BILL ANALYSIS Ó AB 1342 Page 1 Date of Hearing: April 21, 2015 ASSEMBLY COMMITTEE ON JUDICIARY Mark Stone, Chair AB 1342 (Steinorth) - As Amended March 26, 2015 As Proposed to be Amended SUBJECT: CALIFORNIA COMMISSION ON Disabled access KEY ISSUE: SHOULD THE cALIFORNIA COMMISSION OF DISABILITY ACCESs, A PRODUCT OF BIPARTISAN LEGISLATIVE EFFORTS TO IMPROVE DISABILITY ACCESS AND COMPLIANCE with CONSTRUCTION-RELATED accessibility requirements, BE GIVEN ADDITIONAL RESOURCES and duties THAT will further its efforts TO PROVIDE THE PUBLIC AND THE LEGISLATURE with CRITICALLY IMPORTANT INFORMATION ABOUT HOW TO improve compliance with construction-related accessiblity standards and how to CURB lawsuits alleging VIOLATIONS of those standards? SYNOPSIS This bill, receiving broad support from various stakeholders including Disability Rights of California, Consumer Attorneys of California, and the California Chamber of Commerce, seeks to provide additional revenue and responsibilities to the California Commission of Disability Access, which was created by Senate Bill 1608 (Corbett and Harman, Ch. 549, Stats. 2008), a AB 1342 Page 2 bipartisan measure that reflected the interests of disability rights advocates, as well as the business community. Since its creation, the Commission has partnered and collaborated with different groups at all levels of government to promote disability access by preparing reports, developing strategic plans, and (most importantly) creating educational resources such as pamphlets, checklists, and videos to assist the public in understanding disability access requirements. Additionally, as proposed to be amended, this bill enacts other measures that further promote compliance with disability access laws, including making it easier for the public to find a certified access specialist, strengthening local and state efforts to have high-quality certified access specialists, and facilitating communication between a commercial property owner and a tenant over the state of a leased property in order to better determine whether access improvements to public accommodations are required. There is no known opposition. SUMMARY: Appropriates funds to the California Commission on Disability Access (Commission) and enacts other measures intended to promote disability access compliance. Specifically, this bill: 1)Appropriates $500,000 from the General Fund to the Commission which shall be used to implement the duties of the Commission. 2)Requires the Commission, to the extent possible, to coordinate with other state agencies and local building departments to make the Commission's educational materials and information available to those agencies. 3)Requires the State Architect to require a certified access specialist (CASp) applicant to provide the location (i.e. city, county, or city and county) in which the CASp will provide services. Further requires the State Architect to AB 1342 Page 3 post the location that each CASp provides or intends to provide services. 4)Requires the Commission to post on its website a link to the Division of State Architect's Certified Access Specialist Program website to assist building owners and tenants in locating or hiring a CASp. 5)Removes the sunset provision under current law that requires an applicant for a business license or renewal to pay a one dollar ($1) fee to local jurisdictions to assist in funding CASp services, training, and retention at the local level, and standards at the state level. 6)Requires a commercial property owner to state on every lease form or rental agreement executed after July 1, 2016, whether or not the property being leased has undergone inspection by a CASp. 7)Requires a commercial property owner to provide additional information to the tenant or lessor about the condition of the rented or leased property. a) If the property has undergone an inspection (and to the best of the commercial property owner's knowledge, there have been no modifications or alterations completed or commenced between the date of the inspection and the date of the lease or rental agreement which have impacted the property's compliance), the commercial property owner shall provide a copy of any report prepared by the CASp to the lessee or tenant. If the property has been issued a current disability access inspection certificate, the commercial property owner shall provide a copy of the certificate or any inspection report to the lessee or AB 1342 Page 4 tenant within seven days of the date of the execution of the lease form or rental agreement. b) If the property has not undergone an inspection or been issued a current disability access inspection certificate, the commercial property owner shall state on the lease form or rental agreement that the property may not necessarily meet all of the applicable construction-related accessibility standards under State law. EXISTING LAW: 1)Provides for a California Commission on Disability Access, an independent state agency composed of 17 members, with the general responsibility for monitoring disability access compliance in California, and the authority to hold hearings and make recommendations to the Legislature for necessary changes to existing state law in order to facilitate implementation of state and federal laws on disability access. (Gov. Code Sec. 8299 et seq. All further statutory references are to the Government Code, unless otherwise indicated.) 