failed due to the disconnected AIR system, the missing catalytic converter, and excessive tailpipe emissions.

16. On November 4, 2014, Mr. Salas returned to Respondent Latino with the Monte Carlo, which had been outfitted with a hidden video recording system. Mr. Salas again met with Respondent Ricardo and requested a smog inspection. Mr. Salas provided

According to the testimony Albert Jess Copeland, who has served as a Program Representative for the Bureau for the last 14 years, the going rate. for a smog check is between $40 and $60.

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Respondent Ricardo with a fictitious vehicle registration and $250 in cash. Respondent Ricardo requested Mr. Salas to provide his name and contact information and had him sign a blank estimate. Mr. Salas then left the facility, but was not provided with a copy of the blank estimate.

17. Later that day, Respondent Ricardo telephoned Mr. Salas and informed him the Monte Carlo was ready. Mr. Salas returned to Respondent Latino and met with Respondent Ricardo, who provided Mr. Salas with a written estimate, invoice, and VIR, and stated the Monte Carlo had been smog certified. The VIR provided by Respondent Ricardo and the BAR97 Test Detail retrieved and printed from the VID showed that Respondent Ricardo entered "pass" into the EIS for the required catalytic convertor and disconnected AIR system, when in fact the catalytic convertor had been removed and the AIR system had been disconnected.

18. Later that same day, Bureau representatives reviewed the Monte Carlo's hidden video recording system which utilized two cameras: one at the rear of the vehicle in the exhaust tailpipe, and the other in front of the vehicle. The video recording showed that Respondent Ricardo and Respondent David performed a clean-pipe Smog Inspection on the Monte Carlo by inserting the EIS sample probe into Respondent Ricardo's personal vehicle (a Suburban) and a disconnected decoy sample hose and probe into the Monte Carlo during the inspection.

19. The next day, November 5, 2014, Mr. Pantoja re-inspected the Monte Carlo and verified that his documentation of the Monte Carlo remained the same. Mr. Pantoja then performed a California Smog Inspection that showed that the Monte Carlo had failed a properly performed inspection due to the missing catalytic convertor, disconnected AIR system, and the excessive emissions.

Undercover Operation 2

20. From December 31, 2014 through January 7, 2015, Bureau representative, Fernando Gonzalez, prepared a 1992 Chevrolet S10 pickup truck (S10) to fail a properly performed smog inspection. Specifically, Mr. Gonzalez removed the catalytic convertor, cut the exhaust gas recirculation (EGR) valve diaphragm, installed an EGR passage block-off plate, and utilized tamper seals to detect subsequent removal of the EGR valve. Mt. Gonzalez then performed a smog check inspection on the S10, which it failed due to the missing catalytic convertor and excessive emissions.

21. On January 28, 2015, Mr. Salas drove the S10, which had been outfitted with a hidden video recording system, to Respondent Latino and again met with Respondent Ricardo and requested a smog inspection. Mr. Salas again provided Respondent Ricardo with a fictitious vehicle registration and $250 in cash. Respondent Ricardo requested Mr. Salas to provide his name and contact information and had him sign a blank estimate. Mr. Salas then left the facility, but was not provided with a copy of the blank estimate.

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22. Later that day, Respondent Ricardo telephoned Mr. Salas and informed him the S10 was ready. Mr. Salas returned to Respondent Latino and met with Respondent Ricardo, who provided Mr. Salas with a written estimate, invoice, and VIR, and stated the S10 had been smog certified. The VIR provided by Respondent Ricardo and the BAR97 Test Detail retrieved and printed from the VID showed that Respondent Ricardo entered "pass" into the EIS for the required catalytic convertor, when in fact the catalytic convertor was missing.

23. Later that same day, Bureau representatives reviewed the SlO's hidden video recording system which utilized four cameras: one camera from the front left, a second camera from the right front, a third camera at the rear of the vehicle in the exhaust tailpipe, and a fourth camera from the underside of the hood towards the left of the vehicle. The video recording showed that Respondent Ricardo and Respondent David performed a cleanpipe Smog Inspection on the SlO by inserting the EIS sample probe into Respondent Ricardo's personal vehicle (a Suburban) and a disconnected decoy sample hose and probe into the S 10 during the inspection.

24. On February 9, 2014, Mr. Gonzalez re-inspected the S10 and verified that his documentation of the SlO remained the same. Mr. Gonzalez then performed a California Smog Inspection that showed that the S10 had failed a properly performed inspection due to the missing catalytic convertor and excessive emissions.

Subsequent Improperly Performed Tests

25. On March 9, 2015, the Bureau implemented a policy change requiring the use of the on-board diagnostic (OBD) Inspection System (OIS) when testing 2000 model year and newer gas powered vehicles weighing 14,000 pounds gross vehicle weight (GVW) and under, and newer diesel powered vehicles 14,000 pounds GVW and under. The Bureau advised licensees numerous times about the implementation of the new testing requirements. Specifically, on January 7, 2015, Complainant sent a letter to licensees reminding them of the upcoming changes to the Smog Check Program, including the OIS implementation scheduled to commence on March 9, 2015. Additionally, the Bureau sent licensees Eblasts on January 12, 2015, February 6, 2015, and March 4, 2015 reminding licensees of the upcoming OIS implementation.

26. The Bureau's VID indicated that Respondent Latino registered an OIS, and on September 23, 2014, purchased smog certificates for its OIS.

27. On March 15, 2015, Respondent Latino issued a Certificate of Compliance to a 2005 Ford F250 diesel using the BAR97 EIS, when the newer OIS test was required. According to the VID, Respondent Ricardo performed the inspection.

28. On March 25, 2015, Respondent Latino issued a Certificate of Compliance to a 2007 Dodge Caravan using the BAR97 EIS, when the newer OIS test was required. According to the VID, Respondent Ricardo performed the inspection.

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29. On March 26, 2015, Respondent Latino issued a Certificate of Compliance to a 2009 Dodge Caravan using the BAR97 EIS, when the newer OIS test was required. According to the VID, Respondent Ricardo performed the inspection.

30. On March 31, 2015, Respondent Latino issued a Certificate of Compliance to a 2005 Ford 150 using the BAR97 EIS, when the newer OIS test was required. According to the VID, Respondent Ricardo performed the inspection.

Costs

31. The Bureau incurred $44,977.64 in investigative and undercover vehicle operation costs, and $9,852.50 in prosecutions costs, for a total of $54,830.14 in costs. These costs are deemed reasonable.

LEGAL CONCLUSIONS

1. Health and Safety Code section 44002 authorizes the Bureau to enforce the Motor Vehicle Inspection Program.

2. Business and Professions Code section 9884.7 provides, in pertinent part, the following:

"(a) The director, where the automotive repair dealer cannot show there was a bona fide error, may deny, suspend, revoke, or place on probation the registration of an automotive repair dealer for any of the following acts or omissions related to the conduct of the business of the automotive repair dealer, which are done by the automotive repair dealer or any automotive technician, employee, partner, officer, or member of the automotive repair dealer.

