2019 -- S 0908

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     STATE OF RHODE ISLAND

IN GENERAL ASSEMBLY

JANUARY SESSION, A.D. 2019

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A N   A C T

RELATING TO LABOR AND LABOR RELATIONS -- ESTABLISHING THE "COMMUTER

TRANSPORTATION BENEFITS ACT"

     

     Introduced By: Senators Lawson, Ciccone, Metts, Lombardi, and Quezada

     Date Introduced: May 22, 2019

     Referred To: Senate Labor

     It is enacted by the General Assembly as follows:

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     SECTION 1. Title 28 of the General Laws entitled "LABOR AND LABOR

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RELATIONS" is hereby amended by adding thereto the following chapter:

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CHAPTER 58

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THE COMMUTER TRANSPORTATION BENEFITS ACT

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     28-58-1. Short title.

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     This chapter shall be known and may be cited as the "Commuter Transportation Benefits

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Act."

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     28-58-2. Definitions.

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     As used in this chapter:

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     (1) "Covered employer" means an employer with twenty (20) or more employees

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assigned, scheduled to work, working or situated at the employer's place of business or work

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site(s) located within the state.

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     (2) "Director" means the director of the department of labor and training.

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     (3) "Employee" shall have the same meaning as provided in § 28-12-2.

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     (4) "Employer" shall have the same meaning as provided in § 28-12-2.

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     (5) "Pre-tax transportation fringe benefit" means a pre-tax election transportation fringe

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benefit that provides commuter highway vehicle and transit benefits, consistent with the

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provisions and limits of § 132(f)(1) of the Internal Revenue Code of 1986 (26 U.S.C. §132(f)(1))

 

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at the maximum benefit levels allowable under federal law, to be deducted for those programs

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from an employee's gross income pursuant to § 132(f)(2) of the Internal Revenue Code of 1986

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(26 U.S.C. § 132(f)(2)).

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     (6) "Transit pass" means a pass for travel by bus or vehicle operated by the Rhode Island

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public transit authority (RIPTA).

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     28-58-3. Commuter employee transportation benefit.

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     (a) Except as provided in subsection (b) of this section, every covered employer with

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twenty (20) or more employees shall offer employees at least one of the following benefit

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programs:

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     (1) A pre-tax transportation fringe benefit program that provides commuter transit

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benefits consistent with § 132(f)(1) of the Internal Revenue Code of 1986 (26 U.S.C. § 132(f)(1))

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at the maximum benefit levels allowable under federal law, to be deducted from an employee's

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gross income pursuant to § 132(f)(2) of the Internal Revenue Code of 1986 (26 U.S.C. §

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132(f)(2));

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     (2) An employer-paid benefit program whereby the employer supplies a transit pass for

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each covered employee for travel to and from the employer's place of business or work site; or

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     (3) Employer-provided transportation at no cost to the covered employee in a van or bus

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operated by or for the employer.

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     (b) Subsection (a) of this section shall not apply to:

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     (1) The government of the United States;

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     (2) The state of Rhode Island including any office, department, agency, authority,

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institution, association, society or other body of the state;

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     (3) Any local government or entity;

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     (4) Any group of employees covered by a collective bargaining agreement in effect on

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January 1, 2020, until the expiration of the collective bargaining agreement; or

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     (5) Any employer who has demonstrated to the satisfaction of the director that the

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offering of such benefits would result in a severe financial hardship for the employer.

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     28-58-4. Rules and regulations.

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     The director shall promulgate rules and regulations as he or she deems necessary to

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effectuate the provisions of this chapter.

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     28-58-5. Civil penalty.

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     Any employer found to be in violation of the provisions of this chapter shall be liable for

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a civil penalty of not less than one hundred dollars ($100) and not more than two hundred fifty

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dollars ($250) for a first violation. An employer shall have ninety (90) days to offer a pre-tax

 

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transportation fringe benefit before the civil penalty is imposed. After ninety (90) days, each

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additional thirty (30) day period in which an employer fails to comply with the provisions of this

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chapter shall constitute a subsequent violation and a civil penalty of two hundred fifty dollars

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($250) shall be imposed for each subsequent violation. A civil penalty shall not be imposed on

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any single employer more than once in any thirty (30) day period.

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     28-58-6. Public awareness campaign.

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     The department of transportation, in conjunction with the department of labor and

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training, shall conduct a public awareness campaign encouraging the public to contact employers

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about commuter transportation benefits.

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     SECTION 2. This act shall take effect on January 1, 2020.

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EXPLANATION

BY THE LEGISLATIVE COUNCIL

OF

A N   A C T

RELATING TO LABOR AND LABOR RELATIONS -- ESTABLISHING THE "COMMUTER

TRANSPORTATION BENEFITS ACT"

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     This act would establish the commuter transportation benefit act. Employers with twenty

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(20) or more employees would provide a pre-tax transportation fringe benefit program or provide

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transportation to the employees.

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     This act would take effect on January 1, 2020.

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