Staying Legal IMAWA 2011 Workshop

1. Staying Legal IMAWA 2011 Workshop Presentation by Illinois Commerce Commission Tina Burgess

2. Staying Legal Trucks Personnel Advertising Documentation Warehousing Tariffs Complaints Illinois Commerce Commission Police Tina Notes

3. Trucks Must be maintained in a manner that is sufficient to protect the goods from damage or breakage Mover is required to determine the number of men, pieces of equipment and size of the vehicle to provide safe and timely transportation. Must be free of vermin and debris

4. Trucks Identification must be on both sides of power unit Trade Name License Number Registration Number *IL.C.C.* followed by License Number

5. Trucks Properly executed cab cardsCab cards can be purchased for rental vehicles 1 cab card for each motorized vehicle Cab cards can be purchased for rental vehicles Erasure or alterations of the cab card will render it void Copy of the HHG license Proof of insurance (for other law enforcement agencies) UCR is not required to be in the vehicle Weigh Stations � Common Violations Over 8 tons (16,000 lbs.) must go through weigh station Most box trucks weigh 16,000 lbs. empty

6. Trucks Weighing of HHG moves is required on a weight distance move and when a move is going into storage-in-transit Weight must be done on a certified scale Crew must be off truck The truck must include the equipment (dollies, pads, etc.) Weight tickets must be kept as part of your records for 3 years

7. Trucks Leasing of Trucks (Equipment Only) Do not mistake for leasing your authority It is Illegal to lease authority Mover is responsible for the leased equipment and their actions Leases must be on file with the Commission in triplicate (original and 2 copies)

8. Trucks Rented Vehicles Rental agreement must be in the vehicle Rental agreement is NOT required to be filed with the commission Don�g Forget The cab card for the rental vehicle Must be identified on both sides of the power unit Operating authority must be in the vehicle For other law enforcement: Proof of Insurance

9. Personnel Drivers and helpers must be trained Movers must establish a safety, training and maintenance program Drivers and helpers may not be under the influence of alcohol, narcotics or habit forming drugs The mover�s personnel represent the company Think about first impressions Crew�s actions during the move Make surprise visits on crews Conduct during contact with the IL.C.C. Police or any other law enforcement agency

10. Advertising The term advertising means any advertisement, solicitation or other communication with the public in relation to the offer or sale of Illinois intrastate household goods transpiration service. The term shall include advertisement by radio, television, internet, computer media or any other medium. The term shall not include a simple listing of HHG carriers� names, addresses and telephone numbers as in a telephone directory.

11. Advertising The advertisement must include the full name as it appears on the carrier�s license from the commission The advertisement must identify the carrier by showing �ILL.C.C.� followed by the license number assigned to the HHG carrier by the commission Because it is illegal, the advertisement may not include Discounting of any kind, senior or otherwise Guaranteed Pricing (includes BNTE) Free items (first 30 days of storage, boxes, etc)

12. Advertising If you are a duly authorized agent for other licensed carriers, you may advertise and represent yourself as such an agent For example: Mayflower, United, Allied, Bekins, Paul Arpin, etc. Rates may not be advertised unless the following caveats are included in the advertisement �Rates effective (date), subject to change�, and Actual Charges governed by applicable tariffs, this advertisement notwithstanding We commonly see violations on the internet � Check your website

13. Advertising HHG carriers shall not misrepresent the scope of services offered HHG carriers cannot advertise that their operations are conducted at addresses or locations where duly authorized employees are not on duty during all business hours. An answering service does not constitute an address or location where employees are on duty HHG carriers cannot advertise or otherwise offer to provide insurance or storage of personal property unless the carrier is licensed by the appropriate agency.