2)Requires the Commission to use its funding, as appropriate, to provide information about preventing or minimizing compliance problems among California businesses, and recommending programs to enable persons with disabilities to obtain full and equal access to public facilities. (Section 8299.05.) 3)Makes it a priority for the Commission to provide educational resources to promote and facilitate disability access compliance. (Section 8299.06.) AB 1342 Page 5 4)Requires the Commission to work with other state agencies, including the Division of the State Architect and the Department of Rehabilitation, to develop educational materials and information for use by businesses to understand its obligations to provide disability access and to facilitate compliance with construction-related accessibility standards. (Section 8299.06.) 5)Requires the Commission to develop and make available on its Internet Web site, or make available on its Internet Web site if developed by another governmental agency, including Americans with Disabilities Act centers, toolkits or educational modules to assist a California business to understand its obligations under the law and to facilitate compliance with respect to the top 10 alleged construction-related violations, as provided. (Section 8299.06.) 6)Requires the Commission to post on its Internet Web site educational materials and information that will assist building owners, tenants, building officials, and building inspectors to understand the disability accessibility requirements and to facilitate compliance with disability access laws. The Commission shall at least annually review the educational materials and information on disability access requirements and compliance available on the Internet Web site of other local, state, or federal agencies, including Americans with Disabilities Act centers, to augment the educational materials and information developed by the Commission. (Section 8299.06.) 7)Requires the Commission to compile data about demand letters and complaints filed with the Commission pursuant to Section 53.32 of the Civil Code. The Commission shall identify the various types of construction-related physical access violations alleged in the demand letters and in the complaints AB 1342 Page 6 and shall tabulate the number of claims alleged for each violation in the demand letters and in the complaints. (Section 8299.08.) 8)Provides that the Commission's continued operation is dependent upon available funds provided by the Legislature. (Section 8299.11.) 9)Provides for the certification process in which an applicant may become a certified-access specialist. Further provides that the Division of the State Architect shall require each applicant to pay fees that are reasonably necessary to implement the certified access specialist program, including processing, registration, and publishing a list of certified access specialists. (Section 4459.8.) 10)Adds a one dollar ($1) state fee on an applicant for a business license or permit or renewal for purposes of increasing disability access and compliance with construction-related accessibility requirements and developing educational resources for businesses to facilitate compliance with federal and state disability laws. The fee is divided between the local jurisdiction that collects the fee and the Division of the State Architect, as provided. This provision expires in 2018. (Section 4467.) 11)Requires a commercial property owner to state on a lease form or rental agreement executed on or after July 1, 2013, if the property being leased or rented has undergone inspection by a certified access specialist. If the property has undergone an inspection, the commercial property owner shall state whether the property has or has not been determined to meet all applicable construction-related accessibility standards. (Civil Code Section 1938.) AB 1342 Page 7 FISCAL EFFECT: As currently in print this bill is keyed fiscal. COMMENTS: In 2008, the Legislature established the Commission pursuant to SB 1608 (Corbett and Harman, Ch. 549, Stats. 2008), part of a bipartisan package of reforms shaped by discussions from disability rights advocates, attorneys for plaintiffs and defendants, and business interests. The package included measures such as the following: (1) expanding the certified access specialists (CASp) program; (2) allowing businesses to obtain a stay of litigation in construction-related access matters under specified conditions; (3) specifying the requirements for demand notices and complaints; (4) continuing education requirement for construction inspectors, plan examiners, and building officials for disability access requirements; and for purposes here, (5) the creation of the California Commission on Disability Access. According to the joint authors of SB 1608, the bill included a multi-faceted approach aimed at addressing the high rate of non-compliance with construction-related accessibility standards by public accommodations in California, recognizing the value of and promoting voluntary compliance and prevention. Indeed, SB 1608 was a bipartisan and bicameral effort with disability rights organizations and business advocates over a period of years. The measure was the product of extended, careful, and thoughtful