Current through Register Vol. 54, No. 44, November 2, 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.
(d)
Leasing equipment to
shippers. A motor carrier is prohibited from leasing equipment with or
without drivers to shippers or private carriers.
The provisions of this §31.32 amended under the
Public Utility Code,
66 Pa.C.S. §
§
501,
1102,
1103,
1501,
1502,
1504,
1506,
1508 and Chapters 23 and
25.
This section cited in 52 Pa. Code §
31.42 (relating to equipment); and
52 Pa. Code §
31.63 (relating to
equipment).
