Guys,
Thanks for the answers. I talk to my co-worker and he told me the full story. Turns out he was involved in an accident before. Apparently the outcome was that the second gear would not engage (it would just freely spin). The code started popping up at this time. His transmission shop replace the second gear and clear the code, but for some reason the code kept on coming back and the shop was unable to find the cause. He told me that daily driving seems to be fine and there is no apparent problem except for the code. This is only a problem because he cannot test for smog if there is a CEL in Cali. Is it possible for the tranny to be slipping and for him not to feel it? Thanks for all your help.