BILL ANALYSIS                                                                                                                                                                                                    Ó




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          |SENATE RULES COMMITTEE            |                       SB 1406|
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                                UNFINISHED BUSINESS 


          Bill No:  SB 1406
          Author:   Mendoza (D) 
          Amended:  6/23/16  
          Vote:     21 

           SENATE JUDICIARY COMMITTEE:  7-0, 4/19/16
           AYES:  Jackson, Moorlach, Anderson, Hertzberg, Leno, Monning,  
            Wieckowski

           SENATE APPROPRIATIONS COMMITTEE:  7-0, 5/27/16
           AYES:  Lara, Bates, Beall, Hill, McGuire, Mendoza, Nielsen

           SENATE FLOOR:  39-0, 5/31/16
           AYES:  Allen, Anderson, Bates, Beall, Berryhill, Block,  
            Cannella, De León, Fuller, Gaines, Galgiani, Glazer, Hall,  
            Hancock, Hernandez, Hertzberg, Hill, Hueso, Huff, Jackson,  
            Lara, Leno, Leyva, Liu, McGuire, Mendoza, Mitchell, Monning,  
            Moorlach, Morrell, Nguyen, Nielsen, Pan, Pavley, Roth, Stone,  
            Vidak, Wieckowski, Wolk
           NO VOTE RECORDED:  Runner

           ASSEMBLY FLOOR:  78-0, 8/11/16 (Consent) - See last page for  
            vote

           SUBJECT:   Construction-related accessibility:  education  
                     entities


          SOURCE:    Rancho Santiago Community College District


          DIGEST:  This bill requires an attorney who provides a  
          prelitigation letter or sends or serves a complaint alleging a  
          construction-related accessibility claim, as defined, against an  
          education entity, as defined, to send a copy of the  








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          prelitigation letter or complaint to the California Commission  
          on Disability Access (CCDA) within five business days, and  
          requires the attorney to additionally submit information about  
          the complaint, and further requires the attorney to submit the  
          notification of judgment, settlement, or dismissal to the CCDA.   
          This bill subjects an attorney who fails to comply with these  
          requirements to discipline.


          Assembly Amendments limit the provisions of the bill to  
          education entities, replace "demand letter" with "prelitigation  
          letter," add provisions related to attorney discipline, and  
          clarifies the duties of the CCDA with regard to the information  
          this bill requires to be collected. 


          ANALYSIS:   


          Existing law: 


          1)Provides, under the Americans with Disabilities Act (ADA),  
            that no individual shall be discriminated against on the basis  
            of disability in the full and equal enjoyment of the goods,  
            services, facilities, privileges, advantages, or  
            accommodations of any place of public accommodation by any  
            person who owns, leases, or leases to, or operates a place of  
            public accommodation. (42 U.S.C. Sec. 12182.)


          2)Declares, under the Unruh Civil Rights Act, that 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 of  
            every kind whatsoever, and entitles persons to $4000 minimum  
            statutory damages for violations of Unruh. (Civ. Code Sec. 51  
            et seq.)  


          3)Provides that individuals with disabilities or medical  








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            conditions have the same right as the general public to the  
            full and free use of the streets, highways, sidewalks,  
            walkways, public buildings, medical facilities, including  
            hospitals, clinics and physicians' offices, public facilities,  
            and other public places.  It also provides that a violation of  
            an individual's rights under the ADA constitutes a violation  
            of state law.  (Civ. Code Secs. 54, 54.1.)


          4)Provides that a violation of the ADA also constitutes a  
            violation of Sections 54 or 54.1, and entitles a prevailing  
            party to recover reasonable attorney's fees.  (Civ. Code Sec.  
            55.)


          5)Prohibits a demand letter from including a request or demand  
            for money or an offer or agreement to accept money, unless the  
            claim involves a physical injury and special damages, and  
            provides that a violation of this provision constitutes cause  
            for attorney discipline. (Civ. Code Sec. 55.31.)  


          6)Requires, until January 1, 2019, an attorney to submit a copy  
            of any demand letter to the Commission and the State Bar, and  
            to submit a copy of a complaint to the Commission, and  
            subjects the attorney to possible disciplinary action for  
            violations of this requirement.  (Civ. Code Sec. 55.32.)


          This bill:


          1)Requires an attorney, when serving a prelitigation letter or a  
            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 CCDA within five  
            business days and in a standard format specified by the CCDA. 


          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  








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            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.





