Rhode Island Code of Regulations
Title 815 - Division of Public Utilities and Carriers
Chapter 50 - Common Carriers
Subchapter 05 - Motor Carriers of Property
Part 1 - Transportation Provided by Motor Carriers of Property (815-RICR-50-05-1)
Section 815-RICR-50-05-1.16 - General Lease Provisions

Universal Citation: 815 RI Code of Rules 50 05 1.16

Current through September 18, 2024

A. No common carrier by motor vehicle and no contract carrier by motor vehicle shall perform authorized transportation in a power unit consisting of a straight truck, tractor, van or automobile with or without driver, which such common carrier or contract carrier does not own unless there is in effect with respect to such equipment a lease which shall be in writing and signed by the parties thereto and subject to the following general conditions:

1. The lease shall contain a description specifying the make, type, year of manufacture, motor number(s) of registration and license plate number(s) of the leased equipment, and shall state whether a driver is to be supplied by the lessor for the operation of said leased equipment.

2. The lease shall provide that the lessee shall have the exclusive possession, control, and use of the equipment for the duration of the lease. The lease shall further provide that the lessee shall assume complete responsibility for the operation of the equipment for the duration of the lease.

3. The lease shall specify the time and date on which said lease begins and the date on which it terminates.

4. The lease shall preclude the possession, control or use of the equipment by anyone but the lessee for the duration of the lease.

5. The lease shall be executed in triplicate, the original to be retained by the lessee, one copy to be retained by the lessor, one copy to be filed with the Division unless a copy of the lease is carried on the equipment. The lessee shall keep with the equipment a statement certifying that the equipment is being operated by it. The statement shall also specify the name of the owner, the date and length of lease, any restrictions in the lease relative to the commodities to be transported, and the address where the original lease is kept by the lessee.

6. During the period of the lease, the carrier shall identify the equipment in accordance with Division Rules and Regulations. At the termination of the lease period, the lessee shall recover from the lessor any plates, vehicle identification devices or permits issued to the lessee and used on the leased equipment during the term of the lease.

1.16.1 Owner-Operated Equipment

A. When the equipment to be leased is to be operated for the lessee by the owner or an employee of the owner of said equipment, then, in addition to the preceding general lease conditions the following specific conditions must be met:
1. As the principal purpose of these regulations is to permit common carriers and contract carriers to perform transportation in power units that they do not own, nothing contained herein should be construed as allowing such common carriers and contract carriers to abandon their responsibility to provide the transportation services described in their certificates or permits.

2. The period for which the lease applies shall be 7 days or more.

3. The amount to be paid by the lessee for the equipment shall be clearly stated on the face of the lease or in an addendum which is attached to the lease. In addition, the lease must disclose which of the parties is ultimately responsible for the payment of the cost of fuel, road use taxes, excise taxes, fuel taxes, repairs, maintenance, permits of all types, tolls, ferries, plates, detention and accessorial charges and any unused portions of such items.

4. The compensation stated on the lease or in an attached addendum may apply to the equipment and driver's services either separately or as a combined amount.

5. The lease shall clearly specify that the lessee shall be responsible for providing cargo insurance and shall specify that the lessee shall carry a secondary or umbrella policy over that of the lessor for public liability and other property damage coverage.

6. The lease shall clearly specify all items that must be initially paid for by the lessee but ultimately deducted from the lessor's compensation at time of payment.

7. For those lessors whose revenue is based on a percentage of the gross revenue for a shipment, the lease shall specify that the lessor shall have the right to examine or copy the rated pro or freight bill at the time of settlement.

8. The lease shall specify that payment to the lessor shall be made within 15 days after submission of the necessary delivery documents concerning a trip in service of the lessee. The lease shall clearly specify all events, conditions, and requirements that are necessary before the lessor can receive payment, including a statement of the delivery documents and other paperwork that must be submitted. All placards and licenses belonging to lessee must be returned upon termination of lease.

9. In the event any common carrier or contract carrier by motor vehicle holding authority issued by the Department, who, by utilizing leased equipment fails to assume complete responsibility and control of operations conducted with leased equipment, such carrier will be considered to have violated the conditions of its certificate or permit and, after hearing, such certificate or permit may be suspended or revoked by the Department. For the purpose of this rule, the term "Responsibility and Control" shall mean that all job assignments to the lessor are only authorized when received by the lessee. No independent solicitation is authorized.

1.16.2 Hazardous Materials

Whenever leased equipment is used to transport hazardous materials, the lessee shall be responsible for meeting all requirements of federal and state laws and regulations governing the transportation of such materials.

1.16.3 Identifying Marks

No common carrier by motor vehicle or contract carrier by motor vehicle shall operate leased equipment on any roadways unless such equipment is identified as provided in R.I. Gen. Laws § 39-12-26.

1.16.4 Rental to Private Caries or Shippers

Unless such service is specified in their operating authority, no common carrier by motor vehicle or contract carrier by motor vehicle, shall rent equipment with drivers to private carriers or shippers, and no such common carrier shall rent equipment without drivers to private carriers or shippers.

1.16.5 Exceptions

The rules of this Section shall not apply to equipment without drivers leased by a common carrier or a contract carrier by motor vehicle from a person, partnership, or corporation whose principal business is the leasing of equipment without drivers for compensation.

1.16.6 Exclusion of owner/Operator Method in the Transportation of Used Motor Vehicles

No common carrier or contract carrier shall transport or tow used motor vehicles with leased equipment where the driver of the equipment is the lessor or is an employee of the lessor.

Disclaimer: These regulations may not be the most recent version. Rhode Island may have more current or accurate information. We make no warranties or guarantees about the accuracy, completeness, or adequacy of the information contained on this site or the information linked to on the state site. Please check official sources.
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