BILL ANALYSIS ------------------------------------------------------------ |SENATE RULES COMMITTEE | AB 1656| |Office of Senate Floor Analyses | | |1020 N Street, Suite 524 | | |(916) 445-6614 Fax: (916) | | |327-4478 | | ------------------------------------------------------------ THIRD READING Bill No: AB 1656 Author: Goldberg (D) Amended: 8/20/01 in Senate Vote: 21 SENATE ENERGY, U.&C. COMMITTEE : 7-2, 6/26/01 AYES: Bowen, Alarcon, Murray, Sher, Speier, Vasconcellos, Vincent NOES: Morrow, Battin SENATE APPROPRIATIONS COMMITTEE : Senate Rule 28.8 ASSEMBLY FLOOR : 42-31, 6/4/01 - See last page for vote SUBJECT : Self-service storage facilities SOURCE : Author DIGEST : This bill imposes registration and disclosure requirements on self-service storage facilities that transport household goods. ANALYSIS : Current law provides that any company using a motor vehicle to transport household goods (i.e. moving companies) is subject to regulation by the California Public Utilities Commission (CPUC). Current law exempts self-storage companies that transport individual storage containers to and from a self-storage facility from regulation by the CPUC, under specified conditions. CONTINUED AB 1656 Page 2 This bill requires self-storage companies that transport individual storage containers to and from a self-storage facility to register with the CPUC. This bill 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 provide the customer 30 days advance notice when the move will occur and the options available to the customer. The bill directs the CPUC to accept, tally, and help resolve consumer complaints. Background Moving companies are subject to a CPUC regulatory program that includes minimum insurance requirements, rate approval, and other consumer protections. The late 1990's saw a new type of moving operation based upon self-storage companies. Those companies, primarily Public Storage, Inc., provide a customer with a large, enclosed storage unit that is brought to the customer's home. The customer packs and seals the container, after which the self-storage company picks up the container and brings it to the self-storage premises. SB 1086 (Schiff), Chapter 45, Statutes of 1998, was sponsored by Public Storage, Inc. and exempted this type of moving operation from CPUC oversight if the company charged less than $100 for the service, had a minimum level of insurance, provided the customer with certain written disclosures, and provided other types of basic consumer protections. This bill requires those self-storage companies providing this service to register with the CPUC. Comments Just Tell Us Who & Where You Are . By requiring self-storage companies that transport containers to AB 1656 Page 3 register with the CPUC, the author hopes to make it easier for the CPUC to take action against these companies should customer complaints against them be filed with the CPUC. The bill doesn't require these companies to be permitted or licensed, which implies the applicant must qualify for a license by meeting certain minimum requirements before opening their doors and allows a regulatory agency to stop the company from doing business by revoking that license. Instead, the bill simply seeks to require these companies to register with the CPUC. Putting The Shoe On The Other Foot (Again) . In 1998, when Public Storage, Inc., sponsored SB 1086 to exempt self-storage companies from the CPUC registration and regulation requirements of the Household Goods Carriers Act, there was no demonstrated "problem" that was being solved other than the industry's desire not to be regulated by the CPUC. This bill seeks to turn back the clock somewhat by requiring those same self-storage companies that have been exempt from regulation for three-plus years to register with CPUC even though there's been no demonstrated "problem" since the exemption took effect in May 1998. FISCAL EFFECT : Appropriation: No Fiscal Com.: Yes Local: No SUPPORT : (Verified 8/23/01) Glassell Park OPPOSITION : (Verified 8/23/01) Public Storage, Inc. ASSEMBLY FLOOR AYES: Alquist, Aroner, Calderon, Canciamilla, Cardenas, Cardoza, Cedillo, Chan, Chu, Cohn, Corbett, Diaz, Dutra, Firebaugh, Florez, Goldberg, Havice, Horton, Jackson, Keeley, Kehoe, Koretz, Longville, Lowenthal, Matthews, Migden, Nakano, Nation, Negrete McLeod, Oropeza, Pavley, Reyes, Salinas, Shelley, Simitian, Steinberg, AB 1656 Page 4 Strom-Martin, Thomson, Wesson, Wiggins, Wright, Hertzberg NOES: Aanestad, Ashburn, Bates, Bogh, Briggs, Bill Campbell, John Campbell, Cogdill, Cox, Daucher, Dickerson, Frommer, Harman, Hollingsworth, Kelley, La Suer, Leach, Leonard, Leslie, Maddox, Maldonado, Mountjoy, Robert Pacheco, Rod Pacheco, Pescetti, Richman, Runner, Strickland, Wyland, Wyman, Zettel NC:kb 8/27/01 Senate Floor Analyses SUPPORT/OPPOSITION: SEE ABOVE **** END ****