The California Legislature is back in session and while there are new protocols in place related to COVID 19 and access to the Capitol itself they are moving forward with several pieces of legislation important to permitted movers. As the trade association for regulated movers, the California Moving and Storage Association (CMSA) is actively engaged in the legislative process.

Regarding AB 5, as discussed previously, we are lobbying for an industry specific carve out or at least a refinement of the B to B regulations.

Another important bill is AB 2460 (Daly) sponsored by the California Trucking Association (CTA) and the Teamsters asking that Federal Motor Carriers that provide container service (think ABF and PODS) be specifically excluded from the Bureau of Household Goods and Services (BHGS) regulation. This action is a result of BHGS recent enforcement actions against these entities. BHGS understood our long-held position that these entities fell under the definition of permitted mover and therefore regulation.

Below are my public comments related to AB 2460 (Daly):
1. The Law

The definition of HHG mover is very clear, it does not speak to packing, loading or labor, it speaks directly to transportation of used HHG on the public highway. FYI the law is fresh, not old in need of revision. The entire Household Goods Movers Act was reviewed and reestablished in 2017 in SB 19 (Hill) when the legislature, agency, and stakeholders took a deep dive into Household Goods regulation.

Additionally, the Household Goods Movers Act and its predecessor the Household Goods Carriers Act has seen changes to include more regulated entities not less.

In 2013 AB 2118 (Butler), a CMSA-sponsored bill, amended the Act and relevant code to change the definition of a Household Mover, adding Brokers to that group. Clearly stating that brokers MUST have the same BHGS permit as all legal and licensed movers. Stated in the enrolled bill (changes underlined):

This bill would expand the definition of a household goods carrier to include a household goods carrier that engages in the permitted or unpermitted 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. The bill would require a broker, as defined, to be considered a household goods carrier. The bill would additionally prohibit a household goods carrier from arranging, by any means or media, as a broker for the
transportation of used household goods and personal effects

Federal law does not prohibit states from enacting and enforcing their own laws, nor are states required to offer the same exemption from permit requirements as federal law. Under 49 U.S.C. 14501(c)(2)(B), the federal preemption does not apply to the intrastate transportation of household goods.

2. Public Policy

These companies represent themselves to the public as movers.
The sponsors state that they are concerned with the interests of Federally Regulated Motor Carriers, as if the implication is that these companies are not to be worried about. The standard to qualify as a Federal Motor Carrier is embarrassingly low and includes almost none of the California Bureau of Household Goods and Services 52-page qualification packet, background check and practical rules test. The BHGS permit standard is the Gold Standard!

They also contend that the regulations place a burden on them. If this is accurate, wouldn’t it be true that it places the same burden on the businesses of California who follow the rules and regulations that makes moving in California safer for the public than in almost any other state?

They are moving California consumers households; therefore, they should be constrained by the same rules and regulations placed on all movers operating in the state.

Failure to do so subjects the California consumer to damages.

These carriers operating without regulation do not provide the same level of Consumer Protections mandated by BHGS, protections related to: pricing standards, notification, price certainty,and standard documents.

Valuation is the financial protection for consumers of moving services in the event of damage or loss. The freight standard is $0.10 per lb. verses the moving industry legal minimum of $0.60 per lb. (movers in California are also required to provide other valuation options up to and including Full Replacement without any deductible).

Failure to regulate this class of movers represents a Moral Hazard.

We must ask ourselves why a business would work to avoid consumer protections, and why an elected representative would support it.

May 2020 - CMSA Communicator