BILL NUMBER: SB 251 AMENDED
BILL TEXT
AMENDED IN SENATE JUNE 2, 2015
AMENDED IN SENATE MAY 20, 2015
AMENDED IN SENATE MAY 4, 2015
INTRODUCED BY Senator Roth
(Principal coauthor: Senator Galgiani)
(Coauthors: Senators Anderson and Nielsen)
FEBRUARY 18, 2015
An act to amend Section 55.32 of, and to add Sections 55.535 and
1938.5 to, the Civil Code, to amend Sections 4459.7, 4459.8, and
8299.06 of, to add Section 65941.6 to, and to add Article 4
(commencing with Section 65946) to Chapter 4.5 of Division 1 of Title
7 of, the Government Code, and to add and repeal Sections 17053.43
and 23643 of the Revenue and Taxation Code, relating to disability
access.
LEGISLATIVE COUNSEL'S DIGEST
SB 251, as amended, Roth. Civil rights: disability access.
(1) Existing law prohibits discrimination on the basis of various
specified personal characteristics, including disability. The
Construction-Related Accessibility Standards Compliance Act
establishes standards for making new construction and existing
facilities accessible to persons with disabilities and provides for
construction-related accessibility claims for violations of those
standards. Existing law requires that a demand letter alleging a
violation of a construction-related accessibility standard or
asserting a construction-related accessibility claim include
specified information, and that copies of the demand letter be sent
to the California Commission on Disability Access and the State Bar
of California. Existing law repeals the requirement that a copy of a
demand letter be sent to the State Bar of California on January 1,
2016.
This bill would extend the above-described January 1, 2016, repeal
date, to January 1, 2019.
(2) Existing law requires a certified access specialist (CASp),
upon completion of an inspection of a site, to issue a written
inspection report for the site, as specified. Existing law provides,
upon being served with a summons and complaint asserting a
construction-related accessibility claim, that a defendant may file a
request for a court stay and early evaluation conference in the
proceedings, as specified. Under existing law, a defendant is liable
for actual damages plus minimum statutory damages for each instance
of discrimination.
This bill would provide that a business, prior to the initiation
of litigation, receipt of a demand letter, or a business that is
otherwise on notice of a violation of a construction-related
accessibility standard prior to a CASp inspection, is not liable for
minimum statutory damages for violating a construction-related
liability standard if the violation is corrected within 90 days of
the date of an inspection by a CASp. The bill would also provide that
a small business is not liable for minimum statutory damages for an
alleged violation if the violation concerns interior or exterior
signage, the color and condition of parking lot paint striping, or
truncated domes and is corrected within 15 days of service of a
summons and complaint in a construction-related accessibility claim
or receipt of a written notice, whichever is earlier.
(3) Under existing federal law, a landlord and tenant are both
responsible for compliance with the federal Americans with
Disabilities Act of 1990 and implementing regulations. The
parties to a lease agreement may allocate responsibility by the
lease or other contract. Existing law requires a commercial property
owner or lessor to state on every lease form or rental agreement
executed on or after July 1, 2013, whether the property has been
inspected by a CASp and, if so, whether or not the property has been
determined to meet all applicable construction-related accessibility
standards.
This bill would require a commercial property owner to state on
every lease form or rental agreement executed on or after January 1,
2016, that the owner or lessor and the tenant are both responsible
for compliance with the federal Americans with
Disabilities Act of 1990 and that responsibility for
compliance may be allocated between the parties by the terms of the
lease or other contract.
(4) Existing law requires the State Architect to establish and
publicize a program for the voluntary certification by the state of
any person who meets specified criteria as a CASp. Existing law
requires the State Architect to annually publish a list of CASps.
Existing law requires each applicant for CASp certification or
renewal to pay certain fees, and requires the State Architect to
periodically review those fees, as specified. Existing law provides
for the deposit of those fees into the Certified Access Specialist
Fund, which is continuously appropriated for use by the State
Architect to implement the CASp program.
This bill would additionally require the State Architect to
publish, and periodically update, an easily accessible list of
businesses which have been inspected by a CASp on or after January 1,
2016, including the date of the inspection. The bill would also
require applicants for CASp certification or renewal to additionally
provide to the State Architect the name of the city, county, or city
and county in which the applicant intends to provide or has provided
services, and would require the Division of the State Architect to
post that information on its Internet Web site.
