BILL ANALYSIS Ó ------------------------------------------------------------ |SENATE RULES COMMITTEE | SB 1186| |Office of Senate Floor Analyses | | |1020 N Street, Suite 524 | | |(916) 651-1520 Fax: (916) | | |327-4478 | | ------------------------------------------------------------ UNFINISHED BUSINESS Bill No: SB 1186 Author: Steinberg (D) and Dutton (R), et al. Amended: 8/30/12 Vote: 27 - Urgency SENATE JUDICIARY COMMITTEE : 4-1, 5/8/12 AYES: Evans, Harman, Blakeslee, Leno NOES: Corbett SENATE APPROPRIATIONS COMMITTEE : Senate Rule 28.8 SENATE FLOOR : 36-0, 5/29/12 AYES: Alquist, Anderson, Berryhill, Blakeslee, Calderon, Cannella, Correa, De León, DeSaulnier, Dutton, Emmerson, Fuller, Gaines, Harman, Hernandez, Huff, Kehoe, La Malfa, Leno, Lieu, Liu, Lowenthal, Negrete McLeod, Padilla, Pavley, Price, Rubio, Simitian, Steinberg, Strickland, Vargas, Walters, Wolk, Wright, Wyland, Yee NO VOTE RECORDED: Corbett, Evans, Hancock, Runner NOTE: Senate votes were to a much narrower bill on the same subject matter. SENATE JUDICIARY COMMITTEE : Not available (pursuant to Senate Rule 29.10) ASSEMBLY FLOOR : Not available SUBJECT : Disability access: liability SOURCE : Author CONTINUED SB 1186 Page 2 DIGEST : When this bill left the Senate, it prohibited 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, and prohibits 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. The bill also defined "demand for money." This bill required 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 contains legislative intent language, as specified. This bill specifies that the functions and responsibilities of the California Commission on Disability Access (CCDA) includes the concurrent and prospective review of legislative measures, including this bill, and recommendations on any additional ideas or options to promote disability access and reduce unnecessary litigation. Assembly Amendments (1) delete requirement that an attorney provide a document that notifies the recipient of alleged construction related to accessibility violations, as specified, that includes a demand for money to settle or forgo the claim; (2) recast the entire bill with the same intent as it left the Senate plus 14 new provisions. This bill reduces statutory damages and provide litigation protections for specified defendants who timely correct construction-related accessibility violations of the Unruh Civil Rights Act. Specifically, this bill: Caps statutory damages at $1,000, instead for $4,000, for any defendant who corrected all violations in the claim within 60 days of being served the complaint and was either (1) a defendant who had hired a CASp and met all applicable compliance standards, or (2) a person who had new construction or an improvement approved by the CONTINUED SB 1186 Page 3 local building department on or after January 2008. Allows a small business defendant, as specified, to have minimum statutory damages reduced to $2,000 when that defendant corrects the violation within 30 days of being served the complaint. Allows any one of these defendants who promises to correct the violation within the specified time period to request an early evaluation conference (EEC) and grant that defendant an immediate stay of the proceedings. Additionally, this bill requires the court, in assessing statutory damages in a construction-related accessibility claim, to consider the reasonableness of the plaintiff's conduct in light of the plaintiff's obligation to mitigate damages in any action alleging multiple claims for the same construction-related accessibility violation on different particular occasions. This bill also: bans prelitigation "demands for money" and create rules for demand letters and complaints in claims involving construction-related accessibility violations; requires any demand letter or complaint asserting a construction related accessibility claim to contain facts sufficient to allow the defendant to identify the basis for the claim, including an explanation of the specific access barrier the claimant encountered, and the date(s) of the violation(s); requires any demand letter alleging a construction-related accessibility violation to be sent to the State Bar and the CCDA, as specified; allows either party to request a mandatory evaluation conference to be conducted by the court within 120 to 180 days of the request; requires a property owner and/or lessor to notify the tenant, for any property leased after January 1, 2013, CONTINUED SB 1186 Page 4 if the property has undergone a CASp inspection, and if so, whether the property meets all applicable construction-related standards; requires the CCDA to promote and facilitate accessibility compliance, as specified; and requires cities and counties to inform business licensees of their responsibilities to comply with accessibility laws, as specified, and promote compliance by sharing information regarding how to comply. Finally, this bill adds $1 to business license fees and similar instruments to pay for more local CASp, reduce costs of CASp testing and certification, and strengthen the CASp program, as specified. These collected monies would be split between local public entities and the Division of the State Architect (DSA), as specified. This bill contains Legislative intent language, as specified. ANALYSIS : Existing federal law, 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. (Civil Code (CIV) Section 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 CONTINUED SB 1186 Page 5 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 Section 54.1) Existing law provides that a violation of the ADA also constitutes a violation of CIV 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 Section 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 Section 51 et seq.) Existing law establishes the 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. (Government