consideration by legislators and members of the disability and business communities, including Disability Rights California, California Chamber of Commerce, California Foundation for Independent Living Centers, California Restaurant Association, Business Properties Association, California Hotel Association and several others. Original Duties and Responsibilities. The Commission was originally required to prepare a study to the Legislature about issues concerning: AB 1342 Page 8 (a) Compliance with state laws and regulations by the public and private sector, by persons with disabilities, and by businesses; (b) Whether the CASp program was meeting the needs of both the disability and business community, including whether there are issues about timeliness or competence; (c) Whether existing training and continuing education requirements for personnel involved in designing, plan checking, building, or inspection provide sufficient knowledge about state and federal disability access laws; and (d) Whether training and continuing education requirements should be enacted for other professionals, like architects, professional engineers, contractors. Additionally, SB 1608 required the Commission to: (a) Coordinate with state agencies and local building departments to ensure that information provided to the public on disability access requirements is uniform and complete; (b) Engage in educational outreach efforts to prevent problems of compliance; (c) Recommend programs to enable persons with disabilities to obtain full and equal access to public facilities; (d) Develop a master checklist that may be used by building inspectors for disability access compliance; (e) Assess the operation of Civil Code Section 55.54 to determine whether it reduces unnecessary civil actions or whether it unduly impacts claims brought to facilitate AB 1342 Page 9 compliance; (f) Provide recommendations to the Legislature. Significant portions of the bipartisan reform depend upon the continuous appropriation of the Commission. Under Section 12 of Senate Bill 1608, Civil Code §§ 55.51 and 55.52; § 55.53 subdivision (c); and § 55.54 subdivision (a) all become inoperative if the Commission loses its funding. These particular provisions are integral to both the CASp program and the notice that an attorney must provide to an alleged defendant. Specifically, these provisions: (1) describe the notice that a CASp inspector must give to a private property owner or tenant; and (2) describe the notice that an attorney must give to an alleged defendant in a civil action for a construction-related accessibility claim. The author contends that the Commission-since its inception-has been tasked with additional responsibilities without corresponding increases in funding. Specifically, the author states: The CCDA plays an important role as a liaison between the business, disabled, and legal communities in promoting disability access and compliance throughout the State of California. The CCDA seeks to be a resource to the Legislature with the ability to provide informed, non-partisan data and insight surrounding access issues. It holds a unique position in uniting parties which are often perceived to be at odds with each other, and thus, has a powerful potential to recommend or inform Legislative actions. And yet, the CCDA has seen an expansion of its responsibilities since its inception in 2008, but has not received an appropriate increase in funding that enable the AB 1342 Page 10 CCDA to begin other projects. Existing funding levels limit the CCDA to rely heavily upon volunteers to assist with the workload and important tasks; while volunteers are valuable, there is high turnover and a relative lack of responsibility, leaving the Commission vulnerable to a lack of human resources at any time. Additionally, the Executive Director spends much of her time completing administrative tasks, as the office lacks an administrative or office assistant. The CCDA has identified a need to create the following staff positions: Legislative Outreach Coordinator, Educational Outreach Coordinator, Staff Service Manager, and Administrative Assistant. These staff, upon hiring, would be quickly assigned with specific responsibilities to achieve goals outlined in the Strategic Plan. Ultimately, the CCDA seeks to offer and improve its educational resources, coordinate discussion with parties throughout the State, and serve as a forum for disability access dialogue outside of and prior to the courtroom. Unfortunately, the existing funding levels do not enable the CCDA to begin these projects. New Responsibilities under SB 1186. As the author correctly states, the Commission has received additional responsibilities since it was created. In 2012, the Legislature passed SB 1186 (Steinberg and Dutton, Ch. 383, Stats. 