Section 1340-06-01-.12 - LEASES IN INTRASTATE COMMERCE(1) Leasing of Motor Vehicle Equipment - Motor carriers desiring to lease motor vehicles to be used under their certificates or permits must carry a copy of the lease or contract in the vehicle which is specified in the agreement during the entire period of the agreement. The contract or lease shall provide for the exclusive possession, control, and use of the vehicle and for the complete assumption of responsibility in respect thereto, by the lessee for the duration of the lease or contract, except that provisions may be made for considering lessee as owner for the purposes of subleasing under this rule to other authorized carriers during the duration of this arrangement. All leased equipment must have displayed in each such leased vehicle a stamp as required by Rule 1340-6-1-.21 or a trip lease permit as set forth in paragraph (2) of this Rule.(2) Trip Leases - The Commissioner of Safety and Homeland Security will furnish, upon request, all certificated and permitted motor carriers of commodities over the highways of the State of Tennessee a "trip lease" form for a period of ten (10) days or one (1) trip for operation on the highways of the State of Tennessee as required by the Tennessee statutes and rules and regulations of this Commissioner. The said form shall be issued in duplicate at a nominal fee of two dollars ($2.00) by the Director of the Motor Carrier Division and the blanks and the effective date of the said form shall be typewritten and the duplicate of the form shall be forwarded to the Commissioner of Safety and Homeland Security on the date of issuance by the said motor carrier. The form shall be numbered from one thousand (1,000) consecutively and shall show on its face that it is a trip lease good for one (1) trip or ten (10) days, name and address of the lessee; name and address of the lessor, and date of issuance by said motor carrier.(3) Rules and Regulations Governing Household Goods Carriers in Leasing Motor Vehicles from Others, in Domiciling Motor Vehicle Equipment, and in Using Agents. (a) Definitions: 1. The term "Commissioner" shall mean the Commissioner of Safety and Homeland Security.2. The term "household goods carrier" shall mean the holder of a common carrier certificate of public convenience and necessity issued by this Commissioner authorizing the transportation of household goods.3. The term "domiciling motor vehicle equipment" shall mean the stationing of a motor vehicle or motor vehicles by a household goods carrier, through the use of lease arrangements or otherwise, at a place which is used as a base of operations for such vehicle or vehicles in carrying on the business of household goods carriage.4. The term "agent" shall mean the employee or representative of a certificated household goods carrier compensated by salary or by the Commissioner, or both, or any other person, who is designated by the carrier as its agent and is held out to the public to render service within the scope of the carrier's authority, but does not include any person or persons who act as a solicitor or booking agent only.(b) Leasing of Motor Vehicles:1. A household goods carrier may lease motor vehicles from others only under the following conditions:(i) To replace motor vehicles disabled or undergoing repair when such vehicle is leased to complete the transportation of a shipment which was originally destined to move upon such disabled vehicle.(ii) To augment its motor vehicle equipment when and only when the lease of a vehicle is in writing and is for a period of not less than ninety (90) days.2. All vehicle leases shall provide that the lessee-carrier assumes full and complete responsibility and liability for the operation of the leased vehicle and for all cargo transported thereon during the term of the lease. All leased vehicles shall comply fully with the rules and regulations of the Commissioner.3. During the term of such lease, the leased vehicle shall not be subleased and the lessee household goods carrier shall not allow said vehicle to be used for any transportation other than transportation performed by said lessee-carrier.4. Each household goods carrier upon entering into a lease of a motor vehicle or vehicles, shall file a copy of such lease with the Commissioner on same day of execution thereof and shall at all times keep on file with the Commissioner a complete list of all leased vehicles showing the identification of the vehicle, the name of the lessor and the place where such vehicle is stationed. All leases executed under the conditions specified in (1)(a) of this Rule shall specifically identify the motor vehicle disabled or undergoing repair that is replaced by the leased vehicle.5. An executed copy of the lease under which a vehicle is operating shall be carried on such vehicle at all times.(c) Agents: 1. Every household goods carrier shall register and keep on file with the Commissioner the correct name, mailing address and location of each of its agents in the State of Tennessee.2. A household goods carrier may not register or have more than one agent as defined herein in a municipality, town or community and an agent shall be the agent of only one household goods carrier.3. The Commissioner may at any time inquire into and investigate the fitness of any agent registered by such carrier under these rules. If it finds such agent to be unfit in the public interest to represent the carrier principal in services to the public it may disapprove the registration of such agent and thereafter said carrier principal shall not allow such person, firm or corporation to act as its agent.4. A household goods carrier shall not transport any shipment solicited or accepted for shipment by one other than its registered agent or a full time employee of such carrier or such agent, provided, however, this shall not prevent household goods carriers as defined by these rules from interlining shipments with each other.(d) For the purpose of this rule the principal place of business of household goods carriers as shown by their certificate of convenience and necessity shall be deemed to be the principal place of business and domicile. Any household goods carriers desiring different and separate domiciles shall apply for same as set forth in the above rule.Tenn. Comp. R. & Regs. 1340-06-01-.12
Original rule certified May 9, 1974. Amendment filed June 24, 1986; effective September 13, 1986. Rule 1340-06-01-.12 was transferred from rule 1220-02-01-.12 by the Secretary of State with editorial changes pursuant to Public Chapter 305 of 1995 and Public Chapter 826 of 2002; effective March 28, 2003. Emergency rule filed August 16, 2011; effective through February 12, 2012. Repeal and new rule filed August 16, 2011; effective January 29, 2012.Authority: T.C.A. §§ 65-15-106 and 65-15-113.