This
is a determination of the Railroad Retirement
Board concerning the status of Connotton
Valley Railway, Inc. (CVR) 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).
In Surface Transportation Board (STB) Finance
Docket No. 34264 decided October 30,
2002, CVR filed a notice of exemption to
lease and operate a rail line from the Wheeling
& Lake Erie Railway Company (BA 3373).
The rail line leased runs from milepost
5.1 in Cleveland, Ohio to milepost 15.5
at Falls Junction in Glenwillow, Ohio. According
to a letter dated May 6, 2003 from Mr. Clifford
Perry, Chief Executive Officer of CVR, the
CVR began operations on October 14, 2002,
and first compensated employees on that
date. CVR reports that it is a freight and
tourist scenic railway. It interchanges
with the Wheeling and Lake Erie Railway
Company. In addition to leasing the rail
line in question, CVR also leased equipment
with which to operate the railroad.
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;
Section 1 of the RUIA contains essentially
the same definition, as does section 3231
of the Railroad Retirement Tax Act.
The evidence of record establishes that
Connotton Valley Railway, Inc. is a rail
carrier operating in interstate commerce.
Accordingly, it is determined that Connotton
Valley Railway became an employer within
the meaning of section 1(a)(1)(i) of the
Railroad Retirement Act and the corresponding
provision of the Railroad Unemployment Insurance
Act effective October 14, 2002, the date
its employees were first compensated. [CF.
Rev. Rul. 82-100, 1982-1 C.B. 155, wherein
the IRS held that a company became an employer
under the Railroad Retirement Tax Act on
the date it hired employees to perform functions
directly related to its carrier operations.] |