"(1) Making or authorizing in any manner or by any means whatever any statement written or oral which is untrue or misleading, and which is known, or which by the exercise of reasonable care should be known, to be untrue or misleading.

"(~] ... (~]

"(4) Any other conduct that constitutes fraud.

"[~] ... [~]

"(6) Failure in any material respect to comply with the provisions of this chapter or regulations adopted pursuant to it."

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3. Health and Safety Code section 44012 provides, in pertinent part, the following:

"The test at the smog check stations shall be performed in accordance with procedures prescribed by the department . . . . The department shall ensure, as appropriate to the test method, the following:

"(a) Emission control systems required by state and federal law are reducing excess emissions in accordance with the standards adopted pursuant to subdivisions (a) and (c) of Section 44013.

"('ll ... '11]

"(f) A visual or functional check is made of emission control devices specified by the department, including the catalytic converter in those instances in which the department determines it to be necessary to meet the findings of Section 44001. The visual or functional check shall be performed in accordance with procedures prescribed by the department."

4. Health and Safety Code section 44015 provides, in pertinent part, the following:

"(a) A licensed smog check station shall not issue a certificate of compliance, except as authorized by this chapter, to any vehicle that meets the following criteria:

"(1) A vehicle that has been tampered with."

5. Health and Safety Code section 44032 provides that "[n]o person shall perform, for compensation, tests or repairs of emission control devices or systems of motor vehicles required by this chapter unless the person performing the test or repair is a qualified smog check technician and the test or repair is performed at a licensed smog check station. Qualified technicians shall perform tests of emission control devices and systems in accordance with Section 44012."

6. Health and Safety Code section 44059 provides that "[t]he willful maldng of any false statement or entry with regard to a material matter in any oath, affidavit, certificate of compliance or noncompliance, or application form which is required by ... [the Motor Vehicle Inspection Program or Automotive Repair Act] constitutes perjury and is punishable as provided in the Penal Code."

7. Health and Safety Code section 44072.2, subdivisions (a), (c), and (d), authorizes the Director to suspend, revoke, or take other disciplinary action against a license if the license holder violates provisions of the Motor Vehicle Inspection Program establishing inspections standards and test procedures and regulations relating to the licensed

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activities, including California Code of Regulations, title 16, sections 3340.24, subdivision (c) (prohibiting false or fraudulent issuance of certificate of compliance), 3340.30, subdivision (a) (mandating inspections and tests in accordance with the Motor Vehicle Inspection Program), 3340.41, subdivision (c) (prohibiting the entry of false data or information into the emissions inspection system about a vehicle being tested or for any vehicle other than the one being not tested), and 3340.42 (establishing applicable emissions test methods and standards).

8. California Code of Regulations, title 16, section 3340.24, subdivision (c), provides that the Bureau "may suspend or revoke the license of or pursue other legal action against a licensee, if the licensee falsely or fraudulently issues or obtains a certificate of compliance or a certificate of noncompliance."

9. California Code of Regulations, title 16, section 3340.30, subdivision (a), provides that a "licensed smog check inspector and/or repair technician shall ... [i]nspect, test and repair vehicles, as applicable, in accordance with section 44012 of the Health and Safety Code, section 44035 of the Health and Safety Code, and section 3340.42 of this article."

10. California Code of Regulations, title 16, section 3340.35, subdivision (c), provides a "licensed station shall issue a certificate of compliance or noncompliance to the owner or operator of any vehicle that has been inspected in accordance with the procedures specified in section 3340.42 of this article and has all the required emission control equipment and devices installed and functioning correctly."

11. California Code of Regulations, title 16, section 3340.41, subdivision (c), provides that "[n]o person shall enter into the emissions inspection system any vehicle identification information or emission control system identification data for any vehicle other than the one being tested. Nor shall any person knowingly enter into the emissions inspection system any false information about the vehicle being tested."

12. California Code of Regulations, title 16, section 3340.42 provides that all vehicles must be inspected in accordance with the Bureau's specific emissions test methods as prescribed in the Smog Check Manual.

13. California Code of Regulations, title 16, section 3340.45 provides that all vehicles must be inspected in accordance with the Bureau's requirements and procedures as prescribed in the Smog Check Manual.

14. California Code of Regulations, title 16, section 3373 provides that "[n]o automotive repair dealer or individual in charge shall, in filling out an estimate, invoice, or work order, or record required to be maintained by section 3340.15( e) of this chapter, withhold therefrom or insert therein any statement or information which will cause any such document to be false or misleading, or where the tendency or effect thereby would be to mislead or deceive customers, prospective customers, or the public."

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15. As to the First Cause for Discipline (Misleading Statements) alleged in the Accusation, cause exists to discipline the ARD Registration issued to Respondent Ricardo, owner, doing business as Latino Smog Check (Respondent Latino), pursuant to Business and Professions Code section 9884.7, subdivision (a)(1), in that on November 4, 2014 and January 28, 2015, Respondent Ricardo made statements which he knew or which by exercise of reasonable care should have known were untrue or misleading when he issued electronic smog certificates of compliance for certain vehicles, certifying that those vehicles were in compliance with applicable laws and regulations when, in fact, those vehicles had not been inspected, as set forth in Factual Findings 11 through 24.

16. As to the Second Cause for Discipline (Fraud) alleged in the Accusation, cause exists to discipline the ARD Registration issued to Respondent Ricardo, owner, doing business as Latino Smog Check (Respondent Latino), pursuant to Business and Professions Code section 9884.7, subdivision (a)(4), in that on November 4, 2014 and January 28, 2015, Respondent Ricardo committed acts which constitute fraud by issuing electronic smog certificates of compliance for certain vehicles without performing bona fide inspections of the emission control devices and systems on those vehicles, thereby depriving the People of the State of California of the protection afforded by the Motor Vehicle Inspection Program, as set forth in Factual Findings 11 through 24.

17. As to the Third Cause for Discipline (Material Violation of Automotive Repair Act) alleged in the Accusation, cause exists to discipline the ARD Registration issued to Respondent Ricardo, owner, doing business as Latino Smog Check (Respondent Latino), pursuant to Business and Professions Code section 9884.7, subdivision (a)(6), in that on November 4, 2014, January 28, 2015, March 15, 2015, March 25, 2015, March 26, 2015, and March 31, 2015, Respondent Ricardo failed in a material respect to comply with the provisions of the Automotive Repair Act when he issued electronic smog certificates of compliance for certain vehicles without performing bona fide inspections of the emission control devices and systems on those vehicles, thereby depriving the People of the State of California of the protection afforded by the Motor Vehicle Inspection Program, as set forth in Factual Findings 11 through 30.

