§ 390.303 - Written lease and interchange requirements.

§ 390.303 Written lease and interchange requirements.

Except as provided in § 390.301(b) and paragraph (a)(2) of this section, a motor carrier may transport passengers in a leased or interchanged commercial motor vehicle only under the following conditions:

(a) In general -

(1) Written lease or agreement required. There shall be in effect either:

(i) A written lease granting the use of the passenger-carrying commercial motor vehicle and meeting the conditions of paragraphs (b) through (f) of this section. The provisions of the lease shall be adhered to and performed by the lessee;

(ii) A written agreement meeting the conditions of paragraphs (b) through (f) of this section and governing the interchange of passenger-carrying commercial motor vehicles between motor carriers of passengers conducting through service on a route or series of routes. The provisions of the interchange agreement shall be adhered to and performed by the lessee; or

(iii) A written agreement meeting the conditions of paragraphs (b) through (f) of this section and governing the renting, borrowing, or loaning, or similar transfer of a passenger-carrying commercial motor vehicle from another party. The provisions of the agreement shall be adhered to and performed by the motor carrier lessee.

(2) Exception. When an event occurs while passengers are on a passenger-carrying commercial motor vehicle (e.g., a crash, the vehicle is disabled, the driver is ill) that requires a motor carrier immediately to obtain a replacement vehicle from another motor carrier, the two carriers may postpone the writing of the lease or written agreement for the replacement vehicle for up to 48 hours after the time the lessee takes exclusive possession and control of the replacement vehicle. The driver of the vehicle must carry for the duration of the lease, and upon demand of an enforcement official produce, a document signed and dated by the lessee's driver or available company official stating: “[Carrier A, USDOT number, telephone number] has leased this vehicle to [Carrier B, USDOT number, telephone number] pursuant to 49 CFR 390.303(a)(2).” The lessee must also mark the vehicle in accordance with § 390.21(f) before operating it.

(b) The written lease, interchange agreement, or other agreement required by paragraph (a)(1) of this section shall contain:

(1) Vehicle identification information. The name of the vehicle manufacturer, the year of manufacture, and at least the last 6 digits of the Vehicle Identification Number (VIN) of each passenger-carrying commercial motor vehicle transferred between motor carriers pursuant to the lease, interchange agreement, or other agreement.

(2) Parties. The legal name and telephone number of the motor carrier providing passenger transportation in a commercial motor vehicle (lessee) and the legal name and telephone number of the motor carrier providing the equipment (lessor), and signatures of both parties or their authorized representatives.

(3) Specific duration. The time and date when, and the location where, the lease, interchange agreement, or other agreement begins and ends. These times and locations shall coincide with the times for the providing of receipts required by paragraph (e) of this section, unless the parties wish to end the lease, interchange agreement, or other agreement prematurely; in that case, the receipt required by paragraph (e) of this section showing the date, time of day, and location where the lessor recovers possession of the passenger-carrying commercial motor vehicle shall supersede the date, time of day, and location for termination specified by the lease, interchange agreement, or other agreement.

(4) Exclusive possession and responsibilities.

(i) A clear statement that the motor carrier obtaining the passenger-carrying commercial motor vehicle (the lessee) has exclusive possession, control, and use of the passenger-carrying commercial motor vehicle for the duration of the lease, interchange agreement, or other agreement. Such lease or written agreement shall further provide that the lessee shall assume complete responsibility for operation of the passenger-carrying commercial motor vehicle and compliance with all applicable Federal regulations for the duration of the lease, interchange agreement, or other agreement.

(ii) Provision may be made in the lease, interchange agreement, or other agreement for considering the lessee as the owner of the equipment for the purpose of subleasing it to other motor carriers of passengers during the period of such lease or agreement. In the event of a sublease, all of the requirements of this section shall apply to the parties to the sublease.

(iii) Nothing in the provisions required by this paragraph is intended to affect whether the lessor of the passenger-carrying commercial motor vehicle or a driver provided by the lessor is an independent contractor or an employee of the motor carrier lessee.

(5) Insurance. A clear specification of the legal obligation of the lessee to maintain insurance coverage for the vehicle being operated for the protection of the public pursuant to 49 CFR part 387. The lease, interchange agreement, or other agreement shall further specify who is responsible for providing any other insurance coverage for the operation of the leased, interchanged, or otherwise procured equipment.

(c) Copies of the lease. A signed original and two copies of each lease, interchange agreement, or other agreement shall be produced. The lessee shall keep the original and, except as otherwise permitted by paragraph (f)(2) of this section, shall place a copy of the lease, interchange agreement, or other agreement on the passenger-carrying commercial motor vehicle during the period of the lease, interchange agreement, or other agreement. The lessor shall keep the other copy of the lease.

(d) Record retention. Copies of each lease (including the alternative statement required by § 390.303(a)(2)), interchange agreement, or other agreement, and the receipts required by paragraph (e) of this section, shall be retained by the lessor and lessee for one year after the expiration date of the lease, interchange agreement, or other agreement. The summary documents required by § 390.301(b)(2) and (3) shall be retained by the motor carrier performing the trip identified in each such document for one year after the final date of such trip.

(e) Receipts for passenger-carrying commercial motor vehicle. Except as otherwise provided in § 390.301(b)(2) and (3), receipts specifically identifying the passenger-carrying commercial motor vehicle to be leased or otherwise temporarily transferred and stating the date, time of day, and location where possession is transferred, shall be given as follows:

(1) When the lessee takes possession of the passenger-carrying commercial motor vehicle, it shall give the lessor a receipt. The receipt may be transmitted by email, mail, facsimile, or other physical or electronic means of communication.

(2) When the lessor recovers possession of the passenger-carrying commercial motor vehicle, it shall give the lessee a receipt. The receipt may be transmitted by email, mail, facsimile, or other physical or electronic means of communication.

(3) Authorized representatives of the lessee and the lessor may take possession of leased equipment and give and receive the receipts required under this section.

(f) Identification of equipment. The motor carrier lessee shall identify the commercial motor vehicle as being in its service as follows:

(1) During the period of the lease, interchange agreement, or other agreement, the lessee shall mark the passenger-carrying commercial motor vehicle in accordance with the requirements of § 390.21(f) (Leased and interchanged passenger-carrying commercial motor vehicles).

(2) Except as otherwise indicated in paragraph (a)(2) of this section and in this paragraph, a copy of the lease, interchange agreement, or other agreement shall be carried on the passenger-carrying commercial motor vehicle.

(i) A copy of a master lease applicable to more than one vehicle that is carried on the passenger-carrying commercial motor vehicle meets the requirements of this paragraph provided it complies with all other requirements of this section.

(ii) In lieu of a copy of an interchange agreement, a written statement meets the requirements of this paragraph if it identifies the parties to the agreement by company name and USDOT number, states the use to be made of the passenger-carrying commercial motor vehicle and the duration of the agreement, is signed by the parties' authorized representatives, and is carried on the passenger-carrying commercial motor vehicle.