Section 1360.10  Applicability

a)         This Part applies to the following actions by motor carriers of property:

1)         The leasing of equipment with which to perform transportation regulated by the Illinois Commerce Commission ("Commission").

2)         The interchange of equipment between motor common carriers in the performance of transportation regulated by this Commission, except with regard to equipment used exclusively to provide transportation within counties having a population in excess of 1,000,000 persons.

b)         This Part does not apply to the following actions:

1)         The leasing of equipment by persons whose principal business is the leasing of equipment, without drivers, for hire, to the general public; and

2)         The leasing of equipment for use in interstate commerce.

c)         The leasing of equipment with drivers to other than a licensed motor carrier of property is prohibited by Section 18c-4103(1) of the Illinois Commercial Transportation Law ("Law") (Ill. Rev. Stat. 1985, ch. 95½, par. 18c-4103(1)).

(Source:  Amended at 11 Ill. Reg. 16447, effective October 1, 1987)

Section 1360.20  Definitions

            "Addendum."  A supplement to an existing lease.

            "Authorized carrier."  A person holding a motor carrier of property license from the Commission.

            "Equipment."  A motor vehicle, straight truck or tractor.

            "Lease."  A written document vesting possession, use, control and responsibility in the lessee during the periods the vehicle is operated by or for the lessee.

            "Lessee."  In a lease, the party acquiring the use of equipment, with or without driver, from another.

            "Lessor."  In a lease, the party granting the use of equipment, with or without driver, to another.

            "Owner."  A person

            to whom title to equipment has been issued, or

            who, without title, has the right to exclusive use of equipment for a period longer than 30 days, or

            who has lawful possession of equipment, registered and licensed in any state in the name of that person.

            "Permanent lease."  A lease in which the authorized carrier acquires the use of equipment, with or without driver, from an owner for a period of 30 days or more.

            "Shipper."  A person who sends or receives property which is transported in intrastate commerce.

            "Sublease."  A written document in which the lessee grants the use of leased equipment, with or without driver.

            "Trip lease."  A lease in which the authorized carrier acquires the use of equipment, with or without driver, from an owner for a period of time less than 30 days.

(Source:  Amended at 11 Ill. Reg. 16447, effective October 1, 1987)

Section 1360.30  General Leasing Requirements

a)         Leasing permitted only in compliance with this Part. Authorized carriers may perform regulated  transportation in equipment they do not own only in accordance with this Part.

b)         Written Lease Required.  Each lease covered by this Part must be in writing.

c)         Parties and signatures.  A lease subject to this Part must be between the owner of the equipment (the lessor) and the licensed carrier to which the equipment, with or without driver, is leased (the lessee).  The lease must be signed by each party or its authorized representative.

d)         Filing and review requirements.

1)         Filing requirement.  The original and 2 copies of each completed (signed and dated) lease to which this Part applies must be filed with the Commission's Transportation Division at the following address:

            Illinois Commerce Commission

            Transportation Division

            527 East Capitol Avenue

            P.O. Box 19820

            Springfield, IL  62791

2)         Filing fee requirement.  A filing fee as prescribed in 92 Ill. Adm. Code 1205 shall be remitted with each lease.

3)         No operations shall be conducted under a lease to which this Part applies until a copy of the completed lease has been filed with or mailed to the Commission's Transportation Division.

4)         Operations may be conducted under the lease after filing or transmittal but before completion of review.  A copy of the lease and an attached affidavit stating that the lease has been transmitted to the Commission, indicating the date of transmittal and stating that the lease is under review, are to be carried in the vehicle covered by the lease.

e)         Receipts for equipment.  Receipts, specifically identifying the equipment to be leased and stating the date and time of day possession is transferred, shall be given as follows:

1)         When possession of the equipment is taken by the authorized carrier, it shall give the owner of the equipment a receipt.

2)         When possession of the equipment by the authorized carrier ends, it shall give the owner of the equipment a receipt.

f)         Identification of equipment.  Authorized carriers shall identify the leased equipment as being in their service as follows:

1)         During the period of the lease, the carrier shall identify the equipment by attaching a placard with the identification of the lessee in compliance with Section 18c-4701 of the Law;

2)         During the entire period of the lease, a copy of the executed lease shall be carried in each motor vehicle covered thereby.  The lease must bear a Transportation Division stamp showing that the lease was approved or that no deficiency was found or have attached to it the affidavit prescribed in subsection (d)(4).

g)         Records of equipment use.  Authorized carriers shall keep records of equipment use as follows:

1)         General equipment use records.  Each authorized carriers shall prepare and keep documents covering each trip for which the equipment is used in its service.  These documents shall contain the name and address of the owner of the equipment, the point of origin, the time and date of departure, and the point of final destination.  These documents shall be preserved as part of the carrier's records.