18. As to the Fourth and Seventh Causes for Discipline (Violations of the Motor Vehicle Inspection Program) alleged in the Accusation, cause exists to discipline the Station License issued to Respondent Ricardo for Respondent Latino, and the Smog Check Inspector License issued to Respondent Ricardo, pursuant to Health and Safety Code section 44072.2, subdivision (a), in that on November 4, 2014, January 28, 2015, March 15, 2015, March 25, 2015, March 26, 2015, and March 31, 2015, Respondent Ricardo failed to ensure that the emission control tests were performed on those vehicles in accordance with procedures prescribed by the Bureau, in violation of Health and Safety Code section 44012; Respondent Ricardo issued electronic certificates of compliance without properly testing and inspecting the vehicles to determine if they were in compliance with Health and Safety Code section 44015, subdivision (b); Respondent Ricardo willfully made false entries for the electronic certificates of compliance by certifying that those vehicles had been inspected as required when, in fact, they had not, in violation of Health and Safety Code section 44059; and

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Respondent Ricardo filed to perform tests of the emission control devices and systems on those vehicles in accordance with Health and Safety Code section 44032, in that the vehicles had been clean-piped, as set forth in Factual Findings 11 through 30.

19. As to the Fifth and Eighth Causes for Discipline (Violation of Regulations Pursuant to the Motor Vehicle Inspection Program) alleged in the Accusation, cause exists to discipline the Station License issued to Respondent Ricardo for Respondent Latino, and the Smog Check Inspector License issued to Respondent Ricardo, pursuant to Health and Safety Code section 44072.2, subdivision (c), and title 16 of the California Code of Regulations, section 3340.24, subdivision (c), in that Respondent Ricardo falsely or fraudulently issued electronic certificates of compliance without performing bona fide inspections of the emission control devices and systems on those vehicles as required; section 3340.35, subdivision (c), in that Respondent Ricardo issued electronic certificates of compliance even though those vehicles has not be inspected in accordance with the Health and Safety Code; section 3340.42, in that Respondent Ricardo failed to conduct the required smog tests and inspections on those vehicles in accordance with the Bureau's specifications; section 3340.30, subdivision (a), in that Respondent Ricardo failed to inspect and test those vehicles in accordance with the Health and Safety Code; and section 3340.41, subdivision (c), in that Respondent Ricardo entered false information into the EIS for the electronic certificates of compliance by entering vehicle emission control information for vehicles other than the vehicles being certified, as set forth in Factual Findings 11 through 30.

20. As to the Sixth and Ninth Causes for Discipline (Dishonesty, Fraud, or Deceit) alleged in the Accusation, cause exists to discipline the Station License issued to Respondent Ricardo for Respondent Latino, and the Smog Check Inspector License issued to Respondent Ricardo, pursuant to Health and Safety Code section 44072.72, subdivision (d), in that on November 4, 2014, January 28, 2015, March 15, 2015, March 25, 2015, March 26, 2015, and March 31, 2015, Respondent Ricardo committed acts involving dishonesty, fraud, or deceit, whereby the People of the State of California were harmed by Respondent Ricardo's issuance of electronic certificates of compliance for certain vehicles without performing bona fide inspections of the emission control devices and systems on those vehicles, as the People of the State of California were deprived of protection afforded by the Motor Vehicle Inspection Program, as set forth in Factual Findings 11 through 30.

21. As to the Tenth Cause for Discipline (Violations of the Motor Vehicle Inspection Program) alleged in the Accusation, cause exists to discipline the Advanced Emission Specialist Technician License issued to Respondent David, pursuant to Health and Safety Code section 44072.2, subdivision (a), in that on November 4, 2014 and January 28, 2015, Respondent David failed to ensure that the emission control tests were performed on those vehicles in accordance with procedures prescribed by the Bureau, in violation of Health and Safety Code section 44012; Respondent David failed to perform tests of the emission control devices and systems on those vehicles in accordance with the Health and Safety Code, in that the vehicles had been clean-piped, in violation of Health and Safety Code section 44032; and Respondent David willfully made false entries for the electronic certificates of compliance by certifying that those vehicles had been inspected as required

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when, in fact, they had not, in violation of Health and Safety Code section 44059, as set forth in Factual Findings 11 through 24.

22. As to the Eleventh Cause for Discipline (Violation of Regulations Pursuant to the Motor Vehicle Inspection Program) alleged in the Accusation, cause exists to discipline the Advanced Emission Specialist Technician License issued to Respondent David, pursuant to Health and Safety Code section 44072.2, subdivision (c), and title 16 of the California Code of Regulations, section 3340.24, subdivision (c), in that Respondent David aided and abetted in the false and/or fraudulent issuance of electronic certificates of compliance without performing bona fide inspections of the emission control devices and systems on those vehicles as required; section 3340.42, in that Respondent David failed to conduct the required smog tests and inspections on those vehicles in accordance with the Bureau's specifications; section 3340.30, subdivision (a), in that Respondent David failed to inspect and test those vehicles in accordance with the Health and Safety Code; and section 3340.41, subdivision (c), in that Respondent David aided and abetted in the false entry of information into the EIS for the electronic certificates of compliance by entering vehicle emission control information for vehicles other than the vehicles being certified, as set forth in Factual Findings 11 through 24.

23. As to the Twelfth Cause for Discipline (Dishonesty, Fraud, or Deceit) alleged in the Accusation, cause exists to discipline the Advanced Emission Specialist Technician License issued to Respondent David, pursuant to Health and Safety Code section 44072.72, subdivision (d), in that on November 4, 2014 and January 28, 2015, Respondent David committed acts involving dishonesty, fraud, or deceit, whereby the People of the State of California were harmed by Respondent David's aiding and abetting in the issuance of electronic certificates of compliance for certain vehicles without performing bona fide inspections of the emission control devices and systems on those vehicles, as the People of the State of California was deprived of protection afforded by the Motor Vehicle Inspection Program, as set forth in Factual Findings 11 through 24.

24. Pursuant to California Code of Regulations, title 16, section 3395.4, the Bureau has promulgated Guidelines for Disciplinary Penalties and Terms of Probation (May 1997), which requires consideration of specified factors in aggravation and mitigation when determining appropriate discipline. Misconduct in this case is egregious in that it involves dishonesty and fraud. Credible evidence suggests that Respondents' misconduct is not a onetime occurrence, but rather, a repeated and willful course of behavior that is likely to recur. The totality of the evidence mandates revocation of Respondents' licenses to protect the public's health and welfare.

Costs

25. Cause exists pursuant to Business and Professional Code section 125.3 to order Respondents to pay the reasonable costs.

