AN ACT RELATING TO LABOR AND LABOR RELATIONS -- THE COMMUTER TRANSPORTATION BENEFITS ACT (Establishes the commuter transportation benefit chapter. Employers with five hundred (500) or more employees required to establish a pre-tax commuter transportation fringe benefit program.)

S2323

2026 -- S 2323
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STATE OF RHODE ISLAND
IN GENERAL ASSEMBLY
JANUARY SESSION, A.D. 2026
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A N A C T
RELATING TO LABOR AND LABOR RELATIONS -- THE COMMUTER
TRANSPORTATION BENEFITS ACT

Introduced By:
Senators Bissaillon, Lawson, DiPalma, Gallo, Gu, Urso, Zurier, Acosta,
Bell, and Mack

Date Introduced:
January 23, 2026

Referred To:
Senate Labor & Gaming
It is enacted by the General Assembly as follows:
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SECTION 1. Title 28 of the General Laws entitled "LABOR AND LABOR RELATIONS"
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is hereby amended by adding thereto the following chapter:
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CHAPTER 61
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THE COMMUTER TRANSPORTATION BENEFITS ACT
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28-61-1. Short title.

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This chapter shall be known and may be cited as the "Commuter Transportation Benefits
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Act."
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28-61-2. Definitions.

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As used in this chapter:
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(1) "Covered employer" means an employer with five hundred (500) or more employees
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assigned, scheduled to work, working or situated at the employer's place of business or work site(s)
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located within the state.
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(2) "Director" means the director of the department of labor and training.
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(3) "Employee" shall have the same meaning as provided in § 28-12-2.
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(4) "Employer" shall have the same meaning as provided in § 28-12-2.
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(5) "Pre-tax transportation fringe benefit" means a pre-tax election transportation fringe
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benefit, that provides commuter highway vehicle and transit benefits, consistent with the provisions
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and limits of § 132(f)(1) of the Internal Revenue Code of 1986 (26 U.S.C. §132(f)(1)) at the

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maximum benefit levels allowable under federal law, to be deducted for those programs from an
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employee's gross income, pursuant to § 132(f)(2) of the Internal Revenue Code of 1986 (26 U.S.C.
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§ 132(f)(2)).
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(6) "Transit pass" means a pass for travel by bus or vehicle, operated by the Rhode Island
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public transit authority (RIPTA).
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28-61-3. Commuter employee transportation benefit.

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(a) Except as provided in subsection (b) of this section, every covered employer with five
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hundred (500) or more employees, shall offer employees a pre-tax transportation fringe benefit
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program, that provides commuter transit benefits consistent with § 132(f)(1) of the Internal
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Revenue Code of 1986 (26 U.S.C. § 132(f)(1)) at the maximum benefit levels allowable under
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federal law, to be deducted from an employee's gross income, pursuant to § 132(f)(2) of the Internal
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Revenue Code of 1986 (26 U.S.C. § 132(f)(2)).
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(b) Subsection (a) of this section shall not apply to:
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(1) The government of the United States;
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(2) The State of Rhode Island including any office, department, agency, authority,
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institution, association, society or other body of the state;
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(3) Any local government or entity;
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(4) Any group of employees covered by a collective bargaining agreement in effect on
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January 1, 2027, until the expiration of the collective bargaining agreement; or
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(5) Any employer who has demonstrated to the satisfaction of the director that the offering
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of such benefits would result in a severe financial hardship for the employer.
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28-61-4. Rules and regulations.

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The director shall promulgate rules and regulations as he or she deems necessary to
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effectuate the provisions of this chapter.
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28-61-5. Civil penalty.

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Any employer found to be in violation of the provisions of this chapter shall be liable for
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a civil penalty of not less than one hundred dollars ($100) and not more than two hundred fifty
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dollars ($250) for a first violation. An employer shall have ninety (90) days to offer a pre-tax
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transportation fringe benefit, before the civil penalty is imposed. After ninety (90) days, each
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additional thirty (30) day period in which an employer fails to comply with the provisions of this
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chapter, shall constitute a subsequent violation and a civil penalty of two hundred fifty dollars
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($250) shall be imposed for each subsequent violation. No civil penalty shall be imposed on any
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single employer, more than once in any thirty (30) day period.
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28-61-6. Public awareness campaign.

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The department of transportation, in conjunction with the department of labor and training,
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shall conduct a public awareness campaign, encouraging the public to contact employers about
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commuter transportation benefits.
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SECTION 2. This act shall take effect on January 1, 2027.
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EXPLANATION
BY THE LEGISLATIVE COUNCIL
OF
A N A C T
RELATING TO LABOR AND LABOR RELATIONS -- THE COMMUTER
TRANSPORTATION BENEFITS ACT
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This act would establish the commuter transportation benefit chapter. Employers with five
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hundred (500) or more employees would be required to establish a pre-tax commuter transportation
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fringe benefit program.
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This act would take effect on January 1, 2027.
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