IV. DISCUSSION

The Commission exercises continuing oversight of a carrier's fitness. Public Utilities Code § 5285 authorizes the Commission, upon complaint or on the Commission's own initiative and after notice and opportunity to be heard, to suspend, change, or revoke a permit for failure of the carrier to comply with any of the provisions of the Act, or with any order, rule, or regulation of the Commission, or with any term, condition, or limitation of the permit. Section 5139 gives the Commission power to establish rules for the performance of any service of the character furnished or supplied by household goods carriers.

We place tremendous trust in household goods carriers in granting them operating authority, a trust equaled by that of our citizens who tender their most personal and treasured belongings to movers. This carrier's alleged pattern of violations, operating without a permit in force, failing to file evidence of public liability, cargo, or workers' compensation insurance, advertising moving services without a valid household goods carrier permit in force, continuing such advertising and operations after staff directives to cease all such unlawful activity, and after issuance of a Temporary Restraining Order from the court directing it to cease all unlawful advertising and operations as a mover without the required permit from the Commission, alarms us.

Before issuing a permit, the Commission reviews the fitness of household goods carriers. A fundamental measure of the fitness of a household goods carrier holding a permit issued by the Commission is compliance with statutes and regulations applicable to household goods carriers.

Section 5135 provides, in part, that:

The commission may refuse to issue a permit if it shall be shown that an applicant or an officer, director, partner or associate thereof has committed any act constituting dishonesty or fraud; committed any act which, committed by a permitholder would be grounds for a suspension or revocation of the permit; misrepresented any material fact on his application; or, committed a felony, or crime involving moral turpitude.

The commission shall issue a permit only to those applicants who it finds have demonstrated that they possess sufficient knowledge, ability, integrity and financial resources and responsibility to perform the service within the scope of their application.

Respondent should recognize that the Consumer Protection and Safety Division's allegations described herein are grave and, if substantiated through hearing, may well constitute grounds for denial for cause of Respondent's application for operating authority and/or other appropriate sanctions and remedies.

It appears that Respondent may have:

1. Violated § 5314.5 of the Public Utilities Code by advertising and holding out to the public that it is in operation as a household goods carrier, without a valid permit issued under Chapter 7 of the Public Utilities Code;

2. Violated § 5139 and 5161 of the Public Utilities Code and GO 100-M by failing to procure, and to continue on file and in effect while conducting operations as a household goods carrier, adequate protection against liability, as imposed by law upon carriers;

3. Violated § 5139 and 5161 of the Public Utilities Code and GO 136-C by failing to procure, and to continue on file and in effect while conducting operations as a household goods carrier, adequate cargo insurance, as imposed by law upon carriers;

4. Violated § 5135.5 of the Public Utilities Code by failing to procure, and to continue on file and in effect while conducting operations as a household goods carrier, adequate workers' compensation insurance coverage for its employees, as imposed by law upon carriers;

5. Violated § 5133 of the Public Utilities Code by conducting operations as a household goods carrier without a permit in force from the Commission authorizing those operations;

6. Violated §§ 5135, 5139 and Item 88 of MAX 4 by falsely displaying the permit number of another household goods carrier in its advertising;

7. Demonstrated lack of fitness to hold operating authority under Section 5135 of the Public Utilities Code by a pattern of continuing violations over an extended period, of provisions of the Public Utilities Code, Commission regulations and orders of the court applicable to household goods carriers and its operations.

IT IS ORDERED that:

1. An investigation on the Commission's own motion is instituted into the operations and practices of Respondent Fan Ding (aka Ding Fan or Lisa Ding) dba Lucky Moving Company, Lucky Movers, Jixiang Moving Co., Northam Immigration Services, and Northman Immigration Service. A public hearing on this matter shall be held expeditiously before an Administrative Law Judge (ALJ) at a time and date to be set at the prehearing conference. At the hearing, Respondent shall appear and show cause why its pending application for a household goods carrier permit under File No. T-189,546 should not be denied for cause and lack of fitness in view of the above listed allegations made by Staff, assuming the allegations are proven at the hearing, and/or other sanctions imposed.

2. During the pendency of this investigation, it is ordered that Respondent Fan Ding (aka Ding Fan or Lisa Ding) dba Lucky Moving Company, Lucky Movers, Jixiang Moving Co., Northam Immigration Services, and Northman Immigration Service shall cease and desist from any violations of the terms of the Preliminary Injunction in Case No. 04-428873 granted by the Superior Court in San Francisco on April 12, 2004, in connection with household moves, the Household Goods Carriers' Act, including Maximum Rate Tariff 4 and General Order 100-M.

3. The Consumer Protection and Safety Division staff, if it elects to do so, may present additional evidence beyond that described in the declaration issued with this order, either by testimony or through documentation, bearing on the operations of Respondent and any new advertising of moving services to the public.

4. Scoping Information: This paragraph suffices for the "preliminary scoping memo" required by Rule 6 (c).

This enforcement proceeding is adjudicatory, and, absent settlement between staff and Respondent, will be set for evidentiary hearing. A hearing may also be held on any settlement for the purpose of enabling parties to justify that it is in the public interest or to answer questions from the ALJ about settlement terms. A prehearing conference will be scheduled and held within 40 days and hearings will be held as soon as practicable thereafter. Objections to the OII may be filed but must be confined to jurisdictional issues, which could nullify any eventual Commission order on the merits of the issues concerning violations of statutes, rules, regulations or orders.

5. Respondent is hereby placed on notice that if staff's allegations are proven during the evidentiary hearing, the Commission may impose fines and penalties according to that which is authorized by law. The Executive Director shall cause a copy of this order and the staff declarations to be served by certified mail upon Respondent Fan Ding dba Lucky Moving Company, Lucky Movers, Jixiang Moving Co., Northam Immigration Services, and Northman Immigration Service, 2562 Noriega Street #203, San Francisco, CA 94122. A copy of this order and the staff declarations shall also be sent by certified mail to Peter Chao, Attorney at Law, Chao & Lopez, Counsel for Respondent Fan Ding, 807 Montgomery Street, San Francisco, CA 94133.

This order is effective today.

Dated July 8, 2004, at San Francisco, California.

MICHAEL R. PEEVEY

President

CARL W. WOOD

LORETTA M. LYLNCH

GEOFFREY F. BROWN

SUSAN P. KENNEDY

Commissioners