S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   14--A
 
                        2019-2020 Regular Sessions
 
                             I N  S E N A T E
 
                                (PREFILED)
 
                              January 9, 2019
                                ___________
 
 Introduced  by  Sen. HOYLMAN -- read twice and ordered printed, and when
   printed to be  committed  to  the  Committee  on  Labor  --  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.
   § 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.

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

                                                            LBD04148-03-9

 S. 14--A                            2
 
   3. "TRANSIT PASS" SHALL MEAN ANY PASS, TOKEN, FARE  CARD,  VOUCHER  OR
 SIMILAR  ITEM  ENTITLING  A  PERSON  TO TRANSPORTATION ON PUBLIC TRANSIT
 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.
   §  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.
   §  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.
   § 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.
   § 2. Subsection (c) of section 612 of the tax law is amended by adding
 a new paragraph 43 to read as follows:
   (43) FOR TAXABLE YEARS  BEGINNING  AFTER  DECEMBER  THIRTY-FIRST,  TWO
 THOUSAND  TWENTY  THE AMOUNT OF QUALIFIED TRANSPORTATION FRINGE BENEFITS
 INCLUDED IN FEDERAL ADJUSTED GROSS INCOME, TO THE EXTENT THAT SUCH QUAL-

 S. 14--A                            3
 
 IFIED TRANSPORTATION FRINGE BENEFITS WOULD HAVE BEEN EXCLUDED FROM GROSS
 INCOME PURSUANT TO PARAGRAPH FIVE  OF  SUBSECTION  (A)  OF  SECTION  ONE
 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 TWENTY CONTINUED IN EFFECT AFTER DECEMBER THIRTY-FIRST, TWO
 THOUSAND  NINETEEN; PROVIDED, HOWEVER, THAT IF SUBPARAGRAPH (A) OF PARA-
 GRAPH 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 TWENTY 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.
   §  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,
 2021.