PURPOSE: This proposed rule prescribes
requirements to properly identify leased motor vehicles and drivers when they
operate under authority issued by the commission, to ensure that leased
vehicles operated by motor carriers are safely equipped, maintained, and
operated, and properly insured and licensed, and to prevent the evasion of
motor carrier regulatory requirements through regulating the leasing of motor
vehicles under certain circumstances.
(1) Definitions.
(A) "Lessee" means the person who received
possession and control of the vehicle.
(B) "Lessor" means the vehicle's titled owner
or lessee who subleases to another lessee.
(2) Motor carriers shall not transport
passengers or property in intrastate commerce in non-owned motor vehicles
unless there is in place an executed lease for each motor vehicle operated by
the motor carrier in intrastate commerce which conforms to the following
requirements:
(A) The lease must be reduced to
writing and executed with one (1) copy retained by the lessee for not less than
two (2) years after the expiration of the lease; and one (1) copy shall
accompany the driver while the leased vehicle is in operation and available for
inspection by any official authorized to enforce the motor vehicle or
transportation laws of this state;
(B) The terms of the lease shall identify the
lessor and lessee; describe the leased vehicle including the year, make, model,
vehicle identification number, license plate number, and licensing state;
specify the beginning and ending duration of the lease; specify the payment
terms; and provide all the surrounding facts that the leased equipment is
exclusively committed to the lessee's use during the term of the lease;
and
(C) Except when a vehicle is
subleased by a motor carrier in compliance with section (5) of this rule, the
lessee shall control all transportation of passengers or property performed in
the leased vehicle during the term of the lease and be deemed the sole operator
of the motor vehicle unless otherwise agreed upon by the lessee; be responsible
for the operation of the vehicle, including its equipment, physical condition,
insurance coverage, licensing, markings, drivers, drivers' qualifications,
drivers' hours of service, and all other related matters in conformity with the
applicable laws of this state and the rules of the commission, to the same
extent as if the lessee were the actual owner of the vehicle; immediately upon
the termination of the lease or sublease of the vehicle, remove or obliterate
all the lessee's markings from the vehicle; and immediately remove the
cancelled lease from the vehicle if the lease is cancelled prior to the
expiration date.
(3) If
the lessee motor carrier knowingly or recklessly fails to control the
transportation performed in the leased vehicle, then the transportation is not
covered and authorized by the lessee's operating authority and the lessee motor
carrier shall be deemed to be procuring, aiding, and abetting any
transportation performed in the leased vehicle during the term of the
lease.
(4) Motor carriers shall not
lease vehicles with or without drivers to shippers or receivers of property or
to passengers or chartering groups.
(5) Motor carriers shall not sublease a
leased vehicle, with or without driver, unless the lease expressly authorizes
the lessee motor carrier to sublease the vehicle to another authorized motor
carrier during the lease. The sublease shall not authorize further subleasing
of the vehicle to any person. A copy of the sublease and the original lease
shall accompany the driver at all times while the vehicle is in operation, and
be available for inspection.
(6)
Authorized household goods motor carriers may transport household goods in
motor vehicles owned or leased by the carrier's agent under an agency agreement
in compliance with
7 CSR 265-10.050 and the
Household Goods Tariff Circular No. 1-2013.
(7) This rule does not authorize the leasing
of any certificate, permit, or operating authority unless the leasing is
approved by order of the commission as a transfer of authority under section
390.111, RSMo.
(8) Whenever a person who is not authorized
by the commission to engage in intrastate transportation leases its own
equipment-
(A) With or without driver, to an
authorized intrastate motor carrier and the lease or any motor vehicle
operations during the term of the lease do not actually comply with all the
requirements of this rule, then those operations are not covered and not
authorized by the lessee's operating authority; or
(B) With driver to a shipper, receiver,
passenger, or chartering group, the lessor's intrastate transportation under
that lease shall be presumed to result in private carriage by the lessee if the
lease and all operations under it, comply with section (2) of this rule and the
term of the lease is not less than thirty (30) consecutive days. If a lease or
other arrangement between a shipper, receiver, passenger, or chartering group
and the owner of a motor vehicle who is not authorized by the commission to
engage in intrastate transportation does not comply with these requirements,
then the lessor's motor vehicle operations shall not be presumed to be private
carriage by the lessee.