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This is the determination of the Railroad
Retirement Board regarding the status of Columbiana County Port Authority
(CCPA) 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).
CCPA acquired a line of railroad, which extends from Darlington,
Pennsylvania to Youngstown, Ohio from Railroad Ventures, Inc.1, in January 2001. That acquisition was
authorized by the Surface Transportation Board in Surface Transportation
Board Docket No. AB-556 (Sub-No.2X)2.
All rail services over the line are performed by the Central Columbiana &
Pennsylvania Railway, Inc., a covered employer under the Acts effective
March 1, 2001 (B.A. No. 2275). CCPA is a quasi-public agency established
by the Board of County Commissioners of Columbiana County, Ohio. CCPA
acquired the rail line to enhance the business environment in Columbiana
County by assuring continued access to rail service by businesses located
along the line or in close proximity thereto.
Section 1(a)(1) of the Railroad Retirement Act (45 U.S.C. § 231(a)(1)),
insofar as relevant here, defines a covered employer as: |
(i) any carrier by railroad subject to the jurisdiction of the Surface
Transportation Board under Part A of subtitle IV of title 49, United
States Code;
(ii) any company which is directly or indirectly owned or controlled by,
or under common control with, one or more employers as defined in
paragraph (i) of this subdivision, and which operates any equipment or
facility or performs any service (except trucking service, casual
service, and the casual operation of equipment or facilities) in
connection with the transportation of passengers or property by railroad
* * *.
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Sections 1(a) and 1(b) of the
Railroad Unemployment Insurance Act (45 U.S.C. §§ 351(a) and (b)) contain
substantially similar definitions, as does section 3231 of the Railroad
Retirement Tax Act (26 U.S.C. § 3231).
The Board notes that in its reconsideration decision which held Railroad
Ventures, Inc., to be a covered employer (B.C.D. 00-47), the Board held
that an entity that has STB authority to operate a rail line, but leases
or contracts with another to operate the line in question, is covered
under the Acts administered by the Board unless the Board determines that
the entity is not a carrier. The Board enunciated a three-part test in
that decision to be applied in making this determination. An entity that
leases a line to another company or contracts with another company to
operate the line, is a carrier under the Railroad Retirement Act unless
the Board finds that all three of the following factors exist: 1) the
entity does not have as a primary business purpose to profit from railroad
activities; 2) the entity does not operate or retain the capacity to
operate the rail line; and 3) the operator of the rail line is already
covered or would be found to be covered under the Acts administered by the
Board.
CCPA does not have as a primary business purpose to profit from railroad
activities. As described above, it acquired the rail line to enhance the
business environment in Columbiana County by assuring continued access to
rail service. CCPA does not operate and never has had the capacity to
operate the rail line in question. The company which does operate the rail
line, the Central Columbiana & Pennsylvania Railway, Inc., is a covered
employer under the Acts (B.A. No. 2275). Accordingly, in this case, the
Board finds that all three factors exist, and concludes therefore that
CCPA is not a carrier and is thus not a covered employer under the Acts. |
