BILL ANALYSIS Ó
SENATE COMMITTEE ON APPROPRIATIONS
Senator Ricardo Lara, Chair
2015 - 2016 Regular Session
AB 2873 (Thurmond) - Certified access specialists
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|Version: August 1, 2016 |Policy Vote: JUD. 5 - 2 |
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|Urgency: No |Mandate: Yes |
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|Hearing Date: August 1, 2016 |Consultant: Jolie Onodera |
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This bill meets the criteria for referral to the Suspense File.
Bill
Summary: AB 2873 would impose the following requirements on
local agencies:
Commencing January 1, 2021, requires all building inspectors
employed or retained by a local agency who conduct permitting
and plan check services to review for compliance with state
construction-related accessibility standards by a place of
public accommodation with respect to new construction or
renovation to be certified access specialists (CASps), as
specified.
Requires all new employees employed or retained by a local
agency on or after January 1, 2018, who will conduct
permitting and plan check services to review for compliance
with state construction-related accessibility standards by a
place of public accommodation to be CASps within 24 months of
their initial date of employment.
Commencing January 1, 2017, increases the existing $1 fee
attached to an application for a local business license to $4,
AB 2873 (Thurmond) Page 1 of
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and extends the current sunset on the fee authority for one
year to December 31, 2019. Reduces the proportion of fee
revenue to the Division of the State Architect (DSA) from 30
percent to 10 percent of collections.
From January 1, 2017, through December 31, 2019, in any city,
county, or city and county that does not issue business
licenses, requires any applicant for a building permit to pay
an additional fee of $4 for that permit, as specified.
Fiscal
Impact:
CASp mandate : Potential major increase in future ongoing
local agency costs in the millions of dollars related to the
imposition of CASp certification for all applicable building
inspectors and new/retained employees within specified
timeframes, potentially state-reimbursable if not fully
covered by the short-term fee increase and after the fee
authority expires in 2019. To the extent the bill creates a
higher level of service on local agencies due to mandating
CASp-certification for all building inspectors and
new/retained employees, local agencies could claim
reimbursement for those increased costs not covered by fees.
At an average cost of $4,500 for CASp certification,
certification costs for every 1,000 new CASps would cost $4.5
million. These costs do not reflect the larger impact
associated with ongoing compensation for more highly trained
personnel.
State fee revenue : Short-term net increase in fee revenues of
about $200,000 (Special Fund*) to the DSA through 2019, due to
the fee increase from $1 to $4 on business license
applications which is partially offset by the reduced
proportion (from 30 percent to 10 percent) of fee revenue to
DSA. The amount of fee revenue generated by the new $4 fee
imposed on building permits in local jurisdictions that do not
issue business licenses is unknown, but not anticipated to be
significant.
Local fee revenue : Short-term net increase in fee revenues
(Local Funds) of $6 million through 2019 due to the fee
increase from $1 to $4 on business license applications and
AB 2873 (Thurmond) Page 2 of
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the increased share from 70 percent to 90 percent of total
fees collected. Additional fee revenues due to the new $4 fee
imposed on building permits of an unknown, but potentially
significant amount.
DSA administrative costs : One-time costs ranging from $750,000
to $1 million (Special Fund**) to (1) upgrade its existing
database system to accommodate the significant expansion of
the program, and, (2) revise and transition the CASp exam to
an electronic-based format. Additionally, ongoing resource
costs of $230,000 (Special Fund**) to manage administration of
the examination and certification renewals for the larger
program. The current fees for CASp examinations and renewals
are estimated to maintain cost-neutrality for the ongoing
costs of the program.
*Disability Access and Education Revolving Fund
**Certified Access Specialist (CASp) Fund - staff notes the CASp
Fund has experienced a slowly growing reserve balance over the
past three years, with a projected balance of $1.7 million
ending FY 2016-17, due to the CASp program operating on a
largely cost-neutral basis. However, the potentially significant
expansion of the program will likely necessitate budget
authority to invest additional funds on a one-time basis to
accommodate the changes needed to address the influx of
applicants necessitated by the mandate for CASp certification.
Background: SB 262 (Kuehl) Chapter 872/2003 established in the Division of
the State Architect of the DGS a voluntary "access specialist
certification program" (CASp) in order to assist business and
property owners in complying with the federal Americans with
Disabilities Act (ADA) and state access laws. Since the passage
of SB 262, a number of bills have been enacted seeking to
promote compliance with access laws by creating incentives for
business owners who proactively brought their businesses into
compliance with access laws.
