S T A T E   O F   N E W   Y O R K
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                                 1296--A

                       2015-2016 Regular Sessions

                          I N  A S S E M B L Y

                             January 9, 2015
                               ___________

Introduced by M. of A. RODRIGUEZ, ORTIZ, HOOPER -- Multi-Sponsored by --
  M.  of A.   COOK, LUPINACCI -- read once and referred to the Committee
  on Transportation  --  committee  discharged,  bill  amended,  ordered
  reprinted as amended and recommitted to said committee

AN ACT to amend the labor law and the tax law, in relation to establish-
  ing a qualified transportation fringe benefits program

  THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
BLY, DO ENACT AS FOLLOWS:

  Section 1. The labor law is amended by adding a new article 33 to read
as follows:
                               ARTICLE 33
                     TRANSPORTATION BENEFITS PROGRAM
SECTION 960. DEFINITIONS.
        961. TRANSPORTATION BENEFITS PROGRAM.
        962. ADMINISTRATION AND ENFORCEMENT.
        963. SEVERABILITY.
  S 960. DEFINITIONS. AS USED IN THIS ARTICLE, THE FOLLOWING TERMS SHALL
HAVE THE FOLLOWING MEANINGS:
  1. "COVERED EMPLOYEE" SHALL MEAN ANY PERSON WHO PERFORMED  AN  AVERAGE
OF  AT  LEAST  TEN  HOURS OF WORK PER WEEK FOR COMPENSATION FOR THE SAME
EMPLOYER WITHIN THE PREVIOUS CALENDAR MONTH.
  2. "COVERED EMPLOYER" SHALL MEAN AN EMPLOYER FOR WHICH AN  AVERAGE  OF
TWENTY OR MORE PERSONS PER WEEK PERFORM WORK FOR COMPENSATION. IN DETER-
MINING  THE  NUMBER  OF PERSONS PERFORMING WORK FOR AN EMPLOYER DURING A
GIVEN WEEK, ALL PERSONS PERFORMING WORK FOR COMPENSATION ON A FULL-TIME,
PART-TIME OR TEMPORARY BASIS SHALL BE COUNTED,  INCLUDING  PERSONS  MADE
AVAILABLE TO WORK THROUGH THE SERVICES OF A TEMPORARY SERVICES OR STAFF-
ING  AGENCY  OR SIMILAR ENTITY. A COVERED EMPLOYER SHALL NOT INCLUDE ANY
GOVERNMENTAL ENTITY.
  3. "TRANSIT PASS" SHALL MEAN ANY PASS, TOKEN, FARE  CARD,  VOUCHER  OR
SIMILAR  ITEM  ENTITLING  A  PERSON  TO TRANSPORTATION ON PUBLIC TRANSIT

