HB5518 100TH GENERAL ASSEMBLY

LRB100 18151 JLS 33346 b

100TH GENERAL ASSEMBLY
State of Illinois
2017 and 2018
HB5518

Introduced , by Rep. Theresa Mah

SYNOPSIS AS INTRODUCED:

New Act

Creates the Transportation Benefit Program Act. Provides that an employer that is situated in Cook County or specified townships and for which an average of 25 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 or for the purchase of qualified parking, 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. Effective January 1, 2019.

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:

(i) that is situated in Cook County; Warren Township in Lake County; Grant Township in Lake County; Frankfort Township in Will County; Wheatland Township in Will County; Addison Township; Bloomingdale Township; York Township; Milton Township; Winfield Township; Downers Grove Township; Lisle Township; Naperville Township; Dundee Township; Elgin Township; St. Charles Township; Geneva Township; Batavia Township; Aurora Township; Zion Township; Benton Township; Waukegan Township; Avon Township; Libertyville Township; Shields Township; Vernon Township; West Deerfield Township; Deerfield Township; McHenry Township; Nunda Township; Algonquin Township; DuPage Township; Homer Township; Lockport Township; Plainfield Township; New Lenox Township; Joliet Township; or Troy Township; and

(ii) for which an average of 25 or more full-time employees work for compensation in the geographic area specified in item (i).

"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.

"Qualified parking" means parking provided to an employee on or near the business premises of the employer or on or near a location from which the employee commutes to work by transportation on public transit. "Qualified parking" does not include parking on or near property used by the employee for residential purposes.

"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) Qualified parking.

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

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 or for the purchase of qualified parking, 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. 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 99. Effective date. This Act takes effect January 1, 2019.