BILL ANALYSIS �
AB 2118
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Date of Hearing: April 23, 2012
ASSEMBLY COMMITTEE ON UTILITIES AND COMMERCE
Steven Bradford, Chair
AB 2118 (Butler) - As Introduced: February 23, 2012
SUBJECT : Household Goods Carriers
SUMMARY : Seeks to additionally prohibit a household goods
carrier from being a broker; requires a link from the household
goods carrier's website, if applicable, to consumer protections
on the website of the California Public Utilities Commission
(PUC); to permit PUC access to telephone subscriber's data upon
determining use of the number by an unlicensed household good's
carrier and increased civil and criminal penalties for
fraudulent representation of licensed household goods carrier
status. Specifically, this bill :
1)Prohibits a household goods carrier from arranging as a broker
for the transportation of used household goods and personal
effects.
2)Creates a definition of a "broker" to be a person engaged for
others in the act of arranging, for compensation, the
transportation of used household goods by a motor vehicle over
the highways of this state for or on behalf of a shipper,
consignor, or a consignee.
3)Permits the PUC to order an Internet Web site provider or the
source of an Internet posting to remove the post of the
unlicensed household goods carrier.
4)Requires a household goods carrier with an Internet Web site
to add a link on that site that directs consumers to the PUC's
Internet Web site that promotes consumer rights and
protection.
5)Requires telephone companies to provide access to the name and
address of the subscriber whose telephone number is being use
by an unlicensed household goods carrier without the written
consent of the subscriber.
6)Increases the dollar limit of the misdemeanor fine for
violating the Act from $1,000 to $5,000.
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7)Provides for a civil penalty of not more than $5,000 per day
of violation when a household goods carrier falsifies
licensure, membership in an association, or location.
EXISTING LAW :
1)The PUC has regulatory authority over a public utility which
includes transportation companies. Household goods carriers
are subject to the jurisdiction and control of the commission
under the Household Goods Carriers Act (Act).
2)The definition of a "household goods carrier" includes
corporations and persons engaged in a business that transports
used household goods and personal effects by a motor vehicle
over any public highway in this state where there is
compensation for the transport.
3)The Act prohibits a household goods carrier from engaging, or
attempting to engage, in the business of transporting used
household goods and personal effects without a permit issued
by the PUC that authorizes transportation solely within the
state. A valid operating authority issued by the Federal
Motor Carrier Safety Administration is needed for interstate
transportation.
4)The commission shall see that provisions of the Constitution
and State statues affecting public utilities, if not vested
elsewhere, are enforced and obeyed. For these violations, the
PUC shall insure violations are promptly prosecuted and
penalties to the state are recovered and collected.
5)The PUC may sue in the name of the people of the State of
California. Upon the request of the commission, the
California Attorney General or the affected county district
attorney shall aid in any investigation, hearing, or trial.
6)Without first obtaining a residential subscriber's consent, no
telephone or telegraph corporation shall give any person or
corporation a subscriber's personal calling patterns; a
residential subscriber's personal financial information except
when a utility needs it to determine the creditworthiness of a
new utility subscriber; information on the services that the
residential subscriber purchases; and, demographic information
about individual residential subscribers or aggregate
information from which individual identities and
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characteristics have not been removed.
7)Requires a telephone utility or its parent or subsidiary, to
provide the PUC access to information on a subscriber's name
and address when the subscriber's telephone number is being
used by an unlicensed household goods carrier, upon demand
from the commission and an order of a magistrate.
8)Specifies that a magistrate may only issue such an order after
it is shown that other available PUC enforcement remedies have
failed to terminate unlawful actions of a household goods
carrier that are detrimental to the public welfare and safety.
FISCAL EFFECT : Unknown
COMMENTS : 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. Also, this bill will create rules to allow
the commission to adopt the use of electronic transactions
between a carrier and shipper."
1)It is the purpose of the Act is to preserve for the public the
use of public highways consistent with the needs of commerce
without unnecessary congestion or wear and tear upon highways;
to secure just, reasonable, and nondiscriminatory rates; and
to promote fair dealings and ethical conduct in household
goods carrier services.
2)The sponsor of AB 2118, The California Moving and Storage
Association (CMSA), is familiar with the practices of
unethical and unlicensed household goods carriers. It
believes that many unlicensed operators hold the mistaken
belief that they operate in a gray area as the Act only
applies to licensed providers. CMSA suggests that the Act be
amended to make it clear that it applies to all that seek to
move used household goods and personal items in the state.
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The author might want to address this concern by amending her
bill by add Public Utility Code section 5109 "Household goods
carrier" to AB 2118 as follows :
PU Code section 5109. "Household goods carrier" includes
every corporation or person, their lessees, trustee, receivers
or trustees appointed by any court whatsoever, engaged in the
licensed or unlicensed transportation for compensation or hire
as a business by means of a motor vehicle or motor vehicles
being used in the transportation of used household goods and
personal effects over any public highway in this state.
