(Photo from Budd Van Lines website)
- Reasons cited by Commissioners include the company’s lack of a Mississippi location and closures of three long-running local moving companies due to declining customer base.
The Mississippi Transportation Commission decided this week to deny a request from a New Jersey-based moving company for intrastate licensure after setting the matter aside two weeks ago.
The matter regarding Budd Van Lines was first up for consideration during the October 27 Commission meeting.
Companies currently providing similar services in Mississippi were notified of Budd Van Lines’ certification request as required by state law. Two submitted objections. Those objections resulted in a hearing held in June on the matter, MDOT’s Legal Division Director Judy Martin said, with a recommendation to deny sent to the Commission.
Upon discussion in October, Southern District Commissioner Charles Busby (R) asked to have the matter sat aside and brought back before the Commission over concerns that denying the request would stymie free market competition.
The licensure requested was for a “certificate of public convenience and necessity as a common carrier of property statewide.”
Mississippi Department of Transportation Executive Director Brad White told the Commission Tuesday that the agency is responsible for licensing companies for intrastate commerce.
“Interstate commerce is already allowed by the federal government,” White added.
According to the MDOT staff recommendation, Budd Van Lines has a focus on corporate clients, but has no physical location within the state of Mississippi.
“According to testimony, the applicant would not advertise to gain business in Mississippi but would only take jobs in Mississippi when their corporate clients already had a move planned,” the recommendation stated.
Both companies who submitted objections, Armstrong Relocation in Madison and Bay Forwarding, Inc. in Gulfport, have investments in Mississippi.
“Two [companies] did file objections,” White explained. “Both of those companies have brick and mortar locations here within Mississippi. And the reason that staff has recommended that this certificate not be awarded is that this company has refused to locate within Mississippi which would mean they would avoid any type of fees or taxes or other things that the competitors that they have within the state currently pay into the state coffers.”
Previous commissioners made the same decision in related cases, White noted.
Objections from the two Mississippi-based companies also involved a current lack of business to keep existing companies afloat and, as a result, the recent closures of three “long-running” moving companies.
In light of the additional information provided, Busby withdrew his previous objection.
“With the understanding that the applicant is making no attempt to put a physical location within the state of Mississippi, I withdraw my objection to the issue and support the recommendation of staff,” Busby said.
Central District Commissioner Willie Simmons (D) and Northern District Commissioner John Caldwell (R) joined Busby in concurring with the staff recommendation to deny the certification.
The recommendation to deny Budd Van Lines certification is shown below.
