BILL ANALYSIS                                                                                                                                                                                                    Ó






                             SENATE JUDICIARY COMMITTEE
                             Senator Noreen Evans, Chair
                              2011-2012 Regular Session


          SB 1186 (Steinberg & Dutton)
          As Amended April 30, 2012
          Hearing Date: May 8, 2012
          Fiscal: No
          Urgency: No
          SK
                    

                                        SUBJECT
                                           
                            Disability Access: Liability

                                      DESCRIPTION  

          This bill would prohibit an attorney or any person from issuing 
          a demand for money to a building owner or tenant for a violation 
          of a construction-related accessibility standard.  This bill 
          would also prohibit an attorney or any person from receiving any 
          payment, settlement, compensation or other remuneration pursuant 
          to a demand for money in cases alleging a violation of a 
          construction-related accessibility standard.  

          This bill would define "demand for money" and would require an 
          attorney to provide to a building owner or tenant a document 
          that notifies the recipient of any alleged construction-related 
          accessibility violation that may be a basis for a damages claim 
          at least 30 days prior to filing any claim for damages based on 
          an alleged construction-related accessibility violation.  This 
          bill would prohibit the document from demanding or requesting 
          any money to settle or forgo a claim for damages or imply that 
          the building owner or tenant is liable for damages and/or 
          attorney's fees.  This bill would require a commercial property 
          owner to state on the lease form or rental agreement if the 
          property being leased or rented was inspected by a Certified 
          Access Specialist (CASp).  This bill would contain Legislative 
          intent language, as specified. 

                                      BACKGROUND  

          Since 1969, persons with disabilities have enjoyed protection 
          under Civil Code
                                                                (more)



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          Sections 54 and 54.1, which entitle individuals with 
          disabilities and medical conditions to full and free access to 
          and use of roadways, sidewalks, buildings and facilities open to 
          the public, hospitals and medical facilities, and housing. After 
          Congress enacted the Americans with Disabilities Act (ADA) in 
          1990, the state made a violation of the ADA also a violation of 
          Section 54 or 54.1.  The state protections provided to disabled 
          persons are comparatively higher than those provided under the 
          ADA and are independent of the ADA. 





































                                                                      



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          A violation of Section 54 or Section 54.1 makes a person liable 
          for actual damages plus a maximum of three times the actual 
          damages (but not less than $1,000), plus attorney's fees and 
          costs.  In a private right of action under the ADA, a plaintiff 
          may obtain injunctive relief and attorney's fees, while an 
          action by the U.S. Attorney may bring equitable relief, monetary 
          damages on behalf of the aggrieved party, and a civil penalty of 
          up to $100,000.

          Under the Unruh Civil Rights Act, all persons, regardless of 
          sex, race, color, religion, ancestry, national origin, 
          disability or medical condition, are entitled to the full and 
          equal accommodations, advantages, facilities, privileges, or 
          services in all business establishments of every kind 
          whatsoever. (Civil Code Section 51.)  A violation of the ADA 
          also constitutes a violation of Section 51.  A violation of this 
          section subjects a person to actual damages incurred by an 
          injured party, plus treble actual damages but not less than 
          $4,000, and any attorney's fees as the court may determine to be 
          proper. (Civil Code Section 52.)

          SB 262 (Kuehl, Chapter 872, Statutes of 2003) established in the 
          Division of the State Architect a voluntary "access specialist 
          certification program" in order to assist business and property 
          owners to comply with ADA and state access laws.  The bill also 
          authorized an enforcement action with civil penalties for 
          noncompliance with ADA and state access laws, after notification 
          of the business owner or operator by a government agency.  The 
          authority to institute a civil action was extended to county 
          counsels (in addition to the Attorney General, district 
          attorney, and city attorney). 

          In 2003 and 2005, several bills were introduced after multiple 
          lawsuits were filed in state court by a few plaintiffs and 
          attorneys against business owners and operators for apparently 
          technical violations of the state's access or ADA regulations. 
          (SB 69 (Oller, 2003), AB 209 (Leslie, 2003), AB 20 (Leslie, 
          2005), SB 855 (Poochigian, 2005).)  Three of those bills would 
          have required pre-litigation procedures for a plaintiff to 
          undertake prior to the filing of a complaint, including notice 
          to the owner of the property or business of the alleged 
          violations and would have provided a specified time period for 
          the owner or business to cure the violations.  One bill (AB 20) 
          would have precluded an action for damages for a de minimus 
          violation, allowing only injunctive relief and attorney's fees.  
          All of those bills failed passage in the Judiciary Committees of 
                                                                      



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          their respective houses.

