EMPLOYEE STATUS DETERMINATION

Bee Line Railroad, Inc.

This is the determination of the Railroad Retirement Board

concerning the status of the Bee Line Railroad, Inc. (BLR) under

the Railroad Retirement Act (45 U.S.C. §231 et sea.) (RRA) and the

Railroad Unemployment Insurance Act (45 U.S.C. §351 et sea.)

(RUIA).

BLR owns a rail line of approximately 10.76 miles. The BLR was

authorized to own and operate this line by the Interstate Commerce

Commission (ICC). BLR serves one terminal approximately one mile

from its southern end. The BLR interchanges with the Kankakee,

Beaverville and Southern Railroad (KBSR) in Hardy, Indiana. BLR

has no employees and all operations are conducted by the KBSR.

KBSR is an employer covered under the Acts, having been assigned BA

number 2337.

Section 1(a) (1) of the RRA defines the term "employer" to include:

(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, or the

receipt, .delivery, elevation, transfer in

transit, refrigeration or icing, storage, or

handling of property transported by railroad

* * *. [45 U.S.C. §231 (a) (1) (i) and (ii)] .

Section 1(a) of the RUIA (45 U.S.C. § 351(a)) contains essentially

the same definition.

In cases such as this where an entity has authority to operate a

rail line, but does not actually operate the line in question, the

Board looks to the identity of the entity operating the line and

the nature of the relationship of that entity to the ICC or the

Surface Transportation Board certified carrier to determine the

status of the certified carrier under the RRA and RUIA. If the

operating entity is itself a carrier employer covered under the

Acts administered by the Board, or if that entity has been

recognized by the ICC or the Surface Transportation Board as the

BCD 1996-39
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Bee Line Railroad, Inc.

operator of the line in question, which will result in that entitybeing found to be a covered employer with respect to the operation

of the line it has undertaken, and if the certified entity has no

involvement in the actual operation of the rail line, the Board

will find the certified entity not to be a covered employer under

the RRA and the RUIA. If, however, the operating entity is neither

a covered employer nor an entity that has been recognized by the

ICC or the Surface Transportation Board as the operator of the

line, the Board will find the certified entity to be a covered

employer and persons operating that line to be employees of the

covered employer.

BLR has no employees and operations are conducted by the employees

of another railroad carrier, which is an employer under the Acts.

That employer reports the employee service rendered to operate

HRS's rail line to the Board. Consistent with above-described

analysis of cases such as this, a majority of the Board finds that

the Bee Line Railroad, Inc. is not an employer subject to the

Railroad Retirement and Railroad Unemployment Insurance Acts.

The Bee Line Railroad, Inc. is instructed to inform the Board of

any change in the operation of the rail line in this case.

V. M. Speakman, Jr. (Dissenting)