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26. Under Zuckerman v. State Board of Chiropractic Examiners (2002) 29 Cal. App. 4th 32, 45, the Bureau must exercise its discretion to reduce or eliminate cost awards so as to prevent cost award statutes from deterring licensees with potentially meritorious claims or defenses from exercising their right to a hearing. "Thus the [Bureau 1 may not assess the full costs of investigation and prosecution when to do so will unfairly penalize a [licensee 1 who has committed some misconduct, but who has used the hearing process to obtain dismissal of other charges or a reduction in the severity of the discipline imposed." (/d.) The Bureau, in imposing costs in such situations, must consider the licensee's subjective good faith belief in the merits of his or her position and the Bureau must consider whether or not the licensee has raised a colorable defense. The Bureau must also consider the licensee's ability to make payment.

27. Because Respondents failed to appear in these proceedings or otherwise submitted any evidence in this matter, there is no need to consider any Zuckerman factors. As such, Respondents shall pay the Bureau its reasonable costs of investigation and prosecution totaling $54,830.14.

ORDER

l. Automotive Repair Dealer Registration Number ARD 272202 issued to Respondent Ricardo Granados, owner, doing business as Latino Smog Check, is revoked.

2. Smog Check, Test Only, Station License Number TC 272202 issued to Respondent Ricardo Granados, owner, doing business as Latino Smog Check, is revoked.

3. Smog Check Inspector License No. EA 635080 issued to Respondent Ricardo Granados is revoked.

4. Advanced Emission Specialist Technician License No. EA 143913 issued to Respondent David Granados is revoked.

5. Respondents Ricardo Granados and David Granados shall jointly and severally pay the Bureau the reasonable costs of the investigation and enforcement of this matter, totaling $54,830.14, pursuant to Business and Professions Code section 125.3.

Date: November 9, 2017

C 'A"B?'B'MffiETT Administrative Law Judge Office of Administrative Hearings

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KAMALA D. HARRIS Attorney General of California LINDAL. SUN Supervising Deputy Attorney General TERRENCE M. MASO)'{ Deputy Attorney General State Bar No. 158935

300 So. Spring Street, Suite 1702 Los Angeles, CA 90013 Telephone: (213) 897-6294 Facsimile: (213) 897-2804

Attorneys for Complainant

BEFORE THE DEPARTMENT OF CONSUMER AFFAIRS

FOR THE BUREAU OF AUTOMOTIVE REPAIR STATE OF CALIFORNIA

In the Matter of the Accusation Against: Case No. 79/1¥ -~SoD LATINO SMOG CHECK, RICARDO GRANADOS, Owner 2105 Edison Hwy. B8 Bakersfield, CA 93305 Mailing Address: 2812 Berger St. Bakersfield, CA 93305

Automotive Repair Dealer Registration No. ARD272202 Smog Check Station License No. TC 272202;

RICARDO GRANADOS 2812 Berger St. Bakersfield, CA 93305

Smog Check Inspector License No. EO 635080 (formerly Advanced Emission Specialist Te.chnician License No. EA 635080);

and



Respondents.

28 Complainant alleges:

I

ACCUSATION

(SMOG CHECK)

In the Matter of the Accusation Against: Latino Smog Check, et al. ACCUSATION

1

2 1.

PARTlES

Patrick Dorais ("Complainant") brings this Accusation solely in his official capacity

3 as the Chief of the Bureau of Automotive Repair, Department of Consumer Affairs.

4 2. On or about March 18, 2013, the Bureau of Automotive Repair ("Bureau") issued

5 Automotive Repair Dealer Registration Number ARD 272202 ("ARD Registration") to Ricardo

6 Granados, owner, doing business as Latino Smog Check ("Respondent Latino"). The ARD

7 Registration was in full force and effect at all times relevant to the charges brought herein. It will

8 expire on March 31,2017, unless renewed.

9 3. On or about April2, 2013, the Bureau issued Smog Check, Test Only, Station

10 License Number TC 272202 ("station license") to Ricardo Granados, owner, doing business as

11 Latino Smog Check. The Station License was in full force and effect at all times relevant to the

12 charges brought herein. It will expire on March 31, 2017, unless renewed.

13 4. On January 4, 2013, the Bureau issued Advanced Emission Specialist Technician

14 License No. EA 635080 to Ricardo Granados ("Respondent Ricardo"). Respondent's Advanced

15 Emission Specialist Technician License was due to expire on November 30,2014, however, it

16 was cancelled on September 17, 2014. Pursuant to California Code of Regulations, title 16,

17 section 3340.28, subdivision (e), said license was renewed as Smog Check Inspector License No.

18 EO 635080, effective September 17,2014. 1 Respondent's license was in full force and effect at

19 all times relevant to the charges brought herein. It will expire on November 30,2016, unless

20 renewed.

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5. In 2001, the Bureau issued Advanced Emission Specialist Technician License No. EA

143913 to David Granados ("Respondent David"). The license expired on July 31, 2013, and has

not been renewed. Upon renewal, it will be redesignated as EO 143913 and/or EI 143913.

Ill

Ill

1 Effective August I, 2012, California Code of Regulations, title 16, sections 3340.28,3340.29, and 3340.30 were amended to implement a license restructure from the Advanced Emission Specialist Technician (EA) license and Basic Area (EB) Technician license to Smog Check Inspector (EO) license and/or Smog Check Repair Technician (EI) license.

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In the Matter of the Accusation Against: Latino Smog Check, et al. .ACCUSATION

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2 6.

JURISDICTION

This Accusation is brought before the Director of Consumer Affairs (Director) for the

3 Bureau of Automotive Repair, under the authority of the following laws.

4 7. Section 9884.13 of the Business and Professions Code provides, in pertinent part, that

5 "[t]he expiration of a valid registration shall not deprive the director or chief of jurisdiction to

6 proceed with ... [a] disciplinary proceeding against an automotive repair dealer or to render a

7 decision invalidating a registration temporarily or permanently."

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8. Section 9884.7 ofthe Bus. & Prof. Code states, in pertinent part:

"(a) The director, where the automotive repair dealer cannot show there was a bona fide error, may refuse to validate, or may invalidate temporarily or permanently, the registration of an automotive repair dealer for any ofthe following acts or omissions related to the conduct of the business of the automotive repair dealer, which are done by the automotive repair dealer or any automotive technician, employee, partner, officer, or member of the automotive repair dealer.

"(I) Making or authorizing in any manner or by any means whatever any statement written or oral which is untrue or misleading, and which is known, or which by the exercise of reasonable care should be known, to be untrue or misleading ...

"( 4) Any other conduct which constitutes fraud.

18 "(6) Failure in any material respect to comply with the provisions of this chapter or regulations adopted pmsuant to it."