          4)Provides that a violation of the provisions above shall  
            constitute cause for the imposition of discipline of an  
            attorney, as specified. 




          Background

          Since 1969, persons with disabilities have enjoyed protection  
          under Civil Code Sections 54 and 54.1, which entitle individuals  
          with disabilities and medical conditions to full and free access  
          to and use of roadways, sidewalks, buildings and facilities open  
          to the public, hospitals and medical facilities, and housing.  
          After Congress enacted the ADA in 1990, the state made a  
          violation of the ADA also constitute a violation of Section 54  
          or 54.1 and of California's Unruh Civil Rights Act, either of  
          which subject a person to actual damages incurred by an injured  
          party, plus treble actual damages, but in no event less than  
          $4,000.

          The California Legislature has taken further steps to ensure  
          disability access laws are complied with.  SB 262 (Kuehl,  
          Chapter 872, Statutes of 2003) established in the Division of  
          the State Architect, a voluntary "access specialist  
          certification program" in order to assist business and property  
          owners in complying with ADA and state access laws.  Since that  
          time, several bills have been introduced that would have  
          precluded an action for damages for a de minimus violation,  








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          allowing only injunctive relief and attorney's fees.  All of  
          those bills failed passage in the Judiciary Committees of their  
          respective houses. 

          In 2012, Senators Steinberg and Dutton authored SB 1186 (Chapter  
          383, Statutes of 2012) which sought to comprehensively address  
          continued issues with disability litigation.  SB 1186 created a  
          number of protections for small businesses and defendants who  
          had, prior to a claim being filed, sought out a Certified Access  
          Specialist inspection.  These protections included reduced  
          minimum statutory damages, early evaluation conferences, and  
          mandatory stays of court proceedings while the violations were  
          corrected.  That bill also prevented the stacking of multiple  
          claims to increase damages, banned pre-litigation demands for  
          money, and increased data collection regarding alleged access  
          violations. SB 1406, seeking to better understand the number and  
          type of construction-related accessibility claims that are being  
          brought against public schools, requires that an attorney who  
          sends a prelitigation letter to an education entity must include  
          specified information and send a copy to the CCDA.  

          FISCAL EFFECT:   Appropriation:    No          Fiscal  
          Com.:YesLocal:   No


          According to the Assembly Appropriations Committee, 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.


          SUPPORT:   (Verified8/12/16) 


          Rancho Santiago Community College District (source)
          Civil Justice Association of California 
          Coast Community College District
          Community College League of California
          Foothill-De Anza Community College District
          Kings Canyon Unified School District








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          Los Rios Community College District
          Orange County Community College Legislative Task Force
          Riverside Community College District
          San Diego Community College District
          San Joaquin Delta College
          San Mateo Community College District
          South Orange Community College District


          OPPOSITION:   (Verified8/12/16)


          None received


          ARGUMENTS IN SUPPORT:     The Rancho Santiago Community College  
          District, sponsor, argues that "public entities, such as RSCCD,  
          receive funding from the State, local tax revenue, and fees paid  
          by the students. Therefore, the cost [of these law suits] is  
          ultimately burdened by the classroom, students, and day-to-day  
          teaching necessities."

          ASSEMBLY FLOOR:  78-0, 8/11/16
          AYES:  Achadjian, Alejo, Travis Allen, Arambula, Atkins, Baker,  
            Bigelow, Bloom, Bonilla, Bonta, Brough, Brown, Burke,  
            Calderon, Campos, Chang, Chau, Chávez, Chiu, Chu, Cooley,  
            Cooper, Dababneh, Dahle, Daly, Dodd, Eggman, Frazier, Beth  
            Gaines, Gallagher, Cristina Garcia, Eduardo Garcia, Gatto,  
            Gipson, Gomez, Gonzalez, Gordon, Gray, Grove, Hadley, Harper,  
            Holden, Irwin, Jones, Jones-Sawyer, Kim, Lackey, Levine,  
            Linder, Lopez, Maienschein, Mathis, Mayes, McCarty, Medina,  
            Melendez, Mullin, Nazarian, Obernolte, O'Donnell, Olsen,  
            Patterson, Quirk, Ridley-Thomas, Rodriguez, Salas, Santiago,  
            Steinorth, Mark Stone, Thurmond, Ting, Wagner, Waldron, Weber,  
            Wilk, Williams, Wood, Rendon
          NO VOTE RECORDED:  Roger Hernández, Low


          Prepared by:Nichole Rapier / JUD. / (916) 651-4113
          8/15/16 10:02:14










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