BILL ANALYSIS                                                                                                                                                                                                    



                                                                  AB 1656
                                                                  Page  1

          Date of Hearing:   May 8, 2001

                   ASSEMBLY COMMITTEE ON BUSINESS AND PROFESSIONS
                                  Lou Correa, Chair
                    AB 1656 (Goldberg) - As Amended:  May 1, 2001
           
          SUBJECT  :   Self-storage facilities: household goods.

           SUMMARY  :   Imposes disclosure and registration requirements on  
          self-service storage facilities that transport household goods.   
          Specifically,  this bill  :  

          1)Provides that self-service storage facilities that move  
            household goods, in containers that have been loaded by  
            customers, shall be subject to regulation by the Public  
            Utilities Commission (PUC) unless the facility provides the  
            PUC with proof of compliance with specified requirements as  
            well as any other requirements established by the PUC.

          2)Provides that a storage company shall obtain a customer's  
            written acknowledgement of the company's right to move a  
            storage container from its initial storage location, and  
            provides that the customer has an opportunity to refuse this  
            type of move.

          3)Requires that  all  self-service storage facilities shall  
            register with the PUC in accordance with regulations adopted  
            by the PUC.

           EXISTING LAW  :

          1)Provides that household goods carriers are regulated by the  
            PUC.

          2)Provides that self-service storage facilities that transport  
            containers with household goods shall not be subject to  
            regulation by the PUC  if  the facility complies with specified  
            requirements.  These requirements include: limits on fees  
            charged to customers; prohibitions on loading, packing or  
            handling the contents of the container by the facility;  
            maintaining cargo insurance; providing customers with  
            specified disclosure information.

           FISCAL EFFECT  :   Unknown









                                                                  AB 1656
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           COMMENTS  :   

           1)Purpose of the bill  .  The author notes that current law  
            provides that the transportation by a self-service storage  
            facility of portable containers of used household goods and  
            personal effects is exempt from regulation by the PUC  if  the  
            facility complies with specified requirements.  A major  
            purpose of the bill is to provide that such an exemption is  
            not allowed  unless  the facility provides proof of compliance  
            with specified requirements.  The bill also is designed to  
            enhance consumer protections by requiring self-service storage  
            facilities to register with the PUC as well as ensuring that  
            consumers understand that the container with their household  
            goods may be moved away from the storage facility where the  
            container was originally stored.  

           2)Opposition  .  According to opponents, the bill proposes to give  
            the PUC jurisdiction over the transportation of storage  
            containers containing household goods.  Opponents state that  
            this is contrary to SB 1086 (Schiff), Chapter 45, Statutes of  
            1998.  SB 1086 amended the Self-Service Storage Act to  
            authorize storage operators to transport storage containers to  
            and from self-storage facilities, subject to specific  
            requirements.  Many storage operators now offer their  
            customers the option of having an empty storage container  
            delivered to their home.  The customer packs the container,  
            and the operator then returns the loaded container to a  
            storage facility.  SB 1086 provides that if the operator  
            complies with specific requirements - including a prohibition  
            on packing the goods, and specific fee limits - this activity  
            would not be subject to PUC regulations that apply to moving  
            companies.  Significantly, failure to comply with the limited  
            "safe harbor" for container transportation established by SB  
            1086 subjects the operator to PUC jurisdiction and full  
            compliance with the PUC's moving regulations and tariffs.  SB  
            1086 was a compromise supported by all interested parties.

          Opponents also express concern that the bill provides that  
            self-service facilities that transport containers with  
            household goods will be subject to PUC regulation unless the  
            facility provides proof of compliance with specified  
            requirements  and any other requirements  established by the  
            PUC.

           3)Scope of registration requirement  .  The bill focuses on  








                                                                  AB 1656
                                                                  Page  3

            self-service storage facilities that transport containers with  
            used household goods to and from the storage facility.   
            However, the bill requires that  all  self-service storage  
            facilities shall register with the PUC.  The author should  
            clarify the intent of the scope of the registration  
            requirement and, if the intent is to limit the scope to only  
            those self-service facilities that transport containers, the  
            bill will need to be amended accordingly.

           4)Customer's right to refuse moving a container from original  
            storage location  .  The bill increases disclosure requirements  
            for consumers by requiring the facility to obtain a customer's  
            written acknowledgement that the facility has the right to  
            move a storage container from its initial storage location to  
            a different location (that may be less convenient for the  
            customer).  The bill also provides that the customer has an  
            opportunity to refuse this type of move.  Opponents object to  
            providing customers with the right of refusal because, in  
            part, the implications are not clear.  For example, if the  
            intention is to provide the customer with a right of refusal  
            in conjunction with signing a contract, and the customer  
            refuses, then the contract presumably will not be signed.  On  
            the other hand, if the customer has a right of refusal  
            subsequent to the container being moved to its original  
            storage location, such a refusal could place an undue burden  
            on the owner of the facility.

           REGISTERED SUPPORT / OPPOSITION  :   

           Support 
           
          None on file.

           Opposition 
           
          Door To Door Storage, Inc.
          Public Storage, Inc.
          Self-Storage Association
           
          Analysis Prepared by  :    Jay Greenwood / B. & P. / (916)  
          319-3301