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20 9. Section 44002 ofthe Health and Safety Code provides, in pertinent part, that the

21 Director has all the powers and authority granted under the Automotive Repair Act for enforcing

22 the Motor Vehicle Inspection Program.

23 10. Section 44012 of the Health & Saf. Code provides, in pertinent part, that tests at smog

24 check stations shall be performed in accordance with procedures prescribed by the department.

25 II. Section 44015, subdivision (b), of the Health & Saf. Code provides that a certificate

26 of compliance shall be issued if a vehicle meets the requirements of Health & Saf. Code section

27 40012.

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1 12. Section 44032 of the Health & Saf. Code provides, in pertinent part, that "[q]ualified

2 technicians shall perform tests of emission control devices and systems in accordance with

3 Section 44012."

4 13. Section 44059 of the Health & Saf. Code provides:

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"The willful making of any false statement or entry with regard to a material matter in any oath, affidavit, certificate of compliance or noncompliance, or application form which is required by this chapter or Chapter 20.3 (commencing with Section 9880) of Division 3 of the Business and Professions Code, constitutes perjury and is punishable as provided in the Penal Code."

14. Section 44072.2 of the Health & Saf. Code states, in pertinent part:

"The director may suspend, revoke, or take other disciplinary action against a license as provided in this article if the licensee, or any partner, officer, or director thereof, does any of the following:

"(a) Violates any section of this chapter [the Motor Vehicle Inspection Program (Health and Saf. Code,§ 44000, et seq.)] and the regulations adopted pursuant to it, which related to the licensed activities ...

"(b) Is convicted of any crime substantially related to the qualifications, functions, or duties of the licenseholder in question.

"(c) Violates any of the regulations adopted by the director pursuant to this chapter.

"(d) Commits 'any act involving dishonesty, fraud, or deceit whereby another is injured."

15. Section 44072.8 of the Health & Saf. Code states:

"When a license has been revoked or suspended following a hearing under this article, any

additional license issued under this chapter in the name of the licensee may be likewise revoked

or suspended by the director."

REGULATORY PROVISIONS

16. California Code of Regulations ("CCR"), title 16, section 3340.24, subdivision (c),

states:

"The bureau may suspend or revoke the license of or pursue other legal action against a

licensee, if the licensee falsely or fraudulently issues or obtains a certificate of compliance or a

certificate of noncompliance."

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17. CCR, title 16, section 3340.30, subdivision (a), states that a licensed smog technician

shall at all times "[i]nspect, test and repair vehicles, as applicable, in accordance with section

44012 of the Health & Saf. Code, section 44035 of the Health & Saf. Code, and section 3340.42

of this article."

18. CCR, title 16, section 3340.35, subdivision (c), states that a licensed smog check

station "shall issue a certificate of compliance or noncompliance to the owner or operator of any

vehicle that has been inspected in accordance with the procedures specified in section 3340.42 of

this article and has all the required emission control equipment and devices installed and

functioning correctly."

19. CCR, title 16, section 3340.41, subdivision (c), provides: "No person shall enter into

the emissions inspection system any vehicle identification information or emission control system

identification data for any vehicle other than the one being tested. Nor shall any person

knowingly enter into the emissions inspection system any false information about the vehicle

being tested."

20. CCR, title 16, section 3340.42, sets forth specific emissions test methods and

procedures which apply to all vehicles inspected in the State of California.

21. CCR, title 16, section 3340.45 requires that all smog check inspections be performed

in accordance with requirements and procedures prescribed in the Bureau's Smog Check Manual.

22. CCR, title 16, section 3373 provides, in pertinent part:

"No automotive repair dealer or individual in charge shall, in filling out an estimate, invoice, or work order. .. withhold therefrom or insert therein any statement or information which will cause any such document to be false or misleading, or where the tendency or effect thereby would be to mislead or deceive customers, prospective customers, or the public."

COST RECOVERY

23. Section 125.3, subdivision (a), of the Bus. & Prof. Code provides, in pertinent part,

that a Board "may request the administrative law judge to direct a licentiate found to have

committed a violation or violations of the licensing act to pay a sum not to exceed the reasonable

costs of the investigation and enforcement of the case."

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1 SMOG CHECK PROGRAM BACKGROUND

· 2 24. Smog Check tests are performed using a BAR97 Emissions Inspection System

3 ("EIS"). The EIS is a computer-based analyzer that samples a vehicle's exhaust emissions

4 through an exhaust sample probe that is placed in the tailpipe of the vehicle being inspected. The

5 EIS accepts entries from the licensed technician per his/her visual and functional inspection of the

6 vehicle, as well as the information specific to the particular vehicle being tested; such as, model

7 year, make, model, license plate number, YIN, etc. The licensed technician gains access to the

8 EIS by using a confidential personal access code assigned by the Bureau. The EIS uses the

9 information entered by the technician, along with the data from the analyzer, to determine

10 whether the vehicle passes the test.

11 25. The Smog Check test consists of a three-part inspection; a visual inspection of the

12 vehicle's emission control components, an exhaust emission sample, and a functional test of

13 ce1iain emission-related components. If the vehicle passes the test, the EIS issues a Certificate of

14 Compliance number. This certificate number and all test information are automatically

15 transmitted via modem to the Bureau's Vehicle Information Database ("VID"). A dishonest

16 Smog Check technician can circumvent the Smog Check program by using the clean-piping

17 method. 2

18 UNDERCOVER OPERATION #1

19 26. Based on Vehicle Information Database (VID) data, an investigation of the Smog.

20 Check activities of Latino Smog Check was initiated by the Bureau. The data showed similar

21 revolutions per minute (RPM) and emission readings for a wide variety of tested vehicles,

22 indicating that Respondents Ricardo Granados and David Granados might be performing

23 fraudulent inspections using the "clean-piping" method.

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27. On September 6, 2014, a Bureau undercover operator, using an assumed name,

drove to Latino Smog Check and met with Ricardo Granados. The operator informed Granados

2 Clean-piping is when a technician enters vehicle information into the EIS for the vehicle he/she wishes to certify and then samples the exhaust of a different (clean-running) vehicle. Using this method, the technician is able to issue a smog certificate to a vehicle that is not present at the facility for testing and/or cannot pass the test on its own.

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1 he had a 1980's Chevrolet that would not pass its smog and inquired if he performed smog

2 repairs. Granados stated he did not perform repairs and it was best to perform a "crooked" smog

3 check on older vehicles. The operator asked about the cost of the crooked smog check, and

4 Granados stated the smog inspection would be $250.00 and he would need to leave the vehicle.

5 Granados explained he would make arrangements with an individual, "Ghost"! to perform the

6 illegal Smog Check inspection.

