2023 -- S 0173
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S TATE OF RHODE IS LAND
IN GENERAL ASSEMBLY
JANUARY SESSION, A.D. 2023
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A N A C T
RELATING TO LABOR AND LABOR RELATIONS -- THE COMMUTER
TRANSPORTATION BENEF ITS ACT
Introduced By: Senators Lawson, DiMario, F. Lombardi, Cano, Britto, Lauria, Mack, and
Acosta
Date Introduced: February 16, 2023
Referred To: Senate Commerce
It is enacted by the General Assembly as follows:
SECTION 1. Title 28 of the General Laws entitled "LABOR AND LABOR RELATIONS" 1
is hereby amended by adding thereto the following chapter: 2
CHAPTER 60 3
THE COMMUTER TRANSPORTATION BENEFITS ACT 4
28-60-1. Short title. 5
This chapter shall be known and may be cited as the "Commuter Transportation Benefits 6
Act." 7
28-60-2. Definitions. 8
As used in this chapter: 9
(1) "Covered employer" means an employer with five hundred (500) or more employees 10
assigned, scheduled to work, working or situated at the employer's place of business or work site(s) 11
located within the state. 12
(2) "Director" means the director of the department of labor and training. 13
(3) "Employee" shall have the same meaning as provided in § 28-12-2. 14
(4) "Employer" shall have the same meaning as provided in § 28-12-2. 15
(5) "Pre-tax transportation fringe benefit" means a pre-tax election transportation fringe 16
benefit, that provides commuter highway vehicle and transit benefits, consistent with the provisions 17
and limits of § 132(f)(1) of the Internal Revenue Code of 1986 (26 U.S.C. §132(f)(1)) at the 18
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maximum benefit levels allowable under federal law, to be deducted for those programs from an 1
employee's gross income, pursuant to § 132(f)(2) of the Internal Revenue Code of 1986 (26 U.S.C. 2
§ 132(f)(2)). 3
(6) "Transit pass" means a pass for travel by bus or vehicle, operated by the Rhode Island 4
public transit authority (RIPTA). 5
28-60-3. Commuter employee transportation benefit. 6
(a) Except as provided in subsection (b) of this section, every covered employer with five 7
hundred (500) or more employees, shall offer employees a pre-tax transportation fringe benefit 8
program, that provides commuter transit benefits consistent with § 132(f)(1) of the Internal 9
Revenue Code of 1986 (26 U.S.C. § 132(f)(1)) at the maximum benefit levels allowable under 10
federal law, to be deducted from an employee's gross income, pursuant to § 132(f)(2) of the Internal 11
Revenue Code of 1986 (26 U.S.C. § 132(f)(2)). 12
(b) Subsection (a) of this section shall not apply to: 13
(1) The government of the United States; 14
(2) The State of Rhode Island including any office, department, agency, authority, 15
institution, association, society or other body of the state; 16
(3) Any local government or entity; 17
(4) Any group of employees covered by a collective bargaining agreement in effect on 18
January 1, 2024, until the expiration of the collective bargaining agreement; or 19
(5) Any employer who has demonstrated to the satisfaction of the director that the offering 20
of such benefits would result in a severe financial hardship for the employer. 21
28-60-4. Rules and regulations. 22
The director shall promulgate rules and regulations as he or she deems necessary to 23
effectuate the provisions of this chapter. 24
28-60-5. Civil penalty. 25
Any employer found to be in violation of the provisions of this chapter shall be liable for 26
a civil penalty of not less than one hundred dollars ($100) and not more than two hundred fifty 27
dollars ($250) for a first violation. An employer shall have ninety (90) days to offer a pre-tax 28
transportation fringe benefit, before the civil penalty is imposed. After ninety (90) days, each 29
additional thirty (30) day period in which an employer fails to comply with the provisions of this 30
chapter, shall constitute a subsequent violation and a civil penalty of two hundred fifty dollars 31
($250) shall be imposed for each subsequent violation. No civil penalty shall be imposed on any 32
single employer, more than once in any thirty (30) day period. 33
28-60-6. Public awareness campaign. 34
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The department of transportation, in conjunction with the department of labor and training, 1
shall conduct a public awareness campaign, encouraging the public to contact employers about 2
commuter transportation benefits. 3
SECTION 2. This act shall take effect on January 1, 2024. 4
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EXPLANATION
BY THE LEGISLATIVE COUNCIL
OF
A N A C T
RELATING TO LABOR AND LABOR RELATIONS -- THE COMMUTER
TRANSPORTATION BENEF ITS ACT
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This act would establish the commuter transportation benefit chapter. Employers with five 1
hundred (500) or more employees would be required to establish a pre-tax commuter transportation 2
fringe benefit program. 3
This act would take effect on January 1, 2024. 4
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