HomeMy WebLinkAboutState Mandated Disability Access Fee SB 1186 appropriation aDept. ID FN 13-002 Page 1 of 2
Meeting Date: 2/19/2013
CITY OF HUNTINGTON BEACH
REQUEST FOR CITY COUNCIL ACTION
MEETING DATE: 2/19/2013
SUBMITTED TO: Honorable Mayor and City Council Members
SUBMITTED BY: Fred A. Wilson, City Manager
PREPARED BY: Lori Ann Farrell , Director of Finance
SUBJECT: Approve appropriation for State Mandated Disability Access Fee SB 1186
Statement of Issue:
The City currently requires entities conducting business in the City to obtain a business
license. Senate Bill 1186, effective January 1, 2013, requires the City to: charge and
collect a $1.00 fee on any new or renewed business license issued between 2013 and
2018; to submit 30 percent of the fees collected to the State; and to use the remainder "to
facilitate compliance' with construction -related accessibility requirements." The City must
also submit an annual report on the use of these funds and provide a specified notice
regarding disabled access laws to all business license applicants.
Financial Impact:
The City issues approximately 21,000 business licenses per year. This would generate
$21,000 per year in fee revenue. Under the law, the City would retain 70 percent of the
$1.00 fee per license resulting in about $14,700 per year for the next six years to improve
access to businesses by individuals with disabilities. Of this amount, $735 yearly, or 5
percent of the approximate $14,700 collected, may be used to cover administrative costs.
It is possible that administrative costs may exceed the amount allocated for that purpose.
SB 1186 provides that if the law is found to impose unfunded mandates on cities, the State
will reimburse those costs.
Recommended Action:
Approve an appropriation of $21,000 in the newly created Disability Access Special
Revenue Fund — Fund 234 within the Non -Departmental Budget. This fund will segregate
the State's 30 percent remittances from the City's 70 percent share and will allocate
resources accordingly. Future adopted budgets will contain appropriations for these
expenditures in the out -years.
Alternative Action(s):
Do not approve and direct staff accordingly.
Analysis:
SB 1186 requires the City to charge and collect a $1.00 fee on any "local business license
or equivalent instrument or permit" issued between January 1, 2013 and December 31,
2018. This fee will apply to every business license issued by the City. The law does not
Item 3. - 1 HB -80-
Dept. ID FN 13-002 Page 2 of 2
Meeting Date: 2/19/2013
provide any exceptions for out-of-town businesses, non -profits or businesses that are not
covered by access laws.
Under the law, the City can use 70 percent of the funds, of which 5 percent can be used to
fund related administrative costs. This money shall be used to fund increased training
certified access specialist (CASp) services for the public and to facilitate- compliance with
construction -related accessibility requirements. The highest priority shall be given to the
training and retention of CASps to meet the needs of the public in the jurisdiction.
The City must transmit the remaining 30 percent to the Division of the State Architect within
15 days of the end of each fiscal quarter in accordance with a standard reporting form to be
posted on the Division's Website. These funds will be used by the Division primarily to
oversee a program for training CASps.
Also commencing January 1, 2013, a municipality must provide each license or license
renewal applicant the following statement:
"Under federal and state law, compliance with disability access laws is a
serious and significant responsibility that applies to all California building
owners and tenants with buildings open to the public. You may obtain
information about your legal obligations and how to comply with
disability access laws at the following agencies:
The Division of the State Architect at www.dgs.ca.gov/dsa/Home.aspx.
The Department of Rehabilitation at www.rehab.cahwnet.gov.
The California Commission on Disability Access at www.ccda.ca.gov."
Finally, to ensure that the funds are spent appropriately, commencing on March 1, 2014,
municipalities must make an annual report to the Legislature detailing the total fees
collected and amounts spent on administrative costs, increasing CASp services and other
compliance programs and amounts transmitted to the Division of State Architect during the
previous fiscal year.
Environmental Status: N/A
Strategic Plan Goal:
Improve the City's infrastructure
Attachment(s):
None.
HB -81- Item 3. - 2