970218.docx

DECISION MEMORANDUM
TO:COMMISSIONER NELSON
COMMISSIONER SMITH
COMMISSIONER HANSEN
MYRNA WALTERS
TONYA CLARK
DON HOWELL
RON LAW
BOB HORTON
DAVID SCOTT
WORKING FILE
FROM:BRAD PURDY
DATE:FEBRUARY 18, 1997
RE:REQUEST OF MR. ARNOLD GUMM, DBA MOBILE HOME RELOCATORS, FOR CONDITIONAL PERMIT
On January 4, 1982, Mr. Arnold Gumm applied for a temporary and permanent motor carrier permit as a sole proprietorship.  The Commission granted a temporary permit on March 19, 1982.  The permanent permit was approved on May 12, 1982 over the protest of two intervenors.  A Complaint regarding lack of insurance was issued against Mr. Gumm on April 30, 1984.  The Commission suspended Gumm’s permit on May 7, 1984.  The Complaint was ultimately dismissed and the permit was reinstated on May 18, 1984.  Another Complaint was filed on October 30, 1984, again, for lack of adequate insurance.  The Commission suspended Mr. Gumm’s permit on November 2, 1984, and his permit was canceled December 12, 1984.
Mr. Gumm subsequently reapplied for a permit under the name G&G, Inc.  The Commission granted G&G a permanent permit on July 12, 1985.  On August 16, 1985, another Complaint was made for lack of insurance and the Commission suspended G&G’s permit.  The permit was eventually reinstated on September 4, 1985.  On September 18, 1985, G&G requested to change its name to Mobile Home Relocators.  On January 16, 1986, a Complaint for lack of insurance was issued followed by a suspension on January 22, 1986.  The Complaint was ultimately dismissed because of the carrier’s request for a voluntary six-month suspension.  Another Complaint was issued for lack of insurance, registration and the necessary $21 regulatory fee on August 18, 1987.  Mobile Home Relocators’ permit was involuntarily suspended on August 19, 1987.  The permit was canceled on November 23, 1987.  
On September 30, 1996, Mr. Gumm reapplied for a permit under the name Mobile Home Relocators.  On December 4, 1996, the Commission issued Order No. 26699 stating that Mobile Home Relocators would be issued a motor carrier permit “upon compliance. . .with the regulations of this Commission pertaining to a satisfactory safety rating.”  Order No. 26699 at p. 2.  The Order further stated that if the Applicant failed to submit proof of insurance and other documents required by the Commission within 42 days, then its authority would be revoked.
On January 3, 1997, the Commission Staff conducted a safety review disclosing that Mobile Home Relocators had few records.  Consequently, it will take time for the Applicant to develop adequate records on which to base a safety review.  Rule 41.04(a) provides that an applicant for a motor carrier permit must show that it will conform to the provisions of the Motor Carrier Act and other requirements promulgated by the Commission pursuant to the Motor Carrier Rules and that it will “demonstrate safety, fitness and ability” and that the application shall “show that the applicant has received and maintained a satisfactory safety rating or has a conditional rating, which will be upgraded to satisfactory within one year.”  Rule 41.04(a) was amended on February 21, 1995.  Formerly, it provided a 120-day period in which to obtain a satisfactory or conditional permit.  The time was extended to facilitate Staff in its review of motor carriers. Rule 1 of the Motor Carrier Rules provides that “unless prohibited by statute or rule of substantive law, the Commission may permit deviation from procedural rules in these Motor Carrier Rules when it finds compliance with them is impracticable, unnecessary or not in the public interest.”  Because of Mr. Gumm’s history, Staff recommends that the Commission issue a temporary permit giving Mobile Home Relocators only 120 days in which to obtain a satisfactory or a conditional rating.
Commission Decision
Does the Commission wish to issue a temporary permit to Mobile Home Relocators with the condition that the carrier must obtain a conditional or satisfactory rating within 120 days?
Brad Purdy
vld/M:Gumm.bp