BILL ANALYSIS                                                                                                                                                                                                    Ó



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          Date of Hearing:  August 3, 2016


                        ASSEMBLY COMMITTEE ON APPROPRIATIONS


                               Lorena Gonzalez, Chair


          SB 1406  
          (Mendoza) - As Amended June 23, 2016


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          Urgency:  No  State Mandated Local Program:  NoReimbursable:  No


          SUMMARY:


          This bill:


          1)Requires an attorney, when serving a prelitigation letter or a  








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            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  








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            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  








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            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,  








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            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