          In 2008, three bills were introduced relating to disability 
          access. (AB 2533 (Keene, 2008), SB 1766 (McClintock, 2008), SB 
          1608 (Corbett, Harman, Steinberg, Runner and Calderon, Chapter 
          549, Statutes of 2008).)  AB 2533 would have required a person 
          alleging violations of the full and equal access laws to first 
          deliver a notice to the responsible party, specifying the 
          physical conditions complained of, and would have required that 
          entity to make a good faith effort to remedy the condition.  No 
          person could file an action unless the person to whom the notice 
          was given failed, within 30 days of receipt of the notice, to 
          commence a good faith effort to remedy the condition complained 
          of, or the person allowed unreasonable delays in remedying the 
          condition.  AB 2533 failed passage in the Assembly Committee on 
          Judiciary.  SB 1766 would have taken a similar approach by 
          imposing a duty on a person with a disability to first notify by 
          certified mail the owner or manager of the housing or public 
          accommodation in violation of the full and equal access laws and 
          also impose a duty on the owner or manager to remedy the 
          condition complained of within six months.  This bill failed 
          passage in the Senate Committee on Judiciary.   In 2011, SB 783 
          (Dutton, 2011) would have established notice requirements for an 
          aggrieved party to follow before he or she can bring a 
          disability access suit and given the business owner a 120-day 
          time period to remedy the violation.  If the property owner 
          cured the violation, the bill would have provided that an 
          aggrieved party cannot receive any damages or attorney's fees, 
          except for special damages.  This bill failed passage in this 
          Committee. 

          Alternatively, SB 1608, which took effect January 1, 2009, did 
          not create any pre-litigation hurdles for a person with a 
          disability but instead, among other things, provided for an 
          early evaluation of a filed complaint if the defendant is a 
          qualified defendant who had the identified place of public 
          accommodation inspected and determined to meet applicable 
          physical access standards by a state Certified Access Specialist 
          (CASp) prior to the filing of the complaint.  

          This bill attempts to further address the issue by prohibiting 
          demand for money requests alleging construction-related 
          accessibility violations and requiring an attorney to provide 
          notice to a building owner or tenant identifying any alleged 
          construction-related accessibility violations at least 30 days 
          prior to filing a claim for damages, as specified.  
                                                                      



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                                CHANGES TO EXISTING LAW
           
           Existing federal law  , under the Americans with Disabilities Act 
          (ADA), provides that no individual shall be discriminated 
          against on the basis of disability in the full and equal 
          enjoyment of the goods, services, facilities, privileges, 
          advantages, or accommodations of any place of public 
          accommodation by any person who owns, leases, or leases to, or 
          operates a place of public accommodation. (42 U.S.C. Sec. 
          12182.)

           Existing law  provides that individuals with disabilities or 
          medical conditions have the same right as the general public to 
          the full and free use of the streets, highways, sidewalks, 
          walkways, public buildings, medical facilities, including 
          hospitals, clinics and physicians' offices, public facilities 
          and other public places.  It also provides that a violation of 
          an individual's rights under the ADA constitutes a violation of 
          state law.  (Civ. Code Sec. 54.)

           Existing law  provides that individuals with disabilities shall 
          be entitled to full and equal access to public accommodations, 
          subject only to the conditions and limitations established by 
          law, or state or federal regulation, and applicable alike to all 
          persons.  It further provides that individuals with disabilities 
          shall be entitled to full and equal access to all housing 
          accommodations offered for rent or lease, subject to conditions 
          and limitations established by law. (Civ. Code Sec. 54.1.)  

           Existing law  provides that a violation of the ADA also 
          constitutes a violation of Section 54.1.  A violation of Section 
          54.1 subjects a person to actual damages, plus treble actual 
          damages but not less than $1,000, and attorney's fees as the 
          court deems proper. (Civ. Code Sec. 55.)
          
           Existing law  , the Unruh Civil Rights Act, declares that all 
          persons, regardless of sex, race, color, religion, ancestry, 
          national origin, disability or medical condition, are entitled 
          to the full and equal accommodations, advantages, facilities, 
          privileges, or services in all business establishments of every 
          kind whatsoever.  A violation of the ADA also constitutes a 
          violation of Unruh.  A violation of this section subjects a 
          person to actual damages incurred by an injured party, treble 
          actual damages but not less than $4,000, and any attorney's fees 
          as the court may determine to be proper. (Civ. Code Sec. 51 et 
                                                                      



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          seq.)  

           Existing law  established the California Commission on Disability 
          Access (CCDA), an independent state agency composed of 19 
          members, with the general responsibility for monitoring 
          disability access compliance in California, and making 
          recommendations to the Legislature for necessary changes in 
          order to facilitate implementation of state and federal laws on 
          disability access. (Gov. Code Sec. 8299 et seq.)
           
          Existing law  requires an attorney, when serving a demand for 
          money letter or a complaint on a defendant, include a written 
          advisory to the defendant of the defendant's rights and 
          obligations, including the right of a qualified defendant to 
          request a stay and an early evaluation conference regarding the 
          allegations in the complaint.  This written advisory is required 
          from an attorney only and is not required from a pro per 
          plaintiff.  (Civ. Code Sec 55.3.)

