Bill Text: HI HB2254 | 2012 | Regular Session | Amended
Bill Title: Pretax Transportation Benefit; Statewide
Spectrum: Partisan Bill (Democrat 7-0)
Status: (Passed) 2012-04-24 - (S) Act 045, 4/23/2012 (Gov. Msg. No. 1145). [HB2254 Detail]
Download: Hawaii-2012-HB2254-Amended.html
STAND. COM. REP. NO. 2909
Honolulu, Hawaii
RE: H.B. No. 2254
H.D. 1
Honorable Shan S. Tsutsui
President of the Senate
Twenty-Sixth State Legislature
Regular Session of 2012
State of Hawaii
Sir:
Your Committee on Judiciary and Labor, to which was referred H.B. No. 2254, H.D. 1, entitled:
"A BILL FOR AN ACT RELATING TO THE PRETAX TRANSPORTATION BENEFIT,"
begs leave to report as follows:
The purpose and intent of this measure is to allow chief executives of the State and counties to establish a wage and salary reduction benefit program that qualifies as a pretax transportation benefit program under section 132 of the Internal Revenue Code.
Your Committee received testimony in support of this measure from the Department of Human Resources Development and Hawaii Government Employees Association, AFSCME Local 152, AFL-CIO.
Your Committee finds that the Department of Human Resources Development currently operates a pretax transportation benefit pilot program in the City and County of Honolulu for public employees of the state executive branch (excluding the Department of Education) who are eligible to participate in the state Employees' Retirement System, live and work on Oahu, and do not have parking in a state-controlled lot with a parking payroll deduction. This pilot program operates pursuant to section 132 of the Internal Revenue Code and the federal Transportation Equity Act for the 21st Century and allows employers to offer employees the opportunity to deduct certain qualified transportation expenses, such as public bus fares or vouchers for the cost of vanpool seat fares, from their paychecks on a pretax basis. This transportation fringe benefit is similar to the pretax flexible spending accounts available for medical expenses and dependent care.
Your Committee further finds that the savings from participating in this program depend on the employee's tax bracket and type of transportation benefit the employee purchases through the program. For example, based on an annual salary of $24,000, a tax savings of $134.24, $253.68, or $181.53 may be gained through participation in the program. This measure provides savings to employees by authorizing the establishment of a permanent pretax transportation benefit program statewide, including counties.
As affirmed by the record of votes of the members of your Committee on Judiciary and Labor that is attached to this report, your Committee is in accord with the intent and purpose of H.B. No. 2254, H.D. 1, and recommends that it pass Second Reading and be referred to the Committee on Ways and Means.
Respectfully submitted on behalf of the members of the Committee on Judiciary and Labor,
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____________________________ CLAYTON HEE, Chair |
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