7 28. In October, 2014, a Bureau Documentation Laboratory Representative ("Doc Lab

8 Rep") prepared a 1986 Chevrolet to fail a proper smog inspection due to excessive emissions. He

9 disconnected air injection system (AIR) and removed the catalytic convertor, and utilized tamper

10 seals to detect any subsequent adjusting and/or removing of the carburetor. He then performed a

11 smog check inspection ofthe Chevrolet which it failed due to the disconnected AIR system, the

12 missing catalytic converter and excessive tailpipe emissions.

13 29. On November 4, 2014, the Bureau undercover operator returned to Latino Smog

14 Check with the Bureau's Chevrolet, which had been outfitted with a hidden video recording

15 system. He again met with Ricardo Granados, and requested a smog inspection. He provided

16 · Granados with a fictitio1Js vehicle registration and $250.00 cash. Granados requested the operator

17 provide his name and contact information and had him sign a blank estimate. The,operator then

18 left the facility, but was not provided with a copy of the blank estimate.

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30. Later that day, Ricardo Granados telephoned the operator and informed him the

Chevrolet was ready, The operator returned to Latino Smog Check and met with Ricardo, who

provided an estimate, invoice and Smog Check Vehicle Information Report ("VIR") and stated

the vehicle was smog certified. The VIR and BAR97 Test Detail also showed that Ricardo

Granados entered "pass" into the EIS for the required catalytic convertor and disconnected AIR

system, when in fact the catalytic convertor was missing and secured at the Bureau's Doc Lab and

the AIR was disconnected,

31. Still later that same day, Bureau Representatives reviewed the Chevrolet's hidden

video recording system which utilized two cameras: camera one in the exhaust tail pipe on the

right rear, and camera two from the front of the car. The video recording indicated that

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Respondents Ricardo and David Granados performed a clean-pipe Smog Inspection on the

documented vehicle by inserting the EIS sample probe into Ricardo Granados' own S.U.V. and a

disconnected decoy sample hose and probe into the Chevrolet during the inspection.

32. The next day, November 5, 2014, the Bureau Doc Lab Rep re-inspected the

Chevrolet and verified his documentation of the car remained the same. He then performed a

California smog check inspection that showed the vehicle failed a properly performed inspection

due to a missing catalytic convertor, disconnected AIR system and excessive emissions.

UNDERCOVER OPERATION #2

33. From December 31,2014 through January 7, 2015, another Bureau Doc Lab Rep

prepared a 1992 Chevrolet pickup to fail a properly performed smog inspection. He removed the

catalytic convertor, cut the EGR valve diaphragm, installed an EGR passage block-offplate, and

utilized tamper seals to detect subsequent removal of the EGR valve. He then performed a smog

check inspection, which the pickup failed due to the missing catalytic converter and excessive

tailpipe emissions.

34. On January 28, 2015, the same Bureau undercover operator drove the Chevrolet

pickup, which had been outfitted with a hidden vic;leo recording system, to Latino Smog Check

and again met with Ricardo Granados and requested a smog inspection. He again provided

Granados with a fictitious vehicle registration and $250.00 cash. Granados requested the operator

provide his name, contact information and sign a blank estimate. As the time before, the operator

left the facility, but was not provided with a copy of the blank estimate.

35. Later that day, Ricardo Granados telephoned the operator and informed him the

pickup was ready. The operator returned to Latino Smog Check and met with Ricardo, who

provided him with the estimate, invoice and VIR and stated the pickup had been smog certified.

The VIR and BAR97 Test Detail also showed Ricardo Granados entered "pass" into the EIS for

the required catalytic convertor, when in fact the catalytic convertor was missing and secured at

the Bureau's Doc Lab.

36. Later that same day, Bureau Representatives reviewed the pickup's on board video

recording system, which utilized four cameras: camera one from the left front, camera two from

the right front, camera three from the exhaust tail pipe on the right rear, and camera four from the

underside of the hood towards the left of the vehicle. The video recording showed Respondents

Ricardo and David Granados performed a clean-pipe Smog Inspection on the documented pickup

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by inseiiing the EIS sample probe into Ricardo Granados' own S.U.V. and a disconnected decoy

sample probe into the pickup during the inspection.

37. On February 9, 2014, Doc Lab Rep re-inspected the Chevrolet pickup and verified

his documentation of the vehicle remained the same. He performed a California smog inspection

that showed the vehicle still failed a proper smog inspection due to the missing catalytic convertor

and excessive emissions.

SUBSEQUENT IMPROPER BAR 97 TESTS

38. On March 9, 2015, the Bureau implemented a policy change requiring the use of

the OBD Inspection System (OIS) when testing 2000 model year and newer gas powered vehicles

weighing 14,000 lbs. gross vehicle weight (GVW) and under, and 1998 and newer diesel powered

vehicles 14,000 lbs. GVW and under. Bureau licensees were advised numerous times about the

implementation of the new testing requirements. The Bureau's Vehicle Information Database

(VID) indicated that Latino Smog Check registered an OIS, and on September 23, 2014, Latino

Smog Check purchased smog certificates for their OIS.

39. On March 15,2015, Latino Smog Check improperly issued a smog Certificate of

Compliance to a 2005 Ford F250 Diesel, the BAR97 Emissions Inspection System (EIS), when a

newer OIS test was required. The inspection was performed by Respondent Ricardo Granados as

indicated by the VID.

40. On March 25,2015, Respondent Latino improperly issued a Certificate of

18 Compliance to a 2007 Dodge Caravan using the BAR97 EIS, when an OIS test was required. The

19 inspection was performed by Respondent Ricardo Granados.

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41. On March 26, 2015, Respondent Latino improperly issued a Certificate of

Compliance to a 2009 Dodge Caravan using the BAR97 EIS, when an OIS test was required. The

inspection was performed by Respondent Ricardo Granados.

40. On March 31, 2015, Respondent Latino improperly issued a Certificate of

Compliance to a 2005 Ford F150 using the BAR97 EIS, when an OIS test was required. The

inspection was performed byRespondent Ricardo Granados.

Ill

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FIRST CAUSE FOR DISCIPLINE

(Misleading Statements)

3 41. Ricardo Granados, owner, dba Latino Smog Check, has subjected his ARD

4 Registration to discipline under Bus. & Prof. Code section 9884.7, subdivision (a)(!), in that on

5 or about November 4, 2014 and January 28, 2015, he made statements which he knew or which

6 by exercise of reasonable care should have known were untrue or misleading when he issued

7 electronic smog certificates of compliance for certain vehicles, certifying that those vehicles were

8 in compliance with applicable laws and regulations when, in fact, those vehicles had not been

9 inspected. Complainant refers to, and by this reference incorporates, the allegations set forth

10 above in paragraphs 26 thr6ugh 37, inclusive, as though set forth fully herein.

