EMPLOYER STATUS DETERMINATION

Ventura County Railway Company (YCRC)

JUL 1 0 2001

This is a determination of the Railroad Retirement Board concerning the

status of the Ventura County Railway Company (VCRC) (BA No. 3742)

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). VCRC has been an employer under the RRA and

the RUIA, with service creditable from May 15, 1911.

On September 1, 1998, Ventura County Railroad Company (VCRR)(BA

No. 2786) entered into an agreement with VCRC to lease from VCRC its

rail line and all improvements thereon. In Surface Transportation

Board (STB) Finance Docket No. 33649 decided December 16, 1998, 

VCRR filed a verified notice of exemption to lease from VCRC

approximately 12.09 miles of rail line.

According to information obtained from Randall A. Cohen, attorney for

VCRC, VCRC ceased railroad operations on August 31, 1998 and has

had no involvement in railroad operations since that time. The

corporation continues to exist and collects monthly rent from VCRR.

VCRC employees were last compensated for work performed through

August 31, 1998. They were all offered the opportunity to interview for

employment positions with VCRR, and Mr. Cohen believes that at least

a couple of former VCRC employees were hired by VCRR. VCRC has

sold all movable assets to VCRR, including all vehicles, locomotives,

office equipment, equipment inventories and maintenance materials.

Though title to the real property is still held by VCRC, VCRR is entirely

obligated for the maintenance and upkeep of the property and has all

rights to use the property.

The Railroad Retirement Board's regulations provide 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. (20 CFR §202.11). VCRC ceased

railroad operations on August 31. 1998 and last compensated employees

BA# 3742
Ventura County Railway Company (VCRC)

for services performed that date. In addition, VCRC has sold all 

movable assets and leased to VCRR all real property assets. VCRC has

no responsibilities for railroad operations and does not own any

moveable equipment with which to operate a railroad.

A majority of the Board, Labor Member dissenting, finds that the

evidence of record establishes that, effective with the close of business

on August 31, 1998, VCRC was no longer a rail carrier operating in

interstate commerce. Accordingly, a majority of the Board determines

that VCRC’s status as an employer under section l(a)(l)(i) of the

Railroad Retirement Act (45 U.S.C. §231(a)(l)(i)) and the corresponding

provision of the Railroad Unemployment Insurance Act terminated

effective with the close of business on August 31, 1998, the day that

VCRC last performed railroad operations.

V. M. Speakman, Jr. (^Dissenting)
DISSENT OF

V. M. SPEAKMAN, JR.

EMPLOYER STATUS DETERMINATION

VENTURA COUNTY RAILWAY COMPANY (VCRC)

The evidence in this case shows that Ventura County Railway Company (VCRC) still has

ownership ofthe rail line used in interstate commerce and there is nothing to show it has

been removed from Surface Transportation Board jurisdiction, or relieved ofthe 

responsibilities that go with that jurisdiction. The corporation continues to exist and

receives income from Ventura County Railroad Company based on its ownership of its

rail line.

For the reasons stated, I respectfully dissent from the majority on this case.

JUL 0 6 2001

Date