Code Section 8299 et seq.) Existing law requires an attorney, when serving a demand for money letter or a complaint on a defendant, to 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 EEC regarding the allegations in the complaint. This written advisory is not required from a pro per plaintiff. (CIV Section 55.3) Existing law defines terms for a disability access action, specifically, existing law: CONTINUED SB 1186 Page 6 defines a qualified defendant as a defendant in an action that includes an accessibility claim against a place of public accommodation that has been inspected by a CASp, and determined to meet applicable construction-related accessibility standards, or is pending a determination by a CASp; defines a CASp whose inspection report would be the basis for a defendant to qualify for the EEC; 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, this bill provides 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 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 Section 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 CONTINUED SB 1186 Page 7 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 Section 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 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 any demand for settlement of the case in its entirety; specifies that the court shall lift the stay when CONTINUED SB 1186 Page 8 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 Section 55.54) Existing law provides that the stay and EEC 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 Section 55.54) Existing law provides that the stay and EEC 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 Section 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 Section 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 CONTINUED SB 1186 Page 9 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 Section 55.56) This bill reduces a defendant's minimum liability for statutory damages in a construction-related accessibility claim against a place of public accommodation as follows: to $1,000 for each violation if the defendant has corrected all construction-related violations that are the basis of the claim within 60 days of being served with the complaint and is either determined to be "CASp-inspected" or to "meet applicable standards", and there were no modifications or alterations that impacted compliance after the date of that determination; or to $1,000 for each violation if the defendant has corrected all construction-related violations that are the basis of the claim within 60 days of being served with the complaint and the structure or area of alleged violation was new construction or improvement that was approved and passed by the local building department after January 1, 2008, as specified; or to $2,000 for each offense if the defendant has corrected all construction-related violations that are the basis of the claim within 30 days of being served with the complaint and the defendant is a small business, as specified. This bill provides that defendants who meet the above criteria would be eligible for a mandatory stay of the proceedings and an EEC. This bill requires the court, in assessing liability in any action alleging multiple claims for the same construction-related accessibility violation on different particular occasions, to consider the reasonableness of the plaintiff's conduct in light of the plaintiff's obligation, if any, to mitigate damages. CONTINUED SB 1186 Page 10 This bill requires an allegation of a construction-related accessibility claim in a demand letter or complaint to state facts sufficient to allow the defendant to identify the basis for the claim, including a plain language explanation of the specific access barrier(s) encountered or by which the plaintiff was deterred, with sufficient information to enable the defendant to identify that barrier. This bill requires that the plaintiff verify any complaint asserting a construction-related accessibility claim. This bill defines "demand letter" and require an attorney to provide a written advisory informing the potential defendant of his/her obligations and rights under the law with each demand letter or complaint, as defined, sent to or served upon a defendant for any construction-related accessibility claim. This bill requires the Judicial Council to update the form containing the advisory notice by July 1, 2013. This bill defines "demand for money" and prohibits prelitigation demands for money from, or at the direction of, an attorney including requests or demands for money, or offers/agreements to accept money. With respect to potential monetary damages, this bill provides that a demand letter may only state, "The property owner or tenant, or both, may be civilly liable for actual and statutory damages for a violation of a construction-related accessibility requirement." This bill requires an attorney to include his/her State Bar license number in a demand letter, and, with the exception of legal services providers, to submit copies of the demand letter and complaints to the CCDA and demand letters to the State Bar, until January 1, 2016. This bill provides that a violation of this requirement may subject the attorney to disciplinary action by the State Bar commencing on January 1, 2013. This bill requires the State Bar, commencing July 31, 2013, and annually each July 31 thereafter, to report specified information to the Legislature regarding the types and frequencies of the demand letters it receives. CONTINUED SB 1186 Page 11 This bill modifies the duties and powers of the CCDA, as specified, and eliminates the biennial reporting requirement. This bill instead provides that a priority of the CCDA is the development and dissemination of educational materials and information to promote and facilitate disability access compliance, including