           Existing law  defines terms for a disability access action, 
          specifically, existing law:
           defines a qualified defendant as a defendant in an action that 
            includes an accessibility claim as to a place of public 
            accommodation that has been inspected by a certified access 
            specialist (CASp) and determined to meet applicable 
            construction-related accessibility standards or pending 
            determination by a CASp;
           defines a certified access specialist whose inspection report 
            would be the basis for a defendant to qualify for the early 
            evaluation conference;
           defines the construction-related accessibility standard that a 
            CASp would use to inspect and prepare a report on the place of 
            public accommodation. With respect to this standard, the bill 
            would provide that standards adopted in state law would be 
            used unless standards under federal law are higher; and
           enumerates the duties of the CASp with respect to the 
            inspection, the corrections that may need to be made to the 
            site, written inspection report, and the statement of 
            compliance, including the issuance, upon completion of the 
            inspection and a determination that the site meets applicable 
            construction-related accessibility standards, of a specified, 
            watermarked, and sequentially numbered disability access 
            certificate that may be displayed at the site.  (Civ. Code 
            Sec. 55.52.)

           Existing law  provides that if a CASp determines that a site 
                                                                      



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          meets all applicable construction-related accessibility claims 
          the CASp must provide a written inspection report to the 
          requesting party that includes specified information.  If the 
          CASp determines that corrections are needed to the site in order 
          for it to meet all applicable construction-related accessibility 
          standards, the CASp must provide a written inspection report to 
          the requesting party that identifies the needed corrections and 
          a schedule for completion.  (Civ. Code Sec. 55.53.)

           Existing law  requires every CASp who completes an inspection of 
          a site to provide the owner or tenant with a disability access 
          inspection certificate if the site either meets applicable 
          construction-related accessibility standard or is a CASp 
          determination pending site.  Existing law permits the building 
          owner or tenant to post the certificate on the premises unless, 
          after the date of inspection, the inspected site has been 
          modified or construction has commenced to modify the inspected 
          site in a way that may impact compliance with 
          construction-related accessibility standards. (Civ. Code Sec. 
          55.53.)

           Existing law outlines the specific process to be followed when 
          filing a disability access claim:
           specifies the contents of the request and includes a link to 
            the Judicial Council of California's Web site to access the 
            appropriate court forms;
           provides that a qualified defendant may file an application 
            requesting an early evaluation conference (EEC) after the 
            defendant is served with the summons and complaint within 30 
            days of receiving the summons and complaint;
           grants qualified defendants a 90-day stay of the proceedings 
            with respect to the construction-related accessibility claims, 
            unless the plaintiff has obtained temporary injunctive relief;
           requires a mandatory EEC to be scheduled no later than 50 days 
            after issuance of the order but no earlier than 21 days after 
            the request is filed;
           directs the parties to appear in person at the time set for 
            the conference;
           directs the defendant to file with the court and serve on the 
            plaintiff a copy of any relevant CASp inspection report at 
            least 15 days prior to the date of the EEC;
           directs the plaintiff to file with the court and serve on the 
            defendant at least 15 days prior to the date of the EEC a 
            statement containing, to the extent reasonably known, an 
            itemized list of the alleged violations, the amount of damages 
            claimed, the amount of attorney's fees and costs claimed, and 
                                                                      



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            any demand for settlement of the case in its entirety;
           specifies that the court shall lift the stay when defendant 
            has failed to file and serve the CASp inspection report when 
            required and also did not produce the report at the EEC, 
            unless good cause for the failure is shown;
           specifies that the court may lift the stay at the conclusion 
            of the EEC upon a showing of good cause by the plaintiff;
           specifies the court's authority to schedule additional 
            conferences or to extend the stay for no more than an 
            additional 90 days, upon a showing of good cause; and
           specifies the determinations the court would make at the EEC.  
            (Civ. Code Sec. 55.54.)

           Existing law  provides that the stay and early evaluation 
          conference shall not be deemed to make any inspection report or 
          opinion of a CASp binding on the court or to abrogate the 
          court's authority to make appropriate findings of fact and law. 
          (Civ. Code Sec. 55.54.)

           Existing law  provides that the stay and early evaluation 
          conference shall not be construed to invalidate or limit any 
          California construction-related accessibility standard that 
          provides greater or equal protection for the rights of persons 
          with disabilities than is afforded by the ADA and the federal 
          regulations adopted pursuant to that act. (Civ. Code Sec. 
          55.54.)
           
          Existing law  provides that notwithstanding the requirement that 
          offers of compromise are privileged and protected under Evidence 
          Code Section 1152, the court may consider, along with other 
          relevant information, settlement offers made and rejected by the 
          parties, in determining an award of reasonable attorney's fees 
          and recoverable costs in any construction-related accessibility 
          claim. (Civ. Code Sec. 55.55.)

