VI. The ALJ's Draft Decision
The draft decision of ALJ Econome was mailed to the parties in accordance with Pub. Util. Code § 311(g)(1) and Rule 77.7 of the Commission's Rules of Practice and Procedure.
Findings of Fact
1. Baeza has conducted operations as a household goods carrier without a permit in force and after the suspension and revocation of his permit on over 18 occasions.
2. Baeza has advertised as a household goods carrier without holding valid Commission authorization for his operations on at least seven occasions.
3. Baeza has on at least 65 separate occasions, failed to (1) respond timely to claims despite repeated inquiries and to maintain a claims register; (2) give customers a Not to Exceed Price; (3) provide adequate equipment and capable help; (4) maintain adequate evidence of insurance coverage on file with the Commission; (5) record total hours charges, move dates, time computations, change order documents, and obtain customer signatures; (6) issue an Agreement for Moving Services for each move performed; and (7) provide shipper information booklets to customers.
4. Baeza has shown a pattern of noncompliance with the law and Commission directives, particularly in operating without a valid permit, in keeping his insurance coverage current, and in providing written documentation for the moves.
5. Baeza admits to poor business practices in not utilizing the proper paper work. His refusal to respond promptly to customer complaints and adequately document his moves is a serious violation of Commission statutes, General Orders, and tariffs.
6. This decision does not permanently revoke Baeza's permit at this time, because we believe a less severe remedy will effectively deter violations by Baeza and others.
1. Because this proceeding can be resolved on the parties' declaration, evidentiary hearings are no longer necessary and this order should change the determination originally made in the OII and Scoping Memo.
2. Baeza violated Pub. Util. Code § 5133 on over 18 occasions by conducting household goods carrier operations without a Commission permit in force, and similarly violated § 5286 by conducting operations as a household goods carrier after the suspension or revocation of his permit.
3. Baeza violated Pub. Util. Code § 5313.5 on at least seven occasions for advertising as a household goods carrier without a valid permit.
4. Baeza violated Pub. Util. Code § 5139, General Orders 100-M and 136-C, and Maximum Rate Tariff 4 at least 65 times.
5. Baeza should be placed on probation for three years following the effective date of this decision.
6. In order to reinstate his revoked operating permit, no later than 30 days from the effective date of this decision, Baeza should provide evidence to the License Section of the Commission's Rail Safety and Carriers Division of adequate insurance coverage and shall pay all past due quarterly fees, as more fully stated in the Ordering Paragraphs. Additionally, Baeza should keep his evidence of proof of insurance current throughout the three-year probationary period.
7. If Baeza does not comply with all insurance requirements during the probation period, the License Section of the Commission's Rail Safety and Carriers Division will immediately suspend Baeza's permit for operating authority, with revocation to follow in 30 days. Reinstatement will be permitted only through the application process. If CSD determines Baeza has violated any of the other terms of this decision during the probationary period, CSD should promptly commence a formal proceeding for the purpose of permanently revoking Baeza's operating authority.
8. Baeza should pay in full the outstanding Small Claims Court judgment (including costs) in the Gilbert matter no later than 60 days from the effective date of this decision, and provide proof of payment of this judgment in his quarterly report.
9. During the probationary period, Baeza should pay in full all final judgments against him from claims arising from his moving services no later than 60 days after the final judgments are rendered, unless the terms of the final judgments specify a different payment plan, and should document such payment in his quarterly reports.
10. Baeza should provide quarterly written reports to the Commission as set forth in the Ordering Paragraphs.
11. Baeza should comply with all pertinent state statutes and Commission General Orders, tariffs, rules, and regulations governing household goods carriers, including but not limited to the Household Goods Carrier's Act, Pub. Util. Code §§ 5101 et seq., General Orders 100-M and 136-C, and the Commission's Maximum Rate Tariff 4.
12. Baeza should obtain job counseling at his expense no later than 90 days after the effective date of this decision in order that he might properly comply with the laws governing household goods carriers, particularly Maximum Rate Tariff 4. Baeza should certify to the Commission that he has complied with this directive in his quarterly reports.
13. Baeza should be fined $19,000 in fines as follows: $500 for each of 25 violations of Pub. Util. Code § 5313.5, consisting of (a) 18 violations of operating without a valid permit and seven violations for holding himself out as a carrier without a valid permit; and (b) $100 for each of 65 violations of Pub. Util. Code § 5139, General Orders 100-M and 136-C, and Maximum Rate Tariff 4. All but $5,000 of this fine should be suspended provided Baeza complies with this decision throughout the probationary period. Baeza should pay the fine as set forth in the Ordering Paragraphs.
