NY State Senate Bill 2011-S535

Senate Bill S535

2011-2012 Legislative Session

Requires certain employers shall establish qualified transportation fringe benefit programs for employees

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Archive: Last Bill Status - Stricken

Introduced
- In Committee Assembly
- In Committee Senate
- On Floor Calendar Assembly
- On Floor Calendar Senate
- Passed Assembly
- Passed Senate
Delivered to Governor
Signed By Governor

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Actions

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	Assembly Actions - Lowercase Senate Actions - UPPERCASE
May 07, 2012	recommit, enacting clause stricken
Jan 04, 2012	referred to labor
Jan 05, 2011	referred to labor

co-Sponsors

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2011-S535 (ACTIVE) - Details

Law Section:: Labor Law
Laws Affected:: Add Art 32 §§930 - 932, Lab L
Versions Introduced in 2009-2010 Legislative Session:: S1858

2011-S535 (ACTIVE) - Summary

Requires employers with fifty or more employees shall establish qualified transportation fringe benefit programs consistent with section 132 of the internal revenue code; defines terms; provides that employers are not required to provide transportation for employees.

2011-S535 (ACTIVE) - Sponsor Memo

                                BILL NUMBER:S535

TITLE OF BILL:
An act
to amend the labor law, in relation to requiring certain employers offer
a qualified transportation fringe benefit program for employees

PURPOSE:
Requires certain employers shall establish qualified transportation
fringe benefit programs for employees.

SUMMARY OF PROVISIONS:
Amends the labor law by adding a new article 32, entitled the Employee
Transportation Expenses Act, which requires that employers with 50 or
more employees, not including public employers, offer their employees
the opportunity to pay qualified commuting costs through their
employer out of pre-tax income, in accordance with section 132 of the
internal revenue code.

JUSTIFICATION:
Since 2002, federal tax law has allowed employees to set aside up to
$100 per month of their gross income through their employer to pay
qualified mass transit or vanpool commuting costs. The employee can
save up to $400 annually because the amount set aside is not subject
to federal or state income taxes. The employer saves money because
any employee gross income set aside under the program is also exempt

from payroll taxation.

Employers also have the option of paying their employees up to $100
per month in transportation benefits to cover qualified mass transit
or vanpool commuting costs. Under this option, the employee still
receives tax-free income and the employer gets both a tax deduction
and a possible reduction in payroll taxes if the transportation
benefit is used to offset other wages. In either case, an employee is
always free to choose whether or not to participate.

By requiring large employers to offer this program, this bill will
encourage the use of mass transit. For those employees who already
commute to work using mass transit, it will offer significant tax
savings. Participating employers will also reduce their tax burden.

LEGISLATIVE HISTORY:
2004   A.8916 - Referred to Labor
2006   S.4431 - Referred to Labor
2008   S.2236 - Referred to Labor
2009   S.1858 - Referred to Labor

FISCAL IMPLICATIONS:
None to the state.

EFFECTIVE DATE:
This act shall take effect on the one hundred eightieth day after it
shall have become a law.

2011-S535 (ACTIVE) - Bill Text download pdf

                            
                    S T A T E   O F   N E W   Y O R K
________________________________________________________________________

                                   535

                       2011-2012 Regular Sessions

                            I N  S E N A T E

                               (PREFILED)

                             January 5, 2011
                               ___________

Introduced  by Sens. KLEIN, DIAZ, DILAN, KRUEGER, SAMPSON, SMITH, STAVI-
  SKY -- read twice and ordered printed, and when printed to be  commit-
  ted to the Committee on Labor

AN  ACT to amend the labor law, in relation to requiring certain employ-
  ers offer  a  qualified  transportation  fringe  benefit  program  for
  employees

  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 32 to read
as follows:
                                ARTICLE 32
                  EMPLOYEE TRANSPORTATION EXPENSES ACT

SECTION 930. SHORT TITLE.
        931. APPLICABILITY; DEFINITIONS.
        932. QUALIFIED TRANSPORTATION FRINGE BENEFIT PROGRAM.

