S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   3653
 
                        2021-2022 Regular Sessions
 
                           I N  A S S E M B L Y
 
                             January 28, 2021
                                ___________
 
 Introduced  by M. of A. RODRIGUEZ -- Multi-Sponsored by -- M. of A. COOK
   -- read once and referred to the Committee on Labor
 
 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 34 to read
 as follows:
                                ARTICLE 34
                      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.
   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

  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD03047-01-1
              

 A. 3653                             2
 
 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-TWO THE AMOUNT OF QUALIFIED TRANSPORTATION FRINGE BENE-
 FITS INCLUDED IN FEDERAL ADJUSTED GROSS INCOME, TO THE EXTENT THAT  SUCH
 QUALIFIED  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

 A. 3653                             3
 
 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-TWO CONTINUED IN EFFECT AFTER DECEMBER THIRTY-FIRST,
 TWO  THOUSAND TWENTY-ONE; 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  TWENTY-TWO 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  FORE-
 GOING,  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 section
 two of this act shall apply to taxable  years  beginning  on  and  after
 January  1, 2023.  Effective immediately, the addition, amendment and/or
 repeal of any rule or regulation necessary  for  the  implementation  of
 section  one of this act on its effective date are authorized to be made
 and completed on or before such effective date.