Administrative Rules of Montana › Department 38 - PUBLIC SERVICE REGULATION › Chapter 38.3 - MOTOR CARRIERS › Subchapter 38.3.20 - Leasing of Power Equipment, Interchange of Equipment and Lease of Authority › Rule 38.3.2005 - STATUS OF CARRIER - EFFECT OF LEASE OF POWER EQUIPMENT

Current through Register Vol. 13, July 5, 2024
(1) Nothing in this rule shall permit the
				lease of power equipment from an authorized carrier to a noncertified carrier
				as the same is prohibited by section
				69-12-611,
				MCA.
(2) In this rule, the term
				"lease" shall mean the lease of power equipment, whether or not including or
				accompanied by a provision for the services of an operator, and shall include
				sub-lease, rental agreement, and similar arrangements.
(3) In all cases, a lease shall be considered
				transportation "for hire" and thereby constitute the lessor a "motor carrier,"
				except as may be otherwise permitted by law or provided herein.
(4) A lease permitted by law not to be
				transportation "for hire" and thereby constituting any party a "private
				carrier" shall be bona fide and in good faith, without guise, subterfuge, or
				have as its sole purpose to avoid or evade regulation.
(5) Unless otherwise required by law in any
				specific instance, any statute or rule providing that transportation "for hire"
				or "motor carrier" may arise from a lease shall not be construed to apply to
				any lease in which the following are observed, exist and are actually
				exercised:
(a) the lease shall be in writing,
				signed by the parties and it, or a true copy, shall be carried in the power
				equipment at all times during the period of the lease;
(b) there shall be no agreements or
				understandings between the parties pertaining to the lease of power equipment,
				operator or complete services, except as contained in the lease;
(c) the power equipment leased shall display,
				in a conspicuous place on both sides of the cab, the identity and adress of the
				lessee and may also display the same for the lessor;
(d) at all times there shall be carried in
				the power equipment, bills of lading, waybills, freight bills, manifests, and
				other papers identifying the lading, all of which shall clearly indicate that
				the transportation is under the responsibility of the lessee;
(e) the lessor shall relinquish and the
				lessee shall have and actually exercise the exclusive right and privilege of
				possession, directing and controlling the equipment and the transportation and
				all incidents of transportation;
(f) the lessee shall use the equipment in
				transportation of freight or passengers within the scope of furtherance of the
				lessee's primary nontransportation business enterprise, or other nonregulated
				transportation, and for no other purpose;
(g) the lessee shall substantially assume,
				carry, and bear the characteristic burdens of the transportation business such
				as expenses for fuel, maintenance, repairs, delays, breakdowns, detours, idle
				time for the power equipment and operator, and like matters;
(h) the lessee shall obtain and carry
				personal injury and property damage liability insurance in amounts no less than
				that required by law for motor carriers;
(i) the lease shall state the terms of
				compensation, the method by which it is calculated and determined, and must be
				realistic in covering the true and total lease of power equipment and complete
				services; and
(j) if the lease
				includes or is otherwise accompanied by the lessor's providing the services of
				an operator, the lease shall be for a duration no less than 30 days, during
				which time the power equipment and driver shall be used for no purpose
				independent of the lessee's exclusive rights identified in (e) above.