HOUSE OF REPRESENTATIVES

H.B. NO.

199

TWENTY-SIXTH LEGISLATURE, 2011

 

STATE OF HAWAII

 

 

 

 

 

 

A BILL FOR AN ACT

 

 

RELATING TO QUALIFIED TRANSPORTATION BENEFITS.

 

 

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

 


     SECTION 1.  The department of human resources development administers a pre-tax transportation benefit program for eligible employees of the executive branch who live and work on Oahu.  The program allows employees to purchase, on a pre-tax basis, passes for TheBus, fare coupons for TheHandi-Van, and vouchers for Vanpool Hawaii.

     Through the pre-tax transportation benefit program, participating employees save money by purchasing transit passes with pre-tax money.  The State also saves money because an employee's participation in the program decreases the employee's gross taxable wages and corresponding social security taxes, which decreases the amount that the State, as employer, must contribute.

     The purpose of this Act is to expand the existing pre-tax transportation benefit program by making it available to all eligible state employees.

     SECTION 2.  The Hawaii Revised Statutes is amended by adding a new chapter to be appropriately designated and to read as follows:

"Chapter

tRANSPORTATION BENEFITS

     §  -A  Definitions.  As used in this chapter, unless the context clearly indicates otherwise:

     "Department" means the department of human resources development.

     "Employee" means a person who is employed by the State who is eligible to participate in the employees' retirement system of the State of Hawaii as defined in section 88-21.

     "Transit pass" has the same meaning as in section 132(f)(5) of the Internal Revenue Code of 1986, as amended.

     §  -B  Pre-tax transportation benefit program.  (a)  The State shall establish a pre-tax transportation benefit program in accordance with section 132(f) of the Internal Revenue Code of 1986, as amended.  The pre-tax transportation benefit program shall allow employees to exclude from gross income the value of any transit pass, in accordance with section 132(f) of the Internal Revenue Code, as amended.  The program shall be placed within the department.

     (b)  The department shall adopt rules pursuant to chapter 91 to carry out the purposes of this chapter."

     SECTION 3.  This Act shall take effect upon its approval; provided that a pre-tax transportation benefit program shall be available to all state employees no later than July 1, 2012.

 

INTRODUCED BY:

_____________________________

 

 


 


 

Report Title:

Qualified Transportation Benefits; Pre-Tax Transportation Benefit Program

 

Description:

Authorizes the State to establish a pre-tax transportation benefit program for the benefit of state employees.  Places the program in the department of human resources development.

 

 

 

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