Central Issue: Fitness to Provide Service

The central issue before the Commission is to determine whether Franklin qualifies for a household goods carrier permit.

Sections 5101 through 5335 of the Public Utilities Code establish a program for the regulation of household goods carriers. Pursuant to these statutory provisions, the Commission operates a regulatory program that requires the applicant for a household goods carrier permit "to establish ability and reasonable financial responsibility to initiate the proposed operations." (§ 5135(a).)

A key element of the Commission's regulatory program is to protect consumers from dishonest, fraudulent, and incompetent movers. Section 5135(f) states that the "commission shall issue a permit only to those applicants it finds have demonstrated the knowledge, ability, integrity and financial resources and responsibility to perform the service within the scope of their application." Section 5135(e) grants the Commission broad authority to refuse to issue a permit to those committing acts of "dishonesty or fraud."