2012), another landmark bipartisan measure carried by the Senate's majority and minority leaders, to address the issue of ADA litigation. While many provisions in SB 1186 were procedural in nature and benefitted the business community, SB 1186 imposed additional duties on the Commission. AB 1342 Page 11 Pursuant to SB 1186, the Commission is now required to do the following, in addition to its original duties: (a) Receive demand letters and civil complaints from attorneys alleging a construction-related accessibility claim; and (b) Report to the Legislature about the number of demand letters and civil complaints filed, the various types of construction-related physical access violations alleged, the 10 most frequent types of accessibility violations alleged, and whether the civic complaints are filed in state or federal court. The additional responsibilities, provided under SB 1186, are significant. For example, between January and October 2014, the Commission combed through over 2,500 civil complaints (state and federal) to determine the types of construction-related access violations alleged in those complaints. During this ten-month span, the Commission determined that over 8,720 construction-related access violations were alleged in those civil complaints. The Commission categorized these alleged violations and provided the Legislature with a report about its findings. Steady Funding. Under SB 1608, the Commission was allocated an $80,000 general fund appropriation. Since then, the Legislature has appropriated funding to the Commission through the annual Budget Act. Generally, the funding level has been steady. ----------------------------------------------------------------- | FY | FY | FY | FY | FY | FY | | 2010-11 | 2011-12 | 2012-13 | 2013-14 | 2014-15 | 2015-16 | | | | | | | | | | | | | | | AB 1342 Page 12 |----------+----------+----------+----------+----------+----------| | $500 | $454 | $407 | $416 | $526 |$526 | | | | | | | | | | | | | | | ----------------------------------------------------------------- (In hundreds of thousands) The Commission's work is integral in any solution aimed at improving compliance with construction-related accessibility standards and access to public accommodations. Indeed, many of the Commission's reports have helped to shape this Committee's discussions on the issues of disability access and construction-related accessibility claims. Accordingly, it is critical for the Commission to have sufficient resources in order to perform its important duties. The Proposed Amendments Provide Additional Responsibilities to the Commission. As stated above, the Commission has provided the Legislature and the public with critical information regarding the issue of disability access. For example, current law requires the Commission to provide a comprehensive report on the types of violations alleged in a construction-related accessibility matter. Given the Commission's expertise and excellent track record, it is appropriate for the Commission to undertake additional important, but not onerous, responsibilities to further educate the public on how to comply with disability accessibility laws. As proposed to be amended in this bill, the Commission will be required: To the extent feasible, to coordinate with state agencies and local building departments to make educational materials and information available to those agencies; and AB 1342 Page 13 To post on its website a link to the website of the Division of the State Architect's CASp program to assist building owners and tenants in locating or hiring a CASp. Locating a Certified Access Specialist (CASp). Under current law, the Division of the State Architect (State Architect) certifies applicants to become CASps. The State Architect publishes a list of all the CASps in the State on its website. Currently, there are over 575 CASps throughout the state. However, despite the large number of CASps, it may be difficult to find a CASp who is available in a given area. Currently, the State Architect's website does not consistently provide the location in which a CASp provides his or her services. This lack of information makes it difficult for a business property owner or tenant to locate or hire a CASp in a specific region. As proposed to be amended, an applicant for CASp certification or renewal will be required to provide the State Architect the location where the applicant will provide CASp services; specifically, the city, county, or city and county. Additionally, the proposed amendments require the State Architect to publish this locational information. A Commercial Property Owner's Responsibilities to a Tenant in Reporting Compliance with California's Disability Access Laws. It is a priority for the State and the Commission to provide educational resources in order to promote and facilitate disability access compliance. Under SB 1186, commercial property owners are required to give certain information to a tenant relating to disability access compliance. Under the law, a commercial property owner is required to state on every lease form or rental agreement whether the property has AB 1342 Page 14 been inspected by a CASp. If the property has undergone a CASP inspection, the lease or rental agreement must state whether the property meets all applicable construction-related accessibility standards. However, because the property owner may not know whether the property has met all applicable-related accessibility standards, the current law may unintentionally create a disincentive for a business property owner to obtain CASp services. The author's proposed amendments addresses this problem by requiring the business property owner to inform the tenant whether or not the property has been inspected by a CASp. If the property has undergone an inspection and is in the same condition as it was when it was inspected, the commercial property