SB 1186 (Dutton/Steinberg) Chapter 383/2012 sought to
comprehensively address continued issues with disability
litigation by creating a number of protections for small
businesses and defendants, who had, prior to a claim being
filed, sought out a CASp inspection. These protections included
reduced minimum statutory damages, early evaluation conferences,
and mandatory stays of court proceedings while the violations
AB 2873 (Thurmond) Page 3 of
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were corrected. SB 1186 also prevented the stacking of multiple
claims to increase damages, banned pre-litigation demands for
money, and increased data collection regarding alleged access
violations.
There are also requirements in existing law designed to phase in
adequate numbers of CASps employed by local agencies. For
example, by 2010, each local agency was required to employ at
least one building inspector that is a CASp, and local agencies
that employ two or more building inspectors are required to have
at least one-half of the employed building inspectors be
CASp-certified. In addition, by 2014, local agencies were
required to employ a sufficient number of CASp-certified
building inspectors to conduct permitting and plan check
services to review for compliance with state
construction-related accessibility standards. (Civil Code §
55.53(d).)
However, at the time of this writing, there appear to be only
651 CASPs certified in this state
( https://www.apps2.dgs.ca.gov/DSA/casp/casp_certified_list.aspx ,
as of June 30, 2016) Given the millions of businesses in
California, there are arguably an insufficient number of CASps
to inspect all new construction, including, but not limited to,
projects relating to tenant improvements that may impact access.
Proposed Law:
This bill would, commencing January 1, 2021, require all
building inspectors employed or retained by a local agency who
conduct permitting and plan check services to review for
compliance with state construction-related accessibility
standards by a place of public accommodation with respect to new
construction or renovation to be CASps. Additionally, this bill:
Requires all new employees employed or retained by a
local agency on or after January 1, 2018, who will conduct
permitting and plan check services to review for compliance
with state construction-related accessibility standards by
a place of public accommodation to be CASps within 24
months of their initial date of employment.
AB 2873 (Thurmond) Page 4 of
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Eliminates the provision of existing law that requires a
local agency to employ or retain a sufficient number of
building inspectors who are CASps. Deletes the existing
provision of law that states if a local agency employs or
retains two or more CASps, at least half of them are
required to be building inspectors who are CASps.
Commencing January 1, 2017, increases the existing $1
fee attached to an application for a local business license
to $4, and extends the sunset on the fee for one year to
December 31, 2019.
On and after January 1, 2017, through December 31, 2019,
in any city, county, or city and county that does not issue
business licenses, requires any applicant for a building
permit to pay an additional fee of $4 for that permit, as
specified.
Provides that instead of retaining 70 percent of the
business license fees collected and transmitting 30 percent
to the DSA for deposit in the Disability Access and
Education Revolving Fund, the local government shall retain
90 percent of the building permit fees collected and
provide 10 percent to the DSA.
Requires that the fees retained by the local government,
minus up to five percent of the retained moneys used for
related administrative costs, to be deposited into a
special fund established by the local government, the "CASp
Certification and Training Fund," to be used for increased
CASp training and certification and to facilitate
compliance with construction-related accessibility
requirements.
Requires local governments to include in their annual
reports to the DSA of the total fees collected in the
previous calendar year and of its distribution, the amount
of moneys spent to increase CASp training and
certification.
Expands CASp minimum training requirements to include
standards governing access to housing for persons with
disabilities, familiarity with federal accessibility
requirements.
Authorizes the DSA to work with various training
organizations to ensure an adequate level of training and
educational effort is provided on a statewide basis to
prepare individuals to become CASps, as specified.
Requires the DSA to, on or before January 1, 2018, to
commence testing and certification of individuals at a
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level commensurate with the demand attributed to compliance
with the mandate on local building inspectors and new
employees.
Makes other conforming and technical changes.
Related
Legislation: AB 2093 (Steinorth) 2016 would make various
clarifications with regard to CASp inspections, reports,
repairs, and disclosures between commercial property owners and
prospective tenants. This bill is pending a vote on the Senate
Floor.
