Proposed Settlement

At the second PHC, CSD and Franklin announced that they had reached a settlement in principle resolving the issues before the Commission and leading to the issuance of a conditional permit. ALJ Sullivan stated his willingness to consider a Settlement detailing the conditions.

The Settlement, filed on July 11, 2001 and attached to this decision, provides for the following terms:

1. CSD will request the Commission to authorize the Rail Safety and Carriers Division, License Section, to issue Franklin a permit for a term of two years. Fourteen days prior to the expiration of such this term, CSD shall review Franklin's compliance with the Settlement.

2. CSD will request, as soon as practicable after the review date but before the expiration of the two year term, that the License Section issue Franklin a permanent license and waive any fess provided that Franklin fulfills certain terms and conditions. These include:

· Reports every 90 days concerning all customer claims against Franklin and the status of prior claims.

· Reports of a drug test taken within ten days of the delivery of each report.

· Continued compliance with all State and Federal laws and regulations.

· If Franklin materially violates any provision of this Settlement, any state or federal statute, or Commission rules and regulations, CSD states that it will request that the License Section cancel the temporary permit.

· In the event that CSD files a formal enforcement action requesting the Commission to issue an Order Instituting Investigation, upon CSD's written request, Franklin agrees to:

a. Relinquish his permit pending the outcome of a hearing;

b. As soon as practicable cease and desist from advertising or operating as a household goods carrier in California.

In addition, parties agree that the provisions of the Settlement are not severable. Finally, the Settlement includes a variety of technical provisions associated with the adoption and execution of all settlements.