MISCELLANEOUS PROVISIONS
§ 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—9901 (relating to 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), regarding 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) The holder of a call or demand certificate may lease vehicles it owns or leases 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).
(2) A certificateholder may use a vehicle owned or leased by a driver in its certificated service. The certificateholder may lease this vehicle from the driver or may allow the driver to operate under its authority without a lease. The following conditions apply to driver owned or leased vehicles:
(i) The vehicle shall be operated under the direct control and supervision of the certificateholder.
(ii) The driver and the certificateholder are required to keep and retain daily log sheets as prescribed by § 29.313(c).
(iii) The certificateholder is required to furnish and maintain adequate service to the public which shall be reasonably continuous and without unreasonable interruptions or delays.
(iv) The certificateholder shall provide insurance coverage for vehicles while in service. The driver shall provide notification to the driver’s insurer, in writing, that the vehicle will be used in taxicab service. The driver shall provide a copy of the written notification to the certificateholder. The certificateholder shall maintain the notification for 3 years following the termination of the driver from the certificateholder’s service.
(v) The certificateholder shall provide to the driver written notice of insurance coverage and limits while operating in its service. This notice must indicate if comprehensive and collision coverage are provided while the vehicle is used in service and shall be signed by the driver. The certificateholder shall maintain the notification for 3 years following the termination of the driver from the certificateholder service.
(vi) The driver shall provide written notice to a lienholder or lessor that the vehicle will be used in taxicab service. The driver shall provide a copy of the written notification to the certificateholder. The certificateholder shall maintain the notification for 3 years following the termination of the driver from the certificateholder’s service.
(vii) The certificateholder shall ensure that all vehicles meet the taxicab vehicle requirements provided in this chapter while the vehicles are in service.
(viii) For purposes of this subsection, a vehicle is ‘‘in service’’ when the vehicle is available for hire, regardless of whether a passenger is in the vehicle.
(ix) The certificateholder shall ensure that all drivers meet the driver requirements provided in this chapter.
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; and the act of July 13, 2016 (P.L. 664, No. 85).
Source 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; amended January 27, 2017, effective January 28, 2017, expire upon promulgation of final form regulations or on November 4, 2018, whichever is later, as set forth in the act of November 4, 2016 (P.L. 1222, No. 164), 47 Pa.B. 429. Immediately preceding text appears at serial pages (321666) to (321668).
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).
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