2)         Trip lease records.  If the equipment is being leased for a period less than 30 days, the authorized carrier shall carry  a copy of the lease records described in subsection (g)(1) in the leased equipment while it is operated under the lease.  Records carried in the vehicle must also identify the lading.

3)         Permanent lease records.  If the equipment is being leased for periods of 30 days or more, the authorized carrier may keep the records identifying the lading at its terminals or principal office as part of its records, rather than in the leased equipment.

h)         A copy of the completed written lease shall be retained as part of the carrier-lessee's records.

i)          Cancellation.  In the event that a carrier wishes to cancel a lease prior to the expiration date, it may file a notice of cancellation at the address for filing leases under Section 1360.30(d)(1).  Otherwise, the lease shall remain in effect for purposes of the Law until the expiration date, or the date on which the lease expires by operation of Section 1360.40(a)(2), whichever occurs first.  No fee is required for filing notice of cancellation.

(Source:  Amended at 11 Ill. Reg. 16447, effective October 1, 1987)

Section 1360.35  Actions Affecting Leases

a)         Revocation of carrier/lessee's license.  In the event that the license held by the carrier/lessee is revoked pursuant to Section 18c-1704 of the Law (Ill. Rev. Stat. 1985, ch. 95½, par. 18c-1704), the lease shall remain in effect but all operations of equipment subject to the lease must cease unless and until the license is reinstated by order of the Commission.

b)         Transfer of carrier/lessee's license.  In the event that a transfer as defined in Section 18c-1104 of the Law (Ill. Rev. Stat. 1985, ch. 95½, par. 18c-1104) occurs:

1)         The lease shall remain in effect and shall bind the transferee if the name of the license holder is not changed by the transfer; or

2)         The lease shall be void from the date the transfer is granted if the name of the license holder is changed by the transfer, unless the transferee files an amendment to the lease showing the change and showing that it has assumed the obligations of the transferor under the lease.  No filing fee will be required for the filing of such amendments.

c)         Carrier/lessee's name change.  In the event that the carrier/lessee undergoes a name change not associated with a transfer as defined in Section 18c-1104 of the Law, the lease shall be void from the date of the name change unless the carrier/lessee files an amendment to the lease showing the changes and stating that the change is not associated with a transfer.  No filing fee will be required for the filing of such amendments.

(Source:  Added at 11 Ill. Reg. 16447, effective October 1, 1987)

Section 1360.40  Lease Terms and Conditions

a)         Required terms and information.  A lease subject to this Part must specify the information set forth in this subsection.

1)         Identifying information

A)        Parties.  The lease must show the full legal name of the carrier-lessee, as it appears on the carrier's Commission license; the full legal name of the equipment owner-lessor; and the mailing address of each, including street address, city, state, and zip code.

B)        Vehicle.  The lease must show the type, make, year, and vehicle identification number of the motor vehicle which is subject to the lease.

2)         Term of the lease.  The lease must specify the dates or the circumstances which begin and end the term of the lease.  The term of the lease shall coincide with the times for giving receipts for the equipment as required in subsection (b).  The term of the lease shall not exceed 3 years.

3)         Compensation to owner and drivers.  The lease must specify both the amount and the method of computing the compensation to be paid by the carrier-lessee to the equipment owner.  Compensation may be stated either jointly or separately for equipment and drivers.  The lease must also specify any documents which must be presented by the lessor before he can receive payment.

4)         Responsibility for expenses.  The lease must specify the responsibility of the lessee and the lessor for payment of expenses incurred in providing transportation service, either directly or through deductions (chargebacks) from compensation specified in subsection (b)(3). Expenses not expressly made the responsibility of the lessor shall be the responsibility of the lessee.  The lease must also specify any documents to be submitted by either party in relation to payment or reimbursement of expenses.  Expenses covered under this subsection include:

A)        Fuel costs;

B)        Fuel and other taxes;

C)        Empty mileage;

D)        Licenses, permits, plates, and decals of all types except permits issued by the Commission;

E)        Tolls and other fees, except those fees paid to the Commission;

F)         Insurance and surety coverage (including responsibility for primary insurance);

G)        Rentals or other payments to the carrier; and

H)        Any other expenses related to the transportation.

