§ 18c-4103 — Leasing

Illinois § 18c-4103

• Jurisdiction: Illinois
• Topic: TRANSPORTATION
• Ch. 625: VEHICLES
• Act 625 ILCS 5/: Illinois Vehicle Code.
• Art.: Chapter 18c - Illinois Commercial Transportation Law

Text

(1) Prohibition Against Single-Source Leasing. No private carrier shall lease any motor vehicle with driver, nor shall any person lease a motor vehicle with driver to any private carrier. Likewise, no person shall lease any motor vehicle to any private carrier and either: (a) Procure or exercise control over drivers of such vehicles, directly or indirectly; or (b) Be responsible for or hold itself out to be responsible for driver's wages, payroll, unemployment compensation, social security tax, income withholding tax or any other taxes or payments normally due by reason of the employer-employee relationship, or any other compensation to drivers. The provision of motor vehicles with drivers shall constitute motor carrier operations subject to the licensing, ratemaking, and other jurisdiction of the Commission under this Chapter. (2) Exclusive Use of Household Goods Contract Carrier Vehicles. The prohibition against single source leasing in subsection (1) of this Section shall not prohibit a household goods contract carrier from providing motor vehicles, with drivers, for exclusive use by a private carrier where: (a) The private carrier is a contracting shipper; (b) Operations conducted with such motor vehicles are within the scope of the household goods contract carrier's authority; (c) The household goods contract carrier exercises direct supervision and control of such motor vehicles and drivers; and (d) The lease does not have the effect of circumventing rate or other provisions of this Chapter, Commission regulations and orders. This subsection shall apply regardless of whether the household goods contract carrier's permit expressly provides for the lease of vehicles, with drivers, to contracting shippers. (3) Equipment Leasing. (a) Requirements for Content, Filing, and Carrying of Leases. The Commission may prescribe requirements for the leasing of equipment, with driver, and of equipment without driver, to or by a motor carrier of property; provided that such regulations shall not encompass the leasing of equipment, without drivers, from a bona fide equipment leasing company to a motor carrier of property. Such leases shall be in writing, constitute the complete and exclusive statement of terms between the parties, specify the compensation for the lease and the duration of the lease, be signed by the parties thereto, be filed with the Commission, and be carried in each motor vehicle covered thereby, provided, however, that the Commission may exempt from the foregoing requirements leases between parties, all of whom hold public carrier certificates issued by the Commission. The provisions of this paragraph shall not apply to the interchange of equipment or drivers between carriers for use wholly within a county having a population of more than 1,000,000 inhabitants. (b) Direction and Control of Leased Equipment. It shall be the responsibility of the license holder to exercise full direction and control of all equipment and personnel used in its operations. Equipment used in its operations must be owned by or under lease to the carrier.

Legislative History

(Source: P.A. 89-444, eff. 1-25-96.)