HB2533 101ST GENERAL ASSEMBLY

LRB101 00176 KTG 45190 b

101ST GENERAL ASSEMBLY
State of Illinois
2019 and 2020
HB2533

Introduced , by Rep. Theresa Mah

SYNOPSIS AS INTRODUCED:

New Act
30 ILCS 105/5.886 new

Creates the Transportation Benefit Program Act. Provides that an employer that is situated in Cook County and for which an average of 20 or more full-time employees work for compensation shall offer a program that allows a covered employee to elect to exclude from taxable wages and compensation the employee's commuting costs incurred for the purchase of a transit pass to use public transit up to a maximum level allowed by federal tax law. Provides that a covered employer may comply by participating in a program offered by the Chicago Transit Authority or the Regional Transit Authority. Provides that all transit agencies shall market the existence of the program to their riders. Establishes penalties for violations of the Act. Amends the State Finance Act to create the Transportation Benefits Program Fund. Effective January 1, 2020.

FISCAL NOTE ACT MAY APPLY

A BILL FOR

AN ACT concerning business.

Be it enacted by the People of the State of Illinois, represented in the General Assembly:

Section 1. Short title. This Act may be cited as the Transportation Benefit Program Act.

Section 5. Definitions. As used in this Act:

"Covered employee" means any person who performs an average of at least 35 hours of work per week for compensation on a full-time basis.

"Covered employer" means an employer that is situated in Cook County for which an average of 20 or more full-time employees work for compensation in the geographic area.

"Employer" means any individual, partnership, association, corporation, limited liability company, government, non-profit organization, or business trust that directly or indirectly, or through an agent or any other person, employs or exercises control over wages, hours, or working conditions of an employee.

"Public transit" means any transportation system within the authority and jurisdiction of the Regional Transportation Authority.

"Transit pass" means any pass, token, fare card, voucher, or similar item entitling a person to transportation on public transit.

"Transportation benefit program" means any of the following provided by an employer to an employee:

(1) Any transit pass.

(2) Cash reimbursement by an employer to an employee for a benefit described in item (1).

Section 10. Transportation benefit program. A covered employer shall provide a transportation benefit program that allows a covered employee to elect to exclude from taxable wages and compensation the employee's commuting costs incurred for the purchase of a transit pass to use public transit up to the maximum exclusion or deduction allowed to an employee by federal tax law. A covered employer may comply with this Section by participating in a program offered by the Chicago Transit Authority or the Regional Transportation Authority.

This benefit must be offered to all employees starting on the employees' first full pay period after 120 days of employment. All transit agencies shall market the existence of this program and this Act to their riders in order to inform affected employees and their employers.

Section 15. Penalties.

(a) A covered employer that fails to offer a transportation benefit program to covered employees as required by this Act is subject to: (i) a civil penalty of not more than $100 for a first violation; (ii) a civil penalty of not more than $200 for a second violation within the same year; and (iii) a civil penalty of not more than $500 for each additional violation within the same year.

(b) The Department of Labor shall enforce this Act and shall adopt rules concerning: (i) the issuance of citations to any covered employer that fails to provide a transportation benefits program to covered employees as required by this Act; (ii) the amount of penalties; and (iii) the procedure for the imposition, collection, and administrative review of citations issued and penalties imposed to enforce this Act.

(c) Penalties collected under this Section, which may include recovery of enforcement costs, shall be deposited into the Transportation Benefits Program Fund created under Section 20.

Section 20. Transportation Benefits Program Fund. The Transportation Benefits Program Fund is created as a special fund in the State treasury. The Fund shall consist of any moneys deposited into the Fund as provided in subsection (c) of Section 15. Moneys in the Fund shall be used for the administration of this Act and for no other purpose. All interest earned on moneys in the Fund shall be deposited into the Fund.

Section 25. Application of Act. Nothing in this Act shall be deemed to interfere with, impede, or in any way diminish the right of employees to bargain collectively with their employers through representatives of their own choosing in order to establish wages or other conditions of work in excess of the applicable minimum standards of the provisions of this Act. Nothing in this Act shall be deemed to affect the validity or change the terms of bona fide collective bargaining agreements in force on the effective date of this Act. After the effective date of this Act, requirements of this Act may be waived in a bona fide collective bargaining agreement, but only if the waiver is set forth explicitly in such agreement in clear and unambiguous terms.

Section 35. The State Finance Act is amended by adding Section 5.886 as follows:

(30 ILCS 105/5.886 new)

Sec. 5.886. The Transportation Benefits Program Fund.

Section 99. Effective date. This Act takes effect January 1, 2020.