BILL ANALYSIS                                                                                                                                                                                                    





                                                                  AB 1656

                                                                  Page  1

          GOVERNOR'S VETO
          AB 1656 (Goldberg)
          As Amended August 20, 2001
          2/3 vote

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          |ASSEMBLY:  |42-31|(June 4, 2001)  |SENATE: |21-15|(September 4,  |
          |           |     |                |        |     |2001)          |
          |-----------+-----+----------------+--------+-----+---------------|
          |           |     |                |        |     |               |
          |-----------+-----+----------------+--------+-----+---------------|
          |ASSEMBLY:  |45-29|(September 6,   |        |     |               |
          |           |     |2001)           |        |     |               |
           ----------------------------------------------------------------- 
           
           Original Committee Reference:    B. & P.  

           SUMMARY  :  Imposes registration and disclosure 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 register with the California Public Utilities  
            Commission (CPUC) in accordance with regulations adopted by  
            CPUC.

          2)Provides that a self-service 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 requires the company to provide the customer with at least  
            30 days advance notice when this move will occur and the  
            options available to the customer.


           The Senate amendments  :


          1)Delete the requirement that customers could refuse to allow a  
            self-service storage facility to move the customer's goods  
            from an initial storage location and, instead, require that a  
            self-service storage company provide a customer with at least  










                                                                  AB 1656

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            30 days advance notice when the company plans to move the  
            customer's goods from an initial storage location.

          2)Require a self-service storage company to inform customers  
            that they have the right to register complaints with CPUC.

          3)Require CPUC to accept, tally and help resolve such  
            complaints.

          4)Make technical and clarifying changes.

           EXISTING LAW  :

          1)Provides that household goods carriers are regulated by CPUC.

          2)Provides that self-service storage facilities that transport  
            containers with household goods shall not be subject to  
            regulation by CPUC 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; and, providing customers with  
            specified disclosure information.

           AS PASSED BY THE ASSEMBLY  , this bill imposed registration and  
          disclosure requirements on self-service storage facilities that  
          transport household goods.

           FISCAL EFFECT  :  Minor one-time special funds costs (less than  
          $100,000) for CPUC to adopt the required regulations.  Minor  
          absorbable ongoing costs for CPUC to enforce the requirements  
          placed on self-service storage facilities.

           COMMENTS  :  The author notes that current law provides that the  
          transportation by a self-service storage facility of portable  
          containers filled with used household goods and personal effects  
          is exempt from regulation by CPUC if the facility complies with  
          specified requirements.  This bill is designed to enhance  
          consumer protections by requiring self-service storage  
          facilities to register with CPUC and ensure that consumers  
          understand that the container with their household goods may be  
          moved away from the storage facility where the container was  










                                                                  AB 1656

                                                                  Page  3

          originally stored.  

           GOVERNOR'S VETO MESSAGE  :
           
                This bill would extend the jurisdiction of the Public  
               Utilities Commission (PUC) to certain storage  
               activities currently governed by the California  
               Self-Service Storage Act.  This issue was considered  
               by the Legislature in 1998 when new rules were  
               established governing the transportation of individual  
               storage containers.  At that time, both the  
               Legislature and the PUC concluded that PUC oversight  
               was unnecessary.

               I do not believe that PUC oversight is now necessary  
               to protect self-service storage customers.  In fact,  
               the Senate committee analysis of AB 1656 concluded  
               that there was no evidence of a problem that would  
               require further regulation of this industry.  For  
               these reasons, I cannot sign this legislation.

           
          Analysis Prepared by  :  Jay Greenwood / B. & P. / (916) 319-3301



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