Final Regulatory Assessment and Final Regulatory Flexibility Analysis Final Rule - Nondiscrimination on the Basis of Disability by Public Accommodations - Movie Theaters; Movie Captioning and Audio Description
6.1. Compliance Date
In the primary analysis, movie theaters have 18 months to acquire and install the necessary equipment to provide closed movie captioning and audio description in their auditoriums. The Department also considered other compliance dates, including a six-month and a two-year compliance date.
In the cost estimation, the compliance date impacts the years in which movie theaters purchase the necessary equipment. A shorter compliance date results in movie theaters purchasing equipment earlier, whereas a longer compliance date allows theaters more time to purchase the equipment. Table 6-1 shows the impact of increasing the compliance date to two years instead of 18 months in the primary analysis. Overall, the total costs decrease by $3.3 million to $85.2 million over the 15-year period of analysis when discounted at 7 percent. This is a decrease of 4 percent compared to the cost estimation in the primary analysis.
Table 6-1 : Two-Year Compliance Date Alternative, Discounted at 7 Percent ($ millions)
Cost Category |
2-Year Compliance Date Alternative |
Primary Analysis |
Percent Change |
|
Captioning Hardware Acquisition Costs |
$14.0 |
$14.6 |
-4% |
|
Audio Hardware Acquisition Costs |
$0.4 |
$0.5 |
-6% |
|
Captioning Device Acquisition Costs |
$15.1 |
$15.7 |
-4% |
|
Audio Device Acquisition Costs |
$2.4 |
$2.4 |
-3% |
|
Installation Costs |
$1.0 |
$1.0 |
-4% |
|
Replacement Costs |
$34.5 |
$36.1 |
-4% |
|
Training Costs |
$9.9 |
$9.9 |
0% |
|
Maintenance and Administrative Costs |
$7.8 |
$8.2 |
-5% |
|
Total Costs |
$85.2 |
$88.5 |
-4% |
Table 6-2 shows the impact of changing the compliance date to six months instead of 18 months in the primary analysis. Overall, the total costs increase by $5.6 million to $94.1 million over the 15-year period of analysis when discounted at 7 percent. This is a 6 percent increase compared to the cost estimation in the primary analysis. A compliance date of six months increases costs because all movie theaters would purchase equipment in one year (2016) instead of over two years (2016, 2017) in the primary analysis.
Table 6-2 : Six-Month Compliance Date Alternative, Discounted at 7 Percent ($ millions)
Cost Category |
6-Month Compliance Date Alternative |
Primary Analysis |
Percent Change |
|
Captioning Hardware Acquisition Costs |
$15.5 |
$14.6 |
6% |
|
Audio Hardware Acquisition Costs |
$0.5 |
$0.5 |
9% |
|
Captioning Device Acquisition Costs |
$16.6 |
$15.7 |
6% |
|
Audio Device Acquisition Costs |
$2.6 |
$2.4 |
5% |
|
Installation Costs |
$1.1 |
$1.0 |
6% |
|
Replacement Costs |
$39.0 |
$36.1 |
8% |
|
Training Costs |
$9.9 |
$9.9 |
0% |
|
Maintenance and Administrative Costs |
$8.9 |
$8.2 |
8% |
|
Total Costs |
$94.1 |
$88.5 |
6% |
The Department ultimately decided that an 18-month compliance date was the most appropriate choice. The Department’s decision regarding the 18-month compliance date in the final rule is based on the Department’s independent research and the information provided in comments on the 2014 NPRM. Based on this information, the Department determined that six months may be an insufficient amount of time for movie theaters to comply with the requirements of this rulemaking. However, the Department believes that an 18-month compliance date sufficiently accounts for potential delays that may result from manufacturer backlogs, installation waitlists, and other circumstances outside a movie theater’s control. One major movie theater chain in particular recommended an 18-month compliance date, stating that this is the amount of time that the process currently takes, and this compliance date also gives small movie theaters struggling financially as a result of the unrelated costs of digital conversion a sufficient amount of time to plan and budget accordingly. The Department believes that a two-year compliance date is too long and will further delay important accessibility benefits to individuals who are deaf or hard of hearing, or blind or have low vision.
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