45 IAC 16-1-13 - Lease and interchange of vehicles; applicability of section; definitions; exemptions
Authority: IC 8-2.1-18-6
Affected: IC 8-2.1-18
Sec. 13.
(a)
Applicability. This section applies to the augmenting of equipment by common
and contract carriers of property by motor vehicles in intrastate commerce
subject to the Act, IC 8-2-7 et seq. [Repealed by P.L. 72-1988, SECTION
10, effective March 1, 1990.], to the interchange of equipment between
such common carriers of property by motor vehicle and to lease of equipment by
common and contract carriers of property by motor vehicle, with or without
drivers, to private carriers and shippers.
(b) Definitions. The following definitions
are applicable to this section:
(1)
Authorized Carrier. An authorized carrier shall mean a person or persons
authorized to engage in the transportation of property as a common or contract
carrier under the provisions of the Act, specifically IC 8-2-7-2(g), (h) and
(i)[Repealed by P.L. 72-1988, SECTION 10, effective March 1,
1990.].
(2) Equipment.
Equipment shall mean a motor vehicle, straight truck, tractor, semitrailer,
full trailer, combination tractor-and-trailer, and or other type of equipment
used by authorized carriers in the transportation of property for hire.
(3) Interchange of Equipment.
Interchange of equipment shall mean the physical exchange of equipment between
motor common carriers or the receipt by one such carrier of equipment from
another such carrier, in furtherance of a through movement of traffic, at a
point or points which such carriers are authorized to serve.
(4) Regular Employee. A regular employee
shall mean a person who is not merely an agent but one who regularly is in
exclusive full-time employment.
(5) Agent. An agent shall mean a person duly
authorized to act for and on behalf of an authorized carrier.
(6) Owner. An owner shall mean a person:
(1) to whom title to equipment has been
issued; or
(2) who as lessee has
right to exclusive use of equipment for a period longer than 30 days; or
(3) who has lawful possession of
equipment and has the same registered and licensed in any State or States or
the District of Columbia in his or its name.
(7) Shipper. A shipper shall mean a person
who consigns or receives property which is transported in intrastate commerce.
(8) Private Carrier. The term
"private carrier of property by motor vehicle" shall mean any person not
included in the terms "common carrier by motor vehicle" or "contract carrier by
motor vehicle," who or which transports by motor vehicle in intrastate commerce
property of which such person is the owner, lessee or bailee, when such
transportation is for the purpose of sale, lease, rent, bailment or in
furtherance of any commercial enterprise.
(c) Exemptions. The provisions of Paragraph
(d), except Subparagraphs (3) and (4) relative to inspection and identification
of equipment, shall not apply in the following instances:
(1) Equipment used in the Direction of a
Point Which Lessor is Authorized to Serve. To equipment owned or held under a
lease of 30 days or more by an authorized carrier and regularly used by it in
the service authorized, and leased by it to another authorized carrier for
transportation in the direction of a point which lessor is authorized to serve:
Provided, the two carriers first have agreed in writing that control and
responsibility for operation of the equipment shall be that of the lessee from
the time the equipment passes the inspection required to be made by lessee or
its representative under Paragraph (d)(3) until such time as the lessor or its
representative shall give to the lessee or its representative a receipt
specifically identifying the equipment and stating the date and the time of day
possession thereof is retaken, or until such time as the required inspection is
completed by another authorized carrier taking possession of the equipment in
an interchange of equipment where such use is contemplated. Such writing shall
be signed by the parties or their duly authorized regular employees or agents
and a copy thereof carried in the equipment while the equipment is in the
possession of the lessee.
(2) Rail
or Express Vehicles. To equipment utilized wholly or in part in the
transportation of railway express traffic or in substituted motor-for-rail
transportation or railroad freight moving between points that are railroad
stations or railroad billing.
(3)
Suburban Territory Operations. To equipment utilized in transportation
performed solely and exclusively within any municipality or its suburban
territory, as defined by IC 8-2-7-2(l)[Repealed by P.L. 72-1988,
SECTION 10, effective March 1, 1990.].
(4) Vehicles Without Drivers From Rental
Companies. To the lease of equipment without drivers by an authorized carrier
from an individual, partnership or corporation whose principal business is the
leasing of equipment without drivers for compensation.
(5) Non-Powered Equipment. To equipment other
than a power unit: Provided, That such equipment is not drawn by a power unit
leased from the lessor of such equipment.