(5) Existing law establishes the California Commission on
Disability Access for purposes of developing recommendations to
enable persons with disabilities to exercise their right to full and
equal access to public facilities and facilitating business
compliance with applicable state and federal laws and regulations.
Existing law sets forth the powers and duties of the commission,
including developing educational materials and information for
businesses, building owners, tenants, and building officials, posting
that information on the commission's Internet Web site, and
coordinating with other state agencies and local building departments
to ensure that information provided to the public on disability
access requirements is uniform and complete.
This bill would additionally require the commission to provide a
link on its Internet Web site to the Internet Web site of the
Division of the State Architect's CASp certification program, and
make the commission's educational materials and information available
to other state agencies and local building departments.
(6) The Planning and Zoning Law establishes procedures for the
application, and review of an application, for a development project.
Existing law requires a public agency to notify applicants for
development permits of specified information, including the time
limits established for the review and approval of development
permits.
This bill would additionally require local agencies to develop and
provide to applicants materials relating to the requirements of the
federal Americans with Disabilities Act, Act
of 1990, or to instead provide similar materials developed by
the California Commission on Disability Access. The bill would
require a local agency to notify an applicant that approval of a
permit does not signify that the applicant has complied with that
act. The bill would also require local agencies to expedite review of
projects for which the applicant provides a copy of a disability
access certificate, demonstrates that the project is necessary to
address an alleged violation of a construction-related access
standard or a violation noted in a CASp report, and, if project plans
are necessary for approval, has had a CASp review the project plans
for compliance with all applicable construction-related accessibility
standards. The bill would declare that these provisions constitute a
matter of statewide concern and shall apply to charter cities and
charter counties.
By imposing additional duties on local agencies with respect to
the receipt and review of applications for development projects, this
bill would impose a state-mandated local program.
(7) Existing federal law allows a credit against federal income
taxes for eligible small businesses for eligible access expenditures,
as those terms are defined, in an amount equal to 50% of eligible
access expenditures for a taxable year that exceed $250 but do not
exceed $10,250. The Personal Income Tax Law and the Corporation Tax
Law allow a credit against the taxes imposed by those laws for the
amount paid or incurred for eligible access expenditures in an amount
equal to 50% of eligible access expenditures for a taxable year as
do not exceed $250, as specified.
This bill would, for taxable years beginning on or after January
1, 2016, and before January 1, 2023, allow to small businesses,
as defined, a credit under both the Personal Income Tax Law and
the Corporation Tax Law for eligible access expenditures in an
amount equal to 50% of eligible access expenditures for a taxable
year, as specified.
(8) The California Constitution requires the state to reimburse
local agencies and school districts for certain costs mandated by the
state. Statutory provisions establish procedures for making that
reimbursement.
This bill would provide that, if the Commission on State Mandates
determines that the bill contains costs mandated by the state,
reimbursement for those costs shall be made pursuant to these
statutory provisions.
Vote: majority. Appropriation: no. Fiscal committee: yes.
State-mandated local program: yes.
THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:
SECTION 1. Section 55.32 of the Civil Code, as added by Section 5
of Chapter 383 of the Statutes of 2012, is amended to read:
55.32. (a) An attorney who provides a demand letter, as defined
in subdivision (a) of Section 55.3, shall do all of the following:
(1) Include the attorney's State Bar license number in the demand
letter.
(2) Contemporaneously with providing the demand letter, send a
copy of the demand letter to the State Bar of California by facsimile
transmission at 1-415-538-2171, or by mail to 180 Howard Street, San
Francisco, CA, 94105, Attention: Professional Competence.
(3) Within five business days of providing the demand letter, send
a copy of the demand letter to the California Commission on
Disability Access.
(b) An attorney who sends or serves a complaint, as defined in
subdivision (a) of Section 55.3, shall send a copy of the complaint
to the California Commission on Disability Access within five
business days of sending or serving the complaint.
(c) A violation of paragraph (2) or (3) of subdivision (a) or
subdivision (b) shall constitute cause for the imposition of
discipline of an attorney where a copy of the complaint or demand
letter is not sent to the California Commission on Disability Access
within five business days, or a copy of the demand letter is not sent
to the State Bar within five business days. In the event the State
Bar receives information indicating that an attorney has failed to
send a copy of the complaint or demand letter to the California
Commission on Disability Access within five business days, the State
Bar shall investigate to determine whether paragraph (3) of
subdivision (a) or subdivision (b) has been violated.