           Existing law  provides that statutory damages may be recovered in 
          a construction-related accessibility claim only if a violation 
          or violations of one or more construction-related accessibility 
          standards denied the plaintiff full and equal access to the 
          place of public accommodation on a particular occasion.  
          Existing law specifies that a plaintiff is denied full and equal 
          access only if he or she personally encountered the violation on 
          a particular occasion or was deterred from accessing the public 
          accommodation on a particular occasion.  (Civ. Code Sec. 55.56.)

           This bill  would define "demand for money" as a written document 
                                                                      



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          or oral statement that is provided or issued to a building owner 
          or tenant, or his or her agent or employee, that meets all of 
          the following requirements:
          1.alleges one or more construction-related accessibility 
            violations as the basis of one or  more construction-related 
            accessibility claims;
          2.contains or makes a request for money or states or implies 
            that the building owner or tenant is liable for damages or 
            attorney's fees or both; and 
          3.is provided or issued without or prior to the filing of a 
            complaint in state or federal court on the basis of one or 
            more construction-related accessibility violations.

           This bill  would prohibit an attorney or a person from issuing a 
          demand for money to a building owner or tenant, or his or her 
          agent or employee, or receiving any payment, settlement, 
          compensation or other remuneration pursuant to a demand for 
          money. 

           This bill  would require an attorney to provide to a building 
          owner or tenant, or his or her agent or employee, a document 
          that notifies the recipient of any alleged construction-related 
          accessibility violation that may be a basis for a damages claim 
          at least 30 days prior to filing any claim for damages based on 
          an alleged construction-related accessibility violation.  This 
          bill would prohibit the document from demanding or requesting 
          any money to settle or forgo a claim for damages or imply that 
          the building owner or tenant is liable for damages and/or 
          attorney's fees.  This provision of the bill applies whether the 
          attorney intends to file an action in state or federal court and 
          does not apply in a case solely seeking injunctive relief.  

           This bill  would provide that a violation of the above two 
          provisions shall be cause for the imposition of disciplinary 
          action against an attorney. 

           This bill would require a commercial property owner to state on 
          the lease form or rental agreement if the property being leased 
          or rented is "CASp-Inspected" or is not "CASp-Inspected."

           This bill  would include the following language providing that it 
          is the intent of the Legislature to: 
          1.examine the federal and state laws that provide persons with 
            disabilities the right to full and equal access to places of 
            public accommodation, and to address any conflict between 
            those laws in construction-related accessibility standards 
                                                                      



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            that may lead to unnecessary litigation;
           
          2.facilitate compliance by increased education regarding the 
            accessibility laws, including requiring the California 
            Commission on Disability Access to develop tools for use by 
            businesses and building inspectors, and to post those tools on 
            its public Internet Web site to facilitate greater compliance; 
            and 

          3.examine measures that would lead to greater compliance, to the 
            benefit of both business and the disability community through 
            reducing litigation and improving access for the disabled, 
            without discouraging early compliance efforts and without 
            affecting the right to sue for uncorrected and other 
            violations. This effort shall examine and address issues many 
            small businesses face from litigation and tactics pursued 
            primarily for private gain under the state and federal 
            disability access laws, rather than to rectify a disability 
            access violation.

                                        COMMENT
           
          1.  Stated need for the bill  
          
          The author writes:
          
            Recent amendments to the federal ADA recently became effective 
            March 16, 2012.  Accordingly to the Division of State 
            Architect, there are now nine direct conflicts between the 
            current 2010 California Building Code (Title 24) and the 
            federal ADA that "cannot be resolved."  The intent language 
            states the Legislature's intent to address the issue to avoid 
            unnecessary litigation arising from the conflicts.  

            SB 1608 requires the sending of a specified advisory notice to 
            property owners or tenants who receive a demand for money 
            letter for an attorney based on an alleged construction-based 
            accessibility violation on the property.  This law was enacted 
            in response to concerns that small businesses were coerced 
            into paying significant amounts of money to avoid being sued 
            by lawyers who sent letters notifying the business of alleged 
                                      ADA violations and threatening to sue for significantly higher 
            damages and attorneys fees unless the business paid a 
            "settlement" within a short period of time.  The required 
            notice was designed to notify the business of its legal rights 
            and obligations, particularly that the business is not liable 
                                                                      



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            for paying anything unless ordered by a court.  Despite this 
            law, the practice has continued to vex small businesses with 
            its "pay-now or pay-more-later" demand; up until this year, 
            some attorneys were even able to avoid the law by claiming 
            that they did not know whether they were going to file a 
            follow-up lawsuit or they were intending to file in federal 
            court where they contended that the law did not apply.  This 
            bill would prohibit the practice of sending a demand for money 
            letter for a violation of a construction-related accessibility 
            standard.

