Disability access: construction-related accessibility claim.
What changed between versions
The bill now amends Sections 55 and 1938 of the Civil Code, adds Sections 55.32, 55.4, 55.53, and 55.56, amends/repeals/adds Section 14985.8 of the Government Code, and amends Section 19953 of the Health and Safety Code - a major expansion from the original single-section amendment to Section 55.56.
New Section 55.4 clarifies that the state does not express an intent to maintain exclusive or preferred jurisdiction over construction-related accessibility claims triggered by federal ADA violations when seeking injunctive relief, potentially opening the door to federal court jurisdiction for such claims.
Establishes the 'Small Business Right to Cure Program' (effective until January 1, 2034). To qualify, a defendant must have received a CASp inspection, corrected all violations noted in the report, had the inspection predate any claim or demand letter, not been on notice of the violation before inspection, and posted both the CASp inspection notice and a Notice of Participation. Qualifying defendants get a 120-day cure period, are shielded from minimum statutory damages for 6 years after the CASp report, and can recover attorney's fees from plaintiffs who sue during the 10-year program window.
Posting a Notice of Participation in the Small Business Right to Cure Program that is inauthentic, materially inaccurate, or posted by a business that does not qualify is subject to enforcement under the Unfair Competition Law (Civil Code Section 17200 et seq.).
New Section 55.32 requires attorneys to include their State Bar license number in demand letters, send copies of demand letters and complaints to the California Commission on Disability Access within 5 business days, and notify the commission of case outcomes (judgment, settlement, dismissal) including whether the defendant used the Small Business Right to Cure Program. Failure to comply is grounds for attorney discipline, and the State Bar must investigate and report annually. Qualified legal services projects are exempt.
New Section 55(b) prohibits assessing a prevailing defendant's attorney's fees or costs against a plaintiff unless a court finds the claim was frivolous, unreasonable, or groundless, or that the plaintiff continued litigating after it became clear the claim was so. This is a new protection for defendants in disability access injunction actions.
Section 55.53 now requires CASps to provide reports within 30 days for businesses qualifying under the new program, file a notice with the State Architect within 10 days of inspecting such a business, and post a notice at all public entrances for 120 days or until corrections are complete. New requirements also govern when a CASp may include a 'readily achievable barrier removal' assessment - the CASp must be competent, consider date of construction, permit history, financial resources, and typical use, and list all documents relied upon.
Extends the presumption that property owners are responsible for accessibility corrections to common areas of commercial property, and makes void and unenforceable any indemnity provision in a commercial lease that shifts the financial responsibility for construction-related accessibility violations from the owner/lessor to the tenant.
The California Commission on Disability Access must include data on the number of businesses participating in the Small Business Right to Cure Program in its annual reports, beginning July 1, 2027 and continuing until January 1, 2034. Multiple new provisions sunset on January 1, 2034.
Fiscal committee review changed from 'no' to 'yes,' indicating the amended bill now has state fiscal implications requiring fiscal committee approval.