(d) Notwithstanding subdivisions (a) and (b), an attorney is not
required to send to the State Bar of California or the California
Commission on Disability Access a copy of any subsequent demand
letter or amended complaint in the same dispute following the initial
demand letter or complaint, unless that subsequent demand letter or
amended complaint alleges a new construction-related accessibility
claim.
(e) A demand letter or complaint sent to the California Commission
on Disability Access shall be for the informational purposes of
Section 8299.08 of the Government Code. A demand letter received by
the State Bar from either the sender or recipient of the demand
letter shall be reviewed by the State Bar to determine whether
subdivision (b) or (c) of Section 55.31 has been violated.
(f) (1) Commencing July 31, 2013, and annually each July 31
thereafter, the State Bar shall report to the Legislature and the
Chairs of the Senate and Assembly Committees on Judiciary, both of
the following with respect to demand letters received by the State
Bar:
(A) The number of investigations opened to date on a suspected
violation of subdivision (b) or (c) of Section 55.31.
(B) Whether any disciplinary action resulted from the
investigation, and the results of that disciplinary action.
(2) A report to be submitted pursuant to this subdivision shall be
submitted in compliance with Section 9795 of the Government Code.
(g) The California Commission on Disability Access shall review
and report on the demand letters and complaints it receives as
provided in Section 8299.08 of the Government Code.
(h) Paragraphs (2) and (3) of subdivision (a) and subdivision (b)
shall not apply to a demand letter or complaint sent or filed by an
attorney employed or retained by a qualified legal services project
or a qualified support center, as defined in Section 6213 of the
Business and Professions Code, when acting within the scope of
employment in asserting a construction-related accessibility claim.
The Legislature finds and declares that qualified legal services
projects and support centers are extensively regulated by the State
Bar of California, and that there is no evidence of any abusive use
of demand letters or complaints by these organizations. The
Legislature further finds that, in light of the evidence of the
extraordinarily small number of construction-related accessibility
cases brought by regulated legal services programs, and given the
resources of those programs, exempting regulated legal services
programs from the requirements of this section to report to the
California Commission on Disability Access will not affect the
purpose of the reporting to, and tabulation by, the commission of all
other construction-related accessibility claims.
(i) This section shall become operative on January 1, 2013.
(j) This section shall remain in effect only until January 1,
2019, and as of that date is repealed.
SEC. 2. Section 55.32 of the Civil Code, as added by Section 6 of
Chapter 383 of the Statutes of 2012, is amended to read:
55.32. (a) An attorney who provides a demand letter, as defined
in subdivision (a) of Section 55.3, shall do all of the following:
(1) Include the attorney's State Bar license number in the demand
letter.
(2) Within five business days of providing the demand letter, send
a copy of the demand letter to the California Commission on
Disability Access.
(b) An attorney who sends or serves a complaint, as defined in
subdivision (a) of Section 55.3, shall send a copy of the complaint
to the California Commission on Disability Access within five
business days of sending or serving the complaint.
(c) A violation of paragraph (2) of subdivision (a) or subdivision
(b) shall constitute cause for the imposition of discipline of an
attorney if a copy of the demand letter or complaint is not sent to
the California Commission on Disability Access within five business
days. In the event the State Bar receives information indicating that
an attorney has failed to send a copy of the demand letter or
complaint to the California Commission on Disability Access within
five business days, the State Bar shall investigate to determine
whether paragraph (2) of subdivision (a) or subdivision (b) has been
violated.
(d) Notwithstanding subdivisions (a) and (b), an attorney is not
required to send to the California Commission on Disability Access a
copy of any subsequent demand letter or amended complaint in the same
dispute following the initial demand letter or complaint, unless
that subsequent demand letter or amended complaint alleges a new
construction-related accessibility claim.
(e) A demand letter sent to the California Commission on
Disability Access shall be for the informational purposes of Section
8299.08 of the Government Code. A demand letter received by the State
Bar from the recipient of the demand letter shall be reviewed by the
State Bar to determine whether subdivision (b) or (c) of Section
55.31 has been violated.
