B.C.D. 01-49

EMPLOYER STATUS DETERMINATION JUN 0 4 2001

ParkSierra Corporation

This is the determination of the Railroad Retirement Board concerning the status of

ParkSierra Corporation as an employer under the Railroad Retirement Act (45

U.S.C. § 231 et seep) and the Railroad Unemployment Insurance Act (45 U.S.C. §

351 et seep).

Information regarding ParkSierra was provided by Rose-Michele Weinryb, counsel

for ParkSierra, and by Mr. David L..Parkinson, former sole owner of ParkSierra.

According to Ms. Weinryb, ParkSierra, a subchapter S corporation, was

incorporated and began doing business December 21, 1989. Until September 28,

2000, it was wholly-owned by Mr. David L. Parkinson and was the general partner

of Arizona & California Railroad Company Limited Partnership and California

Northern Railroad Company, L.P., carrier-employers under the Acts (B.A. Nos.

3777 and 5734, respectively). ParkSierra had a one percent interest in each

railroad, and its sole function prior to September 28, 2000, was acting as general

partner for the two railroads. As such, it performed certain functions for the two

railroads, such as certain investment, banking, and other financial activities;

preparing and filing tax reUims; leasing property'; and obtammg insurance.

ParkSierra states that it had no employees; all of its corporate officers were

employees ofthe railroads, which paid railroad retirement taxes for those

mdividuals. Mr. Parkinson had an approximately 16 percent interest in each

railroad.

In Surface Transportation Board Finance Docket No. 33932 ParkSierra filed a 

notice of exemption to acquire all of the assets of Arizona & California Railroad

Company and California Northern Railroad Company in exchange for stock m

ParkSierra. On September 28, 2000, ParkSierra assumed the common earner

obligations of the two railroads, each of which contmued to provide railroad

service as an operating division of ParkSierra.

Section 1(a)(1) ofthe 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, Umted States

Code;

BA# 2795
ParkSierra Corporation

(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) ofthis subdivision, and which operates any equipment or

facility or performs any service (other than 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) ofthe Railroad Unemployment Insurance Act (45 U.S.C. §§

351(a) and (b)) contain substantially similar definitions.

The evidence ofrecord indicates that prior to September 28, 2000, ParkSierra was

not a carrier operating in interstate commerce. Nor was it under common control

with Arizona & California Railroad Company and California Northern Railroad

Company. Although ParkSierra was a general partner of the two railroads prior to

September 28, 2000, it owned only a one percent interest in each railroad and

ParkSierra’s sole owner, Mr. Parkinson, had approximately a 16 percent interest in

each railroad. However, as of September 28, 2000, ParkSierra became a carrier

operating in interstate commerce. Accordingly, it is determined that ParkSierra is

an employer within the meaning of section 1 (a)( 1 )(i) of the Railroad Retirement

Act (45 U.S.C. § 231 (a)( 1 )(i)) and the corresponding provision ofthe Railroad

Unemployment Insurance Act as of September 28, 2000, the date as of which it

acquired the rail operations of Arizona & California Railroad Company and

California Northern Railroad Company.

V. M. Speakman. Jr.