a requirement that the CCDA work with the DSA and the Department of Rehabilitation to develop educational materials for use by businesses. This bill requires the CCDA to compile data with respect to any demand letter or complaint and post that information on its Web site. This bill also requires the CCDA to post educational materials and information to assist business owners with compliance on its Web site. This bill requires the CCDA to report findings and data to the Legislature. This bill requires the Department of General Services to make a biannual adjustment to financial criteria defining a small business for these purposes, and to post those adjusted amounts on its Web site. This bill requires a commercial property owner to state on a lease form or rental agreement executed on or after July 1, 2013, if the property being leased or rented has undergone inspection by a CASp and the results of that inspection. This bill authorizes a defendant who does not qualify for an EEC pursuant to these provisions, or who forgoes those provisions, to request a mandatory evaluation conference, as specified. This bill authorizes a plaintiff to make that request if the defendant does not make that request. This bill requires the State Architect, in administering CASp program, to periodically review its schedule of fees for certification under the program to ensure that the fees are not excessive. This bill prohibits the State Architect from charging a California licensed architect, landscape architect, civil engineer, or structural engineer, an application fee for certification that exceeds $250. This bill requires cities and counties to collect a $1 fee CONTINUED SB 1186 Page 12 upon issuance or renewal of a business license or similar instrument to pay for more CASp in local building departments, reduce costs of CASp testing and certification, encourage more private CASp, and strengthen the CASp program by enabling the DAS to develop procedures to maintain quality controls and develop best practices for the CASp program. The monies collected would be divided between local public entities and the DAS, as specified. This bill also makes legislative declarations and findings. Background Since 1969, persons with disabilities have enjoyed protection under CIV 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 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. Additionally, 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. (CIV 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 in no event less than $4,000, and any attorney's fees as the court may determine to be proper. (CIV Section 52) The California Legislature has taken further steps to ensure disability access laws are complied with. SB 262 (Kuehl), Chapter 872, Statutes of 2003, established in the DSA, a voluntary "access specialist certification program" in order to assist business and property owners to comply CONTINUED SB 1186 Page 13 with ADA and state access laws. The bill also authorized an enforcement action with civil penalties for noncompliance with the 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 allegedly 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 their respective houses. In 2008, two bills were introduced relating to disability access. AB 2533 (Keene, 2008) and SB 1766 (McClintock, 2008) would have both imposed prelitigation hurdles on plaintiffs claiming violations of construction-related disability access laws. Both of these bills failed in the Judiciary Committees of their respective houses. 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. SB 783 failed passage in the Senate Judiciary Committee. Alternatively, SB 1608 (Corbett), Chapter 549, Statutes of 2008, 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 CONTINUED SB 1186 Page 14 accommodation inspected and determined to meet applicable physical access standards by a state CASp prior to the filing of the complaint. This bill seeks to further address the issue by enacting a comprehensive package of disability litigation reforms. When first heard in the Senate Judiciary Committee, this bill also contained language indicating the intent of the Legislature to examine the state and federal access laws, to facilitate compliance with these laws through increased education, and to examine measures that would lead to greater compliance to the benefit of both the business and the disability communities. Accordingly, the contents of this bill relating to disability access that were heard and passed by the Senate Judiciary Committee on May 8, 2012 have been largely amended to effectuate that Legislative intent. Comments Brief background on disability access laws . For over 40 years, persons with disabilities have had the legal right to full and free access to and use of roadways, sidewalks, buildings and facilities open to the public, hospitals and medical facilities, and housing pursuant to the Disabled Persons Act. (CIV Sections 54 and 54.1.) After President Bush signed the 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. A violation of the Disabled Persons Act subjects the violator to liability 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. Likewise, persons with disabilities have long been among the groups covered by the Unruh Civil Rights Act entitling CONTINUED SB 1186 Page 15 all persons, regardless of sex, race, color, religion, ancestry, national origin, disability or medical condition, to the full and equal accommodations, advantages, facilities, privileges, or services in all business establishments of every kind whatsoever. (CIV 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. (CIV Section 52) SB 262 (Kuehl), Chapter 872, Statutes of 2003, established in the DSA 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). Related Legislation SB 1163 (Walters) establishes notice requirements for an aggrieved