§ 201-b. Qualified transportation fringe benefit program for certain
state officers and employees. 1. This section shall apply to employees
as set forth in subdivision one of section two hundred one-a of this
article.

2. The director of employee relations, in consultation with the
director of the budget and the president of the civil service
commission, is authorized to establish a qualified transportation fringe
benefit program consistent with section 132 of the internal revenue code
and regulations adopted pursuant thereto, and implement such program
subject to the approval of the director of the budget.

3. At the request of an employee as defined in subdivision one of this
section, the comptroller shall, by payroll deduction, reduce the amount
of compensation elected by the employee pursuant to program regulations
and section 132(f) of the internal revenue code for the purpose of
providing the employee with a qualified transportation fringe benefit as
authorized in subdivision two of this section, and shall transfer the
amount so reduced to the authorized program administrator.

4. The term "program administrator" shall mean that agent, as
determined by the director of employee relations, responsible for the
maintenance and management of the qualified transportation fringe
benefit program as authorized in subdivision two of this section.

5. Moneys deducted from the salaries of employees of participating
employers shall be held by the program administrator as agent for the
participating employer and shall be accounted for separately.
Notwithstanding any law to the contrary, such moneys may be paid out by
the program administrator without any appropriation by law. All payments
of moneys by the program administrator shall be made only in accordance
with the qualified transportation fringe benefit program upon audit of
the state comptroller.

6. To the extent permitted by section 132 of the internal revenue code
and regulations adopted pursuant thereto, any salary deducted from a
participating employee's annual compensation for the purpose of
providing such employee with a qualified transportation fringe benefit
shall be considered part of annual compensation for the purpose of
computing retirement benefits.

7. Notwithstanding any other law, rule, or regulation to the contrary,
where, and to the extent that, an agreement between the state and an
employee organization entered into pursuant to article fourteen of the
civil service law on behalf of employees in a collective negotiating
unit established pursuant to article fourteen of the civil service law
provides for a qualified transportation fringe benefit provided by this
section, such qualified transportation fringe benefit shall be
established in accordance with such agreement.