(f) (1) Notwithstanding Section 10231.5 of the Government Code, on
or before July 31, 2019, and annually thereafter, the State Bar
shall report to the Legislature and the Chairs of the Senate and
Assembly Judiciary Committees, both of the following with respect to
demand letters received by the State Bar:
(A) The number of investigations opened to date on a suspected
violation of subdivision (b) or (c) of Section 55.31.
(B) Whether any disciplinary action resulted from the
investigation, and the results of that disciplinary action.
(2) A report to be submitted pursuant to this subdivision shall be
submitted in compliance with Section 9795 of the Government Code.
(g) The California Commission on Disability Access shall review
and report on the demand letters and complaints it receives as
provided in Section 8299.08 of the Government Code.
(h) The expiration of any ground for discipline of an attorney
shall not affect the imposition of discipline for any act prior to
the expiration. An act or omission that constituted cause for
imposition of discipline of an attorney when committed or omitted
prior to January 1, 2019, shall continue to constitute cause for the
imposition of discipline of that attorney on and after January 1,
2019.
(i) Paragraph (2) of subdivision (a) and subdivision (b) shall not
apply to a demand letter or complaint sent or filed by an attorney
employed or retained by a qualified legal services project or a
qualified support center, as defined in Section 6213 of the Business
and Professions Code, when acting within the scope of employment in
asserting a construction-related accessibility claim. The Legislature
finds and declares that qualified legal services projects and
support centers are extensively regulated by the State Bar of
California, and that there is no evidence of any abusive use of
demand letters or complaints by these organizations. The Legislature
further finds that, in light of the evidence of the extraordinarily
small number of construction-related accessibility cases brought by
regulated legal services programs, and given the resources of those
programs, exempting regulated legal services programs from the
requirements of this section to report to the California Commission
on Disability Access will not affect the purpose of the reporting to,
and tabulation by, the commission of all other construction-related
accessibility claims.
(j) This section shall become operative on January 1, 2019.
SEC. 3. Section 55.535 is added to the Civil Code, immediately
following Section 55.53, to read:
55.535. (a) A business, prior to the initiation of litigation,
receipt of a demand letter, or that is otherwise on notice of a
violation of a construction-related accessibility standard prior to a
CASp inspection, shall not be liable for minimum statutory damages
for violating a construction-related liability standard, as defined
in Section 55.52, that is noted in the CASp report if the violation
is corrected within 90 days of the date of the CASp inspection.
(b) A small business, as that term is defined in subparagraph (B)
of paragraph (2) of subdivision (f) of Section 55.56, shall not be
liable for minimum statutory damages for violating a
construction-related accessibility standard if both of the following
conditions are met:
(1) The alleged violation concerns interior or exterior signage,
the color or condition of parking lot paint striping, or truncated
domes.
(2) The violation is corrected within 15 days of the service of a
summons and complaint asserting a construction-related accessibility
claim or receipt of a written notice, whichever is earlier.
SEC. 4. Section 1938.5 is added to the Civil Code, to read:
1938.5. A commercial property owner or lessor shall state on
every lease form or rental agreement executed on or after January 1,
2016, that, pursuant to Section 36.201 of Title 28 of the Code of
Federal Regulations, the owner or lessor and the tenant are both
responsible for compliance with the federal Americans with
Disabilities Act of 1990 (42 U.S.C. Sec. 12101 et seq.)
and that responsibility for compliance may be allocated between the
parties by the terms of the lease or other contract.
SEC. 5. Section 4459.7 of the Government Code is amended to read:
4459.7. (a) (1) No later than October 31 of each year, the State
Architect shall publish and make available to the public
both a list of certified access specialists who have met
the requirements of Section 4459.5.
(2) The State Architect shall publish an easily accessible list of
businesses which have been inspected by a certified access
specialist on or after January 1, 2016, including the date of the
inspection. The State Architect shall periodically update this list.
(3) The lists required pursuant to this section shall include a
written disclaimer of liability as specified in subdivision (b).
(b) Notwithstanding any other provision of law, a state agency or
employee of a state agency may not be held liable for any injury or
damages resulting from any service provided by a certified access
specialist whose name appears on the list published pursuant to
subdivision (a).
(c) The State Architect may perform periodic audits of work
performed by a certified access specialist as deemed necessary to
ensure the desired standard of performance. A certified access
specialist shall provide an authorized representative of the State
Architect with complete access, at any reasonable hour of the day, to
all technical data, reports, records, photographs, design outlines
and plans, and files used in building inspection and plan review,
with the exception of proprietary and confidential information.
