a) Every covered employer must provide employees an employee pre-tax election transportation fringe benefits program, in compliance with 26 U.S.C. §132(f), that provides employees the option of pre-tax payment for:

i) Transportation in a commuter highway vehicle, as defined in 26 U.S.C. §132(f)(5),  in connection with travel between the employee’s residence and place of employment at a benefit level equal to the maximum amount of such a fringe benefit that may be deducted from an employee’s gross income under 26 U.S.C. §132(f);

ii) A transit pass, at a benefit level equal to the maximum amount of such a fringe benefit that may be deducted from an employee’s gross income in compliance with 26 U.S.C. §132(f);

iii) Qualified parking, as defined in 26 U.S.C. §132(f)(5),  at a benefit level equal to the maximum amount of such a fringe benefit that may be deducted from an employee’s gross income in compliance with 26 U.S.C. §132(f); or

iv) Qualified bicycling commuting reimbursement, as defined in 26 U.S.C. §132(f)(5), at a benefit level equal to the maximum amount of such a fringe benefit that may be deducted from an employee’s gross income in compliance with 26 U.S.C. §132(f).

v) The [Department] shall consult 26 U.S.C. §132(f) and implementing documents from the Internal Revenue Service, as amended from time to time,  for guidance on the maximum deduction amount and qualifying pre-tax benefit options. The [Department] may optionally adopt rules, regulations, or issue guidance documents as necessary to account for changes or expansions to qualifying pre-tax benefit options or the maximum deduction amount in the Internal Revenue Code.

b) Covered Employer

i) An employer with 20 or more employees shall be deemed a covered employer. 

ii) Any employee who teleworks for more than 50 percent of their work days shall not be included for the purposes of the covered employer thresholds established in this subsection, though may still be offered pre-tax election transportation fringe benefits program participation at a covered employer’s discretion.

iii) When calculating the number of employees for purposes of determining whether it is a covered employer under this Act, an employer shall use the greater of:

1) The number of full-time and part-time employees as of December 31 of the previous calendar year; or,

2) The average number of employees during the previous calendar year.

c) Enforcement

i) The provisions of this Act shall be enforceable by the [Department]. 

ii) Any employer found to be in violation of the provisions of this Act shall be liable for a civil penalty of not less than $100 and not more than $250 for a first violation, to be inflation adjusted annually. 

1) An employer shall have 90 days from the notice of a first violation to offer a pre-tax transportation fringe benefit for covered employees before the civil penalty is imposed.

2)After 90 days, each additional 30 day period in which an employer fails to offer a pre-tax transportation fringe benefit to covered employees shall constitute a subsequent violation.

iii) A civil penalty of not less than $250, to be inflation adjusted annually, shall be imposed for each subsequent violation, not to exceed once per individual employer each 30 day period.

d) The [Department] shall conduct a public awareness campaign in partnership with [relevant stakeholders or other State Departments] about pre-tax transportation fringe benefits. The public awareness campaign may include both employer and employee-targeted outreach and advertising.

e) [Department] may adopt rules and regulations concerning the administration and enforcement of the pre-tax transportation fringe benefit requirements set forth by this Act.

f) The provisions of this Act are severable. If any provision of this Act or its application is held invalid, that invalidity shall not affect other provisions or applications that can be given effect without the invalid provision or application.