Prior Legislation: SB 262 (Kuehl) Chapter 872/2003 created the
CASp program to address the public's need for experienced,
trained, and tested individuals to inspect buildings and sites
for compliance with applicable state and federal
construction-related accessibility standards.
SB 1608 (Corbett) Chapter 549/2008, among its provisions,
required local jurisdictions to retain at least one building
inspector who is a CASp by 2010 and a sufficient number of
building inspectors who are CASps by 2014.
SB 1186 (Steinberg/Dutton) Chapter 383/2012 established a $1 fee
for local jurisdictions to collect on each business license and
business license renewal. 30 percent is submitted to the DSA's
Disability Access and Education Revolving Fund and requires the
DSA to annually report the total fees transmitted to the fund
during the previous calendar year and their distribution.
SB 84 (Committee on Budget and Fiscal Review) Chapter 25/2015
required local jurisdictions to submit an annual report to the
DSA on the $1 fee collected and modified the reporting
requirements established by SB 1186.
Staff
Comments: By mandating CASp certification on specified local
agency employees within specified timeframes, this bill will
significantly expand the operating and administrative costs of
the CASp program by the Department of General Services, Division
of the State Architect (DSA).
AB 2873 (Thurmond) Page 6 of
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Based on a potential projected increase of 3,000 to 6,000 new
applicants for the CASp exam, the DSA projects one-time costs of
$500,000 to $1 million will be needed to upgrade or replace the
existing database used to operate the CASp program (which
currently only reflects 651 CASps statewide) to accommodate the
expansion of the program.
In addition, the DSA has indicated one-time costs of $250,000 to
$500,000 to transition the current CASp exam to an electronic
format that can be administered at computer testing centers and
allow the DSA to meet the testing demand that will be created by
this bill. Finally, the DSA is projected to require two
additional staff on a full-time permanent basis at a cost of
about $230,000 annually to address administration of the exam
and certification renewals.
The costs to update the database, convert the exam to an
electronic format, and address increased staffing needs would be
paid from the CASp Fund, which has a projected year-end reserve
of $1.7 million in FY 2016-17. Under existing law, the DSA is
required to assess each applicant for CASp certification
specified fees, including an application and course fee and an
examination fee, at a level sufficient to meet the costs of
application processing, registration, publishing a list, and
other activities that are reasonably necessary to implement and
administer the CASp program. The DSA has indicated the current
fees imposed by the DSA for the administration of the exam and
the renewal of CASp certification are projected to adequately
maintain the CASp program operating on a cost-neutral basis.
DSA is estimated to receive approximately $200,000 in additional
fee revenue annually through 2019 to the Disability Access and
Education Revolving Fund due to the increase to the existing fee
on business licenses from $1 to $4 per license, assuming the
number of business licenses issued annually remains relatively
constant. DSA will collect $0.40 on each business license (10
percent of the $4 fee) instead of the existing $0.30 (30 percent
of the $1 fee). This will result in DSA collecting additional
revenue each year through the existing sunset date of December
31, 2018, and for one additional year through 2019. The amount
of additional fee revenue generated from the new $4 fee
established for each building permit issued in a jurisdiction
that does not issue business licenses is unknown, but not
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estimated to be significant given DSA's proportional share of 10
percent.
Local agencies are estimated to receive approximately $6 million
in additional fee revenue (above the $1.3 million currently
collected) through 2019 based on the business license fee
increase from $1 to $4, assuming the number of business licenses
issued annually remains relatively constant. Additionally, for
those local jurisdictions that do not issue business licenses,
additional fee revenues of an unknown but potentially
significant from the new $4 fee on each building permit issued
in those jurisdictions will be collected.
This bill could result in major increases in future ongoing
local agency costs in the millions of dollars related to the
imposition of CASp certification for all building inspectors and
new employees employed or retained who conduct permitting and
plan check services to review for compliance with state
construction-related accessibility standards, potentially
state-reimbursable if not fully covered by the short-term fee
increase described above and after the fee authority expires in
2019. To the extent the bill creates a higher level of service
on local agencies due to mandating CASp-certification by all
building inspectors and new/retained employees, local agencies
could claim reimbursement for those increased costs not covered
by fees. At an average cost of $4,500 for CAsp certification,
certification costs for every 1,000 new CASps would cost $4.5
million. These costs do not reflect the larger impact associated
with ongoing compensation for more highly trained personnel.
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