This is the decision of the Railroad Retirement
Board regarding the continued status of Blasingame
Brothers, Inc., as an employer under the Railroad
Retirement Act (45 U.S.C. § 231, et seq.)
(RRA) and the Railroad Unemployment Insurance
Act (45 U.S.C. § 351, et seq.) (RUIA).
Blasingame was held to be an employer under
the Acts effective May 3, 1985, (B.A. Number
5577). Blasingame ceased operations as of December
31, 2002. Information about Blasingame’s
cessation of operations was provided by Cristi
Blasingame. The rail assets operated by Blasingame
were owned by Huntsville-Madison County Railroad
Authority for which Blasingame operated a rail
line. Blasingame last compensated employees
on December 31, 2002. Blasingame was dissolved
on or about September 30, 2003.
Section 202.11 of the Board’s regulations
provides that:
The employer status of any company or person
shall terminate whenever such company or person
loses any of the characteristics essential
to the existence of an employer status.
Through the termination of its rail operations,
Blasingame has lost the characteristics essential
to the existence of an employer status. Accordingly,
the Board holds that Blasingame ceased to be
an employer under the Railroad Retirement and
Railroad Unemployment Insurance Acts effective
with the close of business on December 31,
2002, the date as of which it ceased operations
and last paid compensation. Cf. Rev. Ruling
82-99, 1982-1 C.B. 154, wherein the Internal
Revenue Service ruled that a railroad ceases
to be an employer subject to taxes under the
Railroad Retirement Tax Act when the railroad’s
employees stop performing services in connection
with the railroad’s carrier activities.
|