II SECOND CAUSE FOR DISCIPLINE

12 (Fraud)


14 Registration to discipline under Bus. & Prof. Code section 9884.7, subdivision (a)(4), in that on

15 or about November 4, 2014 and January 28, 2015, he committed acts which constitute fraud by

16 issuing electronic smog certificates of compliance for certain vehicles without performing bona

17 fide inspections of the emission control devices and systems on those vehicles, thereby depriving

18 the People of the State of California of the protection afforded by the Motor Vehicle Inspection

19 Program. Complainant refers to, and by this reference incorporates, the allegations set forth

20 above in paragraphs 26 through 37, inclusive, as though set forth fully herein.

21 THIRD CAUSE I<OR DISCIPLINE

22 (Material Violation of Automotive Repair Act)


24 Registration to discipline under Bus. & Prof. Code section 9884.7, subdivision (a)(6), in that on

25 or about November 4, 2014, and January 28, 2015, and between March 15 and 31, 2015, he failed

26 in a "material respect to comply with the provisions of this chapter or regulations adopted

27 pursuant to it" when he issued electronic certificates of compliance for certain vehicles without

28 performing bona fide inspections of the emission control devices and systems on those vehicles,

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1 thereby depriving the People of the State of California of the protection afforded by the Motor

2 Vehicle Inspection Program. Complainant refers to, and by this reference incorporates, the

3 allegations set forth above in paragraphs 26 through 40, inclusive, as though set forth fully herein.

4 FOURTH CAUSE FOR DISCIPLINE

5 (Violation of the Motor Vehicle Inspection Program)

6 44. Ricardo Granados, owner, dba Latino Smog Check, has subjected his Station License

7 to discipline under Health & Saf. Code section 44072.2, subdivision (a), in that on or about

8 November,4, 2014, and January 28,2015, and between March 15 and 31, 2015, Respondent

9 violated the following sections of the Health & Saf. Code with respect to the inspection of certain

10 vehicles:

II a. Section 44012: Respondent failed to ensure that the emission control tests were

12 performed on those vehicles in accordance with procedures prescribed by the department.

13 b. Section 44015, subdivision (b): Respondent issued electronic certificates of

14 compliance without properly testing and inspecting the vehicles to determine if they were in

15 compliance with section 44012 of the Health & Saf. Code.

16 c. Section 44059: Respondent willfully made false entries for the electronic certificates

17 of compliance by certifying that those vehicles had been inspected as required when, in fact, they

18 had not.

19 Complainant refers to, and by this reference incorporates, the allegations set f01th above in

20 paragraphs 26 through 40, inclusive, as though set forth fully herein.

21 FIFTH CAUSE FOR DISCIPLINE

22 (Violations of Regulations Pursuant to the Motor Vehicle Inspection Program)


24 to discipline under Health & Saf. Code section 44072.2, subdivision (c), in that on or about

25 November 4, 2014, and January 28, 2015, and between March 15 and 31,2015, Respondent

26 violated the following sections of title 16 of the CCR with respect to the inspection of certain

27 vehicles:

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In the Matter of the Accusation Against: Latino. Smog Check, et al. ACCUSATION

1 a. Section 3340.24, subdivision (c): Respondent falsely or fraudulently issued

2 electronic certificates of compliance without performing bona fide inspections of the emission

3 control devices and systems on those vehicles as required by Health & Saf. Code section44012.

4 b. Section3340.35, subdivision (c): Respondent issued electronic certificates of

5 compliance even though those vehicles had not been inspected in accordance with section

6 3340.42 of the Health & Saf. Code.

7 c. Section 3340.42: Respondent failed to conduct the required smog tests and

8 inspections on those vehicles in accordance with the Bureau's specifications.

9 Complainant refers to, and by this reference incorporates, the allegations set forth above in

10 paragraphs 26 through 40, as though set forth fully herein.

11 SIXTH CAUSE FOR DISCIPLINE

12 (Dishonesty, F'raud or Deceit)


14 to discipline under Health & Saf. Code section 44072.2, subdivision (d), in that on or about

15 November 4, 2014, and January28, 2015, and between March 15 and 31, 2015, Respondent

16 committed acts involving dishonesty, fraud or deceit whereby another was injured by issuing

17 electronic certificates of compliance for certain vehicles without performing bona fide inspections

18 of the emission control devices and systems on those vehicles, thereby depriving the People of the

19 State of California of the protection afforded by the Motor Vehicle Inspection Program.



22 SEVENTH CAUSE FOR DISCIPLINE

23 (Violations of the Motor Vehicle Inspection Program)

24 47. Respondent Ricardo Granados has subjected his Smog Check Inspector License to

25 discipline under Health & Saf. Code section 44072.2, subdivision (a), in that on or about

26 November 4, 2014, and January 28, 2015, and between March 15 and 31, 2015, he violated the

27 following sections of the Health & Saf. Code with respect to the inspection of certain vehicles:

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I a. Section 44012: Respondent failed to ensure that the emission control tests were


3 b. Section 44032: Respondent failed to perform tests of the emission control devices

4 and systems on those vehicles in accordance with section 44012 of the Health & Saf. Code, in

5 that the vehicles had been clean piped.

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c. Section 44059: Respondent willfully made false entries for the electronic certificates

of compliance by ce1tifying that those vehicles had been inspected as required when, in fact, they

had not.

Complainant refers to, and by this reference incorporates, the allegations set forth above in

paragraphs 26 through 40, inclusive, as though set forth fully herein.

EIGHTH CAUSE FOR DISCIPLINE

(Violations of Regulations Pursuant to the Motor Vehicle Inspection Program)

48. Respondent Ricardo Granados has subjected his Smog Check Inspector License to

discipline under Health & Saf. Code section 44072.2, subdivision (c), in that on or about

November 4, 2014, and January 28, 2015, and between March 15 and 31, 2015, he violated the

following sections of the CCR, title 16, with respect to the inspection of certain vehicles:

a. Section 3340.24, subdivision (c): Respondent falsely or fraudulently issued

electronic certificates of compliance without performing bona fide inspections of the emission

control devices and systems on those vehicles as required by Health & Saf. Code section 44012.

b. Section 3340.30, subdivision (a): Respondent failed to inspect and test those

vehicles in accordance with Health & Saf. Code section 44012.

c. Section 3340.41, subdivision (c): Respondent entered false information into the EIS

23 for the electronic certificates of compliance by entering vehicle emission control information for

24 vehicles other than the vehicles being certified.

25 d. Section 3340.42: Respondent failed to conduct the required smog tests and

26 inspections on those vehicles in accordance with the Bureau's specifications.



