Rhode Island Code of Regulations › Title 815 - Division of Public Utilities and Carriers › Chapter 50 - Common Carriers › Subchapter 10 - Motor Carriers of Passengers › Part 2 - Rules Governing Transportation of Passengers via Taxicabs and Limited Public Motor Vehicles (815-RICR-50-10-2) › Section 815-RICR-50-10-2.10 - Leasing

Current through June 14, 2024
A. A certificate holder may lease a cab to
				  another person only under the conditions found in these Rules and Regulations
				  and R.I. Gen Laws §
										39-14-9. The lease shall relate to
				  the actual cab only (the vehicle itself) and shall in no way extend to the
				  authority conferred through the certificate. Each lease relates to one
				  specifically described cab and no other vehicle may be substituted for the
				  described vehicle unless for periods of time required for normal maintenance
				  and/or repair. Normal maintenance and repair means that the cab is substituted
				  for no more than seven (7) days. For periods longer than seven (7) days the
				  certificate holder must obtain express written permission from the Division.
				  Each cab may be leased to only one individual for each twelve (12) hour period.
				  The cab must be registered in the certificate holder's name to be eligible for
				  lease. Under the lease agreement, the certificate holder shall remain bound by
				  all of these rules in the same manner as if the certificate holder was
				  operating the cab(s) being leased himself or herself or by an
				  employee.
B. Only those vehicles
				  that have been operating as taxicabs approved by the Division actively and
				  continuously for twelve (12) months may be the subject matter of a lease. The
				  twelve (12) month period will be determined by the Division by the registration
				  date of the vehicle on file with the Registry of Motor Vehicles. If a vehicle
				  has not been operated actively and continuously as a Division approved taxicab
				  for twelve (12) months it may only be used as a taxicab driven exclusively by
				  the certificate holder and/or an employee of the certificate holder. For
				  purposes of this rule, when a vehicle that is eligible to be leased to a driver
				  is replaced by another vehicle, the replacement vehicle shall also be deemed
				  eligible to be leased.
C. Parties
				  to a lease must file with the Division a Leasing Disclosure Statement on a form
				  which will be provided by the Division and which will indicate the names and
				  addresses of the certificate holder and the lessees, the certificate number and
				  license plate of the leased cab, date of execution the lease, the effective
				  date and expiration date of the lease, the applicable term of the lease,
				  including any and all charges, the responsibility for maintenance, the name of
				  the insurance carrier providing statutory liability coverage, and the amount of
				  any required security deposit. Any written documents concerning the lease must
				  be attached to the Leasing Disclosure Statement and approved by the Division.
				  No leasing arrangements are allowed other than those filed and approved by the
				  Division.
D. In the event a
				  security deposit is required under the terms of the lease approved by the
				  Division, the certificate holder shall deposit same in an interest-bearing
				  account in a bank or credit union within the State of Rhode Island and shall
				  indicate on the Leasing Disclosure Statement the name and address of the bank
				  or credit union in which such security has been deposited, and the applicable
				  account number. Interest on such security deposit shall accrue to the benefit
				  of the lessee furnishing the security.
E. All Leasing Disclosure Statements shall be
				  filed with the Division and shall be signed by both the certificate holder and
				  the lessee. No lease agreement shall become effective until approved by the
				  Division. The Division shall approve or reject the proposed lease agreement in
				  writing within ten (10) business days after the Leasing Disclosure Statement
				  and all appurtenant papers have been filed. This time period may be extended
				  for an additional thirty (30) days, at the discretion of the Division, with
				  notice of the extension to the applicant. The Associate Administrator for the
				  Motor Carriers Section or his or her designee will sign every lease that has
				  been approved and return a copy to the certificate holder for its
				  records.
F. If a lease is rejected,
				  the Division will notify the certificate holder within ten (10) business days
				  of the rejection and the reasons therefore. The Division will mail back to the
				  certificate holder the original Leasing Disclosure Statement and all
				  attachments stamped "denied" and signed by the Associate Administrator for the
				  Motor Carriers Section or his or her designee.
G. Once an approved lease is on file with the
				  Division for a particular vehicle, that vehicle cannot be sold, disposed of or
				  transferred until such time as the approved lease terminates as of its own
				  terms or the certificate holder submits to the Division a Lease Termination
				  Statement, in a form provided by the Division, signed by both the lessor and
				  the lessee. If the lessee refuses to sign or is unavailable to sign, the Lease
				  Termination Statement shall be filed with the Division with the signature of
				  the lessor and an explanation for the lack of signature by the
				  lessee.
H. Once a vehicle is
				  subject to an approved lease only the lessees may drive that vehicle. Neither
				  the lessor nor lessees may make any arrangements to sublease the
				  vehicle.
I. A copy of the approved
				  lease must be kept in the cab at all times.