5)         Supplemental insurance coverage.  The lease must specify which party is responsible for securing and paying for, either directly or indirectly, any other insurance or surety coverage in addition to amounts required by Articles IV through IX of Sub-Chapter 4 of the Law (Ill. Rev. Stat. 1985, ch. 95½, pars. 18c-4401 to 18c-4905) or 92 Ill. Adm. Code 1425.  If the lessor purchases any such insurance from or through the lessee, the lessee shall provide the lessor, on request, a copy of the policy (policies) and a certificate of insurance showing the name of the insurance company, the policy number, amounts and types of coverage, effective dates of coverage, deductible amounts, and the cost of the coverage.

6)         Loss or damages.  The lease must specify the conditions under which the lessor may be required to indemnify the lessee for personal injury, property damage, or loss of or damage to cargo.  If indemnification is made through deductions from compensation otherwise owed to the lessor, a written itemization and explanation of deductions must be provided to the lessor before any deductions are made.

b)         Implied terms.  The following terms, if not stated in a lease, shall be implied.  Any contrary provisions in the lease shall be void.

1)         Exclusive possession and control.  The lessee shall have exclusive possession and control of leased equipment during all periods when the equipment is operated under the lease.  Such exclusive possession and control shall extend also to the drivers of leased equipment.

2)         Insurance coverage.  The lessee shall have the responsibility for securing insurance or surety coverage in compliance with Sub-chapter 4 of the Law and 92 Ill. Adm. Code 1425.

3)         Payment deadline.  Payment of compensation due under a lease must be made within 15 days after submission of any documents specified under subsection (a)(3).

4)         Pre-conditions to lease.  The lessor is not required to purchase, rent, or lease any goods (including equipment) or services from the lessee as a condition of the lease or of entering into or not cancelling the lease.

5)         Other obligations of lessee.

A)        Copy of lease.  Prior to commencement of operations under a lease, the lessee shall provide the lessor a completed copy of the lease and proof of its transmittal to the Commission.

B)        Copy of rated freight bill.  If compensation is based on information shown on the bill, the lessee shall provide the lessor with a copy of the rated freight bill at the time compensation for the movement is paid to the lessor.  The lessee may delete the names of shippers, consignors, and consignees from the bill.

C)        Examination of tariff.  If the lessor requests it, the lessee shall allow an examination of its tariffs.

6)         Any term of a lease which conflicts with the Illinois Commercial Transportation Law, Commission rules, or Commission orders is void.

(Source:  Amended at 17 Ill. Reg. 18466, effective October 12, 1993)

Section 1360.45  Lease Form

All leases covered by this Part shall include the Commission's Equipment Lease form.

(Source:  Added at 11 Ill. Reg. 16447, effective October 1, 1987)

Section 1360.50  Exemptions from these Leasing Regulations (Repealed)

(Source:  Repealed at 11 Ill. Reg. 16447, effective October 1, 1987)

Section 1360.55  Possession and Control of Leased Equipment

a)         General requirement.  The lessee of equipment used under authority of a license issued by the Commission shall have exclusive possession and control of the equipment while it is so used.  Failure to exercise supervision and control of the equipment constitutes an illegal transfer of authority, making both the lessor and lessee subject to sanctions provided by Section 18c-4307 of the Law (Ill. Rev. Stat. 1985, ch. 95½, par. 18c-4307) (See Section 18c-1704 of the Law).

b)         Exceptions.  The requirement of exclusive possession and control does not apply to a lessee which, in turn, subleases the equipment to another carrier, since the latter carrier has the obligation to supervise and control the equipment.  The requirement does, however, apply to the sublessee.

(Source:  Added at 11 Ill. Reg. 16447, effective October 1, 1987)

Section 1360.60  Private Carriers and Shippers (Repealed)

(Source:  Repealed at 11 Ill. Reg. 16447, effective October 1, 1987)

Section 1360.65  Additional Requirements for Trip Leases Between Authorized Carriers

Authorized carriers are permitted to trip lease equipment to or from other authorized carriers only if:

a)         The lessor owns the equipment or has possession and control of the equipment under a lease of 30 days or more;

b)         The lessee exercises exclusive supervision and control of the equipment while it is operated under lessee's license; and

c)         All other requirements of this Part are complied with.

(Source:  Added at 11 Ill. Reg. 16447, effective October 1, 1987)

Section 1360.70  Filing and Cancellation Requirements (Repealed)

(Source:  Repealed at 11 Ill. Reg. 16447, effective October 1, 1987)