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD01022-02-5
              

A. 1296--A                          2

WITHIN THE MEANING OF SUBCLAUSE (A) OF CLAUSE FIVE OF PARAGRAPH  (F)  OF
SECTION  ONE HUNDRED THIRTY-TWO OF TITLE TWENTY-SIX OF THE UNITED STATES
CODE.
  4.  "VANPOOL" SHALL MEAN A COMMUTER HIGHWAY VEHICLE WITHIN THE MEANING
OF SUBCLAUSE (B) OF CLAUSE FIVE OF PARAGRAPH (F) OF SECTION ONE  HUNDRED
THIRTY-TWO OF TITLE TWENTY-SIX OF THE UNITED STATES CODE.
  S  961.  TRANSPORTATION  BENEFITS PROGRAM. ALL COVERED EMPLOYERS SHALL
PROVIDE AT LEAST ONE OF THE FOLLOWING TRANSPORTATION BENEFIT PROGRAMS TO
COVERED EMPLOYEES:
  1. A PRE-TAX  ELECTION  PROGRAM,  CONSISTENT  WITH  PARAGRAPH  (F)  OF
SECTION  ONE HUNDRED THIRTY-TWO OF TITLE TWENTY-SIX OF THE UNITED STATES
CODE, ALLOWING EMPLOYEES TO ELECT TO  EXCLUDE  FROM  TAXABLE  WAGES  AND
COMPENSATION,  EMPLOYEE  COMMUTING  COSTS INCURRED FOR TRANSIT PASSES OR
VANPOOL CHARGES, EXCLUDING PARKING, UP  TO  THE  MAXIMUM  LEVEL  ALLOWED
PURSUANT  TO  CLAUSE  TWO  OF  PARAGRAPH  (F)  OF  SECTION  ONE  HUNDRED
THIRTY-TWO OF TITLE TWENTY-SIX OF THE UNITED STATES CODE;
  2. AN EMPLOYER PAID BENEFIT PROGRAM WHEREBY THE  EMPLOYER  SUPPLIES  A
TRANSIT PASS FOR A PUBLIC TRANSIT SYSTEM OF THE EMPLOYER'S CHOOSING UPON
REQUEST BY EACH COVERED EMPLOYEE OR REIMBURSEMENT FOR EQUIVALENT VANPOOL
CHARGES EQUAL IN VALUE TO THE PURCHASE PRICE OF THE APPROPRIATE BENEFIT;
OR
  3.  EMPLOYER  PROVIDED TRANSIT FURNISHED BY THE EMPLOYER AT NO COST TO
THE COVERED EMPLOYEE IN A VANPOOL OR  BUS,  OR  SIMILAR  MULTI-PASSENGER
VEHICLE OPERATED BY OR FOR THE EMPLOYER.
  S  962. ADMINISTRATION AND ENFORCEMENT. 1. THE DULY AUTHORIZED OFFICER
HAVING PREDOMINANT JURISDICTION OVER TRANSPORTATION ISSUES IN THE  MUNI-
CIPALITY  IN  WHICH  A  TRANSPORTATION  BENEFITS PROGRAM IS ADMINISTERED
SHALL PROMULGATE SUCH RULES AND REGULATIONS AS  NECESSARY  TO  IMPLEMENT
THE PROVISIONS OF THIS ARTICLE. SUCH RULES AND REGULATIONS SHALL, TO THE
EXTENT CONSISTENT WITH THIS ARTICLE, CONFORM TO INTERNAL REVENUE SERVICE
REGULATIONS  UNDER  PARAGRAPH  (F)  OF SECTION ONE HUNDRED THIRTY-TWO OF
TITLE TWENTY-SIX OF THE UNITED STATES CODE.
  2. SUCH OFFICER SHALL MAINTAIN AN  EDUCATION  AND  ADVICE  PROGRAM  TO
ASSIST  COVERED  EMPLOYERS WITH MEETING THE REQUIREMENTS OF SECTION NINE
HUNDRED SIXTY-ONE OF THIS ARTICLE.
  3. ANY COVERED EMPLOYER WHO FAILS TO OFFER AT LEAST ONE TRANSPORTATION
BENEFIT PROGRAM TO COVERED EMPLOYEES, IN THE MANNER REQUIRED BY  SECTION
NINE  HUNDRED  SIXTY-ONE OF THIS ARTICLE, SHALL BE LIABLE TO THE MUNICI-
PALITY IN WHICH SUCH PROGRAM IS ADMINISTERED FOR A CIVIL PENALTY NOT  TO
EXCEED  ONE HUNDRED DOLLARS FOR THE FIRST VIOLATION, TWO HUNDRED DOLLARS
FOR THE SECOND VIOLATION WITHIN THE SAME YEAR, AND FIVE HUNDRED  DOLLARS
FOR  EACH ADDITIONAL VIOLATION WITHIN THE SAME YEAR. PENALTIES COLLECTED
UNDER THIS SUBDIVISION SHALL BE USED TO FUND IMPLEMENTATION AND ENFORCE-
MENT OF SUCH PROGRAM.
  S 963. SEVERABILITY.  IF  ANY  PROVISION  OF  THIS  ARTICLE  SHALL  BE
ADJUDGED  TO  BE  UNCONSTITUTIONAL  OR  INVALID, SUCH JUDGMENT SHALL NOT
AFFECT, IMPAIR  OR  INVALIDATE  THE  REMAINDER  THEREOF,  BUT  SHALL  BE
CONFINED  IN  ITS  OPERATION  TO  THE PROVISION DIRECTLY INVOLVED IN THE
CONTROVERSY IN WHICH SUCH JUDGMENT SHALL HAVE BEEN RENDERED.
  S 2. Subsection (c) of section 612 of the tax law is amended by adding
a new paragraph 42 to read as follows:
  (42) FOR TAXABLE YEARS  BEGINNING  AFTER  DECEMBER  THIRTY-FIRST,  TWO
THOUSAND  SIXTEEN THE AMOUNT OF QUALIFIED TRANSPORTATION FRINGE BENEFITS
INCLUDED IN FEDERAL ADJUSTED GROSS INCOME, TO THE EXTENT THAT SUCH QUAL-
IFIED TRANSPORTATION FRINGE BENEFITS WOULD HAVE BEEN EXCLUDED FROM GROSS
INCOME PURSUANT TO PARAGRAPH FIVE  OF  SUBSECTION  (A)  OF  SECTION  ONE

