BILL ANALYSIS AB 1656 Page 1 GOVERNOR'S VETO AB 1656 (Goldberg) As Amended August 20, 2001 2/3 vote ----------------------------------------------------------------- |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 Page 2 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 FN: 0003900