BILL ANALYSIS �
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|SENATE RULES COMMITTEE | AB 2118|
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THIRD READING
Bill No: AB 2118
Author: Butler (D)
Amended: 8/6/12 in Senate
Vote: 21
SENATE ENERGY, UTIL. & COMMUNIC. COMM. : 12-0, 6/25/12
AYES: Padilla, Fuller, Berryhill, Corbett, De Le�n,
DeSaulnier, Emmerson, Kehoe, Pavley, Rubio, Simitian,
Wright
NO VOTE RECORDED: Strickland
SENATE APPROPRIATIONS COMMITTEE : 7-0, 8/6/12
AYES: Kehoe, Walters, Alquist, Dutton, Lieu, Price,
Steinberg
ASSEMBLY FLOOR : 70-0, 5/25/12 (Consent) - See last page
for vote
SUBJECT : Household goods carriers
SOURCE : California Moving and Storage Association
California Public Utilities Commission
DIGEST : This bill amends the Household Goods Carriers
Act to enhance the authority of the Public Utilities
Commission (PUC) to regulate household goods carriers.
ANALYSIS : Existing law authorizes the PUC to regulate
any "household goods carrier," defined as a corporation or
person that transports for compensation or hire used
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household goods and personal effects by a motor vehicle
over any public highway in this state.
Existing law prohibits a household goods carrier from
operating without a permit issued by the PUC and meeting
requirements that include showing financial and safety
fitness and residency, having adequate insurance, clearing
a criminal background check, and complying with operating
regulations, including maximum rate tariffs.
Existing law provides various penalties for household goods
carriers that violate applicable laws and PUC rules,
including being subject to vehicle impoundment and court
action for recovery of customer charges, and being found
guilty of a misdemeanor punishable by a fine of not more
than $1,000 or three months in county jail, or both, or,
for a willful violation, a fine of not more than $10,000 or
one year in county jail.
Existing law authorizes the PUC to seek the termination of
telephone service of a household goods carrier operating
without a permit.
Existing law prohibits a telephone corporation from
releasing subscriber information without customer consent
except in specified circumstances.
Existing law establishes various requirements related to
household goods carriers' records, customer contracts,
signatures, insurance, and other documentation.
This bill:
1. Identifies "broker" as a person engaged by others in the
act of arranging for service by a household goods
carrier and makes a "broker" subject to permit
requirements.
2. Clarifies that an entity falling within the definition
of "household goods carrier," including a "broker," is
subject to penalties regardless of whether it has
obtained a permit and maintains the failure to obtain a
permit as a separate violation.
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3. Increase fines from a maximum of $1,000 to $2,500 and
requires that the fine for a violation that involves
operating or holding oneself out as a household goods
carrier without a permit be not less than $1,000.
4. Authorizes the PUC to suspend or revoke a household
goods carrier's permit, or assess a fine, for
unauthorized use of another person's trademark and
authorizes assessments to cover the expense of a
commission trademark infringement investigation.
5. Requires every household goods carrier to add a link to
its Internet Web site that immediately directs all
consumers to the PUC's Internet Web site related to
protection for consumers of moving companies and
household goods carriers.
6. Authorizes the release, without customer consent, of the
name and address of a subscriber whose telephone number
is being use by a household goods carrier operating
without a permit.
7. Requires the PUC to adopt rules for meeting requirements
related to household goods carriers' records, customer
contracts, signatures, insurance, and other
documentation with electronic records.
Comments
According to the PUC, sponsor of this bill, consumers who
hire a household goods carrier that has not obtained a
permit are potentially subject to excessive charges,
uninsured losses, and other service problems. Carriers
operating without a permit have an unfair cost advantage
over permitted carriers because they maintain inadequate
liability and workers' compensation insurance, which is a
substantial expense for lawful operators. As a
consequence, carriers who obtain a permit and comply with
the rules lose business to the violators, which in turn,
makes it more difficult for them to fully comply with
insurance and safety standards, all to the detriment of
consumers.