            Other provisions seek to facilitate improved compliance.  One 
            provision would require a property owner to advise a 
            prospective tenant whether the property to be rented "is 
            CASp-inspected" or "is not CASp-Inspected."  This provision is 
            intended to provide businesses with better notice of whether 
            their leased property meets state and federal accessibility 
            requirements. 

            Another provision states the intent of the Legislature to 
            require the Commission on Disability Access to develop and 
            post on its website, tools for businesses and building 
            inspectors to use to facilitate greater compliance. 
          
          The California Restaurant Association supports the bill, writing 
          "Ýw]hile CRA remains committed to the implementation of SB 1608, 
          we recognize that further action by the Legislature could 
          address additional concerns with California accessibility laws.  
          Senator Feinstein's recent letter to Senator Steinberg raised 
          concerns about predatory ADA lawsuits similar to those that we 
          continue to hear from restaurateurs.  SB 1186 specifically 
          addresses the use and abuse of demand letters to compel business 
          owners to pay monetary settlements and is therefore an important 
          step forward.  SB 1186 would give these attorneys one less 
          tactic to use in their efforts to intimidate restaurant owners 
          into agreeing to monetary settlements."

          The California Business Properties Association, Building Owners 
          and Managers Association of California, NAIOP of California, the 
          Commercial Real Estate Development Association International 
          Council of Shopping Centers all support the bill, writing that 
          it "will enhance accessibility-which is the most important issue 
          before you-while addressing lawsuit abuses.  This bill builds on 
          SB 1608 (Corbett signed in 2008) Ýand] will provide a modicum of 
          protection from predatory individuals to businesses that are 
          striving to do the right thing and complying with accessibility 
                                                                      



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          laws."

          The California Hotel & Lodging Association and the California 
          Association of Bed and Breakfast Inns write in support of the 
          bill, "Ýw]e believe that SB 1186 addresses the 'right to cure' 
          for construction-related accessibility claims; conflicts between 
          state and federal disability access laws; and frivolous 
          lawsuits.  All of which are paramount to supporting business 
          throughout the state and ensuring  . . .  protections of people 
          with disabilities and their access to public accommodations."

          The Civil Justice Association supports the bill, asserting 
          "Ýu]nfortunately, SB 1608 has not fully resolved the underlying 
          problem, which is the serial filing of disabled access lawsuits 
          by plaintiffs that prioritize financial gain over disabled 
          access."  On this point, the author's office provided the 
          Committee with a summary of demand letters sent to business 
          owners alleging the same violations of federal and state law.  
          In a number of instances, the demand letters were sent by the 
          same attorney and the same plaintiff and alleged the same 
          violations such as improper disabled signage and tow away 
          warning signage.

          2.  Recent amendments remove the bill's provisions that imposed 
            unprecedented pre-litigation hurdles on disabled persons 
            alleging violations of their civil rights to equal access  

          Prior to the most recent amendments, this bill would have 
          imposed pre-litigation procedural requirements upon the filing 
          of any claim under the state's civil rights and equal access to 
          public or housing accommodation laws, including claims of 
          violations of the ADA.  Under the prior version of the bill, the 
          plaintiff would have been required to send a specified notice of 
          violation served by personal service or certified mail on the 
          property owner or other responsible party.  The property owner 
          or other responsible party then would have had 30 days to 
          respond to that notice and then, potentially, 90 days to correct 
          the violation and bring the property into compliance with 
          disability access laws.  If the violation was not corrected 
          within the 90-day period and the owner failed to provide a 
          satisfactory explanation, the bill would have permitted the 
          claimant to file the claim.  If the violation was corrected 
          within the 90-day period, the claimant and all future claimants 
          would have been prohibited from receiving any award of damages, 
          other than special damages, as defined, or any award of 
          attorney's fees, in any claim based on the same or similar 
                                                                      



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          facts.  

          These provisions were nearly identical to SB 783 (Dutton, 2011), 
          which failed passage in this Committee last year.  Staff notes 
          that the most recent amendments to this bill delete these 
          provisions and replace them with the provisions described below 
          relating to demands for money, notice of alleged 
          construction-related accessibility violations, notice in lease 
          agreements concerning CASp-inspected properties, and Legislative 
          intent language.  
          3.  Bill would prohibit issuing demands for money  

          This bill would prohibit an attorney or a person from issuing a 
          "demand for money" to a building owner or tenant, or his or her 
          agent or employee, or receiving any payment, settlement, 
          compensation or other remuneration pursuant to a demand for 
          money.  This bill would define "demand for money" as a written 
          document or oral statement that is provided or issued to a 
          building owner or tenant, or his or her agent or employee, that 
          meets all of the following requirements: (1) alleges one or more 
          construction-related accessibility violations as the basis of 
          one or more construction-related accessibility claims; (2) 
          contains or makes a request for money or states or implies that 
          the building owner or tenant is liable for damages or attorney's 
          fees or both; and (3) is provided or issued without or prior to 
          the filing of a complaint in state or federal court on the basis 
          of one or more construction-related accessibility violations.