SEC. 6. Section 4459.8 of the Government Code is amended to read:
4459.8. (a) The certification authorized by Section 4459.5 is
effective for three years from the date of initial certification and
expires if not renewed. The State Architect, upon consideration of
any factual complaints regarding the work of a certified access
specialist or of other relevant information, may suspend
certification or deny renewal of certification.
(b) (1) The State Architect shall require each applicant for
certification as a certified access specialist to do both of
the following:
(A) Pay 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 certified access specialist program.
(B) Provide to the State Architect the name of the city, county,
or city and county in which the applicant intends to provide
services.
(2) The State Architect shall require each applicant for renewal
of certification to do both of the following:
(A) Pay a fee sufficient to cover the reasonable costs of
reassessing qualifications of renewal applicants.
(B) Provide to the State Architect the name of the city, county,
or city and county in which the applicant has provided services since
the last day of certification by the State Architect.
(3) The State Architect shall periodically review its schedule of
fees to ensure that its fees for certification are not excessive
while covering the costs to administer the certified access
specialist program. The application fee for a California licensed
architect, landscape architect, civil engineer, or structural
engineer shall not exceed two hundred fifty dollars ($250).
(c) All fees collected pursuant to this section shall be deposited
into the Certified Access Specialist Fund, which is hereby created
in the State Treasury. Notwithstanding Section 13340, this fund is
continuously appropriated without regard to fiscal years for use by
the State Architect to implement Sections 4459.5 to 4459.8,
inclusive.
(d) The State Architect shall post on his or her Internet Web site
the name of the city, county, or city and county in which each
certified access specialist provides or intends to provide services.
SEC. 7. Section 8299.06 of the Government Code is amended to read:
8299.06. (a) A priority of the commission shall be the
development and dissemination of educational materials and
information to promote and facilitate disability access compliance.
(b) The commission shall work with other state agencies, including
the Division of the State Architect and the Department of
Rehabilitation, to develop educational materials and information for
use by businesses to understand its obligations to provide disability
access and to facilitate compliance with construction-related
accessibility standards.
(c) The commission shall develop and make available on its
Internet Web site, or make available on its Internet Web site if
developed by another governmental agency, including Americans with
Disabilities Act centers, toolkits or educational modules to assist a
California business to understand its obligations under the law and
to facilitate compliance with respect to the top 10 alleged
construction-related violations, by type, as specified in subdivision
(a) of Section 8299.08. Upon completion of this requirement, the
commission shall develop and make available on its Internet Web site,
or work with another agency to develop, other toolkits or
educational modules that would educate businesses of the
accessibility requirements and to facilitate compliance with that
requirement.
(d) The commission shall post the following on its Internet Web
site:
(1) Educational materials and information that will assist
building owners, tenants, building officials, and building inspectors
to understand the disability accessibility requirements and to
facilitate compliance with disability access laws. The commission
shall at least annually review the educational materials and
information on disability access requirements and compliance
available on the Internet Web site of other local, state, or federal
agencies, including Americans with Disabilities Act centers, to
augment the educational materials and information developed by the
commission.
(2) A link to the Internet Web site of the Division of the State
Architect's certified access specialist (CASp) program to assist
building owners and tenants in locating or hiring a CASp.
(e) The commission shall, to the extent feasible, coordinate with
other state agencies and local building departments to ensure that
information provided to the public on disability access requirements
is uniform and complete, and make its educational materials and
information available to those agencies and departments.
SEC. 8. Section 65941.6 is added to the Government Code, to read:
65941.6. (a) Each local agency shall develop materials relating
to the requirements of the federal Americans with
Disabilities Act of 1990 (42 U.S.C. Sec. 12101 et seq.).
The local agency shall provide these materials to an applicant along
with notice that approval of a permit does not signify that the
applicant has complied with the federal Americans with
Disabilities Act. Act of 1990.
(b) For the purposes of complying with the requirements of
subdivision (a), a local agency may, in lieu of developing its own
materials, provide applicants with those materials which the
California Commission on Disability Access has developed and made
available pursuant to Section 8299.06.
