Section 29.101. Operation of leased equipment

(a) General provisions. General provisions include the following:

(1) Common carriers. Common carriers shall operate vehicles in compliance with this title and of the laws of the Commonwealth.

(2) Drivers. When used in the authorized service of the lessee, leased vehicles shall be operated by drivers qualified under Subchapter F (relating to driver regulations) when operating vehicles with seating capacities of 15 or less, including the driver, or Chapter 37 (relating to safety code for transportation of property and passengers), when operating vehicles with seating capacities of 16 or more, including the driver.

(3) Insurance and registration. Leased vehicles shall be covered by insurance as provided by § 32.11 (relating to passenger carrier insurance) and conform with the requirements for registration of vehicles as set forth in 75 Pa.C.S. § § 101—9910 (relating to the Vehicle Code).

(4) Capacity. The operation of leased vehicles may in no event be assumed to permit an increase in the number of vehicles or in the seating capacity of vehicles where so limited by the terms of the certificate.

(5) Control. Vehicles shall be owned by or leased by the certificateholder. Operation and service shall be under the direct control and supervision of the certificateholder. A common carrier of passengers may not lease a vehicle to a driver, except as provided in subsection (f), relating to call or demand service.

(b) Lease agreements. Lease agreements must conform with the following:

(1) Content. Leases of vehicles must be in writing, specifically set forth the terms of the lease including obligations assumed such as maintenance and fuel, compensation, and the duration of the lease, and be executed by the parties or their authorized agents or officers.

(2) Copies of lease and distribution. The following applies to copies and distribution of the lease:

(i) Preparation. Lease agreements must be prepared in triplicate, the original to be retained by the certificateholder in whose service the equipment is to be operated. The original shall be retained at the principal office of the certificateholder, one copy to be retained by the owner of the equipment, and one copy to be carried on the leased vehicle for the duration of the contract. The certificateholder shall retain leases for 2 years following their expiration date.

(ii) Certificates. In lieu of a copy of the lease, a certificate or rental form identifying the leased vehicle shall be carried on the leased vehicle certifying that the equipment is to be operated exclusively in the service of the certificateholder named therein as lessee, the names and addresses of the owner and lessee, the date of the lease, the location of the original lease retained by the certificateholder, and the exact expiration date of the lease. This certificate or rental form shall be certified as true and correct by the certificateholder or an authorized representative.

(c) Safety inspection. It is the duty of the certificateholder, before taking possession of equipment, to inspect the equipment or to have the equipment inspected by a person who is competent and qualified to make an inspection as a representative of the carrier to insure that the equipment is in a safe condition to be operated on the highway. The person making the inspection shall certify the results thereof. The certification shall be retained by the certificateholder 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 certificateholder.

(d) Registration of vehicles. When the Department of Transportation, at the request of the owner, designates the lessee certificateholder as the registrant of the vehicle and the name and address of the lessee are substituted for the address of the lessor, the Commission will approve the registration when the certificate is in good standing, but the approval is effective only for the period during which the lease remains in effect.

(e) Identification. If a removable device is used to identify the operating carrier as lessee, the device must be made of durable material securely affixed to the vehicle operated, throughout the duration of the lease. Upon relinquishing possession of the equipment, the certificateholder operating the leased vehicle under this subsection shall remove the legend or removable device displayed on the vehicle.

(f) Call or demand. The following applies to call or demand carriers operating leased equipment:

(1) A certificateholder may not lease, contract with or make an arrangement with an employee-driver under which the certificateholder is given custody, possession or use of a vehicle owned or leased by the employee-driver or his nominee. For the purpose of this paragraph, a nominee shall include the employee-driver, his spouse, children, parents or a trust for their benefit or an affiliated corporation, partnership or association.

(2) The holder of a call or demand certificate may lease vehicles to drivers for operation in the service of the certificateholder only under the following conditions:

(i) The leased vehicle shall be operated under the direct control and supervision of the certificateholder.

(ii) The driver-lessee of the vehicle and the certificateholder shall be required to keep and retain daily log sheets as prescribed by § 29.313(c) (relating to service standards and requirements).

(iii) The certificateholder shall be required to furnish and maintain adequate service to the public which shall be reasonably continuous and without unreasonable interruptions or delays.

(iv) The leasing plan of the certificateholder must conform with § 29.315 (relating to alternative forms of compensation).

The provisions of this § 29.101 adopted April 15, 1946; amended through February 21, 1966; amended March 18, 1977, effective March 19, 1977, 7 Pa.B. 752; amended January 23, 1981, effective January 24, 1981, 11 Pa.B. 409; amended August 4, 2006, effective August 5, 2006, 36 Pa.B. 4181. Immediately preceding text appears at serial pages (218741) to (218744) and (263615).

Notation

Authority

The provisions of this § 29.101 amended under the Public Utility Code, 66 Pa.C.S. § § 501, 1102, 1103, 1501, 1502, 1504, 1506, 1508 and Chapters 23 and 25.

Cross References

This section cited in 52 Pa. Code § 29.111 (relating to accounts, records and memoranda); and 52 Pa. Code § 29.315 (relating to alternative forms of compensation).