14. Advertising No applicant for house hold goods authority shall advertise by any means until authority to operate has been issued by the commission

15. Documentation Required Documentation Bill of Lading/Freight Bill Estimate Inventory Weight Tickets

16. Documentation Since most of you use IMAWA forms, we are going to talk about common errors the commission sees on each document rather than the requirements of the form

17. Documentation Bill of Lading/Freight Bill common errors Start/stop time are incomplete Packing charges are correct in the packing area, but when total charges of packing are brought forward to add into the total, they are discounted (discounting is illegal) Packing items do not conform to tariff The number of vehicles is not shown. This typically is 1, but when auditing a freight bill we (the commission) cannot assume. The mover will more than likely get an audit finding because you are required to show it and that finding will be included in a civil penalty.

18. Documentation Bill of Lading/Freight Bill common errors (cont�d) Consignor and consignee addresses are incomplete Mathematical errors Incorrect hourly or weight distance rates Actual pick up date, agreed pick up date and agreed delivery dates not filled out Valuation not properly shown (shipper delcares, signature, etc)

19. Documentation Estimate of Charges No estimate done The total amount of the estimate has a range Estimating by computer creates a couple of problems with compliance. (1) estimate is usually not signed and (2) the consumer brochure is usually not given to the shipper When estimating storage it is usually estimated for entry and very rarely estimated for exiting storage Not identified at the top of the page �Estimate of Charges� Consignor and consignee incomplete

20. Documentation Estimate of Charges (concluded) Accessorial charges not figured Failure to show the consumer guide was provided to the shipper Lowballing or bait and switch (illegal)

21. Documentation Inventory Errors Signature at origin or no signature at destination No signatures at all Do not check off the items as they are delivered Although not required, no explanation to the shipper about the codes used (PBO, etc) Required on weight distance moves and storage. Not required for hourly rated moves unless requested by the shipper Storage Contract/Warehouse receipts are required to be kept for 3 years

22. Documentation Storage Contract/warehouse receipt Storage Contract/Warehouse receipts are required to be kept for 3 years

23. Warehousing License from the Illinois Commerce Commission is required Must be renewed annually from the date of issuance Must use Commission application form Initial application and renewal are on the same form Initial application fee $250 Additional locations $100 each Annual renewal application $150 Must file with the commission proof of insurance or bond coverage

24. Warehousing Each warehouse is classified by size, and insurance must be filed in accordance with the classification. New applicants are subject to inspections by the Commission Inspections may be made at anytime If violations of the act are found the operator must take proper and immediate steps to correct the condition(s) Failure to take steps will be grounds for rejecting an application or revocation of a license.

25. Warehousing No person shall place, or arrange to place, another person�s goods into a self-storage warehouse facility unless the owner of those goods has possession of the key and access to the warehouse, and the owner�s name appears on the storage contract.

26. Warehousing Unlawful for any person, firm, partnership, association, LLC or corporation to: Hold themselves for storage without complying with the act Advertise as being insured unless the insurance is for the benefit of the depositor Use stationary, cards, signs or other advertisement of a false or fraudulent, deceptive or misleading nature

27. Warehousing Unlawful to use the word �Storage� in any way, in connection with the business unless engaged in the storage business and licensed as a warehouse operator under the act Advertisement must include the name of the warehouse as licensed Advertisement must include license number Personal property warehouse shall not misrepresent the scope of services offered No applicant shall advertise by any means until proper authority has been issued by the Commission

28. Warehousing The main entrance must have a sign clearly stating the name of the warehouse, license number and identify the warehouse as a personal property warehouse Standard forms of payment Cash Cashiers Check Money order No Bartering Under no obligation to use credit cards

29. Warehousing If a license is revoked by the commission, the warehouse shall send notification to all persons with goods in storage The notification must include business hours and permit any person to remove their goods Notification shall be made within 3 business days of the revocation from the commission Records for warehousing must be kept for 1 year after removal from storage The storage contract/warehouse receipt must be kept for 3 years

30. Tariffs The household goods movers tariff is an important financial tool By following the tariff of rates you avoid paybacks Tariffs provide what may be charged by law HHG mover may not charge any more or any less than their tariff rate on file with the commission in effect at the time of the move Movers may deviate from their tariff on rate exempt moves

