BILL ANALYSIS                                                                                                                                                                                                    



                                                                       


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          |SENATE RULES COMMITTEE            |                  AB 1656|
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                                 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.
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          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  







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          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,  







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            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

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