party to follow before he/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. The bill failed passage in the Senate Judiciary Committee. AB 1878 (Gaines), which is substantially similar to SB 1163 but applies to "microbusinesses" as defined by the bill, failed passage in the Assembly Judiciary Committee. AB 2282 (Berryhill) authorizes 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. CONTINUED SB 1186 Page 16 Prior Legislation SB 384 (Evans), Chapter 419, Statutes of 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 and Harman), Chapter 569, Statutes of 2009, required a CASp inspection report, to remain confidential rather than be under seal and subject to protective order. SB 1608 (Corbett, et al.), Chapter 549, Statutes of 2008, 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 CASp prior to the filing of the complaint. FISCAL EFFECT : Appropriation: Yes Fiscal Com.: Yes Local: Yes SUPPORT : (Verified 8/30/12) American Institute of Architects, California Council Building Owners and Managers Association of California California Apartment Association California Building Industry Association California Building Officials California Business Properties Association California Chamber of Commerce California Citizens Against Law Suit Abuse California Council of the Blind California Grocers Association California Restaurant Association County Building Officials Association of California International Council of Shopping Centers NAIOP of California, the Commercial Real Estate Development Association Regional Council of Rural Counties OPPOSITION : (Verified 8/30/12) CONTINUED SB 1186 Page 17 California for Disability Rights, Inc. California Foundation for Independent Living Centers Disability Rights California Disability Rights Education and Defense Fund Independent Living Center of Southern California ARGUMENTS IN SUPPORT : Senator Steinberg, joint author of this bill writes, "SB 1186 is a compromise that applies a common sense approach to resolve difficult issues. It maintains the hard-fought civil rights of the disabled community while helping to protect California businesses from predatory demand for money letters and lawsuits. Support for important laws like the Unruh Act and the Americans with Disabilities Act are weakened when those laws are abused for personal gain. This measure bans the unscrupulous practice of 'demand for money' letters, stops the stacking of claims based on alleged repeat violations to force a business into a quick settlement, while encouraging businesses to fix their violations to comply with the law. Thus, SB 1186 provides some relief to businesses who show good faith in trying to follow the law and are willing to correct the violation, which ultimately promotes compliance and brings greater access to the disabled community." Senator Dutton, joint author of this bill writes, "SB 1186 is the culmination of months of hard work with staff and all the various stakeholders in the community. ÝThe bill] will not only provide a reasonable amount of time for small businesses to fix minor infractions, but will also help expand the California Access Specialist Program in California and provide any more tools for businesses to comply with this vital civil rights law." ARGUMENTS IN OPPOSITION : A number of disability rights organizations and advocates have written in opposition to this bill. The majority of the opponents are supportive of many provisions of this bill, but stand strongly opposed to reduced statutory damages, especially for businesses who have seemingly taken no prior steps to be in compliance with existing accessibility laws. Disability Rights California writes, "We believe there are many provisions in SB 1186 that advance the good public CONTINUED SB 1186 Page 18 policy of promoting access to places of public accommodation. ? However, our Board does not support providing damage reductions to businesses that have not made any proactive attempts to make their facilities accessible. We believe this is poor public policy and gives incentives to businesses to wait until they are sued to make corrections. California access laws and policies have been in effect for decades and we are troubled that full compliance by businesses still falls significantly short of what is required. Because compliance is so often dependent on individual complaints and lawsuits, provisions that restrict damages for businesses that wait until they are sued to comply does not meaningfully advance our mutual public policy goal of full, free use, and enjoyment of public facilities and accommodations." Many opponents have also pointed to the distinction between the small business qualified defendants and the other two types. These opponents note that while there may be some justification for lowering the statutory damages for the so called "good actors," or businesses who have made prior compliance efforts, that justification does not necessarily extend to all small businesses. The Certified Access Specialist Institute argues that "offering reduced statutory damages and litigation protections to small businesses that do not hold a CASp report at the time the suit is filed undermines the Construction Related Accessibility Standards Compliance Act and does not encourage a small business to proactively comply with the ADA. SB 1186 proposes measures to inform a small business owner of the responsibility for a compliant facility (information received upon issuance or renewal of a business license and CASp report disclosure upon rent or lease). Accordingly, if the small business owner chooses not to proactively identify and correct compliance issues after being properly informed, then reduced statutory damages and litigation protections should not be a reward." RJG:k 8/31/12 Senate Floor Analyses SUPPORT/OPPOSITION: SEE ABOVE **** END **** CONTINUED SB 1186 Page 19 CONTINUED