Pennsylvania Code › Title 52 - PUBLIC UTILITIES › Part I - Public Utility Commission › Subpart B - Carriers of Passengers or Property › Chapter 31 - MOTOR CARRIER PROPERTY AND HOUSEHOLD GOODS TRANSPORTATION › COMMON CARRIERS OF PROPERTY AND HOUSEHOLD GOODS IN USE › Section 31.32 - Equipment leasing

Current through Register Vol. 54, No. 28, July 13, 2024
(a)
Applicability
. This section applies to the leasing of
					 equipment by motor carriers engaged in transporting property and household
					 goods by motor vehicle between points in this Commonwealth.
(b)
Definitions
. The
					 following words and terms, when used in this section, have the following
					 meanings, unless the context clearly indicates otherwise:
Authorized employee or agent
-A person
						authorized to act for and on behalf of a motor carrier or owner of equipment
						and subject to the supervision, direction and control of the motor carrier in
						whose service he is acting.
Equipment
-A motor vehicle, straight
						truck, tractor, semitrailer, full trailer, combination tractor-and-semitrailer,
						combination straight truck and full trailer and other types of equipment used
						in the transportation of property for-hire.
Motor carrier
-A person or corporation
						authorized to engage in the transportation of property or household goods as a
						common or contract carrier by motor vehicle under
						66 Pa.C.S. §
													1101-3315 (relating to Public Utility
						Code).
(c)
Leasing
					 equipment.
Equipment leasing by a motor carrier must conform with the
					 following:
(1)
General.
A
					 motor vehicle may not be operated between points in this Commonwealth in
					 intrastate commerce by a motor carrier, unless the vehicle is either owned by
					 the motor carrier or is leased to the motor carrier under the conditions in
					 paragraphs (2)-(4).
(2)
Contract requirements.
A contract is subject to the following:
(i)
Parties.
The contract,
					 lease or other arrangement for the use of equipment shall be between the motor
					 carrier and the owner of equipment.
(ii)
Written.
The agreement
					 must be in writing and signed by the parties thereto or their drivers,
					 employees or agents authorized in writing.
(iii)
Exclusive possession, control
					 and responsibility.
(A)
Lease.
A lease shall provide for and be carried out so that
					 the possession, control and use of the equipment is the complete and exclusive
					 responsibility of the lessee for the full term of the lease, except during the
					 period provided for in clause (B).
(B)
Sublease
. The lease
					 agreement may contain a provision permitting the lessee to sublease equipment
					 to other motor carriers for a period not exceeding the duration thereof, if the
					 sublessee assumes full responsibility in the manner set forth in clause
					 (A).
(iv)
Compensation
. The lease agreement must specify the amount of
					 compensation to be paid by the lessee for the rental of the leased
					 equipment.
(v)
Duration.
The lease agreement must specify the time and date
					 or the circumstances on which the contract, lease or other arrangement begins
					 and the time or the circumstances on which it ends.
(vi)
Documentation.
A lease
					 shall be executed in triplicate. The original shall be retained by the motor
					 carrier in whose service the equipment is to be operated, one copy shall be
					 retained by the owner of the equipment and one copy shall be carried on the
					 equipment specified therein during the entire period of the contract, lease or
					 other arrangement, unless a certificate is carried on the equipment in lieu
					 thereof, certifying that the equipment is being operated by lessee, the name of
					 the owner, the date of the lease, contract or other arrangement, the period
					 thereof and the location where the original of the lease, contract or other
					 arrangement is retained by the motor carrier. The certificateholder shall
					 retain leases for 2 years following their expiration date.
(3)
Safety inspection of
					 equipment.
It is the duty of the motor carrier, before taking
					 possession of equipment, to ensure that the equipment has a valid State
					 inspection decal or complies with the periodic inspection requirements in
					 §
												37.204(7)
					 (relating to adoption of portions of 49 CFR by reference), or to inspect or to
					 have the equipment inspected by a person who is competent and qualified to make
					 an inspection and who has been authorized by the carrier to make the inspection
					 as a representative of the carrier, to ensure that the equipment is in a safe
					 condition to be operated on the highways. The person making the inspection
					 shall certify the results thereof, which certification shall be retained by the
					 motor carrier for at least 1 year. If the inspection discloses that the
					 equipment is not in a safe condition to be operated on the highways, possession
					 thereof may not be taken by the motor carrier.