A. 1296--A                          3

HUNDRED  THIRTY-TWO  OF THE INTERNAL REVENUE CODE HAD THE FLUSH SENTENCE
OF PARAGRAPH TWO OF SUBSECTION (F) OF SECTION ONE HUNDRED THIRTY-TWO  OF
THE  INTERNAL  REVENUE CODE THAT WAS IN EFFECT ON DECEMBER THIRTY-FIRST,
TWO  THOUSAND  SIXTEEN  CONTINUED IN EFFECT AFTER DECEMBER THIRTY-FIRST,
TWO THOUSAND FIFTEEN; PROVIDED, HOWEVER, THAT  IF  SUBPARAGRAPH  (A)  OF
PARAGRAPH TWO OF SUBSECTION (F) OF SECTION ONE HUNDRED THIRTY-TWO OF THE
INTERNAL REVENUE CODE IS AMENDED SO THAT FOR ANY MONTH THE DOLLAR AMOUNT
IN  EFFECT UNDER SUCH SUBPARAGRAPH (A) IS GREATER THAN THE DOLLAR AMOUNT
IN EFFECT UNDER SUBPARAGRAPH (B) OF PARAGRAPH TWO OF SUBSECTION  (F)  OF
SECTION ONE HUNDRED THIRTY-TWO OF THE INTERNAL REVENUE CODE FOR THE SAME
MONTH,  THE FLUSH SENTENCE OF PARAGRAPH TWO THAT WAS IN EFFECT ON DECEM-
BER THIRTY-FIRST, TWO THOUSAND SIXTEEN SHALL BE DEEMED TO  PROVIDE  THAT
THE  DOLLAR AMOUNT IN EFFECT FOR SUBPARAGRAPH (B) SHALL BE APPLIED AS IF
THE DOLLAR AMOUNT THEREIN WERE THE SAME AS THE DOLLAR AMOUNT  IN  EFFECT
FOR  SUCH  MONTH  UNDER SUBPARAGRAPH (A). NOTWITHSTANDING THE FOREGOING,
IF, PURSUANT TO THIS PARAGRAPH, THE AMOUNT THAT WOULD BE IN  EFFECT  FOR
ANY  MONTH  UNDER SUBPARAGRAPH (A) OR (B) OF PARAGRAPH TWO OF SUBSECTION
(F) OF SECTION ONE HUNDRED THIRTY-TWO OF THE INTERNAL  REVENUE  CODE  IS
LESS  THAN  ONE  HUNDRED SEVENTY-FIVE DOLLARS, SUBPARAGRAPHS (A) AND (B)
SHALL BE APPLIED AS IF THE DOLLAR AMOUNT IN EFFECT FOR SUCH MONTH  UNDER
SUCH SUBPARAGRAPHS WAS ONE HUNDRED SEVENTY-FIVE DOLLARS.
  S  3.  This act shall take effect immediately, provided, however, that
section one of this act shall take effect on the one  hundred  twentieth
day  after it shall have become a law; provided, further, that effective
immediately, the addition, amendment and/or repeal of any rule or  regu-
lation  necessary  for  the implementation of section one of this act on
its effective date is authorized and directed to be made  and  completed
on or before such effective date; provided, further, that section two of
this  act shall apply to taxable years beginning on and after January 1,
2017.