owner shall provide a copy of any CASP report, or if applicable, a current disability access inspection certificate to the tenant. If the property has not undergone an inspection or been issued a current disability access inspection certificate, the commercial property owner shall state on the lease form or rental agreement that the property may not necessarily meet all of the applicable construction-related accessibility standards under state law. This additional information allows commercial tenants to better understand the state of the leased property, and allows the commercial property owner or tenant to take proactive steps in reaching compliance with disability access laws by promoting communication between the commercial parties. Strengthening the CASp Program by Developing Educational and Training Resources at the State and Local Level to Promote Compliance. Increasing access to and use of CASp inspectors promotes compliance and helps businesses avoid lawsuits. As part of the framework established by Senate Bill 1186, a one dollar ($1) state fee was added to the issuance or renewal of a business license fee, in order to create educational and training programs and to maintain quality control over existing AB 1342 Page 15 CASps. Under current law, the fee is collected by local jurisdictions, where 70% of the fee is kept at the local level and 30% of the fee is remitted to the Disability Access and Education revolving fund, which is administered by the Division of the State Architect. The fee is intended to assist local building departments in reducing the costs of CASp testing and certification, and to assist the Division of the State Architect in developing audit procedures and "best practices." The current fee provision is set to sunset in 2018. As proposed to be amended, the bill removes the sunset for the $1 state fee. ARGUMENTS IN SUPPORT: Disability Rights California supports AB 1342 and states: The CCDA has been instrumental in collecting information about disability access issues. Their reports provide an excellent overview of the types of architectural access issues [that] exist. Providing additional funding to continue their research is critical as they develop and implement recommendations as outlined in its strategic plan for improving access across California. Similar Pending legislation. AB 52 (Gray) - provides, among other things, that the defendant's maximum liability for statutory damages in a construction-related accessibility claim against a place of public accommodation is $1,000 for each offense if the defendant has corrected all construction-related violations within 180 days of being served with the complaint. This bill is currently in this Committee. AB 54 (Olsen) - requires a plaintiff who has been denied access to a public accommodation because of a construction-related AB 1342 Page 16 accessibility violation of a standard which has changed in the past three years to give notice to the defendant 60 days before filing a complaint and an opportunity to cure the violation, with no statutory damages payable to the plaintiff; and provides a tax credit under the Personal Income Tax Law and the Corporation Tax Law to any taxpayer who obtains a certified access specialist inspection. This bill is currently in this Committee. AB 1230 (Gomez) - establishes, among other things, the California Americans with Disabilities Act Small Business Compliance Finance Act, which would provide loans, funded in part by bond issuances, to assist small businesses finance the costs of projects that alter or retrofit existing small business facilities to comply with the federal American with Disabilities Act. This bill is currently in Assembly Banking and Finance. AB 1468 (Baker) -provides, among other things, that a public entity's possession of a close out letter from the State Architect certifying that the buildings, facilities, and other places meet the applicable construction-related accessibility standards of the federal Americans with Disabilities Act, serves as presumptive evidence of compliance with the federal Americans with Disabilities Act. This bill is currently in this Committee. SB 67 (Galgiani) - among other things, exempts a small business from statutory damage liability in connection with a construction-related accessibility claim and extends the period for correcting construction-related violations that are the basis of a claim from 60 days to 120 days of being served with the complaint, for purposes of reducing a defendant's minimum statutory damage liability to $1,000. This bill is currently in Senate Judiciary. SB 251 (Roth) - relating to civil rights and disability access, is currently in Senate Rules. REGISTERED SUPPORT / OPPOSITION: AB 1342 Page 17 Support Disability Rights California Consumer Attorneys of California California Business Properties Association California Chamber of Commerce California Building Industry Association National Federation of Independent Business American Institute of Architects California Council Building Owners and Managers Association of California Commercial Real Estate Development Association, NAIOP of California International Council of Shopping Centers California Commission on Disability Access AB 1342 Page 18 Opposition None on file Analysis Prepared by:Eric Dang and Alison Merrilees / JUD. / (916) 319-2334