BILL ANALYSIS                                                                                                                                                                                                    Ó



          SENATE COMMITTEE ON APPROPRIATIONS
                             Senator Ricardo Lara, Chair
                            2015 - 2016  Regular  Session

          SB 1406 (Mendoza) - Construction-related accessibility:  public  
          entities
          
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          |Version: May 10, 2016           |Policy Vote: JUD. 7 - 0         |
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          |Urgency: No                     |Mandate: No                     |
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          |Hearing Date: May 16, 2016      |Consultant: Mark McKenzie       |
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          This bill meets the criteria for referral to the Suspense File.



          Bill  
          Summary:  SB 1406 would require an attorney who sends a demand  
          letter or serves a complaint alleging a construction-related  
          accessibility violation against specified school entities to  
          send a copy of the complaint and notification of the results of  
          the claim to the California Commission on Disability Access  
          (CCDA), as specified.


          Fiscal  
          Impact:  
           Automation costs of $40,000 to $60,000 to develop and  
            implement a digital data capture format necessary to conduct  
            analysis of reported information. (General Fund)

           Estimated CCDA staffing costs of approximately $150,000 for 1  
            PY of new staff, plus administrative support, to compile and  
            track additional data regarding disability access complaints  







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            against public school entities.  (General Fund)  
                                          -----see staff comments-----

           Cost pressures of approximately $242,000 in 2017-18 and  
            $162,000 ongoing to move to an expanded office space to  
            accommodate additional staff.   
                                          -----see staff comments-----


          Background:  Individuals with disabilities and medical conditions have  
          legal protections to ensure full and free access to and the use  
          of roadways, sidewalks, buildings and facilities open to the  
          public, hospitals and medical facilities, and housing.   
          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.  After  
          Congress enacted the Americans with Disabilities Act (ADA) in  
          1990, the Legislature provided that violations of the ADA are  
          also violations of the Unruh Act.
          Existing law establishes the CCDA, an independent state agency  
          composed of 17 members, to monitor disability access compliance  
          and make recommendations to the Legislature for necessary  
          changes in order to facilitate implementation of state and  
          federal laws on disability access.  The Commission receives  
          copies of demand letters and complaints from attorneys alleging  
          construction-related physical access violations in places of  
          public accommodation.  These complaints are primarily filed  
          against small businesses, and oftentimes seek expedited cash  
          payments rather than correction of the accessibility violation.   
          Existing law, AB 1521 (Judiciary Committee), Chapter 755/2015,  
          also requires attorneys in disability access cases to also  
          notify CCDA within five business days of any judgment,  
          settlement, or dismissal of any claims alleged in the complaint,  
          of certain information regarding the resolution of the  
          complaints in a standard format specified by the Commission.   
          The CCDA is required to compile and upload the data on its  
          website at specified quarterly and semi-annual intervals, and  
          annually report tabulated data to the Legislature.












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          Proposed Law:  
            SB 1406 would require an attorney who sends a demand letter or  
          serves a complaint alleging a construction-related accessibility  
          claim against a "public entity" to do the following:
           Send a copy of the demand letter or complaint, and information  
            about the complaint, to the CCDA within five days of serving  
            the letter or complaint, in a format specified by the CCDA.
           Notify the CCDA within five days of judgment, settlement, or  
            dismissal of any claims, as specified, including the date of  
            the resolution, whether the alleged violations were remedied,  
            and if the violations were not fully remedied, whether another  
            favorable result was achieved.

          The bill would apply to demand letters and complaints alleging  
          claims against the following "public entities:" the Regents of  
          the University of California, the Trustees of the California  
          State University and the California State University, the  
          California Community Colleges office of the Chancellor and the  
          California Community Colleges, a K-12 school district, or any  
          local education agency.


          Related  
          Legislation:  AB 54 (Olsen), currently pending in the Senate  
          Judiciary Committee, would require an attorney who provides  
          copies of a demand letter or complaint to the CCDA to also  
          submit information about the demand letter or complaint in a  
          standard format as specified by the commission.


          Staff  
          Comments:  In 2015, the CCDA received approximately 3,000 demand  
          letters and complaints alleging construction-related  
          accessibility violations against places of public accommodation.  
           As a result of AB 1521 requirements, the CCDA has also begun  
          receiving notifications of judgments, settlements, and  
          dismissals; the Commission received 124, 171, and 243 notices in  
          October, November, and December of 2015, respectively.   
          Commission workload has been impacted by the passage of AB 1521,  
          such that the CCDA is required to do additional research and  
          analysis to match resolution notices with original alleged  
          violations, and compile and report the collective data.  Staff  
          notes that the Governor's proposed 2016-17 Budget includes an  
          augmentation of $100,000 for the CCDA for the addition of 1 PY  








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          of staff (including benefits and OE&E costs) to manage the  
          increased workload following the passage of AB 1521.  The Budget  
          Subcommittees in both houses have approved the budget change  
          proposal for the additional staff.
          The CCDA indicates that SB 1406 would further increase workload,  
          and drive additional automation costs to move from a manual data  
          processing to a digital capture format.  Initial information  
          technology systems and associated costs would be approximately  
          $40,000, with future build outs of approximately $20,000 as  
          needs grow.  Staff estimates that the bill would also require  
          the addition of at least 1 PY of staff plus administrative  
          support, at a cost of approximately $150,000, but CCDA indicates  
          it may need 2 PY, plus part-time legal staff assistance, if the  
          Legislature intends the Commission to be a true research and  
          analysis operation, rather than performing simple data reporting  
          functions.  It should also be noted that much of the CCDA's  
          current work is performed with the assistance of volunteer  
          support for its projects, which is neither reliable nor  
          sustainable.


          The CCDA also notes that its current office configuration, which  
          is a shared space sub-leased from the Department of  
          Rehabilitation, is insufficient to support additional staff that  
          would be required to implement the bill.  As such, the bill  
          creates cost pressures to move to a larger office space.   
          One-time moving costs would be approximately $80,000, according  
          to a Department of General Services estimate, and annual office  
          space leasing costs would be approximately $200,000.  The amount  
          of CCDA's current lease, which expires at the end of this fiscal  
          year, is nearly $38,000, so the bill would impose ongoing cost  
          pressures of approximately $162,000.




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