Section 291-3-008 - LEASING AND INTERCHANGE OF EQUIPMENT008.01SCOPE: Common or contract carriers may engage in leasing only as provided by these rules. Failure to observe the provisions of a lease or its preparation will be a violation of these rules. Leases filed with the Commission in accordance with these rules will be retained by the Commission, the Lessor, and the Lessee for not less than three years after cancellation of such lease.008.02LEASING EQUIPMENT: Common or contract carriers may lease equipment which they do not own to augment their existing equipment, other than that exchanged between motor carriers in interchange service, only under the following conditions: 008.02A Each lease for the use of equipment will: 008.02A1 Be made between the lessor and lessee;008.02A2 Be in writing and signed by the parties thereto, or their duly authorized agents;008.02A3 Specify the time period for which the lease applies and the time, date, or circumstance on which the lease begins and ends, the duration of which will coincide with the time for giving receipts for the equipment or the vehicles as required by these rules.008.02A4 Specify the compensation to be paid by the lessee for the equipment or vehicle.008.02A5 Provide for the exclusive possession, control, and use of the equipment or vehicle, and for the complete assumption of responsibility in respect thereto by the lessee for the duration of the lease, or otherwise may be assigned by the lessee, in writing, to an independent contractor who will operate equipment under the lessee's authority.008.02A6 Provide that the lessee will be responsible for carrying the insurance required by the Commission not withstanding any agreement between the parties that the lessor will hold the lessee harmless and provide certain insurance covering the lessee.008.02A7 Be approved by the Commission.008.02A8 Be executed in quadruplicate, with all copies filed with the Commission to be stamped for approval. One copy will be retained by the Commission and the other three returned to the lessee of which the lessee will retain one, carry one copy on the equipment or vehicle and send the remaining copy to the lessor for retention.008.02B Notwithstanding the provision of rule 008.02E a common or contract carrier lessee of equipment or vehicles may subsequently lease that leased equipment or vehicle to another common or contract carrier without being in violation of these rules if the subsequent lease also conforms to the provisions of this section.008.02C When possession of equipment is taken by lessee, the lessee will give to the lessor a receipt specifically identifying the equipment and stating the date and time of day possession is taken. When the possession by the lessee ends, the lessee will obtain from the lessor a receipt specifically identifying the equipment and stating the date and time of day possession is taken.008.02D It will be the duty of the lessee before taking possession of equipment or vehicle, to inspect the same in order to ensure that the equipment complies with the safety regulations of section 005 of these rules. The person making the inspection will certify the results thereof in a report which will be retained by the lessee for the duration of the lease. When equipment other than a power unit is leased, any form of report applicable to such equipment or vehicle may be used. If the inspection discloses that the equipment or vehicle does not comply with the requirements of section 005 of these rules, possession will not be taken. In all instances in which inspection is made, the lessee will certify on the report that the person making the inspection is competent and qualified to make such inspection as a representative of the lessee.008.02E The lessee will identify the leased equipment or vehicle during the duration of the lease. Before relinquishing possession of the equipment or vehicle to the lessor, the lessee will remove any PSC plates or other signs displayed on such equipment or vehicle showing it as the operating carrier. When a power unit owned by a lessor holding operating authority from the Commission is leased, the PSC plates and the cab card belonging to the lessor may remain on or in the power unit.008.02F Before any person other than a regular employee of the lessee is assigned to drive the equipment or vehicle operated under these rules, the lessee will make certain that the driver is familiar with, and that employment does not result in any violation of section 005 of these rules. The driver will furnish to the lessee a certificate of physical examination in accordance with section 005.03 of these rules.008.02G Each lessee who uses equipment or vehicle under these rules will prepare and retain for one year, a document covering each trip for which the equipment or vehicle is used. This document will contain the name and address of the lessor, the point of origin, the commodity carried, if any, the time and date of departure, the point of final destination, and the lessee's certificate or permit number which has been affixed to the equipment or vehicle. Bills of lading, way-bills, freight-bills, manifests, or other paper identifying the lading will be carried on the equipment or vehicle during use. Copies of these documents will be kept by the lessee for not less than three (3) years.008.02H The use of leased equipment will not change operations or the relations of the parties involved as they relate to the jurisdiction and control of the Commission. The lessee will continue to remain responsible to the Commission and will answer to the Commission for the performance of its common or contract carrier's responsibilities and for the conduct of any of the drivers with whom it has a lease.008.03INTERCHANGE OF EQUIPMENT: For the purposes of this section, the common or contract carrier leasing the equipment to another common or contract carrier is referred to as the transferor, and the common or contract carrier which takes possession of the equipment will be referred to as the transferee. Common or contract carriers may interchange equipment with one or more common or contract carriers only under the following conditions: 008.03AWRITTEN AGREEMENT: The written contract, lease or other arrangement providing for interchange, hereinafter, the written agreement, will specify in a readily apparent manner that it is an interchange agreement and will: 008.03A1 Describe specifically the equipment to be interchanged and specify the point or points at which the interchange is to occur.008.03A2 Specify the use to be made of the equipment and the consideration for the use.008.03A3 Be signed by the parties to the written agreement or their duly authorized agents.008.03A4 Be executed in quadruplicate, with all copies filed with the Commission to be stamped for approval. One copy will be retained by the Commission and the other three returned to the transferee. The transferee shall retain one copy for itself, carry one copy on the equipment and send the remaining copy to the transferor for retention.
008.03B In order to engage in the interchange of equipment, the certificates or permits held by transferee and transferor must authorize the transportation of the commodities proposed to be transported and must authorize service from and to the point where the physical interchange occurs.008.03C Traffic transported under interchange service will move by means of through bills of lading issued by the originating 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 will be kept separate and distinct from the divisions of the joint rates or the proportions thereof accruing to the carriers.008.03D The transferee will have the equipment inspected in the manner provided for in section 008.02D of these rules. Equipment which does not comply with the safety regulations will not be operated until the defects have been corrected.008.03E A common or contract carrier which operates a power unit in interchange service as the transferee will identify such equipment in accordance with these rules. Upon completion of the interchange agreement, the transferee will remove any PSC plate, legend, or signs showing the transferee as the operating carrier before relinquishing possession of the equipment.008.03F A PSC plate need not be purchased by the transferee if the PSC plate purchased for the power unit by the transferor remains on the power unit.008.03G The transferee of equipment on a through movement involving two or more carriers will be considered the owner of the equipment for the purpose of leasing the equipment for movement to destination or return to the originating carrier.291 Neb. Admin. Code, ch. 3, § 008
Amended effective 1/16/2019Amended effective 5/12/2021Amended effective 9/24/2022