Before the Public Utilities Commission of the State of California

In the matter of the Order Instituting Investigation and Order to Show Cause on the Commission's own motion into the operations and practices of Ronen Perez, an individual, Ford Moving and Storage, Inc., a California corporation, and its president, Ronen Perez, Applicants/Respondents.

FILED PUBLIC UTILITIES COMMISSION APRIL 1, 2004 SAN FRANCISCO I.04-04-001

ORDER INSTITUTING INVESTIGATION AND ORDER
TO SHOW CAUSE WHY RESPONDENTS' APPLICATION
SHOULD NOT BE DENIED WITH PREJUDICE

The California Public Utilities Commission (Commission) is the agency responsible for regulating the intrastate transportation of used household goods, personal effects and furniture, pursuant to Article XII of the California Constitution, the Household Goods Carriers Act (Act) (Public Utilities Code §§ 5101 et seq.),¹ the Commission's Maximum Rate Tariff 4 (MAX-4), and Commission General Orders (GOs) 100-M, 136-C, 142, and others. These statutes and regulations require, among other things, that household goods carriers operate only in a responsible manner in the public interest; procure, continue in effect, and maintain on file adequate proof of public liability/property damage, cargo, and workers' compensation insurance; and observe rules and regulations governing: (1) acknowledging and handling claims for loss and damage, (2) issuing estimates, (3) executing and issuing documents, (4) training and supervising employees, (5) maintaining equipment and facilities, and (6) rates and charges. The Commission is the primary agency responsible for enforcing these and other statutes and regulations governing household goods carriers. These other statutes and regulations include general consumer protection and public safety provisions.

We have directed the Consumer Protection and Safety Division (formally in D. 92-05-028) to use all tools at its disposal to enforce the laws and regulations against illegal operations - both carriers operating without a permit, and permitted carriers not in compliance with the law, and our rules and regulations - and to bring cases to district attorneys and before the Commission for prosecution as appropriate. In response to our directives, staff has brought such investigative proceedings before us as Starving Students [I.92-11-029, 02-02-005], Best Move [I.91-11-002], Nice Jewish Boy/Father and Son [I.90-12-010], Reginald Duncan [I.90-09-009], Dave's Quality Movers [I.91-10-011], Ronald Zammito [I.91-01-011], Harrington Brothers, Inc. [I.94-03-022], Arnold Baeza dba Best Movers [I.01-06-021], All America Express Moving and Storage [I.02-09-001] and Affordable Apartment Movers [I.01-11-052]. All these cases involved a pattern of egregious violations.

Consumer Protection and Safety Division (CPSD) investigators (Staff) advise us, through the declarations supporting the issuance of this investigatory proceeding, that Staff became aware of unlawful operations and advertising for moving services by Ronen Perez as an individual doing business as (dba) Ford Moving and Storage, CPUC File T-189248, and as a corporation under Ford Moving and Storage, Inc., CPUC File T-189632 (hereinafter Ford Moving and Storage). Staff then initiated an investigation into the business practices of Ford Moving and Storage which operates a moving and storage business in Los Angeles County. Staff's investigation of Ford Moving and Storage found numerous alleged violations of the "Household Goods Carriers' Act" and Commission rules and regulations, including operations and advertising during an extended period without either public liability insurance on file or a permit in force from the Commission authorizing those operations. Although Ford Moving and Storage filed an application for operating authority, it failed to meet requirements, including fitness requirements, for issuance of a household goods carrier (HHG) permit.