(d) Augmenting Equipment. Other than
equipment exchanged between motor common carriers in interchange service as
defined in paragraph (e) of this section, authorized carriers may perform
authorized transportation in or with equipment which they do not own only under
the following conditions:
(1) Contract
Requirements. The contract, lease or other arrangement for the use of such
equipment must comply with the following requirements:
(A) Parties. The contract shall be made
between the authorized carrier and the owner of the equipment.
(B) Written Contract Required. The contract
shall be in writing and signed by the parties thereto, or their regular
employees or agents duly authorized to act for them in the execution of
contracts, leases or other arrangements.
(C) Minimum Duration of 30 Days When Operated
by Lessor. It shall specify the period for which it applies, which shall be not
less than 30 days when the equipment is to be operated for the authorized
carrier by the owner or employee of the owner; excepting:
(i) Equipment Used in Agricultural or
Perishable Operations. That subject to the provision in (cc) herein such 30-day
minimum period shall not apply to equipment with driver:
(aa) Farmer, Cooperative Association or
Federation-When Exempt. Where the motor vehicle so to be used is that of a
farmer or a cooperative association or federation of cooperative associations
as specified in IC 8-2-7-3(g)[Repealed by P.L. 72-1988, SECTION 10,
effective March 1, 1990.], or is that of a private carrier of property
by motor vehicle as defined in Paragraph (b) (8) herein and is used regularly
in the transportation of property of a character embraced within IC
8-2-7-3(g)[Repealed by P.L. 72-1988, SECTION 10, effective March 1,
1990.] and the Commodity List adopted by the Commission, and such
motor vehicle is to be used by the motor carrier in a single movement or in one
or more of a series of movements, loaded or empty, in the general direction of
the general area in which such motor vehicle is based; or
(bb) After Completion of Exempt Movement.
Where the motor vehicle is one which has completed a movement covered by IC
8-2-7-3(g)[Repealed by P.L. 72-1988, SECTION 10, effective March 1,
1990.] and such motor vehicle is next to be used by the motor carrier
in a loaded movement in any direction, and/or in one or more of a series of
movements, loaded or empty, in the general direction of the general area in
which such motor vehicle is based; and
(cc) Statement Prerequisite to Movement. In
either instance prior to the execution of the lease the authorized carrier
shall receive and retain a statement signed by the owner of the equipment, or
someone duly authorized to sign for the owner, authorizing the driver to lease
the equipment for the movement or movements contemplated by the lessee
certifying that the equipment so leased meets the qualifications enumerated in
(aa) and (bb) herein and specifying the origin, destination and the time of the
beginning and ending of the last movement which brought the equipment within
its purview.
(ii)
Automobile and Tank Truck Carriers. Such a 30-day minimum period shall not
apply to equipment owned or held under lawful lease by an authorized automobile
carrier or tank truck carrier and used in the transportation of motor vehicles
or commodities in bulk, respectively, when leased or subleased to other such
authorized carriers.
(iii) Ice and
Snow Control Purposes. That such 30-day minimum period shall not apply to dump
equipment leased or subleased for use in transportating [sic.]
salt and/or calcium chloride, in bulk, for ice and snow control
purposes, during the period from November 1 to April 30, both inclusive, of
each year.
(D)
Exclusive Possession and Responsibilities. The contract shall provide for the
exclusive possession, control and use of the equipment, and for the complete
assumption of responsibility in respect thereto by the lessee for the duration
of the contract, lease or other arrangement, except:
(i) Lessee May be Considered as Owner.
Provisions may be made therein for considering the lessee as the owner for the
purpose of subleasing under this section to other authorized carriers during
such duration.
(ii) Household
Goods Carrier; Intermittent Operations Under Long-Term Lease. When entered into
by authorized carriers of household goods for the transportation of household
goods, as defined by IC 8-2-7-4(c)[Repealed by P.L. 72-1988, SECTION
10, effective March 1, 1990.], such provisions need only apply during
the period the equipment is operated by or for the authorized carrier-lessee.
(E) Compensation to be
Specified. It shall specify the compensation to be paid by the lessee for the
rental of the leased equipment. Subject to the right of the lessee to delete
confidential business information shown thereon which may be used to the
detriment or prejudice of the shipper or consignee, the contract shall provide
that the lessee, on demand of a lessor whose compensation under such lease is
based upon a percentage or division of revenue, will, at the lesse's
[sic.] option, either provide the lessor a copy of each
extended freight bill covering the transportation involved or make reasonable
arrangements for the lessor to inspect the same. The contract also shall
specify, regardless of the method or manner in which compensation of the lessor
is determined, the terms and conditions as to when payment of compensation is
due and payable to the lessor and the circumstances, if any, when such
compensation, in whole or in part, will be withheld.
