Report Title:

Public Transit Benefit Program

Description:

Directs the director of human resources development to establish a voluntary pre-tax savings public transit benefit program for state employees that allows purchase of monthly bus passes or transit vouchers before state, federal, and FICA taxes are deducted; appropriates funds.

HOUSE OF REPRESENTATIVES

H.B. NO.

849

TWENTY-SECOND LEGISLATURE, 2003

 

STATE OF HAWAII

 


 

A BILL FOR AN ACT

 

relating to public transit benefit programs.

 

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:

SECTION 1. The legislature finds that the Transportation Equity Act for the 21st Century (Internal Revenue Code section 132(f)), allows employers to offer qualified parking and transit expenses on a pre-tax basis, providing employees with an opportunity to save money on FICA, federal, and state income taxes.

Currently, state employees may choose to participate in the Flex Park benefit program that allows eligible parking fees to be deducted before federal, state, and FICA taxes are calculated. Although city and county of Honolulu employees may participate in TheBus Tax Saving Bonus program and receive similar pre-tax savings with monthly bus passes or transit vouchers for Vanpool Hawaii, TheHandi-Van, LOTMA TransHawaii commuter bus service, there is no program that provides the same public transit benefit program to state employees. Creating such a program for state employees would have the double benefit of tax savings for employees and encouraging the use of alternative transportation.

The purpose of this Act is to direct the comptroller to establish a voluntary public transit benefit program similar to Flex Park that would allow state employees to choose to purchase a monthly bus pass or other designated transit vouchers with pre-tax payroll deductions, as allowed by the Internal Revenue Code section 132(f).

SECTION 2. (a) The director of human resources development shall develop a voluntary public transit benefit program that qualifies under section 132(f) of the Internal Revenue Code as a pre-tax public transit benefit program for all state public employees. The director shall implement the public transit benefit program beginning on July 1, 2004.

(b) In developing the public transit benefit program, the director shall determine whether to: administer the program internally or to outsource for administrative services in the private sector; and develop an effective program to communicate with and educate state employees about the public transit benefit program to gain employee acceptance, to enable the system to operate efficiently, and to encourage use of alternative transportation.

SECTION 3. There is appropriated out of the general revenues of the State of Hawaii the sum of $ , or so much thereof as may be necessary for fiscal year 2003-2004, and the same sum, or so much thereof as may be necessary for fiscal year 2004-2005, to carry out the purposes of this Act, including hiring of necessary staff.

The sums shall be expended by the department of human resources development.

SECTION 4. This Act shall take effect upon its approval; provided that section 3 shall take effect on July 1, 2003.

INTRODUCED BY:

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