(1) A company operating a leased vehicle must have a written lease agreement with the owner of the vehicle.

(2) It is the company's responsibility to ensure that:

(a) A copy of the lease is carried in each leased vehicle;

(b) A copy of the lease is kept in the company's files during the effective period of the lease and for at least one year after the lease expires;

(d) The company has complete possession, control, and use of the motor vehicle during the period of the lease;

(e) The leased motor vehicle is properly insured as specified in WAC 480-70-181;

(f) The leased vehicle is properly identified as specified in WAC 480-70-206;

(g) The leased vehicle is operated in compliance with all safety laws and rules, including those regarding vehicle inspection, records, and maintenance; and

(h) The terms of the lease are followed.

(3) If a company leases a vehicle with a driver, the company must also ensure that:

(a) The driver of the leased motor vehicle is on the company's payroll during the lease period;

(b) The driver operates in compliance with all driver qualification, safety and hours of service laws and rules;

(d) The company maintains appropriate files and paperwork on the driver for a period of at least one year following the expiration of the lease.

(4) The company and the owner of the leased vehicle must specify in the lease who is responsible for all expenses relating to the leased motor vehicle. The lease must contain all information shown in the following sample lease form. If a company uses an alternate form, the company must ensure the alternate form contains all information requested on the sample.

Illustration of motor vehicle lease form:

equipment lease
A copy of this lease must be carried in the leased vehicle. Copies must also be maintained in the files of both parties for the length of the lease plus one year following the expiration of the lease.
Name and address of company leasing vehicle (lessee):						G certificate number:
Name and address of party from whom the vehicle is being leased (lessor):						G certificate number, if any:
Vehicle make and year:			Vehicle Serial Number:			Vehicle License Number:
The lease will become effective at . . . . . . . . (time) on . . . . . . . . (date), and will continue until . . . . . . . . (date) unless canceled in writing before that date.

Compensation that will be paid to owner of vehicle (lessor): $ . . . . . . . . per . . . . . . . .

If lease also includes driver, compensation for driver: $ . . . . . . . . per . . . . . . . .
Lessee/Lessor Expense Agreement
Place an "x" or a checkmark next to each item indicating whether the lessee or lessor is responsible for the listed expense.
Item		Lessee	Lessor	Item		Lessee	Lessor
Vehicle Licensing Fees				Equipment Rental Taxes
Toll and Ferry Charges				Fuel and Oil
Vehicle Loan Payments				Vehicle Maintenance
Parts & Tires				Major Vehicle Repairs
Insurance, Comprehensive				Minor Vehicle Repairs
Insurance, Theft				Other (explain):
Insurance, Fire				Other (explain):
Under the terms of this lease, the lessee must:
•	Have complete possession, control and use of the vehicle during the lease period;			•	Ensure that the vehicle is properly identified;
•	Be in complete control of all operations;			•	Comply with all safety regulations; and
•	Provide liability and property damage insurance;			•	Bill and collect proper tariff rates and charges.
•	Ensure that the driver of the leased vehicle is an employee of the lessee;
The parties signing this lease certify that the information shown above is true and correct, that the provisions of the lease will be enforced by both parties, and that all operations conducted with the leased equipment will be conducted in compliance with applicable laws and rules.

Lessee Signature/Title . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . date signed . . . . . . . . . . . . . . . . . . . .

Lessor Signature/Title . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . date signed . . . . . . . . . . . . . . . . . . . .

PDFWAC 480-70-211

Leasing vehicles.