3)AB 2118 also contains the addition of a definition for a
"broker." This was included to update the code now that many
unlicensed operators use the Internet to attract customers,
typically bid the job, illegally contract out the work,
collect the fees and then disappear.
4)The bill also would require each household goods carrier that
does list its company on the Internet to add or include a link
that directs all consumers to an Internet Web site hosted by
the PUC that promotes consumer rights and protection.
The author might want to consider amending the new Public
Utility Code section 5144 to provide a direct link to the
PUC's recommended protections and safeguards as follows:
PU Code section 5144. Every household goods carrier shall add
have a prominent link on its home page if the household goods
carrier's operates, posts to or uses an Internet Web site,
that immediately directs all consumers to the commission's
Internet Web page on moving companies and household goods
carriers that promotes consumer rights and protection.
5)Every household goods carrier and every officer or employee of
the carrier who violates the Act or who aids or abets any
violations or fails to obey or comply with any PUC order or
regulation is guilty of a misdemeanor, and can be fine up to
$1,000 or imprisoned in a county jail for up to 3 months or
both. If a violation is willful, each willful violation is
punishable by fine up to $10,000 or by imprisonment in a
county jail for up to a year, or both.
The author seeks to increase the simple misdemeanor fine from
$1,000 to $5,000 to deter future violations. Most misdemeanor
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penalty assessments do not increase five-fold at one time.
The author may wish to consider increasing the $1,000 fine to
$2,500 instead of $5,000 which is more in keeping with penalty
increases.
6)AB 2118 seeks to create a new fine for the fraudulent use of
household goods carriers that falsify licenses, association
membership, or a location. The new fine would be not more
than $5,000 per day that the carrier is in violation. This
fine was added because such representations falsely portray
legitimacy and attract unsophisticated customers.
7)AB 2118 also seeks swift consumer protections by granting the
PUC the authority to order an Internet Web site provider or
the source of a listing of an unlicensed household goods
carrier to remove the Internet Web site or the listing
offering the unlicensed household goods carrier.
The PUC has authority over specified utilities in the state of
California. Since it is unlikely that the Internet Web site
or provider is under the jurisdiction of the PUC, the author
might additional wish to strike Section 6 which creates Public
Utilities Code section 5323.
REGISTERED SUPPORT / OPPOSITION :
Support
21st Century Van Lines
Ace Relocation Systems, Inc.
Advantage Moving & Storage
Andy's Transfer & Storage (an Interstate Agent for North
American Van Lines)
Atlas Transfer & Storage Co.
Best Moving Services, Inc.
Beverly Hills Transfer and Storage
Blue Chip Moving & Storage, Inc.
California Moving and Storage Association (CMSA) (sponsor)
California Moving Systems
California Public Utilities Commission (CPUC) (co-sponsor)
California Relocation Services, Inc.
Cardinal Van & Storage (Atlas Interstate Agent)
Careful Moving & Storage
Chipman Moving & Storage
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Colonial Van & Storage, Inc.
Crown (Worldwide Moving & Storage)
Dewitt Companies LTD.
Earl Farnsworth Express
Ernie's Van & Storage
Excel Moving Services
E-ZMove Moving Services
G & H Moving & Storage Company (an agent for Mayflower Transit)
Galbraith Van & Storage Co. Inc. (an agent for North American
Van Lines)
Golden Eagle Moving Services
Golden Gate Moving and Storage Co.
Hi Desert Moving and Storage
Johnson United, Storage & Moving
Lompoc Van & Storage, Inc. (an agent for United Van Lines)
Main Street Moving and Storage
Metropolitan Van & Storage, Inc.
Monument Moving and Storage
Mother Lode Van & Storage, Inc.
MovePros
Movers Supply Brokerage, Inc.
Nor-Cal Moving Services
North Bay Moving & Storage (an agent for North American Van
Lines)
One Big Man & One Big Truck Moving Co., Inc.
Ortiz Bros. Moving & Storage
Paul Hanson Partners, Specialty Insurance Solutions
Poulos Moving Systems, Inc.
Priority Moving, Inc. (an agent for Wheaton Interstate Moving)
Qualex Inc. (a White Glove Furniture Delivery company)
Redwood Moving & Storage
Roseville Van & Storage, Inc. (an agent for North American Van
Lines)
San Diego Van & Storage Co.
Santa Rosa Moving & Storage Co.
Seniors-On-The-Move, Inc.
Stadler & Jensen Moving
Starving Students, Inc.
Sterling Van Lines
Unipack Global Relocation Services
Vandenberg Van & Storage, Inc.
VIP Transport (an agent for Mayflower Transit and United Van
Lines)
Walton Family Moving and Storage (an agent for Wheaton
Interstate Moving)
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Opposition
AT&T (unless amended)
California Cable & Telecommunications Association (CCTA) (unless
amended)
Comcast (unless amended)
Verizon (unless amended)
Analysis Prepared by : Susan Kateley / U. & C. / (916)
319-2083