BILL ANALYSIS �
AB 2118
Page 1
CONCURRENCE IN SENATE AMENDMENTS
AB 2118 (Butler)
As Amended August 6, 2012
Majority vote
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|ASSEMBLY: |70-0 |(May 25, 2012) |SENATE: |37-0 |(August 23, |
| | | | | |2012) |
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Original Committee Reference: U. & C.
SUMMARY : Seeks to additionally prohibit a household goods
carrier from being a broker; requires a link from the household
goods carrier's Web site, if applicable, to consumer protections
on the Web site 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 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 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.
AB 2118
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6)Increases the dollar limit of the misdemeanor fine for
violating the Act from $1,000 to $5,000.
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.
The Senate amendments specify that PUC establish rules for
electronic documents no later than July 1, 2013, and allows
household goods carriers to use electronic forms if agreed to by
the carrier and the customer.
AS PASSED BY THE ASSEMBLY , this bill was substantially similar
to the bill passed by the Senate.
FISCAL EFFECT : According to the Senate Appropriations
Committee, pursuant to Senate Rule 28.8, negligible state costs.
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 PUC to each licensed moving company's
Web site. Also, this bill will create rules to allow the
commission to adopt the use of electronic transactions between a
carrier and shipper."
The sponsor of this bill, 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.
This bill also contains the addition of a definition for a
"broker" 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
AB 2118
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disappear.
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 PUC
that promotes consumer rights and protection.
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 three months or
both. This bill would increase the penalty for certain
violations up to $2,500 with a minimum penalty of $1,000 for
operating without a permit. 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.
This bill 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
$2,500 per day that the carrier is in violation. This fine was
added because such representations falsely portray legitimacy
and attract unsophisticated customers.
Analysis Prepared by : Susan Kateley / U. & C. / (916)
319-2083
FN: 0004688