BILL ANALYSIS                                                                                                                                                                                                    ”



                                                                  AB 2118
                                                                  Page  1

          Date of Hearing:   May 16, 2012

                        ASSEMBLY COMMITTEE ON APPROPRIATIONS
                                Felipe Fuentes, Chair

                     AB 2118 (Butler) - As Amended:  May 1, 2012 

          Policy Committee:                              
          UtilitiesVote:14-0

          Urgency:     No                   State Mandated Local Program: 
          Yes    Reimbursable:              No

           SUMMARY  

          This bill enhances regulation, under the Household Goods 
          Carriers Act, by the Public Utilities Commission (PUC). 
          Specifically, this bill:

          1)Prohibits a household goods carrier (moving company) from 
            arranging, as a broker, for the transportation of used 
            household goods and personal effects. 

          2)Defines broker as one engaged for others in the act of 
            arranging, for compensation, the transportation of used 
            household goods for or on behalf of a shipper, consignor, or a 
            consignee.

          3)Requires a household goods carrier with website to add a link 
            directing consumers to the PUC's website on moving companies 
            that promotes consumer rights and protection.

          4)Increases the maximum misdemeanor fine for violating the Act 
            from $1,000 to $2,500.

          5)Provides for a civil penalty of up to $5,000 per day of 
            violation when a household goods carrier falsifies licensure, 
            membership in an association, or location.

           FISCAL EFFECT  

          Minor absorbable costs to the PUC for enforcement and website 
          modifications, offset to some extent by revenues from civil 
          penalties ›Transportation Reimbursement Account].









                                                                  AB 2118
                                                                  Page  2

           COMMENTS  

          Purpose. According to the author, "The Household Goods Carriers 
          Act of 1951 paved the way for regulation of the moving and 
          storage industry in California.  Substantial amendments have not 
          been made to update the Act to prevent the industry from rouge 
          and unlicensed moving companies.  This bill will stiffen fines 
          against unlicensed moving companies by matching fines currently 
          given to the licensed, regulated companies while also promoting 
          consumer knowledge and protection by adding a consumer rights 
          link provided by the PUC to each licensed moving company's 
          website."

           Analysis Prepared by  :    Chuck Nicol / APPR. / (916) 319-2081