          Under existing law, attorneys are required to provide a 
          specified advisory notice to a building owner or tenant with 
          each demand for money or complaint based on construction-related 
          accessibility claims.  These notices-which inform the building 
          owner or tenant of his or her legal rights including that the 
          business is not required to pay any money unless and until a 
          court finds it liable-must be provided regardless of whether the 
          attorney intends to file the case in state or federal court.  As 
          the author notes above, these provisions were included in SB 
          1608 and intended to address concerns that some attorneys were 
          threatening small businesses with lawsuits by notifying them of 
          violations and "coercing" them into settling to avoid being 
          sued.  The author points out that the practice of sending a 
          demand for money letter for violation of a construction-related 
          accessibility standard is continuing to "vex small businesses 
          with its 'pay-now or pay-more-later' demand."  The provisions of 
          this bill are intended to help address this problem by 
          prohibiting demands for money-both oral and written-in cases in 
                                                                      



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          which the claim alleges one or more construction-related 
          accessibility violations. 

          4.  Bill would require notification of alleged 
            construction-related accessibility violations at least 30 days 
            prior to filing claim for damages; does not apply to actions 
            solely seeking injunctive relief  

          This bill would require an attorney to provide to a building 
          owner or tenant, or his or her agent or employee, a document 
          that notifies the recipient of any alleged construction-related 
          accessibility violation that may be a basis for a damages claim 
          at least 30 days prior to filing any claim for damages based on 
          the alleged violation.  This bill would prohibit the document 
          from demanding or requesting any money to settle or forgo a 
          claim for damages or imply that the building owner or tenant is 
          liable for damages and/or attorney's fees.  This provision of 
          the bill applies whether the attorney intends to file an action 
          in state or federal court and does not apply in a case solely 
          seeking injunctive relief. 

              a.   Notice required 30 days prior to attorneys filing a 
               claim for damages 

             This bill's provision requiring an attorney to provide notice 
            to a building owner or tenant of a construction-related 
            accessibility violation 30 days prior to filing a claim for 
            damages is intended to assist businesses in identifying 
            violations so that compliance may be achieved.  As the 
            author's office notes below, the requirement that attorneys 
            provide notice of alleged construction-related accessibility 
            violations 30 days prior to filing a claim applies only to 
            claims for damages.  It is important to note that this 
            requirement does not apply where the claim is solely for 
            injunctive relief.  This distinction reflects the desire to 
            underscore the importance of compliance and addressing the 
            construction-related accessibility violation. 

            Much of the opposition's concerns focus on this provision of 
            the bill.  For example, the California Foundation for 
            Independent Living Centers (CFILC) opposes the bill, unless 
            amended and writes that this provision:

               . . .  constitutes such a violation of our vested civil and 
               constitutional rights.  It would prohibit attorneys in 
               cases involving alleged violations of physical 
                                                                      



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               accessibility standards to provide a document to the owner 
               or tenant of a building, or an agent or employee of those 
               persons that notifies the recipient of any alleged 
               construction-related accessibility violations.  The 
               prescribed notice must be provided  at least 30 days prior 
               to filing any claim.   The requirement applies whether the 
               case is filed in a state or federal court.

               We strongly believe that this provision would have 
               virtually the same effect as the original "notice and 
               delay" text of SB 1186.  It is not an acceptable 
               alternative because it would subject  all  people with 
               disabilities, including those with legitimate grounds for a 
               lawsuit, to disparate treatment in pursuing civil actions.  
               By singling out people with disabilities as the only 
               affected class, among  all other  protected classes, for such 
               disparate treatment, it subjects them to unacceptable 
               notice and delay requirements as a precondition for 
               pursuing the enforcement of their civil rights. 

               These abuses by attorneys are problematic, but we see no 
               legitimate purpose or state interest to be served by 
               sweeping  all  lawsuits together in one fell swoop in order 
               to solve a problem involving a small minority of cases.  
               This requirement presumes that it is necessary to view all 
               cases as being without merit in order to cull out those 
               that are in fact part of the abusive practices.  Why should 
               the disability community be burdened to solve a problem 
               that should be more directly appropriately targeted toward 
               those offending attorneys? (Emphasis in original)

            Disability Rights California also opposes this provision, 
            writing that it "establishes a different standard for people 
            with disabilities to enforce their civil rights.  People with 
            disabilities should not have enforcement of their civil rights 
            limited or delayed because of the actions of a few."

