BILL ANALYSIS
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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.
CONTINUED
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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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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
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