BILL ANALYSIS Ó SB 1406 Page 1 Date of Hearing: August 3, 2016 ASSEMBLY COMMITTEE ON APPROPRIATIONS Lorena Gonzalez, Chair SB 1406 (Mendoza) - As Amended June 23, 2016 ----------------------------------------------------------------- |Policy |Judiciary |Vote:|10 - 0 | |Committee: | | | | | | | | | | | | | | |-------------+-------------------------------+-----+-------------| | | | | | | | | | | | | | | | |-------------+-------------------------------+-----+-------------| | | | | | | | | | | | | | | | ----------------------------------------------------------------- Urgency: No State Mandated Local Program: NoReimbursable: No SUMMARY: This bill: 1)Requires an attorney, when serving a prelitigation letter or a SB 1406 Page 2 complaint alleging a construction-related accessibility claim or noncompliance by an education entity, to submit a copy of the demand letter and complaint to the California Commission on Disability Access (CCDA) within five business days and in a standard format specified by the commission. 2)Requires the attorney to also notify and provide specified information to the CCDA within five business days of judgment, settlement, or dismissal of the claim or claims alleged in the complaint. 3)Requires the CCDA to review and report on the demand letters, complaints, and notifications of case outcomes it receives in the same manner as it does, under current law, for construction-related accessibility claims against places of public accommodation. FISCAL EFFECT: This bill mirrors similar duties already imposed on the CCDA and will likely involve a relatively small number of notifications, as there is a much smaller universe of potential defendants that could receive such claims. Any costs directly related to this bill should therefore be minor. (See #3 below regarding the CCDA's apparent budget challenges. COMMENTS: 1)Background. The Americans with Disabilities Act (ADA) was signed into law on July 26, 1990, by President George H.W. Bush. As part of the 1992 reformation of state disability law, the Legislature amended the state's Unruh Civil Rights Act to incorporate by reference the ADA, making violations of the ADA SB 1406 Page 3 also violations of the Unruh Civil Rights Act. Title III of the ADA is therefore applicable via the Unruh Civil Rights Act because it applies to businesses and nonprofit service providers that are public accommodations, such as restaurants, retail stores, hotels, movie theatres, private schools, convention centers, doctors' offices, and recreation facilities. Claims against government services, programs and activities, or "Title II cases," which are governed by different rules, regulations, and enforcement mechanisms than the Title III cases involving private businesses, are the subject of this bill. Title II of the ADA prohibits discrimination on the basis of disability in all services, programs, and activities provided to the public by state and local governments, and is expressly incorporated into state law pursuant to the California Disabled Persons Act (DPA). A violation of the DPA is punishable by "up to a maximum of three times the amount of actual damages but in no case less than $1,000, and attorney's fees as may be determined by the court. 2)Purpose. According to the author, this bill is necessary to address a recent rise in the number of lawsuits filed against educational institutions, specifically community colleges. The author notes that, "These types of lawsuits can result in facility modifications and upgrades that are not in alignment with existing facilities transition plans, ignore the availability of funding for repairs, and instead put a strain on a district's general fund, thereby affecting programs and services offered to students. In addition to the cost associated with the repairs, community colleges have incurred significant costs from the legal fees associated with these lawsuits." There is currently a lack of statewide data, however, regarding the frequency of such claims. In order to obtain SB 1406 Page 4 such data, this bill is modeled after current law, which requires attorneys who send demand letters or complaints to business owners regarding violations of construction-related accessibility claims in places of public accommodation to provide specific notifications and information to the CCDA. 1)CCDA Workload and Budget. 3)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 (Committee on Judiciary), Chapter 755, Statutes of 2015, the commission has also begun receiving notifications of judgments, settlements, and dismissals; it 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, as 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. In the recently enacted 2016-17 Budget Act, the CCDA received a $100,000 budget augmentation for one position to manage the increased workload associated with AB 1521. The commission asserts that SB 1406 would further increase workload and drive additional automation costs to move from a manual data processing to a digital capture format. The CCDA also believes it would require at least one additional staff position plus administrative support, at a cost of approximately $150,000, and may need two positions plus part-time legal staff assistance, if the Legislature intends the Commission to be a true research and analysis operation, SB 1406 Page 5 rather than performing simple data reporting functions. Much of the CCDA's current work is performed with the assistance of volunteer support for its projects, which is neither reliable nor sustainable. Finally, the commission indicates that the bill creates cost pressures to move to a larger office space, at estimated additional costs of $80,000 (one-time) to move and $160,000 ongoing for increased rent. As discussed above, given the relatively small additional workload associated with this bill, especially in relation to the commission's existing responsibilities, the costs described above appear to reflect possible deficiencies in the commission's existing budget. Analysis Prepared by:Chuck Nicol / APPR. / (916) 319-2081