The PUC states that its enforcement staff receives many
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complaints about carriers without permits, many from
licensed carriers or the California Moving and Storage
Association, an industry trade group. Stopping the
violators is difficult, the PUC states, because of the
relative anonymity afforded by Internet advertising and
because many claim to be operating only as a "broker" and
not subject to permit requirements. Unsuspecting customers
are frequently subject to abusive practices such as
"holding goods hostage" - refusal to deliver goods until
the customer pays additional charges not disclosed when the
service was arranged.
FISCAL EFFECT : Appropriation: No Fiscal Com.: Yes
Local: Yes
SUPPORT : (Verified 8/8/12)
California Moving and Storage Association (co-source)
California Public Utilities Commission (co-source)
21st Century Van Lines, Inc.
Ace Relocation Systems, Inc.
Advantage Moving and Storage
Andy's Transfer and Storage
Atlas Transfer and Storage Company
Best Moving Service, Inc.
Beverly Hills Transfer and Storage
Blue Chip Moving and Storage, Inc.
California Moving Systems
California Relocation Service, Inc.
Cardinal Van and Storage
Careful Moving and Storage
CDS Moving Equipment, Inc.
Chipman Moving and Storage
Colonial Van and Storage, Inc.
Crown Moving and Storage
Dewitt Companies of California
Earl Farnsworth Express
Ernie's Van and Storage
EXCEL Moving Services
E-ZMOVE Moving Services
G&H Moving and Storage Company
Galbraith Van and Storage Company, Inc.
Golden Eagle Moving Services
Golden Gate Moving and Storage Company
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Hi Desert Moving and Storage
Johnson Storage and Moving
Lompoc Van and Storage, Inc.
Main Street Moving and Storage
Metropolitan Van and Storage, Inc.
Monument Moving and Storage Mother Lode Van and Storage,
Inc.
Move Pros
Movers Supply Brokerage, Inc.
Nor-Cal Moving Services
North Bay Moving and Storage
Oakley Relocation
One Big Man and One Big Truck
Ortiz Bros. Moving and Storage
Paul Hanson Partners
Poulos Moving Systems, Inc.
Priority Moving, Inc.
Qualex Inc.
Redwood Moving and Storage
Roseville Van and Storage, Inc.
San Diego Van and Storage Company
Santa Rosa Moving and Storage Company
Seniors On The Move, Inc.
Stadler and Jensen Moving
Starving Students
State Council for Independent Living
Sterling Van Lines
Unipack Global Relocation Services
Vandenberg Van and Storage, Inc.
VIP Transport
Walton Family Moving and Storage
ASSEMBLY FLOOR : 70-0, 5/25/12
AYES: Achadjian, Alejo, Allen, Ammiano, Beall, Block,
Blumenfield, Bonilla, Bradford, Brownley, Buchanan,
Butler, Charles Calderon, Campos, Carter, Cedillo,
Chesbro, Conway, Cook, Davis, Dickinson, Donnelly, Eng,
Feuer, Fong, Furutani, Beth Gaines, Galgiani, Garrick,
Gatto, Gordon, Gorell, Hagman, Halderman, Harkey,
Hayashi, Roger Hern�ndez, Hill, Huber, Hueso, Huffman,
Jeffries, Jones, Lara, Logue, Bonnie Lowenthal, Mansoor,
Mendoza, Miller, Mitchell, Monning, Morrell, Nestande,
Nielsen, Norby, Olsen, Pan, V. Manuel P�rez, Portantino,
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Skinner, Smyth, Solorio, Swanson, Torres, Valadao,
Wagner, Wieckowski, Williams, Yamada, John A. P�rez
NO VOTE RECORDED: Atkins, Bill Berryhill, Fletcher,
Fuentes, Grove, Hall, Knight, Ma, Perea, Silva
RM:k 8/8/12 Senate Floor Analyses
SUPPORT/OPPOSITION: SEE ABOVE
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