SEC. 9. Article 4 (commencing with Section 65946) is added to
Chapter 4.5 of Division 1 of Title 7 of the Government Code, to read:
Article 4. Expedited Review
65946. (a) For the purposes of this section, the following
definitions shall apply:
(1) "Certified access specialist" or "CASp" means any person who
has been certified pursuant to Section 4459.5.
(2) "Construction-related accessibility standard" means a
provision, standard, or regulation under state or federal law
requiring compliance with standards for making new construction and
existing facilities accessible to persons with disabilities,
including, but not limited to, any provision, standard, or regulation
set forth in Section 51, 54, 54.1, or 55 of the Civil Code, Section
19955.5 of the Health and Safety Code, the California Building
Standards Code (Title 24 of the California Code of Regulations), the
federal Americans with Disabilities Act of 1990 (Public Law 101-336;
42 U.S.C. Sec. 12101 et seq.), and the federal Americans with
Disabilities Act Accessibility Guidelines (Appendix A to Part 36 of
Title 28 of the Code of Federal Regulations).
(3) "Written inspection report" means the CASp report required to
be provided pursuant to subdivision (a) of Section 55.53 of the Civil
Code.
(b) A local agency shall expedite review of a project application
if the project applicant meets all of the following conditions:
(1) The applicant provides a copy of a disability access
inspection certificate, provided by a CASp pursuant to subdivision
(e) of Section 55.53 of the Civil Code, pertaining to the site of the
proposed project.
(2) The applicant demonstrates that the proposed project is
necessary to address either an alleged violation of a
construction-related accessibility standard or a violation noted in a
written inspection report.
(3) If project plans are necessary for the approval of a project,
the applicant has had a CASp review the project plans for compliance
with all applicable construction-related accessibility standards.
SEC. 10. Section 17053.43 is added to the Revenue and Taxation
Code, to read:
17053.43. (a) (1) For each taxable year beginning on or after
January 1, 2016, and before January 1, 2023, there shall be allowed
to a taxpayer that is a small business a credit against
the "net tax," as defined in Section 17039, for the amount paid or
incurred for eligible access expenditures in excess of two hundred
fifty dollars ($250).
(2) (A) Except as specified in subparagraph (B), the
The credit shall be in an amount equal to 50
percent of the difference between the total eligible access
expenditures incurred by a taxpayer that is a small business
that do not exceed ten thousand two hundred fifty dollars
($10,250) and two hundred fifty dollars ($250).
(B) For a taxpayer that is a small business, the credit shall be
in an amount equal to 50 percent of the difference between the total
eligible access expenditures incurred by a taxpayer that do not
exceed fifteen thousand two hundred fifty dollars ($15,250) and two
hundred fifty dollars ($250).
(C)
(B) In the case of a partnership, the limitation under
this paragraph shall apply with respect to the partnership and each
partner. A similar rule shall apply in the case of an "S"
corporation.
(b) For the purposes of this section, the following definitions
shall apply:
(1) "Eligible access expenditures" has the same meaning as defined
in Section 44(c) of the Internal Revenue Code
Code, except that the amounts may be paid or incurred by a
taxpayer other than an eligible small business.
(2) (A) "Small business" means a trade or business that, in the
three immediately preceding taxable years, had average gross
receipts, less returns and allowances reportable to this state, of
less than three million five hundred thousand dollars ($3,500,000)
and employed 25 or fewer full-time employees.
(B) For the purposes of this paragraph, "gross receipts, less
returns and allowances reportable to this state" means the sum of the
gross receipts from the production of business income, as defined in
subdivision (a) of Section 25120, and the gross receipts from the
production of nonbusiness income, as defined in subdivision (d) of
Section 25120.
(C) For the purposes of this paragraph, "full-time employee" means
an employee of the taxpayer who works at least 30 hours per week.
(c) In the case where the credit allowed by this section exceeds
the "net tax," the excess may be carried over to reduce the "net tax"
in the following year, and the succeeding six years, if necessary,
until the credit is exhausted.
(d) The credit allowed by this section may be claimed only on a
timely filed original return of the taxpayer.
(e) In the case of a credit allowed under this section, the
following shall apply:
(1) A deduction or credit shall not be allowed for that amount
under any other provision of this part.
(2) An increase in the adjusted basis of any property shall not
result from that amount.
