This is a determination of the Railroad Retirement Board concerning the status
of Sacramento Valley Railroad, Inc. (SAVR) as an employer under 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). The status of SAVR under the Acts
has not previously been considered. SAVR is a subsidiary of Patriot Rail
Corporation. Mr. Gary O. Marino is the CEO of SAVR. SAVR began operations on
March 1, 2008 and first began compensating employees on March 20, 2008.
In Surface Transportation Board (STB) Finance Docket No. 35117, decided
February 7, 2008, SAVR filed a verified notice of exemption to operate
approximately 7 miles of unmarked railroad line located entirely within
McClellan Business Park, in McClellan, Sacramento County, CA. The Surface
Transportation Board decision stated that SAVR, Patriot Rail Holdings and
McClellan Business Park consummated the transaction on or about March 1, 2008
and began operations that day. SAVR reports that 100% of its business will
consist of switching rail cars between interchange points with BNSF Railway and
Union Pacific Railroad and industries located on property of McClellan Business
Park.
Information regarding SAVR was provided by Mr. Robert I. Schellig, Jr., Vice
President - Law. SAVR certified to the STB that its projected annual revenues as
a result of operations would not exceed $5 million annually, which would qualify
it as a Class III rail carrier.
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; Section 1 of the RUIA (45 U.S.C. § 351) contains essentially the same
definition, as does section 3231 of the Railroad Retirement Tax Act (26 U.S.C.§
3231).
The evidence of record establishes that SAVR is a rail carrier operating in
interstate commerce. Accordingly, it is determined that Sacramento Valley
Railroad, Inc. became an employer within the meaning of section 1(a)(1)(i) of
the Railroad Retirement Act and its corresponding provision of the Railroad
Unemployment Insurance Act effective March 1, 2008, the date on which it began
operations.
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Original signed by: |
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FOR THE BOARD
Beatrice Ezerski
Secretary to the Board |
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