  S 930. SHORT TITLE. THIS ARTICLE SHALL BE KNOWN AND MAY  BE  CITED  AS
THE "EMPLOYEE TRANSPORTATION EXPENSES ACT".
  S  931. APPLICABILITY; DEFINITIONS. 1. THIS ARTICLE SHALL APPLY TO ANY
EMPLOYEE OF A BUSINESS WITH FIFTY OR MORE EMPLOYEES.
  2. FOR PURPOSES OF THIS ARTICLE: A. "EMPLOYER" SHALL MEAN ANY  PERSON,
PARTNERSHIP,  FIRM,  ASSOCIATION, LIMITED LIABILITY COMPANY, OR DOMESTIC
OR FOREIGN CORPORATION; PROVIDED, HOWEVER, SUCH TERM SHALL  NOT  INCLUDE
PUBLIC EMPLOYERS, INCLUDING THE STATE.
  B.  "PROGRAM  ADMINISTRATOR"  SHALL  MEAN THE AGENT, AS DETERMINED AND
DESIGNATED BY THE EMPLOYER, RESPONSIBLE FOR THE MAINTENANCE AND  MANAGE-
MENT  OF  THE QUALIFIED TRANSPORTATION FRINGE BENEFIT PROGRAM AS AUTHOR-
IZED IN SUBDIVISION ONE OF SECTION NINE HUNDRED THIRTY-TWO OF THIS ARTI-
CLE.

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

                                                           LBD04418-01-1

S. 535                              2

  S 932. QUALIFIED  TRANSPORTATION  FRINGE  BENEFIT  PROGRAM.  1.  EVERY
EMPLOYER  SHALL  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.
FOLLOWING THE ESTABLISHMENT OF A QUALIFIED TRANSPORTATION FRINGE BENEFIT
PROGRAM  AS REQUIRED BY THIS SUBDIVISION EMPLOYEES SHALL BE PERMITTED TO
USE PRE-TAX EARNINGS TO PURCHASE QUALIFIED TRANSPORTATION  BENEFITS,  IN
ACCORDANCE  WITH  FEDERAL  LAW  AND  SHALL  BE ENTITLED TO SUCH PERSONAL
INCOME TAX BENEFITS AS MAY BE AUTHORIZED BY SUCH LAW.
  2. AT THE REQUEST OF  AN  EMPLOYEE,  AN  EMPLOYER  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 ONE  OF  THIS
SECTION,  AND  SHALL  TRANSFER  THE  AMOUNT SO REDUCED TO THE AUTHORIZED
PROGRAM ADMINISTRATOR.
  3. MONEYS DEDUCTED FROM THE SALARIES OF EMPLOYEES OF  EMPLOYERS  SHALL
BE HELD BY THE PROGRAM ADMINISTRATOR AS AGENT FOR THE EMPLOYER AND SHALL
BE  ACCOUNTED  FOR  SEPARATELY.  ALL  PAYMENTS  OF MONEYS BY THE PROGRAM
ADMINISTRATOR SHALL BE MADE ONLY IN ACCORDANCE WITH THE QUALIFIED TRANS-
PORTATION FRINGE BENEFIT PROGRAM.
  4. 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 PROVID-
ING SUCH EMPLOYEE WITH A QUALIFIED TRANSPORTATION FRINGE  BENEFIT  SHALL
BE  CONSIDERED  PART OF ANNUAL COMPENSATION FOR THE PURPOSE OF COMPUTING
RETIREMENT BENEFITS.
  5. NOTWITHSTANDING ANY OTHER PROVISION OF LAW TO THE  CONTRARY,  WHERE
AND  TO  THE  EXTENT THAT, AN AGREEMENT BETWEEN AN EMPLOYER AND A RECOG-
NIZED EMPLOYEE ORGANIZATION ENTERED INTO ON BEHALF  OF  EMPLOYEES  IN  A
COLLECTIVE  NEGOTIATING  UNIT  PROVIDES  FOR  A QUALIFIED TRANSPORTATION
FRINGE BENEFIT AS PROVIDED BY THIS SECTION, SUCH  QUALIFIED  TRANSPORTA-
TION  FRINGE BENEFIT SHALL BE ESTABLISHED IN ACCORDANCE WITH SUCH AGREE-
MENT.
  6. THIS SECTION SHALL NOT BE CONSTRUED TO REQUIRE EMPLOYERS TO PROVIDE
TRANSPORTATION FOR EMPLOYEES.
  S 2. This act shall take effect on the one hundred eightieth day after
it shall have become a law.

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Senate Bill S535

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Sponsored By

Jeffrey D. Klein

Archive: Last Bill Status - Stricken

co-Sponsors

Ruben Diaz

Martin Malavé Dilan

Liz Krueger

John L. Sampson

2011-S535 (ACTIVE) - Details

2011-S535 (ACTIVE) - Summary

2011-S535 (ACTIVE) - Sponsor Memo

2011-S535 (ACTIVE) - Bill Text download pdf

Comments