(F) Duration to be Specific. The contract,
lease or other arrangement shall specify the time and date or the circumstances
on which it begins and the time or the circumstances on which it ends. The
duration of the contract, lease or other arrangement shall coincide with the
time for the giving of receipts for the equipment as required by subsection (2)
of this section.
(G) Copies of
Lease and Their Distribution; Copy to be Carried on Vehicle. It shall be
executed in triplicate. The original shall be retained by the authorized
carrier in whose service the equipment is to be operated, one copy shall be be
[sic.] carried on the equipment specified therein during the
entire period of the contract, lease or other arrangements unless a certificate
as provided in paragraph (d)(4)(B) of this section is carried in lieu thereof.
(2) Receipts for
Equipment to be Specific. When possession of the equipment is taken by the
authorized carrier, or its regular employee or agent duly authorized to act for
it, said carrier, employee or agent shall give to the owner of the equipment,
or the owner's employee or agent, a receipt specifically identifying the
equipment and stating the date and time of day possession thereof is taken. And
when the possession by the authorized carrier ends, it or its employee or agent
shall obtain from the owner of the equipment, or the owner's regular employee
or agent duly authorized to act for it, a receipt specifically identifying the
equipment and stating therein the date and the time of day possession thereof
is taken.
(3) Safety Inspection of
Equipment by the Authorized Carrier. It shall be the duty of the authorized
carrier, before taking possession of equipment, to inspect the same or to have
the same inspected by a person who is competent and qualified to make such
inspection and who has been duly authorized by such carrier to make such
inspection as a representative of the carrier, in order to insure that the said
equipment complies with the Motor Carrier Safety Regulations of the Federal
Highway Administration of the Department of Transportation. The person making
the inspection shall certify the results thereof on a report in the form
hereinafter set forth, which report shall be retained and preserved by the
authorized carrier; and if his inspection discloses that the equipment does not
comply with the requirements of the said Safety Regulations, possession thereof
shall not be taken. When such an inspection has been made, the authorized
carrier, an officer or partner thereof, a safety director or other supervisory
employee responsible for safety compliance shall certify on the inspection
report that the person who made the inspection, whether an employee or person
other than an employee, is competent and qualified to make such inspection and
has been duly authorized to do so by such carrier as its representative. When
equipment other than a power unit is leased, a form of report applicable to
such equipment may be used.
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(4) Identification of Equipment as that of
the Authorized Carrier. The authorized carrier acquiring the use of equipment
under this section shall properly and correctly identify such equipment during
the period of the lease, contract or other arrangement in accordance with the
Commission's requirements. If a removable device is used to identify the
acquiring authorized carrier as the operating carrier, such device shall be on
durable material such as wood, plastic or metal, and bear a serial number in
the acquiring authorized carrier's own series so as to keep proper record of
each of the identification devices in use.
(A) Identification to be Removed When Lease
Terminated. The authorized carrier operating equipment under this section shall
remove any legend showing it as the operating carrier displayed on such
equipment and shall remove any removable device showing it as the operating
carrier before relinquishing possession of the equipment.
(B) Certified Statement May be Carried on
Vehicle in Lieu of Lease. Unless a copy of the lease, contract or other
arrangement is carried on the equipment as provided in Subparagraph (d)(1)(G),
the authorized carrier, its regular employee or agent shall prepare a statement
certifying that the equipment is being operated by it, which shall specify the
name of the owner, the date of the lease, contract or other arrangement, the
period thereof, any restrictions therein relative to the commodities to be
transported and the location of the premises where the original of the lease,
contract or other arrangement is kept by the authorized carrier, which
certificate shall be carried with the equipment at all times during the entire
period of the lease, contract or other arrangement.
(5) Driver of Equipment to be in Compliance
With Safety Regulations. Before any person other than a regular employee of the
authorized carrier is assigned to drive equipment operated under this section,
it shall be the duty of the authorized carrier to make certain that such driver
is familiar with, and that his employment as a driver will not result in,
violation of any provisions of the Motor Carrier Safety Regulations of the
Federal Highway Administration of the Department of Transportation.