            In response, the author's office writes:

               The notice requirement would apply only in cases where the 
               plaintiff will be seeking damages for a 
               construction-related accessibility violation.  If he or she 
               were to only seek injunctive relief for that violation, the 
               notice law would not apply.  If he or she were seeking 
               damages or injunctive relief for an accessibility violation 
               that is not construction-related, the notice provision 
                                                                      



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               would not apply.  These are important distinctions that 
               preserve the ability of a person with a disability to seek 
               immediate relief and damages for those other violations.  

               Also, some kind of notice of violation provision in a 
               construction-related accessibility case seeking damages 
               seems to make good policy sense; it can be a valuable tool 
               to avert the gamesmanship being practiced by some lawyers 
               in some ADA litigation to "run up" the violation counts to 
               increase the damages award for private gain. In the letter 
               sent by Senator Feinstein, she included an example of a 
               plaintiff filing a lawsuit for 30 violations for being 
               denied access because the property was not in compliance 
               with disabled parking access laws. In that case, one could 
               ask why the plaintiff did not file after the first 
               violation? Or, more pointedly, why did he wait until he 
               incurred 30 violations? A possible answer is because he 
               wanted to build up his damages claim under California law 
               which makes each violation a separate violation subject to 
               a minimum statutory damages award of $4,000 per violation 
               plus attorney's fees. In fact, the plaintiff in that 
               particular lawsuit sought $120,000 in damages plus 
               attorney's fees. If the current law incentivizes a 
               plaintiff to wait to sue for a violation in order to build 
               up multiple violations for more damages, we need to stop 
               such gamesmanship under the law.   

               A notice requirement in that and similar cases would give a 
               business an opportunity to come into compliance and avoid 
               repeated violations and damages liability when it fixes a 
               violation after a notice. The resulting compliance and 
               increased access would benefit the entire disability 
               community.   

            As mentioned above, SB 1608 created the California Commission 
            on Disability Access (CCDA), an independent state agency 
            composed of 19 members.  The CCDA has the general 
            responsibility for monitoring disability access compliance in 
            California, and making recommendations to the Legislature for 
            necessary changes in order to facilitate implementation of 
            state and federal laws on disability access.  The Committee 
            may wish to consider whether it might be appropriate to refer 
            the issues raised by this bill to the CCDA for evaluation and 
            recommendations.


                                                                      



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              b.   Potential internal inconsistency

             This bill appears to contain an internal inconsistency in that 
            the provision of the bill described in Comment 3 prohibits an 
            attorney or any person from issuing a demand for money that 
            implies that the building owner or tenant is liable for 
            damages or attorney's fees, or both, on the basis of 
            construction-related accessibility violations.  At the same 
            time, as described above, the bill also requires an attorney 
            to provide a document to the building owner or tenant 
            notifying them of any alleged construction-related 
            accessibility violation that may be a basis for a damages 
            claim.  The concern arises that notification of an alleged 
            violation could be interpreted by a building owner or tenant 
            as the implication that the owner or tenant is liable for 
            damages.  In order to address this issue, the author may wish 
            to, for example, provide specific language to be used by 
            attorneys when notifying the building owner or tenant of an 
            alleged violation while not implying that the owner or tenant 
            is liable. 

          5.  Bill would specify violation of Comments (3) and (4), above 
            is cause for imposition of disciplinary action against an 
            attorney 

          This bill would impose requirements on attorneys that they: (1) 
          not issue demands for money, either oral or written, in cases 
          alleging a violation of a construction-related accessibility 
          standard; and (2) give notice 30 days prior to filing a claim 
          for damages based on a construction-related accessibility 
          violation.  This bill would specify that a violation of these 
          two provisions is cause for the imposition of disciplinary 
          action against an attorney.  This provision is intended to 
          enhance attorney compliance with these requirements by 
          specifically providing that an attorney who does not comply may 
          face disciplinary action by the State Bar of California.  

          6.  Bill would require commercial property owners to provide 
            CASp-Inspection notice in leases  

          This bill would require a commercial property owner to state on 
          the lease form or rental agreement if the property being leased 
          or rented has been inspected by a Certified Access Specialist 
          (CASp).  Specifically, the form or agreement must state if the 
          property "is CASp-Inspected" or "is not CASp-Inspected."  Under 
          existing law, "CASp-inspected" means the site was inspected by a 
                                                                      



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          CASp and determined to meet all applicable construction-related 
          accessibility standards, as specified.

          As mentioned in the Background, SB 262 (Kuehl, Ch. 872, Stats. 
          2003) established in the Division of the State Architect a 
          voluntary "access specialist certification program" in order to 
          assist business and property owners to comply with the ADA and 
          state access laws.  SB 1608 built upon this CASp program by 
          requiring a CASp to provide a written inspection report that 
          includes specified information, if the CASp determines that a 
          property meets all applicable construction-related accessibility 
          claims.  If the CASp concludes that corrections are needed to 
          the site in order for it to meet all applicable 
          construction-related accessibility standards, the CASp must 
          provide a written inspection report that identifies the needed 
          corrections and a schedule for completion.  

