Report 2016-121 Recommendation 7 Responses

Report 2016-121: Department of Motor Vehicles: Administrative and Statutory Changes Will Improve Its Ability to Detect and Deter Misuse of Disabled Person Parking Placards (Release Date: April 2017)

Recommendation #7 To: Motor Vehicles, Department of

To reduce the risk of fraudulent applications, by September 2017 DMV should seek interagency agreements with the health boards responsible for licensing providers authorized to certify disabilities on placard applications. The agreements should include, but not be limited to, a review by medical experts of a sample of placard applications each quarter to ensure that the disability certifications meet state requirements. For any application that does not meet state requirements, DMV should require that the applicant and his or her provider submit the information needed so that the application meets state requirements. DMV should cancel the placards of those who do not respond within 90 days.

Annual Follow-Up Agency Response From October 2020

Although we were unable to require the health boards to conduct quarterly reviews of placard applications, we are pleased to share that we have stood up a robust project to reduce the risk of fraudulent applications.

In 2020, the DMV Investigations Division created an internal data analytics team. One of the first data models focused on existing manual efforts to identify disabled person parking placard (DPPP) application fraud by leveraging available data resources. The model utilizes the department's existing DPPP database with millions of rows of data. Through analysis, the data is filtered by application year, geographic location of the medical provider and the applicant, along with the transaction type to identify investigative leads that may point to application and/or medical provider fraud.

The new data model has been tested. Part of the analytical process was to review initial DPPP applications for indicators of fraud, such as physician's location being significantly farther away from applicants' residential location. Other items analyzed and compared are the number of applications for DPPP that are signed by individual medical providers in a geographical location versus other like-medical providers. We are also comparing applicant and physician's handwriting on applications to identify similarities.

Now that this data model has been validated, data investigations by other DMV investigation offices across the state have been started.

California State Auditor's Assessment of Annual Follow-Up Status: Resolved

Although DMV did not implement the recommendation as stated because it was not able to secure agreements with health boards, DMV has instituted a process that, if followed, should enable it to identify and pursue fraudulent medical certifications on placard applications.

Annual Follow-Up Agency Response From October 2019

DMV negotiated interagency agreements with the health boards, but the boards did not agree to conduct quarterly reviews of a sample of placard applications.

California State Auditor's Assessment of Annual Follow-Up Status: Will Not Implement

Annual Follow-Up Agency Response From November 2018

Over the course of the last year, DMV negotiated interagency agreements with the health boards, but the boards did not agree to conduct quarterly reviews of a sample of placard applications.

California State Auditor's Assessment of Annual Follow-Up Status: Will Not Implement

We are pleased that DMV was able to negotiate interagency agreements with the various health boards and hope that DMV will continue to discuss with the health boards the possibility of them reviewing sample applications periodically to ensure the disability certifications meet state requirements.

1-Year Agency Response

In November 2017, Legal Counsel at DCA requested changes to the interagency agreement language. In December 2017, changes were incorporated into a new version and routed back to DCA for final approval. After multiple discussions between DMV and DCA, the agreements are in the final stages of execution.

California State Auditor's Assessment of 1-Year Status: Pending

6-Month Agency Response

DMV met with the executive officers of the various health boards responsible for licensing medical providers authorized to certify the disability of an applicant for a disabled person placard. The Director of the Department of Consumer Affairs (DCA) is facilitating efforts to establish an Interagency Agreement with each of the boards that will govern execution of the activities recommended by the auditor.

A draft interagency agreement was completed and sent to the licensing boards on September 13, 2017, for concurrence. The Statement of Work for the various medical boards is complete, but the official completion date is being moved to December 31, 2017 to allow all of the affected boards under DCA time to officially adopt the agreements.

Governor Brown signed Senate Bill 611 on October 4, 2017. SB 611 incorporates many of the recommendations made to the Legislature in the California State Auditor audit report "Department of Motor Vehicles: Administrative and Statutory Changes Will Improve Its Ability to Detect and Deter Misuse of Disabled Person Parking Placards." DMV is currently working to implement the provisions of SB 611.

California State Auditor's Assessment of 6-Month Status: Pending

60-Day Agency Response

DMV has identified the executive officers of the various health boards responsible for licensing medical providers authorized to certify the disability of an applicant for a disabled person placard, and sent a letter to the Director of the Department of Consumer Affairs (DCA) to seek DCA's cooperation in establishing an Interagency Agreement. The agreement will facilitate communications and the exchange of services between DMV, DCA, and the health boards responsible for licensing medical providers authorized to certify the disability of an applicant for a disabled person parking placard.

Under the proposed agreement, DMV will provide the health boards disabled person placard applications for review by the boards' designated medical experts to ensure the disability certifications meet statutory requirements. Upon notification by the health board, a placard will be canceled within 90 days when it is determined the application does not meet statutory requirements and the required information is not received by DMV.

California State Auditor's Assessment of 60-Day Status: Pending

All Recommendations in 2016-121

Agency responses received are posted verbatim.