(6) Record of Equipment to be Maintained;
Shipping Documents to Identify the Authorized Carrier. The authorized carrier
utilizing equipment operated under this section for periods of less than 30
days shall prepare and keep a manifest or other documents covering each trip
for which the equipment is used in its service, containing the name and address
of the owner of such equipment, the point of origin, the time and date of
departure, the point of final destination and the authorized carrier's serial
number of any identification device affixed to the equipment. During the time
that equipment subject to this section is operated, there shall be carried with
the equipment, bills of lading, waybills, freight bills, manifests or other
papers identifying the lading, and containing the foregoing information, which
shall clearly indicate that the transportation of the property carried is under
the responsibility of the authorized carrier, which papers shall be preserved
by the authorized carrier. This Paragraph also shall apply with respect to
vehicles leased for periods of 30 days or more unless that required information
is kept at a terminal or office as a part of the records of the authorized
carrier.
(e)
Interchange of Equipment. Authorized common carriers may, by contract, lease or
other arrangement, interchange any equipment defined in Paragraph (b) with one
or more other such common carriers, or one of such carriers may receive from
another such carrier, any of such equipment, in connection with any through
movement of traffic, under the following conditions:
(1) Interchange Agreement to be Specific. The
contract, lease or other arrangement providing for interchange shall
specifically describe the equipment to be interchanged, the specific points of
interchange, the use to be made of the equipment and the consideration for such
use. Further, it shall be signed by all the parties to the contract, lease or
other arrangement, or their regular employees or agents duly authorized to act
for them in the execution of such contracts, leases or other arrangements.
(2) Operating Authority of
Carriers Participating in Interchange. The certificates of public convenience
and necessity held by the carriers participating in the interchange arrangement
must authorize the transportation of the commodities proposed to be transported
in the through movement and service from and to the point where the physical
interchange occurs.
(3) Through
Bills of Lading Required. The traffic transported in interchange service must
move on through bills of lading issued by the origination carrier, and the
rates charged and revenues collected must be accounted for in the same manner
as if there had been no interchange of equipment. Charges for the use of the
equipment shall be kept separate and distinct from divisions of the joint rates
or the proportions thereof accruing to the carriers by the application of local
or proportional rates.
(4) Safety
Inspection of Equipment. It shall be the duty of the carrier acquiring the use
of equipment in interchange to inspect such equipment or to have it inspected
in the manner provided in Subparagraph (d)(3). Equipment which does not meet
the requirements of the Subparagraph shall not be operated in the respective
services of the interchange carriers until the defects have been corrected.
Where carriers interchanging equipment for a through movement of traffic are
commonly controlled and jointly maintain and administer a uniform safety
program, no such inspection at the point of interchange is required: Provided,
That the equipment interchanged has been so inspected immediately prior to the
start of the movement in which the interchange occurs and found to meet the
requirements of Subparagraph (d)(3).
(5) Identification of Equipment as That of
The Operating Carrier. Authorized carriers operating power units in interchange
service shall identify such equipment in accordance with the Commission's
requirements set out in 170 IAC 2-1-10. Any removable device used to identify
the operating carrier shall be on durable materials, such as wood, plastic or
metal, shall bear a serial number in the operating carrier's own series, and
such carrier shall keep a proper record of each identification device in use.
The authorized carrier operating equipment under this section shall remove any
legend showing it as the operating carrier displayed on such equipment and
shall remove any removable device showing it as the operating carrier before
relinquishing possession of the equipment. Authorized carriers operating
equipment in interchange service under this Paragraph shall carry with each
vehicle so operated, except trailers and semitrailers, a copy of the contract
or other arrangement while the equipment is being operated in the interchange
service, unless a statement is carried in the vehicle while it is operated in
interchange service, certifying that the equipment is being operated by it and
identifying the equipment by company or State registration number, showing the
specific point of interchange, the date and time of the assumption of the
responsibility for the equipment and the use to be made of the equipment. Such
statement shall be signed by the parties to the contract or other arrangement
or their employees or agents.
(6)
Connecting Carriers Considered as Owner. An authorized carrier receiving
equipment in connection with a through movement shall be considered the owner
of the equipment for the purpose of leasing the equipment to other authorized
carriers in furtherance of the movement to destination or the return of the
equipment after the movement is completed.
(f) Rental of Equipment to Private Carriers
and Shippers.
(1) Rental of Equipment with
Drivers. Unless such service is specified in their operating authorities,
authorized carriers shall not rent equipment with drivers to private carriers
or shippers.
(2) Rental of
Equipment Without Drivers. Authorized common and contract carriers shall not
rent equipment without drivers to private carriers or shippers.
(g) Single Source Leasing. Nothing
in these rules should be interpretted [sic.] to be in conflict
with IC 8-2-7-52[Repealed by P.L. 72-1988, SECTION 10, effective March
1, 1990.].
Notes
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No prior version found.