b.l.u. u-3-,3 JAN 0 9 2003

EMPLOYER STATUS DETERMINATION

Railroad Safety Consultants Inc.

This is the determination of the Railroad Retirement Board concerning

the status of Railroad Safety Consultants Inc. (RSC) as an employer

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

the Railroad Unemployment Insurance Act (45 U.S.C. § 351, et seq.)

(RUIA).

Mr. Randy C. Caldwell, President, RSC, has advised that RSC is a

privately held corporation which is incorporated under the laws of

Delaware and is owned by three individual stockholders, including

himself, who are also on the Board of Directors. He describes RSC as a

consulting firm that gives seminars and presentations on working

safely for railroads. RSC reports that it currently has no employees or

compensation but, as its business grows, Mr. Caldwell indicates that he 

expects to have a support staff. Insofar as the RSC stockholders and

directors are concerned, Mr. Caldwell describes them as individual

consultants who work together and contract out their services on an as

needed basis.

There is no railroad which has a financial interest in RSC, either

through direct or indirect stock ownership. There is no individual who

owns a controlling interest in RSC and in a rail carrier. There are no

RSC officers/directors who are also officers/directors of a rail carrier.

RSC has no assets, no written agreements to provide service for any rail

carrier, and no lessee or lessor relationships regarding railroad track or

equipment. There has been no Surface Transportation Board ruling

regarding the status of RSC. The only relationship between RSC and

the rail industry is that RSC plans to provide its services exclusively to

railroads.

Section 1(a)(1) of the Railroad Retirement Act (45 U.S.C. § 231(a)(1))

defines a covered employer as:
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Railroad Safety Consultants Inc.

(i) any carrier by railroad subject to the jurisdiction of

the Surface Transportation Board under part A ofsubtitle IV

of title 49, United States Code [49 USC §§1010 et seq.];

(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;

(iii) any receiver, trustee, or other individual or body,

judicial or otherwise, when in the possession of the property

or operating all or any part of the business of any employer

as defined in paragraph (i) or (ii) of this subdivision;

(iv) any railroad association, traffic association, tariff

bureau, demurrage bureau, weighing and inspection bureau,

collection agency, and any other association, bureau, agency,

or organization which is controlled and maintained wholly or

principally by two or more employers as defined in

paragraph (i), (ii), or (iii) of this subdivision and which is

engaged in the performance of services in connection with or

incidental to railroad transportation; and

(v) any railway labor organization, national in scope,

which has been or may be organized in accordance with the

provisions of the Railway Labor Act, as amended, and its

State and National legislative committees, general

committees, insurance departments, and local lodges and
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Railroad Safety Consultants Inc.

divisions, established pursuant to the constitution or bylaws

of such organization.

Sections 1(a) and 1(b) of the Railroad Unemployment Insurance Act (45

U.S.C. §§ 351(a) and (b)) contain substantially the same definition as

does section 3231 of the Railroad Retirement Tax Act (26 U.S.C.

§ 3231).

The information summarized above shows that Railroad Safety

Consultants Inc. is not operating a railroad. Nor is it owned by or

under common control with any rail carrier employer. The evidence

demonstrates that Railroad Safety Consultants Inc. does not fall within

any of the other definitions of employer under the Acts administered by

the Board. The Board therefore finds that Railroad Safety Consultants

Inc. is not an employer covered under the Railroad Retirement Act and

the Railroad Unemployment Insurance Act.

Cherry! T. Thomas

V. M. Speakman, Jr.