BCD 1992-22 EMPLOYER STATUS DETERMINATION Southern California Rapid Transit District The status of Southern California Rapid Transit District (SCRTD) as an employer under the Railroad Retirement Act (RRA) (45 u.s.c. §231 et seq.) and the Railroad Unemployment Insurance Act (RUIA) (45 u.s.c. §351 et seq.) has not previously been considered. Information about SCRTD1 was furnished by its General counsel, Suzanne B. Gifford. SCRTD is a public agency of the state of California which commenced operations in November 1964, assuming all passenger service operations then being conducted by the Los Angeles Metropolitan Transit Authority (also a public corporation of the State of California) . Ms. Gifford stated that the Los Angeles Metropolitan Transit Authority had previously, pursuant to the Los Angeles Metropolitan Transit Authority Act of 1957, (Chapter 54 7, statutes of 1957) assumed all passenger service operations of Metropolitan Coach Lines, which operated in Los Angeles, Orange, San Bernardino and Riverside counties, and of Los Angeles Transit Lines, which operated solely in Los Angeles county. Both of those entities were private corporations authorized to operate public passenger transportation services, both rail and bus, by the California Public Utilities Commission.2 Ms. Gifford stated that Metropolitan Coach Lines had, on October 1, 1953, assumed operation of all passenger service operations, whether by rail or bus, previously operated by the Pacific Electric Railway Company, including, among others, rail service operated between the City of Los Angeles and the city of Long Beach (over essentially the same rights-of-way as is presently being operated by SCRTD as the "Metro-Blue Line") , all in the county of Los Angeles. Ms. Gifford stated that from 1964 until 1990, SCRTD was the largest all-bus transit agency in the United states. She stated that SCRTD has 2500 buses and that during peak hours, it has from 2300 to 2400 buses on the street. SCRTD commenced rail passenger operations over the "Metro-Blue Line" on July 14, 1990. Such operations are being conducted over substantially the same right-of-way as the prior abandoned (in 1961) Los Angeles-Long Beach route operated by the Pacific Electric Railway, then by Metropolitan Coach Lines, and finally by the Los Angeles Metropolitan Transit Authority, as set forth above. Ms. Gifford noted that SCRTD is simply the statutorily designated "operator" of said services, pursuant to 11n a letter dated December 4, 1991 to Wayne Scharnak of the Board's Office of Compensation and Certification and in a telephone conversation on March 19, 1992 with a member of the staffof the Board's Bureau of Law. 2Neither the Los Angeles Metropolitan Transit Authority, Los Angeles Transit Lines, nor Metropolitan Coach Lines has ever been held to be an employer under the RRA and the RUIA. -2- EMPLOYER STATUS DETERMINATION southern California Rapid Transit District §130254 of the Public Utilities Code, and that the builder and owner of the Metro-Blue Line is the Los Angeles County Transportation Commission. Ms. Gifford stated that the Metro-Blue Line is totally new, including new tracks, new cars, and some new alignment. Ms. Gifford stated that the length of main trackage is approximately 22 miles. The terminal points are Pacific and Broadway streets in the city of Long Beach and the underground Metro station at Seventh and Flower streets in the city of Los Angeles. None of the existing "Metro-Blue Line," nor any other presently contemplated extension thereof or connection therewith, crosses or is intended to cross any state boundary. SCRTD does not now interchange vehicles with any other railroad, nor is any such interchange presently contemplated. Ms. Gifford stated that SCRTD does not have, and since it is not engaged in interstate operation, does not require, authority from the Interstate Commerce Commission (ICC) to operate. None of the "Metro-Blue Line" service is provided using locomotives. Service is provided exclusively by means of individual motorized units, fed from an overhead catenary power supply system. The individual units are capable of and are used in "multiple-unit" operations. Ms. Gifford stated that there are no "operating agreements" or "concurrent track usage agreements" with any railroad, or any portion thereof, currently subject to the jurisdiction of the ICC or the Railway Labor Act or the Railroad Retirement Board. Ms. Gifford also provided the following background3 information. The employees of Pacific Electric Railway who were operating passenger service vehicles, both rail and bus, prior to October 1, 1953, were covered by the RRA and the RUIA. Subsequent to that date, when Pacific Electric Railway sold its passenger operations to Metropolitan Coach Lines, the employees who elected to remain in passenger service and thus leave the service of Pacific Electric for that of Metropolitan Coach Lines were no longer covered under the Acts, and, since that date, were covered solely under the provisions of the Social Security Act. Those who remained with Pacific Electric (and subsequently Southern Pacific) in freight service continued to remain subject to the Acts. 3Pacific Electric Railway Company was an employer under the RRA and the RUIA, with service creditable from November 14, 1901 to August 12, 1965. Pacific Electric Railway Company merged into the Southern PacificCompany in August 1965. See Legal Opinion L-65- 161. -3- EMPLOYER STATUS DETERMINATION Southern California Rapid Transit District Ms. Gifford stated further that SCRTD not only does not interchange vehicles with any railroad subject to the Acts, but it also does not interchange passengers with any such carrier on a connecting line - through fare basis. For a time, the Metropolitan Transit Authority and SCRTD did honor certain tickets issued by other carriers, some of whom were subject to the jurisdiction of the ICC. However, such interline arrangements were only honored if the passenger's point of origin and destination were both within the State of California and no part of the passenger's trip involved travel outside that State. Section l(a) (1) of the RRA defines the term "employer" to include "any express company, sleeping car company, and carrier by railroad, subject to subchapter I of chapter 105 of Title 49." Section 1 of the RUIA contains the same definition. Section 10501 of the Interstate Commerce Act (ICA) (49 u.s.c. §10501) sets forth the general jurisdiction provisions of the ICC. Section 10501(b) provides that the ICC does not have jurisdiction over the transportation of property or passengers which is entirely within a single State. The rail transportation provided by SCRTD is conducted entirely within the State of California. Under the express terms of the Interstate Commerce Act, SCRTD is not subject to the jurisdiction of the ICC. Because it is not subject to ICC jurisdiction, SCRTD does not fall within the definition of "employer" under the RRA and the RUIA. It is therefore determined that Southern California Rapid Transit District is not an employer covered under the RRA and the RUIA. An appropriate Form G-215 is Andrew F. Reardon Attachment .