OAR 740-045-0100: Lease of Vehicles by Carriers of Property (Other than Household Goods)

(1) Except as otherwise expressly provided, a vehicle may be operated under lease in for-hire or private carriage in Oregon intrastate commerce only in accordance with the terms of OAR 740-045-0100, 740-045-0120, and 740-045-0130. The compliance of a lease with the requirements of the rules of the Department pertaining to leasing is the responsibility of the parties to the lease. (2) A vehicle lease shall contain all of the terms and conditions of the lease, and shall provide: (a) The full name and address of each contracting party (lessor and lessee); (b) A complete description of the vehicle; (c) That the lessee has the right to exclusive possession, use, and control of the leased vehicle, with the exception that the lessor may use the leased vehicle for personal noncommercial uses with the permission of the lessee; (d) A statement of the terms of renewal, if any; (e) That during the period of the lease: (A) The lessee assumes full responsibility for payment of all Oregon highway use taxes, fees, and penalties arising from operation of the vehicle, except to the extent lessee is relieved of such responsibility by OAR 740-045-0150; (B) The lessee will bear all risk of loss or damage to property or injury to persons incident to the operation of the vehicle and shall be responsible to maintain cargo and liability insurance covering all operations of the vehicle under the lease. In fulfilling this requirement, it is permissible for the lessor to name the lessee as an insured on the lessor’s insurance policy; (C) The lessee assumes full responsibility for compliance with the rules of the Department, and in particular, OAR 740-045-0100, 740-045-0120, and 740-045-0130, relating to leasing, and the laws of the State of Oregon applicable to the operation of motor vehicles. (3) The lessee shall exercise exclusive supervision and control of a leased vehicle during the period of the lease, except for the personal uses of the lessor referred to in subsection (2)(c) of this section. (4) The lessee shall be solely responsible for the safe operation of the vehicle. The parties may agree that, as between themselves, the lessor may maintain the vehicle and assume such other costs of vehicle maintenance, including fuel costs. (5) If the transportation to be performed under the lease is private carriage, the lessee must actually include the driver on the payroll of the lessee and treat such driver as an employee of the lessee in all respects as it does any regular employee. “Payroll,” as used in this subsection, means that with respect to the compensation paid the driver, the lessee’s records reflect that the lessee has included the driver as one of its employees in reports of employment to governmental agencies.