B.C.D. 03-9

EMPLOYER STATUS DETERMINATION

Arizona & California Railroad LP

Arizona & California Railroad Company

California Northern Railroad LP

California Northern Railroad Company

Puget Sound & Pacific Railroad

JAN 2 8 2003

This is the determination of the Railroad Retirement Board concerning

the status of Arizona & California Railroad LP, California Northern

Railroad LP, Arizona & California Railroad Company, California

Northern Railroad Company, and Puget Sound & Pacific Railroad as

employers under the Railroad Retirement Act (45 U.S.C. § 231 et seq.)

and the Railroad Unemployment Insurance Act (45 U.S.C. § 351 et

seq.).

On September 28, 2000, ParkSierra Corporation1 acquired the assets of

California Northern Railroad Company Limited Partnership and

Arizona & California Railroad Company Limited Partnership (B.A. Nos.

5734 and 3777, respectively) and itself became an empk^er under the

Acts as of that date (B.A. No. 2795). California Northern Railroad

Company Limited Partnership and Arizona & California Railroad

Company Limited Partnership were operated as divisions of ParkSierra

which, on January 8, 2002, was acquired by RailAmerica, Inc.

California Northern Railroad Company started operations effective

November 1, 2002, when ParkSierra transferred rail assets to it. These

assets had formerly belonged to California Northern Railroad Limited

Partnership2, which, as mentioned above, had conveyed its interest to

ParkSierra in September 2000. Employees were to be transferred from

ParkSierra to California Northern Railroad Company on January 3,

2003.

1 It appears that as a result ofthe transactions described herein that ParkSierra will cease to be an

employer covered under the Acts. Its status will be separately considered by the Board.

2 Referred to in the records ofthe Board as “California Northern Railroad Ltd.”

.4

BA#2662
Arizona & California Railroad LP

Arizona & California Railroad Company

California Northern Railroad LP

California Northern Railroad Company

Puget Sound & Pacific Railroad

In Surface Transportation Board Finance Docket No. 34199, California

Northern Railroad Company3 filed a notice of exemption to acquire and

operate approximately 248.5 miles of rail line.

Arizona & California Railroad Company started operations effective

November 1, 2002, when ParkSierra Corporation transferred rail assets

to it. These assets had formerly belonged to Arizona & California

Railroad Limited Partnership4, which, as mentioned above, had

conveyed its interest to ParkSierra in September 2000. Employees

were to be transferred from ParkSierra to Arizona & California

Railroad Company on January 3, 2003.

In Surface Transportation Board Finance Docket No. 34198, Arizona &

California Railroad Company5 filed a notice of exemption to acquire and

operate approximately 240 miles of rail line.

Puget Sound & Pacific Railroad started operations effective November

1, 2002, when ParkSierra Corporation transferred rail assets to it.

These assets had formerly belonged to Arizona & California Railroad

Limited Partnership. Employees were to be transferred from

ParkSierra to Puget Sound & Pacific Railroad on January 3, 2003.

3 Referred to in the Surface Transportation Board decision as “CFNR Operating Company, Inc.”

4 Referred on the records ofthe Board as “Arizona & California Railroad Ltd.”

s Referred to in the Surface Transportation Board decision as “ARZC Operating Company, Inc.”
Arizona & California Railroad LP

Arizona & California Railroad Company

California Northern Railroad LP

California Northern Railroad Company

Puget Sound & Pacific Railroad

In Surface Transportation Board Finance Docket No. 34200, Puget

Sound & Pacific Railroad Company6 filed a notice of exemption to

acquire and operate approximately 153 miles of rail line.

Section 1(a)(1) of the Railroad Retirement Act (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;

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. S

3231).

The evidence of record establishes that Arizona & California Railroad

Company, California Northern Railroad Company, and Puget Sound &

Pacific Railroad are carriers operating in interstate commerce.

Accordingly, it is determined that they are employers within the

meaning of 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 as of November 1, 2002, the date as of

which they commenced operations.

6 Referred to in the Surface Transportation Board decision as “PSAP Operating Company, Inc.
The evidence further establishes that the status of Arizona & California

Railroad LP, and California Northern Railroad LP as employers under

the Acts should be terminated as of October 1, 2000, the beginning of

the month after the month those companies transferred their rail assets

to ParkSierra7.

Arizona & California Railroad LP

Arizona & California Railroad Company

California Northern Railroad LP

California Northern Railroad Company

Puget Sound & Pacific Railroad

V. M. Speakman, Jr.

Jerome F. Kever

7 Arizona & California Railroad Company and California Northern Railroad Company have requested that

they be permitted to use the B.A. numbers ofArizona & California Railroad LP, and California Northern

Railroad LP, respectively. The Board has no objection to that proceeding.