31. Tariffs If a mover finds himself in a governmental competitive bid, you may file a �uniform tender of rates� to deviate from your tariff rates The commission does not regulate the level of rates charged but you must charge according to your tariff Tariff rates may be changed at anytime provided they are done on a 15-day notice period Rates must be effective prior to charging the changed rate No Discounts No Bartering

32. Tariffs Shipper must be advised of any minimum rates in writing (i.e. 3 hours minimum) Hourly rate � under 35 miles Hourly rate � move begins & ends with Cook, Dupage, Kane, Kendall, Lake, McHenry and Will counties Weight Mileage � over 35 miles and does not begin and end within the 7 collar counties Storage in Transit rates must be in cents per 100 pounds (may not charge by cubic feet or by number of storage containers). Storage in Transit is defined as items being stored for less than 6 months OR for a defined period.

33. Tariffs Once you have called your tariff agent and asked for changes, when you get the revisions, read them. Your tariff agent may have misunderstood you or even made an error. Make sure the rates are correct before you begin to charge them Rate changes that are not properly identified as increases are not collectable (92 I.A.C. 1225.825(a)) Symbol for increase tariff rates (arrow up or diamond) Symbol for decrease tariff rates (arrow down or teardrop) Changes in wording specified with �CW� No change in rate specified with a bullet point

34. Tariffs Everyone doing the billing should have the tariff out and know how to apply the charges My suggestion: have one person audit your freight bills at the end of the day (rate errors and mathematical errors)

35. Illinois Commerce Commission Police Functions Licensed and unlicensed towing Licensed and unlicensed general commodities carriers Licensed and unlicensed household goods carriers Licensed and unlicensed warehousing Monitor all railroad crossings In 2010 we opened 2018 investigations We have 2 types of illegal companies (1) those that are not licensed and (2) those that are licensed and not complying with the law

36. Illinois Commerce Commission Police Conduct Train your driver and crew members about conduct when dealing with an officer Cooperation is key 95% of people talk their way into a citation Even if the driver/crew believe the officer is wrong, the citation will be against the company. That citation can be argued at a different time. Negative attention does not serve the company well

37. Illinois Commerce Commission Police We have been diligent in trying to catch illegal moving companies Since May 2010: 66 sting operations 76 citations for operating without HHG authority 244 citations for other violations 19 court citations 2 warrant arrests

38. Illinois Commerce Commission Police Keep the information coming in about illegal moving companies You can remain anonymous by contacting IMAWA and having them contact us Tina Burgess (217) 782-6448 Tburgess@icc.illinois.gov

39. Illinois Commerce Commission Police During the complaint process provide documentation requested An administrative citation can be issued for failure to produce records

40. Tina Notes For the past couple of years for the workshop, I have been keeping notes of things that actually happen I think you need to know. I only have a couple of things since October You just never know who your customer is. We had a situation in which a mover moved one of our commissioners. There was damage and was having it repaired. After a couple of months communication stopped. Guess who the call trickled down to? IL.C.C!

41. Tina Notes If a complaint goes to mediation and if the parties are unable to come to an agreement in mediation, the mediator is required by law to write a written opinion. That opinion is not binding on any other decision maker, but the point I want to make is that mediation is confidential. The mediators written opinion is based upon written submissions during the complaint process. If the mover does not respond to a complaint, the mediator has no choice except to write the opinion in accordance with what the shipper has provided. That is not in the mover�s favor.

42. Tina Notes At the convention there was a speaker that spoke about customer service. I want to mention this again because I think some did not get it. We NEVER get complaints on illegal movers. Think about what that says about their customer service. They must have great customer because people do find us if they need something. The speaker from the convention approached me afterwards and told me he found that very interesting.

43. Tina Notes One time a shipper had a couple of crew members fist fighting in her home. The shipper called the office and the owner came out. Instead of the owner diffusing the situation, he also got involved in the fight. How should this have been handled?

44. Contact Information Tina (217)782-6448 tburgess@icc.illinois.gov Information Center (217) 782-4654 Select #1 to talk with processing for anything to do with fees and/or money or insurance