          SB 1608 also required every CASp who completes an inspection of 
          a site to provide the owner or tenant with a disability access 
          inspection certificate if the site either meets applicable 
          construction-related accessibility standard or is a CASp 
          determination pending site.  The building owner or tenant may 
          then post that certificate on the premises unless, after the 
          date of inspection, the inspected site has been modified or 
          construction has commenced to modify the inspected site in a way 
          that may impact compliance with construction-related 
          accessibility standards. 

          If a building owner or tenant is later sued for a violation of 
          construction-related accessibility standards, he or she may file 
          an application requesting an early evaluation conference (EEC), 
          as specified.  The defendant may then be granted a 90-day stay 
          of the proceedings with respect to the construction-related 
          accessibility claims, unless the plaintiff has obtained 
          temporary injunctive relief.

          Although opposed to the bill, Disability Rights California 
          supports this provision, writing that it is "critical to require 
          lease forms or rental agreements to notify a business owner 
          about the accessibility of the property  . . . "  Given the 
          important rights and obligations that flow from having a site be 
          "CASp-inspected," it is helpful for a prospective tenant to know 
          whether or not a property meets all applicable 
          construction-related accessibility standards, as determined by a 
          CASp.  

                                                                      



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          7.  Bill would contain Legislative intent language indicating a 
            desire to continue working on the issues addressed by the bill  

          This bill would include the following language providing that it 
          is the intent of the Legislature to: 
          a.examine the federal and state laws that provide persons with 
            disabilities the right to full and equal access to places of 
            public accommodation, and to address any conflict between 
            those laws in construction-related accessibility standards 
            that may lead to unnecessary litigation;
          b.facilitate compliance by increased education regarding the 
            accessibility laws, including requiring the California 
            Commission on Disability Access to develop tools for use by 
            businesses and building inspectors, and to post those tools on 
            its public Internet Web site to facilitate greater compliance; 
            and
          c.examine measures that would lead to greater compliance, to the 
            benefit of both business and the disability community through 
            reducing litigation and improving access for the disabled, 
            without discouraging early compliance efforts and without 
            affecting the right to sue for uncorrected and other 
            violations. This effort shall examine and address issues many 
            small businesses face from litigation and tactics pursued 
            primarily for private gain under the state and federal 
            disability access laws, rather than to rectify a disability 
            access violation.

          It is important to note that the above language is simply intent 
          language and does not make substantive changes in the law.  


           Support  :  California Association of Bed and Breakfast Inns; 
                                                                                        California Business Properties Association; California Hotel & 
          Lodging Association; California Restaurant Association; Building 
          Owners and Managers Association of California; Civil Justice 
          Association of California (CJAC); International Council of 
          Shopping Centers; NAIOP of California, the Commercial Real 
          Estate Development Association 

           Opposition  :  California Foundation for Independent Living 
          Centers (unless amended)
          Disability Rights California; Disability Rights Education & 
          Defense Fund (DREDF)

                                        HISTORY
           
                                                                      



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           Source  :  Author

           Related Pending Legislation  :  

          SB 1163 (Walters) would establish notice requirements for an 
          aggrieved party to follow before he or she can bring a 
          disability access suit and give the business owner a 120-day 
          time period to remedy the violation.  If the property owner 
          cures the violation, the aggrieved party cannot receive any 
          damages or attorney's fees, except for special damages.  This 
          bill is scheduled to be heard in this Committee on May 8, 2012. 

          AB 1878 (Gaines), which is substantially similar to SB 1163 but 
          applies to "microbusinesses," defined by the bill, is scheduled 
          to be heard in the Assembly Judiciary Committee on May 8, 2012. 

          AB 2282 (Berryhill), which would authorize an aggrieved person 
          to bring a disability access suit only if: (1) the person has 
          suffered an injury in fact; (2) the injury in fact was caused by 
          the violation; and (3) the violation is redressable, is 
          scheduled to be heard in the Assembly Judiciary Committee on May 
          8, 2012. 

           Prior Legislation  :

          SB 783 (Dutton, 2011), which was identical to SB 1163, failed 
          passage in this Committee. 

          SB 384 (Evans, Ch. 419, Stats. 2011) clarified that attorneys 
          who file complaints or send demand letters related to disability 
          access violations must provide a written notice of legal rights 
          and obligations whether or not the attorney intends to file an 
          action in state or federal court.  

          SB 209 (Corbett & Harman, Ch. 569, Stats. 2009) required a CASp 
          inspection report, to remain confidential rather than be under 
          seal and subject to protective order.

          SB 1608 (Corbett et al., Ch. 549, Stats. 2008) See Background; 
          Comment 6.

          SB 1766 (McClintock, 2008) See Background.

          AB 2533 (Keene, 2008) See Background.

          SB 855 (Poochigian, 2005) See Background.  
                                                                      



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