14. Should Baeza fail to comply with this decision throughout the probationary period, the remaining fine, including the suspended portion, should become due and payable immediately.
15. In order to effectively protect consumers, this order should be effective immediately.
IT IS ORDERED that:
1. Arnold Ray Baeza, doing business as Best Movers (Baeza), shall be permitted to reinstate Household Goods Carrier Permit T-163,844 provided that he comply with all conditions set forth in this decision.
2. Baeza shall be placed on probation for three years following the effective date of this decision.
3. In order to reinstate his revoked operating permit, no later than 30 days from the effective date of this decision, Baeza shall (1) provide to the License Section of the Commission's Rail Safety and Carriers Division evidence of adequate insurance coverage, including but not limited to liability, cargo, and workers compensation insurance, and shall pay all past due quarterly fees; and (2) keep his evidence of proof of insurance current with the Commission throughout the three year probationary period.
4. If Baeza fails to maintain appropriate insurance requirements during the probation period, the License Section of the Commission's Rail Safety and Carriers Division is directed to immediately suspend Baeza's permit for operating authority, with revocation to follow in 30 days. Reinstatement will be permitted only through the application process. In any such application, Baeza shall be required to pay appropriate licensing fees, show his operations and practices will conform to Commission rules and regulations, and include a verified statement that he has paid all outstanding fines and has resolved all outstanding consumer complaints. If the Commission's Consumer Services Division (CSD) determines Baeza has violated any of the other terms of this decision during the probationary period, CSD should promptly commence a formal proceeding for the purpose of permanently revoking Baeza's operating authority.
5. Baeza is fined $19,000, with all but $5,000 suspended provided Baeza complies with this decision. Baeza shall pay the $5,000 fine in five installments, with the first installment of $1,000 due no later than the first of the month following the effective date of this decision and the subsequent installments due every 60 calendar days thereafter. Each payment shall be made payable to the California Public Utilities Commission and made to CSD, in care of William G. Waldorf, California Public Utilities Commission, Supervisor, Consumer Services Division, 505 Van Ness Avenue, San Francisco, California 94102, or any other person that the Commission, the Assigned Commissioner, or the Assigned Administrative Law Judge, may designate.
6. If Baeza fails to comply with this decision, the remaining fine, including the suspended portion, shall become due and payable immediately.
7. Baeza shall pay in full the outstanding Small Claims Court judgment (including costs) in the Gilbert matter no later than 60 days from the effective date of this decision, and provide proof of payment of this judgment in his quarterly report.
8. During the probationary period, Baeza shall pay in full all final judgments against him from claims arising from his moving services no later than 60 days after the final judgments are rendered, unless the terms of the final judgments specify a different payment plan, and shall document such payment in his quarterly reports.
9. Baeza shall file quarterly written reports with the Commission during the three-year probationary period. The first report shall be filed on September 15, 2002. Thereafter, each subsequent report shall be filed no later than 90 calendar days thereafter. Each report shall be under oath, signed by Baeza, and filed with William G. Waldorf, California Public Utilities Commission, Supervisor, Consumer Service Division, 505 Van Ness Avenue, San Francisco, California 94102, or any other person that the Commission, the Assigned Commissioner, or the Assigned Administrative Law Judge, may designate. Each report shall contain the following information:
(a) a summary of compliance with this decision;
(b) a summary of all consumer complaints made against Baeza or any of his employees during the probationary period;
(c) the nature of each complaint;
(d) the names, addresses and telephone numbers of the complainant and to whom the complaint was made;
(e) the disposition of the complaint by Baeza; and
(f) a copy of all correspondence or other written communication between Baeza or any of his employees and the complainant.
10. Baeza shall comply with all pertinent state statutes and Commission General Orders, tariffs, rules, and regulations governing household goods carriers, including but not limited to the Household Goods Carrier's Act, Pub. Util. Code §§ 5101 et seq., General Orders 100-M and 136-C, and the Commission's Maximum Rate Tariff 4.
11. Baeza shall obtain job counseling at his expense no later than 90 days after the effective date of this decision in order that he might properly comply with the laws governing household goods carriers, particularly Maximum Rate Tariff 4. Baeza shall certify to the Commission that he has complied with this directive in his quarterly reports.
12. Because this proceeding can be resolved on the parties' declarations, evidentiary hearings are no longer necessary and this order shall change the determination originally made in the Order Instituting Investigation and Scoping Memo.
13. This proceeding is closed.
This order is effective today.
Dated , at San Francisco, California.