(f) The Franchise Tax Board may prescribe rules, guidelines, or
procedures necessary or appropriate to carry out the purposes of this
section, including any guidelines regarding the substantiation of
the credit allowed by this section. Chapter 3.5 (commencing with
Section 11340) of Part 1 of Division 3 of Title 2 of the Government
Code does not apply to any rule, guideline, or procedure prescribed
by the Franchise Tax Board pursuant to this section.
(g) This section shall remain in effect only until December 1,
2023, and as of that date is repealed.
SEC. 11. Section 23643 is added to the Revenue and Taxation Code,
to read:
23643. (a) (1) For each taxable year beginning on or after
January 1, 2016, and before January 1, 2023, there shall be allowed
a credit to a taxpayer that is a small
business a credit against the "tax," as defined in Section
23036, for the amount paid or incurred for eligible access
expenditures in excess of two hundred fifty dollars ($250).
(2) (A) Except as specified in subparagraph (B), the
The credit shall be in an amount
equal to 50 percent of the difference between the total eligible
access expenditures incurred by a taxpayer that is a small
business that do not exceed ten thousand two hundred fifty
dollars ($10,250) and two hundred fifty dollars ($250).
(B) For a taxpayer that is a small business, the credit shall be
in an amount equal to 50 percent of the difference between the total
eligible access expenditures incurred by a taxpayer that do not
exceed fifteen thousand two hundred fifty dollars ($15,250) and two
hundred fifty dollars ($250).
(C)
(B) In the case of a partnership, the limitation under
this paragraph shall apply with respect to the partnership and each
partner. A similar rule shall apply in the case of an "S"
corporation.
(b) For the purposes of this section, the following definitions
shall apply:
(1) "Eligible access expenditures" has the same meaning as defined
in Section 44(c) of the Internal Revenue Code
Code, except that the amounts may be paid or incurred by a
taxpayer other than an eligible small business.
(2) (A) "Small business" means a trade or business that, in the
three immediately preceding taxable years, had average gross
receipts, less returns and allowances reportable to this state, of
less than three million five hundred thousand dollars ($3,500,000)
and employed 25 or fewer full-time employees.
(B) For the purposes of this paragraph, "gross receipts, less
returns and allowances reportable to this state" means the sum of the
gross receipts from the production of business income, as defined in
subdivision (a) of Section 25120, and the gross receipts from the
production of nonbusiness income, as defined in subdivision (d) of
Section 25120.
(C) For the purposes of this paragraph, "full-time employee" means
an employee of the taxpayer who works at least 30 hours per week.
(D) The dollar amount specified in paragraph
subparagraph (A) shall apply to the gross receipts of all
taxpayers required or authorized to be included on a combined report
pursuant to Section 25101 or 25101.15.
(c) In the case where the credit allowed by this section exceeds
the "tax," the excess may be carried over to reduce the "tax" in the
following year, and the succeeding six years, if necessary, until the
credit is exhausted.
(d) The credit allowed by this section may be
claimed only on a timely filed original return of the taxpayer.
(e) In the case of a credit allowed under this section, the
following shall apply:
(1) A deduction or credit shall not be allowed for that amount
under any other provision of this part.
(2) An increase in the adjusted basis of any property shall not
result from that amount.
(f) The Franchise Tax Board may prescribe rules, guidelines, or
procedures necessary or appropriate to carry out the purposes of this
section, including any guidelines regarding the substantiation of
the credit allowed by this section. Chapter 3.5 (commencing with
Section 11340) of Part 1 of Division 3 of Title 2 of the Government
Code does not apply to any rule, guideline, or procedure prescribed
by the Franchise Tax Board pursuant to this section.
(g) This section shall remain in effect only until December 1,
2023, and as of that date is repealed.
SEC. 12. The Legislature finds and declares that Sections 8 and 9
of this act, pertaining to the review and approval of development
permit applications, constitute matters of statewide concern, and
shall apply to charter cities and charter counties. These sections
shall supersede any inconsistent provisions in the charter of any
city, county, or city and county.
SEC. 13. It is the intent of the Legislature to make the findings
required by Section 41 of the Revenue and Taxation Code with respect
to the tax credits allowed by Sections 10 and 11 of this act.
SEC. 14. If the Commission on State Mandates determines that this
act contains costs mandated by the state, reimbursement to local
agencies and school districts for those costs shall be made pursuant
to Part 7 (commencing with Section 17500) of Division 4 of Title 2 of
the Government Code.