Section 45 IAC 16-1-13 - Lease and interchange of vehicles; applicability of section; definitions; exemptionsAuthority: 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 [Repealed by P.L. 72-1988, SECTION 10, effective March 1, 1990.], to the interchange of equipment between such common carriers of property by motor vehicle and to lease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of property as a common or contract carrier under the provisions of the Act, specifically IC 8-2-7-2(g), (h) and (i)[Repealed by P.L. 72-1988, SECTION 10, effective March 1, 1990.].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. Click here to view Image
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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.]. Department of State Revenue; No. 35095: Motor Carrier Department Rule 14; filed Dec 29, 1977: Rules and Regs. 1978, p. 707; No. 35256; filed Apr 12, 1978, 11:25 am: Rules and Regs. 1979, p. 226; filed Oct 21, 1986, 10:40 am: 10 IR 391; errata filed Jun 22, 1989, 9:00 a.m.: 12 IR 2063Transferred from the Indiana Utility Regulatory Commission ( 170 IAC 2-1-13) to the Department of State Revenue ( 45 IAC 16-1-13) by P.L. 72-1988, SECTION 12, effective July 1, 1988.