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
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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