BILL ANALYSIS Ó ----------------------------------------------------------------- |SENATE RULES COMMITTEE | SB 1406| |Office of Senate Floor Analyses | | |(916) 651-1520 Fax: (916) | | |327-4478 | | ----------------------------------------------------------------- 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 SB 1406 Page 2 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 SB 1406 Page 3 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 SB 1406 Page 4 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, SB 1406 Page 5 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 SB 1406 Page 6 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 SB 1406 Page 7 **** END ****