EMPLOYER STATUS DETERMINATION

Hooper-Myron Corporation

JUN 1 0 2003

This is the decision ofthe Railroad Retirement Board with respect to the status of

Hooper-Myron Corporation (HMC) as an employer subject to 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).

According to Mr. David D. Zegalis, attorney for HMC, Illiana Railroad Service,

Inc. (IRS) (BA No. 3376) was merged into HMC effective January 1, 2000.

Neither IRS nor HMC has reportedly ever had any employees. Prior to the merger, 

the rail service on the line ofrailroad, from Kankakee, Illinois to Sheldon, Illinois

(approximately 31.14 miles), from Sheldon, Illinois to Swanginton, Indiana

(approximately 20.9 miles), and from Swanginton, Indiana to Lafayette, Indiana

(approximately 25.7 miles) was provided by the Kankakee, Beaverville, and

Southern Railroad (KBS) (BA 2337). Rail service on the line continues to be 

provided by the KBS.

Section 1(a)(1) of the Railroad Retirement Act (RRA) (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 * * *.

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

U.S.C. 351(a) and (b), contain substantially similar definitions, as does section 

3231 ofthe Railroad Retirement Tax Act (RRTA), 26 U.S.C. 3231.
Hooper Myron Corporation

In this case, HMC does not operate the rail line in question itself. Railroad

operations are conducted by KBS, which also contracted with IRS, to provide rail

service. The Board enunciated a three-part test in B.C.D. No. 00-47 to be applied

in making a determination as to the coverage under the Acts of an entity in such a

case. Such an entity is a carrier under the Railroad Retirement Act unless the

Board finds that all three ofthe 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 ofthe

rail line is already covered or would be found to be covered under the Acts

administered by the Board.

Mr. Zegalis advised the Board that HMC acquired the rail line in order to preserve 

rail service. The Board thus finds that HMC does not have as a business purpose 

to profit from railroad activities. HMC does not own or operate any rail 

equipment. It has no employees. HMC does not have the capacity to operate the

rail line itself, and the operator ofthe line is a covered employer under the Acts

administered by the Board.

Accordingly, it is determined that the Hooper-Myron Corporation is not an

employer within the meaning ofsection l(a)(l)(i) ofthe Railroad Retirement Act

(45 U.S.C. § 23 l(a)(l)(i)) and the corresponding provision ofthe Railroad

Unemployment Insurance Act.

Cherryl Tf Thomas

V. M. Speakman, Jr.