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1 NINTH CAUSE FOR DISCIPLINE

2 (Dishonesty, Frand or Deceit)

3 49. Respondent Ricardo Granados has subjected his Smog Check Inspector License to

4 discipline under Health & Saf. Code section 44072.2, subdivision (d), in that on or about

5 November 4, 2014, and January 28, 2015, and between March 15 and 31, 2015, he committed

6 acts involving dishonesty, fraud or deceit whereby another was injured by issuing electronic

7 certificates of compliance for certain vehicles without performing bona fide inspections ofthe

8 emission control devices and systems on those vehicles, thereby depriving the People of the State

9 of California of the protection afforded by the Motor Vehicle inspection Program. Complainant

1 0 refers to, and by this reference incorporates, the allegations set forth above in paragraphs 26

11 through 40, inclusive, as though set forth fully herein.

12 TENTH CAUSE FOR DISCIPLINE

13 (Violations of the Motor Vehicle Inspection Program)

14 50. Respondent David Granados has subjected his smog technician license to discipline

15 under Health & Saf. Code section 44072.2, subdivision (a), in that on or about November4, 2014,

16 and January 28, 2015, he violated the following sections of the Health & Saf. Code with respect

17 to the inspection of certain vehicles:

18 a. Section 44012: Respondent failed to ensure that the emission control tests were


20 b. Section 44032: Respondent failed to perform tests ofthe emission control devices

21 and systems on those vehicles in accordance with section 44012 of the Health & Saf. Code, in

22 that the vehicles had been ~lean piped.

23 c. Section 44059: Respondent willfully aided and/or abetted in the making of false

24 entries for the electronic certificates of compliance certifying that those vehicles had been

25 inspected as required when, in fact, they had not.



28 Ill

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ELEVENTH CAUSE FOR DJSClPLINE

2 (Violations ofRegnlations Pursuant to the Motor Vehicle Inspection Program)

3 51. Respondent David Granados has subjected his smog technician license to discipline

4 under Health & Sat: Code section 44072.2, subdivision (c), in that on or about November 4, 2014,

5 and January 28,2015, he violated the following sections of the CCR, title 16, with respect to the

6 inspection of certain vehicles:

7 a. Section 3340.24, subdivision (c): Respondent aided and abetted in the false and/or

8 fraudulent issuance of electronic ce1tificates of compliance without the performance of bona fide

9 inspections of the emission control devices and systems on those vehicles as required by Health &

10 Saf. Code section 44012.

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b. Section 3340.30, subdivision (a): Respondent failed to inspect and. test those

vehicles in accordance with Health & Saf. Code section 44012.

c. Section 3340.41, subdivision (c): Respondent aided and abetted in false entry of

information into the EIS for the electronic certificates of compliance by the entry of vehicle

emission control information for vehicles other than the vehicles being ce1tified.

d. Section 3340.42: Respondent failed to conduct the required smog tests and

inspections on those vehicles in accordance with the Bureau's specifications.

Complainant refers to, and by this reference incorporates, the allegations set forth above in

paragraphs 26 through 37, inclusive, as though set forth fully herein.

TWELFTH CAUSE FOR DISCIPLINE

(Dishonesty, Fraud or Deceit)

22 52. Respondent David Granados has subjected his Smpg Check Inspector License to

23 discipline under Health & Saf. Code section 44072.2, subdivision (d), in that on or about

24 November 4, 2014, and January 28, 2015, he committed acts involving dishonesty, fraud or deceit

25 whereby another was injured by aiding and abetting in the issuance electronic certificates of

26 compliance for certain vehicles without the performance of bona fide inspections of the emission

27 control devices and systems on those vehicles, thereby depriving the People of the State of

28 California of the protection afforded by the Motor Vehicle Inspection Program. Complainant

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1 refers to, and by this reference incorporates, the allegations set forth above in paragraphs 26

2 through 37, inclusive, as though set forth fully herein.

3 OTHER MATTERS

4 53. Pursuant Bus. & Prof. Code section 9884.7, subdivision (c), the director may suspend,

5 revoke, or place on probation the registrations for all places of business operated in this state by

6 Ricardo Granados, owner, dba Latino Smog Check upon a finding that he has, or is, engaged in a

7 course of repeated and willful violations of the laws and regulations pertaining to an automotive

8 repair dealer.

9 54. Pursuant to Health & Saf. Code section 44072.8, if Smog Check, Test Only, Station

10 License Number TC 272202, issued to Ricardo Granados, owner, dba Latino Smog Check, is

11 revoked or suspended, any additional license issued under this chapter in the name of said

12 licensees may be likewise revoked or suspended by the director.

13 55. Pursuant to Health & Saf. Code section 44072.8, if Respondent Ricardo Granados'

14 Smog Check Inspector License No. EO 635080, is revoked or suspended, any additional license

15 issued under this chapter in the name of said licensee may be likewise revoked or suspended by

16 the director.

17 56. Pursuant to Health & Saf. Code section 44072.8, if Respondent David Granados'

18 smog technician license, formerly designated as EA 143913, is revoked or suspended, any

19 additional license issued under this chapter in the name of said licensee may be likewise revoked

20 or suspended by the director.

21 PRAYER

22 WHEREFORE, Complainant requests that a hearing be held on the matters herein alleged,

23 and that following the hearing, the Director of Consumer Affairs issue a decision:

24 I. Revoking or suspending Automotive Repair Dealer Registration Number

25 ARD 272202, issued to Ricafdo Granados, owner, doing business as Latino Smog Check;

26 2. Revoking or suspending any other automotive repair dealer registration issued to

27 Ricardo Granados;

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I 3. Revoking or suspending Smog Check, Test Only, Statio!) License Number

2 TC 272202, issued to Ricardo Granados, owner, doing business as Latino Smog Check;

3 4. Revoking or suspending Smog Check Inspector License Number EO 635080, issued

4 to Ricardo Granados;

5 5. Revoking or suspending any additional license issued under Chapter 5 of the Health

6 & Saf. Code in the name of Ricardo Granados;

7 6. Revoking or suspending Advanced Emission Specialist Technician License Number

8 EA 143913, issued to David Granados;

9 7. Revoking or suspending any additional license issued under Chapter 5 of the Health

10 & Saf. Code in the name of David Granados;

II 8. Ordering Ricardo Granados and David Granados jointly and severally to pay the

12 Bureau of Automotive Repair the reasonable costs ofthe investigation and enforcement of this

13 case, pursuant to Bus. & Prof. Code section 125.3;

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9. Taking such other and further action as deemed necessary and proper.

DATED: Od-aief. 3, Zo/6 ~ ~· 7 ~P~A~T~R~I~C~K~D~O~RA~I~S------------~~~--~

Rev Acc.docx (Rev.9122/16)

Chief Bureau of Automotive Repair Department of Consumer Affairs State of California Complainant

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BEFORE THE DIRECTOR STATE OF CALIFORNIA LATINO...

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